BSNL to be divided into zones

Dylan Bushell-Embling
26 May 2011
00:00

India's communications ministry plans to divide BSNL into four regional units, as part of the latest plan to turn around the struggling state-owned operator's fortunes.

Under the plan, each BSNL director will be responsible for one of the zones, and assume financial accountability for that area, Hindustan Timesreported.

Each zone's performance would be measured monthly against the results from the same month a year earlier, with punitive action for key executives threatened if performance drops significantly.

BSNL, which posted a loss of 18.23 billion rupees ($402.24 million) in 2009-10, was also told earlier this month to synergize its operations with MTNL to allow them to function as a pan-Indian operator.

Last week, the companies revealed they were on the case, and launched the first joint initiative – special tariff plans for paramilitary forces.

BSNL is also reported to be looking for private sector investment in a new tower company that would be created by hiving off the company's tower business.

The company is currently in talks with other operators to rent out capacity on its network.

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