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Whether BSNL wants to go in for an IPO or not-and even if it wants to-will it go for an IPO or not, is a question that will continue to be debated for days. I want to raise a more fundamental question-does it want to go public, so that there is greater accountability of policy makers and top management who run the show, and higher pressure on them to perform? Or does it just want to raise more money to invest more and continue to run the company the same way it is being run today. This question will have to be answered either by telecom minister A Raja as the custodian of telecom penetration in the country, or by BSNL CMD Kuldeep Goyal as the pilot of the company.

 In my opinion, BSNL is a unique organization in many ways. It has a huge, far-flung reach much more than most other private operators. It has an enviable brand equity, specially in semi-urban and rural areas where all service providers want to reach now. The organization also has a higher level of credibility among its users, and most people agree that BSNL is the more ethical in conducting business compared to many private players. Also, BSNL has got people who are very good in terms of technology and business, and have the capability and the vision to make the company the 'numero uno operator' in India. What is missing is the drive because there are no personal stakes involved. What is hurting is that being a government organization, BSNL finds it very difficult to move fast on lots of crucial business and technology decisions.

 The key objective of going public should be to drastically change a lot of internal systems and processes. An IPO for BSNL should lead the company to significantly increase its speed of business decisions. Many large orders today take years to be finalized and implemented. With an IPO, there should be a mechanism for more frequent and stringent review of the management staff with effective reward and recognition policies. If BSNL goes public, it should lead to a big attitude shift in terms of customer care. After an IPO, this organization should be able to focus on productivity of its people. All this effectively means far lesser involvement of politicians in its day-to-day running.

 If BSNL wants to raise money to just invest more, I am reasonably sure that investors will not be long-term gainers. With the company already under a lot of pressure from competitors, and with more money pumped in, the pressure will certainly increase. I am not sure we want this. However, if going public will change the way BSNL is run, I am sure the company is likely to turnaround.

ibrahima@cybermedia.co.in