BSNL IPO

There are plus and minus points in BSNL going Public.

Plus points:

1. BSNL has big infrastructure and the world's best technical trained personnel.

2. BSNL's seperation from DoT and entry into Mobile market was the real reason for reduction in cost of service to users.

3. BSNL is more committed to serrvice in rural areas.

4. BSNL provide large scale employment for low and  medium level educated persons.

5. Issuing IPO and getting listed will bring in funds for expansion and diversification.

Minus points:

1. BSNL has big baggage in terms of employees and pensioners impacting heavily on the OPEX.

2. The management is not that effective compared to other corporates due to valid reasons of lower remuneration and incentives.

3. Unions have much influence in the matters pertaining to employee management at the cost of efficiency.

4. The top management is not answerable for poor business performance and low efficiency.

5. BSNL is dependant on imports for telecom equipments and software, restrict scope of internal R&D. 

6. There is no initiative to revive ITI to manufacture equipments and infrastructure locally.