BSNL, whims and fancies

Bharath Sanchar Nigam Limited (BSNL), the esteemed telephone service provider has a few questions unanswered. Just take a look at your telephone land line bill and you will find 3 parts in it viz the monthly rental , actual usage charges, service tax components.

Long long back when BSNL was the Indian Telephone Industries (ITI) laid the copper twisted pair cables everywhere to facilitate voice and telepgraphs in the early years of this century. It had to spend capital money in surveying area, setting up poles, laying copper lead pairs underground to reach the homes across the country and a initial fixed capital was expended. The only way BSNL could get that was in installments from its users and thus was born the monthly rental. Is it valid even today? Why is BSNL charging this despite more than 50 years. It has allready collected and filled its coffers.

Interestingly the BSNL officials point out that FREE calls are given to customers. Do we need it at all? Charge us for what we use just like a prepaid mobile service – No rentals. But the official says these free calls were introduced when the manual instruments were faulty and often the customer landed WRONG numbers and hence this facility is provided. OK its high time the electronic versions of these instruments land calls CORRECTLY and remove this nonsence too.

We dont need charity for business, households but may be for old age homes et all some subsidy is required.

The last part of the service tax is more interesting. Its somewhat more than the 12.5 % stipulated elsewhere and am still finding seniors, over seniors to get an answer to this dilemma.

Look at mobile service providers, they too have set shop , paid licence fees, set up huge towers and maintain them round the clock. My prepaid mobile is rent free, charged nominally for ONLY calls made. Best is there is no service tax too!

High time BSNL dropped the rental clause else people are savvy to understand.

15 Responses to BSNL, whims and fancies

  1. Vani says:

    I have a post paid SIM, and am foxed each time I look at the bill on my cellular. I do not say I do not use my phone to call, but am well in control of my usage.

    I do not understand CLIP, Bill Plan Charges, Taxes (other than service tax component), Value Added Services etc…..all this amounts to atleast 500 Rs on my bill, something that is really a huge component.

    Will you throw some light?

  2. praneshachar says:

    service provider has to pay service tax whether it is prepaid or postpaid
    when you pay for prepaid amount he has collected it and so you are paying the service tax dont think PC is so fool if that is the case everyone would have fooled him. you can also see whereever they announce full talk time they will be mentioning without the service tax component
    BSNL now has got several schemes for landline and mobiles one should see their call nos. in a month and select the appropriate plan so that you are benefitted to maximum
    we have switched over to all india plan in all our STD phones and there is enourmous amount of saving in the bills

  3. Prasanna Sastry says:

    Vani avare CLIP- Caller Line Id- which is a must as per TRAI (Telcom Regulatory Authority) to track down the malicious calls from unlawful people. But is it to be charged is again a question !!!

    Bill Plan Charges is how cost you have incurred making calls other than the rental charges

    VAS- SMS, MMS, Internet,Rintones,Sending SMS for contests…….

    Service Tax no need to explain

    I think more such Gizmos are likely to come in future

  4. M O H A N says:

    The above topic was for land lines … these apply to other types too 🙂
    CLIP – Caller Lind Identification Presenation is free in Pre paid. Why should there be rental at all? Change to prepaid and your bill plan charges will be zero. Value added tax is only on usage as pointed out by sastry sir.

    You may be wondering why all telecom players are trying to convert prepaid to post paid …simple conversion will enhance each biller by atleast 300 INR and if you do reverse switching … you save 300 INR… Think about it.

    Pranesachar sir,
    I can show you the land line bills of service tax collected somewhere near 18.4%. You will have to pay this for all most all services. PC is not bothered as long as the tax is paid – who cares if its the customer paying.

    Sastry sir,
    Thanks for your comments and light on new gizmos

    You can get out of this service tax if you take prepaid offers. That is the Phull talk time offer.

  5. veenashiv says:

    reee Mohan, paapa BSNL avara service chennagide ree. Say thanks that they have given you various options & you susbscribe to which ever you want. cell phones alli free calls illa antha yaaru heLiddu ? Rentals have been dramatcially decresed now.. Earlier that was 500(250 per month) now its 180/- month(our tarriff)…

    Mobile phones are good but adanna BSNL landline ge compare maadbedri.. LL has many advantages over this one! CLIP, service tax, tariff plan change charges, SMS (to compititions) & others stuff generally adds up to my mobile bill making it a fat!
    I am not a pro or against anything, both are a need for us 🙂

  6. veenashiv says:

    Dataone – their internet facility is just excellent! I pay 250/- every month …! Its 98% reliable I should say

  7. M O H A N says:

    Kindly dont mistake Quality of Service (QoS) a parameter with Cost to customer! Yes BSNL’s Qos varies for different product offerings right from excellent to absurd [ I had to go without their excellent land line connection for 3 weeks since the line mans mother expired – this from the Senior divisional manger! ].


    Thanks for visiting. Obviously BSNL has lost lots of market share to other private operators due to sluggish responce. If not for BSNL, sky would NOT have come down and snail mail the order of the day. In fact its only the home segment which is still backing up BSNL while the big revenue earning corporates are allready moved out to Reliance, Tatas et all.

  8. veenashiv says:

    Shiv, I even write letters. I don’t know why you felt it that way.! sorry if I sounded very offensive.

  9. Prasanna Sastry says:

    Mohan avare yaaru shiv andre, Swalpa decent aagi ella andre abuse antha block madi. Shiv avaru Rent ge confuse madukondidare veena helodu correct Rs.250 for 256Kb bandwidth.

    Compared to Market Share people who have used pvt Service Providers have come back to BSNL becoz Known Devil is better than unknown Angel since they dont do a feasibility study and after 3-4 weeks say no . For ex- If you need a connectivity of Airtel at Nagar Bhavi 2nd Stage and there are only 2 users do you think Airtel will afford to provide it. But BSNL will do it since their OFC is already going upto NagarBhavi 3rd stage via that route.

    Tatas were never in communication race, with regard to reliance i agree they are giving some kind of sleeplessness to Dayanadhi Maran, But ultimately Infra of BSNL is far ahead of others .

  10. usha says:

    True Prasanna I agree with you 100% on BSNL infrastructure.

    Shiv, all of us here have independence to express our thoughts and stand. Please maintain decorum while expressing your thoughts

  11. Usha
    Have take care of the issue.

    Prasanna sir,
    Obviously BSNL infasructure gains is true for home based users. The story is totaly different for corporate users. Point noted. Have removed the unwanted comment.

  12. praneshachar says:

    If someone whether BSNL or others collect service tax more than the fixed by govt. it should be questioned and brought to the notice of concerned yes most of us will ignore because it is not worth doing but it happens with any corporate house it will be brought.
    In our co., we have gorup billing for all DGM’s and above by BSNL and they give you further discount as for them it is very easy billing and collection.
    Yes there are problems with all service providers. for last 8 days my broadband in house is down people are not solving it is human problem not the organisation. hope it will be OK by the time I go home as I spoke to senior person who was very polite and said he will see that it will be set right within 24 hours yes you must ge right people at right time

  13. M O H A N says:

    Praneshachar sir,
    Yes, most people just ignore due to plain lack of time related to such trivial tax. Am just comparing the QoS of BSNL with Airtel. I have used SPICE for 2 years, Airtel for 7 years and not even once have the gone down in service.

    In India we are still in band aiding the wound mode, we should be in preventive mode to provide a higher quotient of service and is an important parementer of customer satisfaction.

    thanks and please do visit again.

  14. praneshachar says:

    yes I do agree
    Airtel BrandBand my friend got connection and in 2 months time got dejected and asked for disconnection. It all happens one is individual perspective and also the area of opearation. He is quite happy with his cell service from the same Airtel.
    all happens in life. when it comes to your case you are the best judge
    what is good for me need not same for othersvice versa

  15. M O H A N says:


    Yes sir. We should NOT mixup Quality Of Service to Cost to Service. At the end BSNL is NOT entitled to keep ON collecting the rental much beyond the point of having collected its line creation, maintainence fees.

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