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BSNL to focus on enhancing enterprise services

State-owned BSNL is looking to deploy at least 4% of its total staff strength of around 54,000 on enhancing enterprise services, company sources said. Currently only 1.8% of the staff are deployed for the purpose.

This is because BSNL has seen a fall in revenue from the enterprise business in the last two quarters. The company’s revenue from the enterprise business fell 50% to Rs 952 crore in the July-September quarter, from Rs 1,906 crore in the January-March quarter of FY23, according to its financial statements. In the six months ended September, BSNL’s enterprise business revenue fell nearly 10% year-on-year to Rs 2,007 crore.

“Enterprise business is one of the highest potential revenue earning segments of BSNL. To keep it in mind, it has regularly been emphasised that posting of sufficient staff in EB (enterprise business) field with business acumen will surely play a crucial role and help in increasing BSNL’s enterprise business,” BSNL CMD PK Purwar said in a recent letter to chief general managers (CGMs) of all the circles. A copy of the letter was reviewed by FE.

In the letter, Purwar asked the circle heads to focus on relationship building with customers, which is important for the growth of enterprise business. “CGMs have to post better and suitable employees with business acumen and in sufficient numbers, atleast 4% of respective circle’s staff strength in enterprise business,” Purwar added.

The circle heads have been asked to take necessary steps in terms of increasing the staff for enterprise business, by the end of this month.

As of September 30, BSNL had 54,113 employees pan-India and out of that only 1.8% or 977 employees constitute the company’s enterprise business team.

“Even some of the circles have enterprise business staff strength less than the BSNL average that is 1.8%. Such a scenario may be detrimental in achieving the desired results in enterprise business segment,” Purwar wrote in the letter.

Currently, the enterprise segment contributes nearly 24% to BSNL’s overall revenue. The business is second largest in terms of size for BSNL, after cellular services, that contributes 42% to the company’s overall revenue.

In the July-September quarter, BSNL’s revenue from operations fell 5.1% QoQ (quarter-on-quarter) to Rs 4,071 crore. On a year-on-year basis, the revenue fell 6.6%. For the half financial year ended September, the company’s revenue rose marginally to Rs 8,360 crore. Net loss for the company also expanded to Rs 1,482 crore in the July-September quarter, from Rs 1,470 crore in the preceding quarter.

The company is yet to commercially roll out 4G services. Last month Purwar told FE that BSNL will start rolling out 4G services commercially from December onwards, with a target of pan-India rollout by June 2024. Financial Express

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