BSNL is planning to allocate a minimum of 4% of its workforce, approximately 54,000 employees, to enhance enterprise services, a significant increase from the current 1.8%. This move comes as BSNL experienced a 50% decline in revenue from the enterprise business, dropping from Rs.1,906 crore in the January-March quarter to Rs.952 crore in the July-September quarter of FY23. Over the six months ending in September, BSNL’s enterprise business revenue decreased by nearly 10% year-on-year, reaching Rs.2,007 crore.
BSNL CMD PK Purwar highlighted the significance of the enterprise business as one of the most promising revenue-generating segments. In a recent communication to Chief General Managers (CGMs) across all circles, Purwar underscored the importance of deploying an ample number of staff with business insights in the enterprise business field. This strategic approach is expected to play a pivotal role in boosting BSNL’s enterprise business, as stated in a letter reviewed by FE.
In the communication, Purwar directed circle heads to prioritize the establishment of strong customer relationships, underscoring its significance for the expansion of enterprise business. Purwar emphasized the importance of deploying capable employees with business perception, urging CGMs to assign a minimum of 4% of their circle’s staff to the enterprise business sector. The directive includes taking requisite measures to augment staff dedicated to enterprise business by the end of the current month.
Presently, the enterprise segment constitutes approximately 24% of BSNL’s total revenue, making it the second-largest contributor after cellular services, which account for 42% of the company’s overall revenue. In the July-September quarter, BSNL witnessed a 5.1% quarter-on-quarter decline in revenue from operations, amounting to Rs.4,071 crore, with a 6.6% year-on-year decrease. Over the half financial year ending in September, the company’s revenue experienced a slight increase to Rs.8,360 crore. Meanwhile, the net loss expanded to Rs.1,482 crore in the July-September quarter compared to Rs.1,470 crore in the previous quarter.
Notably, BSNL is yet to launch its 4G services commercially. Purwar mentioned in a recent interview with FE that BSNL plans to initiate the commercial rollout of 4G services starting from December, aiming for a nationwide rollout by June 2024.
