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BSNL in rejig, apes private competitors

business Updated: May 20, 2009 22:04 IST
Manoj Garola
Manoj Garola
Hindustan Times
BSNL in rejig

Bharat Sanchar Nigam Ltd (BSNL), often seen as a sleepy old state-owned behemoth, is changing colours, and restructuring to face a new age of competition and opportunity. In the process, it is mimicking some of its competitors like Bharti Airtel.

Implementing the advice of the Boston Consulting Group (BCG), BSNL will now have three vertical business units – mobility, fixed-line and enterprise – each headed by a director-level official with newly-assigned responsibilities, a senior company official, who asked not to be identified, told Hindustan Times.

“BCG had studied the private sector and has come out with its recommendations,” said the official. The enterprise unit head will run corporate and bulk customers, while the other two, as their titles suggest, will look after mobile and landline customers, with the latter including IPTV, Internet and broadband services.

The structure is a lot like Bharti Airtel, in which there are mainly four verticals – Mobility, Telemedia, Enterprises and DTH (direct to home) that handles broadcasting. The telemedia unit handles fixed-line and broadband services. “In order to implement the new strategy effectively and to create adequate focus on key areas of operation, it has been decided to adopt a business unit-based organization structure,” said an office memorandum issued by BSNL.

The restructuring will clear up lines of functioning in the company, in which currently the director (operations) is responsible for both mobile and landline services.

The director (planning) is now responsible for planning of all the services while the director (commercial and marketing) is responsible for tendering of GSM technology-based services, besides marketing activities.

Under the new structure, the director (planning) has been redesignated as director (consumer mobility). The former director (operations) is now director (consumer fixed-line), while director (commercial and marketing) is now director (enterprise).