How was BSNL KILLED (strategically) by the Powerful people of India? : BSNL Tragedy Case Study

Hello everyone, for a year and a half we have been hearing news about the government's plans to close Bsnl and since we started following the news, we have always seen Bsnl as a company that incurs losses and incurs thousands of equipment of losses every time. In fact, in the last 10 years, Bsnl has suffered a combined loss of over Rs 80,000 crore and considering the

case

of Air India and the government bureaucracy in general, we assume by default that Bsnl is also one of those poorly managed companies That the government just can't handle, can it? Guess what happened on fi 21, while the market went crazy seeing reliance jio generated a profit of 12,000,537 crore, very few of us know that there was a time when

bsnl

generated a profit of 10,000,183 million of rupees and that too in a single year and from 2001 to 2008, Bsnl generated a cumulative profit of Rs 46,668 crore, which was more than the next three telecom operators combined and that too despite all the subsidized schemes it implemented for rural areas. and for farmers, and not only that it once had a 70 market share and literally acted as the backbone of the Indian telecom industry, so the question is what exactly went wrong with BSNL, which suddenly went from being an abode of India to a sick company. in less than a decade, was it another mismanagement by the government or was it deliberately crippled by the private sector and most importantly as citizens of India?

What are the lessons we should learn from the tragic fall of BSNL? This video is brought by the wind. but more on this at the end of the video to understand the fall of

bsnl

, we must first understand why it is essential for a nation like India to compulsorily have government companies operating in certain sectors even though they incur huge losses, in this

case

, There are three important reasons why very few

people

understand. The first reason why a government business is essential is because of accessibility. If a company like Airtel wants to serve a particular region then the most important factor that will be considered is profit, so if there are only 100 farmers living in a particular village and only 10 of them can offer to pay for airtel and then by airtel installing a tower by spending a ton of capital and human resources does not make any sense because eventually you will incur losses but if you look at it from common point of view, while for ltl they are just customers of the government of India, they are citizens of the country who need to be taken care of and who need to be uplifted so that they can eventually contribute to the Indian economy. country, why?

Because only when they have access to basic services like telephone, electricity and water, can they truly become resourceful for the Indian economy. In fact, many of you must have heard of something called Krishi SIM card that offers internet and calls at very affordable rates. farmers and this is also the reason why even today you will see that bsl network is available even in the remotest parts of our country while your idea jio and airtel are not working in those regions especially in a region like ladakh, and this brings me to the second reason and that is regulation which means tomorrow if jio and airtel come together to become a pulley they could start increasing the price of their data and now that internet has become very important for us, even if these companies double the internet charges, we will have to pay them anyway, but in this case, if there is a company like bsnl, by default it will provide the service at a nominal rate, that way

people

who cannot pay a jio or airtel will always have a company like bsnl to turn to and Lastly, in case of a natural calamity like Uttarakhand or even a war situation again, while Airtel and Jio might not consider it, their agenda to installing towers bsnl is obliged to establish its infrastructure as soon as possible because it is not a matter of profit. but it is a matter of citizen security and in case of a war scenario it is a matter of national security in itself now, although this could be done with strict regulation on private actors, it is always safer to have an internal organization for these requirements critics. the reasons why even if bsnl suffers hundreds of losses, it is very very important to keep the company alive, but in case of bsnl, let alone losses, the company was a market leader with Rs 10,000 crore in profits and It wasn't until after 2008 that BSNL suddenly started incurring losses, so the question is how is this a story that dates back to the early 2000s, during this time landlines were the main mode of communication. and during this time BSL occupied almost 70 in the market and with the evolution of the label Bsnl also began to lay the foundation. for 2G internet connections in the remotest corners of the country, while other private players found it commercially unviable to do so during that time and despite reaching unviable locations, Bsnl managed to make such considerable profits that they recorded profits of 5976 million rupees. and 8,939 crore during 2003 4 and 5.

Till then, the company was operating almost as an autonomous body with less scrutiny from government committees, but it was then that a news broke about India's telecom minister, the central investigation office interrogated the former telecommunications operator. Minister Diana de, in the case of the illegal telephone exchange on Wednesday, Maran, who was India's telecommunications minister between 2004 and 2007, used his influence to collude with senior officials of the state-owned Bsnl to lay 323 high-speed lines to his residence. He alleged that the exchange was created to upload signals from channels of Sun TV network, a multilingual television empire owned by Kalani Maharan.

In short, according to the CBI, Danny De Maran used his official position and installed private telephone exchanges at his residence. . These 700 high-speed lines were used for commercial transactions on the Sun network, which was owned by her brother Kalani. This case was very, very important, not because of the laws but because fraud, the ministry and the government and keeping large telephone systems off record is also important. A risk to national security, this was where the government began to get involved in the affairs of BSNL and this is where a man called Raja took the reins of Maran in 2007.

During this time, PSNL was in talks about launching something called ymax technology. a telecommunications technology that aimed to provide wireless data over long distances, basically wireless broadband, this would have helped Bsnl roll out fast internet connections across the country, but guess what this is where one of the biggest came to light scams in the history of India, which was the 2g Scam three days before parliament resumes the biggest scam of the decade has triggered a political war parliament is said to resume in three days the report is likely to trigger yet another political battle the jpc has laid the blame squarely on the then telecommunications minister, a raja, who claims that he misled the Prime Minister about the procedures followed now when this happened, although it did not directly affect Bsnl, it was very evident that they could be happening many frauds within the company, so after 2007 onwards, the pledge began to investigate every small tender that Bsnl discarded.

This is where the company started to slow down from their bidding system now for those who don't know the bidding system here is a very simple explanation to understand the same way the system works: Let's say the government wants to build a bridge , and? It will? It will launch a tender inviting all the construction companies in the country indicating all the requirements to build that particular bridge, then several companies will meet and begin to present their plans and the cost of the construction of the bridge, after these proposals. are presented, the government will check what the background of the company is, which of these companies has completed similar projects in the past, what is the execution methodology and most importantly, what is the cost and execution time of the project, and based on these parameters, the government grants the company the contract to execute the project;

In this case, instead of a bridge, it was about establishing communication technology like Wimax to enable wireless broadband across the country, but this is where the blowback started to come after the Marant. incident and the 2g scan, the government began investigating for corrupt practices that might have occurred in the tendering system and, not so surprising, given the economic times, that a number of shell companies and dubious companies were being shortlisted and , at the same time, several renowned companies with proven track records. Vimax's history of offering services was disqualified in the first round. These companies included Soma Networks and Cisco Back Teracom and even Unwire India and the moment this kind of news started coming out, CBI came into the case and soon, according to some employees, BSL was missing.

It was allowed to procure equipment and materials and orders were delayed and canceled and the entire company started slowing down depending on the economic times during this three year period which is between 2007 and 2010 while the Indian telecom industry was growing at the same time. fastest pace ever, while all other private player was aggressively expanding its infrastructure and investing Rs in accreditation. Bsnl was unable to place any significant orders for equipment, so with virtually every passing day, Bsn was losing its market share to the private sector and while the company was on the brink. From sinking into losses in 2008 nine somehow a new ray of hope emerged in 2009 a project worth 10 billion dollars was taken up by BSNL to install 93 million g/m2 lines across the country and this would have enabled BSNR provide the best quality voice and data facilities across the country and if this project had been carried out, it seemed that BSNL would have been the undisputed king of telecom in India and this project at that time was the largest telecom contract. biggest in the world, but guess what in 2010 the central surveillance commission started. suspecting irregularities and again upon further investigation they pointed out that the disqualification of important suppliers such as nokia cements zte and alcatel had left only two players in the offer which were ericsson and huawei and as they were the only remaining contenders bsnl could not obtain the best price As there was no no competition with the contract and due to this irregularity again the entire 10 billion dollar tender was canceled and BSN was asked to start all over again and while BSL was still trying to hold tenders cluelessly they had been left without network mobile. capacity in most regions of the country and at exactly the same time, airtel vodafone id and other players started dropping 3g services and eventually started eating into bsnl's market share as a result, during this time, from 2007 to 2010, The company's profits started falling from Rs 3,009 crore in 2007 to a loss of Rs 1,822 crore in 2010 and guess what because of this stagnation, according to bsnl employees we spoke to from 2006 to 2012 during the most important growth of Indian telecom, BSL made very few or no significant purchases for the development of its infrastructure, this was the first and perhaps the most important reason for the fall of BSNL, which was greedy and power hungry ministers who wanted to fill their pockets at the cost of a national asset and this is where things started to get worse as the mobile revolution progressed.

Even bsnl's most important source of income, which is landlines, began to become obsolete, the number of landline users had fallen from 24 million in 2016 to just 19 million in July 2020 and this is where the second hit when jio wave emerged in 2016. The world is at the beginning of a digital revolution, so ladies and gentlemen, today it gives me great pleasure to announce a revolutionary concept for the Indian market. All voice calls for jio customers will be absolutely free. Reliance Jio has become India's largest telecom operator, adding 5.6 million mobile subscribers in November now, while most people think that data and free calls were the only reason for the growth of jio, very few people understand that actually it was a big advantage that 4g as a technology gave to jio both in terms of cost and service, the question is Now let's take an oversimplified case to understand how 4G is different from 2G or 3G .

If Yash and I are talking to each other in the early 2000s, the process would look like this: When I press the call button on mytelephone, a digital signal is received. sent from my mobile phone antenna to the nearest cell tower from there the signal is transmitted to a switching center now my switching center contacts other centers in the complex network to identify the nearest center to yash and once yes the switching center is identified and notified it sends a signal to the cell tower nearest to yash which then transmits it to his phone and his phone starts ringing and when he answers the connection is established via a complex underground network.

This path is called a circuit and this process is now called circuit switching. for data, the case was a little different here, a different communication method called packet switching was used in this method. If you send an email, your entire email is divided into several packets, where each packet could contain a single word or sometimes even a single word. letter, but with this data the address of the recipient is also mentioned, then once the email is grouped into packets, these packets are rooted through a huge network in which each packet can take a different route and then Sometimes they can even travel around the world, so breaking down communication information into small packets allows the same route to be shared among multiple users on the network.

Now in case of 2g and 3g both voice and data network had to be kept separate but this is where jio came up with the revolution. and the advantage that jio had over any other telecom operator was that it was a purely 4g network so others had to run one network each for voice. and data jio had to maintain only one network for data because even their calls were carried out through the data network. This paradigm shift and approach reduced the cost of equipment to a great extent, as a result it reduced the operational cost of 4g network and compared to jio, our poor bsnl did not even get approval for 4g and was using decade old equipment. old and energy inefficient and occupied a large real estate footprint so drastically below its cost, while jio was using the same cash margin to acquire millions of customers with each passing year and finally it was not until 2019 that bsl obtained the allocated spectrum and now they are moving to 4g and bsl is yet to start with 4g launch in 2022 and lastly due to cash crunch bsnl hr management started Get agitated people this is also very, very detailed, but if I go into details it will result in information overload, so I will attach the sources for this matter in the description so you can read it completely for yourself.

This is how the golden goose of the Indian economy came to a standstill as it went from 10,000,183 crore annual profits to a loss of fifteen thousand four ninety nine crore in twenty thousand nine hundred and twenty and this takes me to the most important part of the episode and those are the things you need to learn and read to understand how government business works and understand what the government is doing with your tax money before moving forward. I want to thank our partners for supporting our content. Wind Wealth is a platform through which you can invest in nbfcs with very strong sponsors and get 9 to 11 returns.

Now most of you might be investing in the stock market as long term investors but if you are someone who wants earn consistent returns over a short term goal, that is where wind assets can be very useful for you. The wind wealth investment process is super simple, as you can see, the asset page has detailed information about the asset. On the right side, you can see a table by which you can determine how many units of the bond you want to buy and then the payment process is also very easy. You can pay through upi net banking or even use the wind wealth fund and that's it, investing in wind wealth that you can earn. returns which are higher than fds and at the same time not as volatile as stocks and before investing in any of the wind assets, read the details of the asset very carefully and understand the risk before investing your money in wind assets which They are backed by zerudas.

Rain Matter Kunal Cha and many more renowned investors and for full disclosure they even think the school is a wind wealth investor so if this sounds helpful to you check out wind wealth from the special link in the description. The first thing you need to understand is that while businesses operate to benefit customers, government businesses operate for national duty and economic betterment of their citizens, so never blindly compare them with government businesses and say that government businesses Clothes suck because that's what I did at first because of my ignorance. number two, talk to former or current employees of bsl and they will tell you that all this video barely scratches the surface and that there are hundreds of other undocumented reasons why bsnl came to a calculative standstill and you should do that with all government companies because it will do. give you a deeper understanding of the working of these companies and lastly I am attaching a bunch of

study

materials in the description so please go through them due to time and information constraints in general like I said I have tried to cover the most important points But if you want to take a look at the bigger picture, I highly recommend you go through those sources and leave a comment on what you think about BSNL and other government companies being managed or mismanaged by the current or previous government.

My start today guys, if you learned anything available make sure to click the like button to make the youtuber happy and for more interesting political and business case studies please subscribe to our channel. Thanks so much for looking. See you next time. a goodbye