BSNL partners VNOs to ramp up revenues

Aiming to generate revenues from new segments, state-run telecom player BSNL is targeting Rs 650 crore from its partnerships with virtual network operators (VNOs). BSNL has tied-up with VNOs Plintron and Aerovoyce to start the services. Besides, it has introduced the first robotic process automation in the organisation which will enable the firm to save Rs 300 crore annually.

VNOs offer telecom services by buying bandwidth/airtime from a telecom player without any investment in spectrum or other network infrastructure.

“In the current fiscal, we are targeting Rs 500 crore through our partnership with Plintron and Rs 150 crore from Aerovoyce. The change in licence conditions has enabled the companies to start their VNO services,” BSNL chairman and managing director Anupam Shrivastava said.

Telecom Commission, the highest decision-making body of the Department of Telecommunications (DoT), has recently removed double taxation for VNOs. The issue of double taxation has been the major reason for the muted growth of VNO services in India. There are around 67 firms, which had taken licences for VNOs but most of them are yet to launch services due to cascading taxes. However, now the VNOs only have to pay adjusted gross revenue (AGR) on the value added.

VNOs offer services in their own brand and with their own tariff and packages. The idea of a VNO operator is to provide services in areas where the operator is not present or in areas where there are network issues.

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The robotics process automation will monitor potential exposure of BSNL to excess TDS (tax deducted at source), which can reduce cash blockage. “This is a big step towards BSNL’s digital transformation which will enable BSNL to manage its resources more effectively and create new operational efficiencies across business processes,” Shrivastava said.

The bot solution has been developed by EY, a leading global consulting firm.

Source: DNA Money