Boston Consulting Group to draw up BSNL’s revival plan

financialexpress.com:

Boston Consulting Group (BCG) will prepare a three-year roadmap to transform state-owned Bharat Sanchar Nigam (BSNL) so that it can effectively compete with private telecom operators.

BSNL will be paying BCG Rs 132 crore for the advisory service, sources said. The key areas on which BCG will advise the loss-making telecom service provider include reducing operational cost, improving revenue, providing better customer experience, leveraging emerging technologies to improve sales, and sales & marketing strategies in line with industry benchmarks.

Sources said BCG will devise strategies and also help implement them. It will be given performance incentives as well, and the contract can be extended by a year on the same terms and conditions as well as cost, according to the document reviewed by FE.

BCG will set up a project management office at BSNL’s corporate office in the Capital, for its team to work on the project. The consultancy project will have a director and seven other managers.

The project is divided into two phases. In the first phase, BCG will focus on analysing the gaps in BSNL’s current approach across key circles. It will focus on strategy/solution development aimed at the telco’s revival and achievement of vertical-wise revenue targets.

The company has a target to achieve Rs 35,960 crore revenue from operations by 2027-28, a growth of 80% over Rs 20,008 crore estimated revenue in FY24. From FY25 to FY27, the aim is to grow revenue 20% year-on-year.

Similarly, BSNL has asked BCG to implement an immediate and long-term plan to reduce its operating expenses by 5% annually, in line with industry best practices. In 2024-25, BSNL has projected operating expenses of Rs 10,323 crore, a y-o-y growth of 8%. The same