People's Democracy

(Weekly Organ of the Communist Party of India (Marxist)


Vol. XXX

No. 03

January 15, 2006

Govt Assures No Disinvestment In BSNL

 

V A N Namboodiri

 

THE central government and the Telecom Regulatory Authority of India (TRAI) have been taking one decision after another to cripple the Bharat Sanchar Nigam Ltd (BSNL), a telecom PSU, to promote the private telecom operators. At the time the BSNL was formed through corporatisation of the Department of Telecom Services (DTS) and Department of Telecom Operations (DTO) in October 2000, the then communications minister Ram Vilas Paswan had assured that the BSNL would be accorded the status of a navaratna or even maharatna. He had also assured to extend all help to the newly formed PSU to develop and expand, despite a large number of licenses given indiscriminately to private companies to run telecom services.

 

At that time, the employees had opposed corporatisation and gone on a two days strike as per the call of the All India Telecom Employees Union (Namboodiri), well knowing that it was the first step towards privatisation. But unfortunately, the then recognised unions supported the government's move for the sake of certain financial benefits and the corporatisation took place even six months earlier than proposed.

 

While new private telecom companies were given all kinds of concessions, these were denied to the BSNL on the plea that it was an already existing organisation. The license fee system for private companies, which was expected to bring about Rs 55,000 crore to the exchequer, was replaced by the revenue sharing system, which brought only a meagre Rs 5,000 crore. While private companies were allowed to start mobile services, the same was denied to the telecom PSUs, BSNL and MTNL, for five long years. the BSNL and MTNL, which were ready to start the mobile service any time, could become only the fourth mobile operator after the market has already been captured by private companies. Still within a short time, BSNL became the second biggest mobile operator and, combined with MTNL, the first. The mobile tariff was largely reduced after the entry of these two PSUs.

 

The required autonomy and powers to run the PSU in competition with the private companies were not given to the BSNL. Decisions to expand and develop were thwarted or delayed on one count or other. The Access Deficit Charge (ADC), which the private companies were to pay to the BSNL for getting connected to the BSNL numbers, were drastically reduced and even recommended to be abolished altogether. The Universal Service Obligation Fund (USOF), which was to be paid to BSNL for providing services in the rural areas, which are socially essential but financially unviable, was delayed for a long time. Private companies, which were under obligation as per license agreement to provide connections in rural areas, were allowed to go scot-free, without any penalty, even when they did not give any connections. Reliance Infocom, which cheated the government and BSNL of thousands of crores of rupees, by manipulating international and national calls into local calls to avoid paying ADC, was let off with a small penalty, while the government should have cancelled its license as per contract provisions.

 

The management, on its part, failed in providing the mobile and broadband services for which there is huge demand. While private operators were ready to provide mobile services at any moment, the public wanted BSNL connections as these are cheaper and more reliable. The present registered waiting list of BSNL mobiles comes to more than 13 lakhs, while the hidden demand will be more than 5 crores. In the name of global tender and other procedural tangles, the connections are being further delayed.

 

Despite all these obstructions on the part of the government and TRAI, the BSNL has grown with the determined and sincere efforts of its workers and officers. Its annual turnover has crossed Rs 33,000 crore and the profit for 2004-05 year is Rs 10,183 crore.

 

MOVE TO DISINVEST

 

The telecom services, which were under the control of the government, were converted into three PSUs --- Videsh Sanchar Nigam Limited (VSNL), Mahanagar Telephone Nigam Limited (MTNL) and Bharat Sanchar Nigam Limited (BSNL). The VSNL has already been sold for a song to the Tatas, while 46 per cent shares of the MTNL are already in the market and disinvestment of 5 per cent more will result in privatisation. All the shares of the BSNL are at present with the government. But it is in a hurry to disinvest the BSNL and gradually privatise it. It was reported in the press that the Economic Affairs Committee has already proposed disinvestment of certain profitable non-navaratna PSUs, including BSNL.

 

Despite strong opposition from the Left parties and the workers, the government decided to raise the FDI cap in telecom to 74 per cent, which means MNCs will take over the Indian private telecom companies. It has got serious security implications, since telecom is the second line of defence. Even the western countries, who are the apostles of liberalisation and globalisation, have not hiked the FDI cap in telecom to more than 35 or 45 per cent due to this consideration. The recent allegations of phone tapping show the gravity of the issue and the role of private telecom companies. the day is not far off when the secret phone conversations of people, VIP or no VIP, will be available in the market for a price. Capital never cared for human values; profit is its only motive.

 

BSNL'S NAVARATNA STATUS & AUTONOMY

 

the grant of autonomy and navaratna status would have helped the BSNL to serve the people better and implement its vast development and expansion projects. Unfortunately, the government took a negative attitude, despite earlier commitment. The biggest PSU in the country, with excellent ranking for years, was denied the navaratna status without any valid reason, while the navaratna status would save it from disinvestment.

 

Now the government is preparing a new telecom policy which includes a number of proposals detrimental to the growth of the telecom PSUs and will grant unjustified bonanza to private telecom companies. Outsourcing and contractisation even for regular jobs, dropping of the ADC, opening up of the copper cables of the BSNL and MTNL to private companies, and sharing of BSNL infrastructure with private companies are only some such proposals. The three and half lakh workers, who have got a big stake, are not consulted in the matter while private companies are taken into confidence and their opinions sought.

 

But the workers are united to face the challenge.

 

All unions of the non-executives and associations of executives, under the initiative of the BSNL Employees Union, the representative and recognised union in the BSNL, have joined together to resist this offensive that threatens the future of BSNL and its workers. Agitation programmes were organised throughout the country demanding immediate action to give autonomy and navaratna status to the BSNL, stop disinvestment and cancel the hike in FDI cap. They met officers of DOT and the prime minister also with their demands. But while some assurances were given, the government proceeded with its plans. Thus the workers had no alternative but to intensify their struggle.

 

The Joint Forum of BSNL Unions then met and decided to call for a strike to defend the BSNL and its workers. Protest demonstrations were organised on December 8 in front of all exchanges and offices and a one day strike on January 5 was decided. Massive dharnas by thousands of workers were organised on December 21, on which day the strike notice was served on the management. Leaders of the participating unions toured the main centres in the country and addressed largely attended meetings. Wall posters and pamphlets were printed and circulated. There was no economic demand of the employees. The demands were only in defence of the BSNL to save it and serve the people better. The demands were against the anti-worker policies of the government.

 

The management did not hold any discussion on the plea that all the demands were related to the policies of the government. However, on the direction of the regional labour commissioner who conducted the conciliation proceedings, a meeting of the senior DOT and BSNL officers with the Joint Forum was held, but without any success. The Joint Forum decided to go on with the strike, as there was no favourable response from the management or the government.

 

However, at about 7.30 p m on January 4, just four hours before the start of the one day strike, the secretary, department of telecommunications, called the unions for a meeting. The Joint Forum, then in session, authorised V A N Namboodiri, general secretary of BSNL Employees Union, to conduct the negotiations, since it was felt that these last minute discussions were only meant to delay matters. The communications minister was abroad and the state minister out of Delhi. The protracted discussions with the secretary continued, and at last he gave certain assurances in writing on the demands included in the strike notice. The assurances given by him were discussed in the Joint Forum of BSNL Unions and the forum unanimously decided to defer the strike on the basis of these assurances.

 

These assurances are important since for the first time it has been made clear that there is no proposal for disinvestment in the BSNL. Its navaratna status is ensured. It was also assured that there is no proposal to unbundle the last mile copper cables of BSNL. The unions will be consulted on NTP 2005. These assurances are a big victory for the BSNL workers. The workers all over the country are jubilant that the Joint Forum has been able to get such vital assurances. The credit goes to BSNL workers whose determination and preparations compelled the government to come to the negotiating table!

 

Despite these assurances, however, workers are under no illusion. The government has already implemented the FDI hike. They well know that the government may again resort to such measures, since it is committed to the liberalisation and globalisation policy. But they have been able to stop the attack for the present. Continued vigilance on part of the workers is a must.

 

For the first time, all the unions and associations of BSNL non-executives and executives joined together to defend their organisation and the workers. There were some vacillations in the initial stage, since the executives were going on strike for the first time, but it was resolved. Shedding all other differences, the workers stood as one man to face the onslaught and fight. The BSNL Employees Union, that has got the status of representative union, has been making all efforts for a common forum and it succeeded.

 

The need of the hour is to strengthen the unity and prepare for further struggles and massive campaign among the workers and common people against the anti-worker policies of the government.

 

(The author is general secretary of BSNL Employees Union.)