company profile bsnl

7/29/2019 Company Profile Bsnl

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1. INDUSTRY ANALYIS

BACKGROUND

Telephone services have been recognized the world over as an important tool for socio-

economic development for a nation and hence telecom infrastructure is regarded as a

crucial factor in achieving the socio-economic objectives in India. Indian telecom is more

than 160 years old beginning with commissioning of the first telegraph line between

Kolkata and diamond harbor in 1839. In 1948 India had only 0.1 million telephone

connections with a telephone density of about 0.02 telephones per hundred populations.

Since then India has come a long way and by 31 august 2003 there were 45.6 million

telephone connections in the country with a telephone density of 5.72 telephones per

hundred populations.

The Indian telecom industry has undergone significant structural transformation since its

liberalization in the 1990s. During the last decade, the Indian telecom industry has

evolved into a multi-segment, competitive market from a small supplier-dominated

market having public sector monopoly. Coherent Government policies have played a

crucial role in shaping the structure of the Indian telecom sector.

Structural Evolution of the Indian Telecom Industry:

Telecom Sector in the Pre-liberalization Era (1980-1990):Before liberalization, the public sector held a monopoly in provision of telecom services.

The entire telecom services operation in the country was carried out by the Department of

Telecommunication (DoT), a public sector entity established in 1985. It managed the

planning, engineering, installation, maintenance, management, and operations of telecom

services for the whole of India. In order to ease out its operations, two new public sector

corporations viz. MTNL and VSNL were set up under the DoT in 1986. Thus, before the

entry of the private players, the telecom services were provided by three public entities

viz. DoT, MTNL and VSNL. While MTNL primarily looked after the operation of basic

telephony services in Delhi and Mumbai, VSNL provided international telecom services

in India. DoT looked after basic telephony operations in regions other than Delhi and

Mumbai. Prior to liberalization the telecom services were broadly classified as domestic

basic (which included basic telephony, telex and fax), domestic value-added services

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(VAS) which covered all other services such as paging, cellular, data services, VSAT and

international basic and VAS.

Telecom Sector in the Post-liberalization Era:

Private sector participation in the Indian telecom sector has been a gradual process,

wherein the government initially permitted companies from the private sector to provide

Value Added Services (VAS) such as Paging Services and Cellular Mobile Telephone

Services (CMTS), followed by the Fixed Telephony Services (FTS) or Basic services.

Eventually the private sector has been allowed to provide almost all telecom services.

Liberalization process in the telecom services market began in 1992, with the unbundling

of the domestic basic services and the domestic VAS and entry of private companies for

providing the VAS such as cellular and paging services. During this period, the

government provided licenses to private companies according to the services that were to

be provided in the specified areas of service provision. The country was divided into

circles (or categories) on the basis of economic potential. During 1994, through a

competitive bidding process, licenses were granted to 8 CMTS operators in four metros,

14 CMTS operators in 18 state circles, paging operators in 27 cities and 18 state circles.

After the domestic VAS, the basic services were opened up to private companies. The

National Telecom Policy (NTP) 1994, which endeavored to build world-class telephone

services in India and aimed at providing telephones on demand, enabled the entry of

private companies in the provision of basic services. Given the need for resources in

addition to government sources for achieving the targets of NTP-94, private investments

and involvement of the private sector was considered certain to happen to bridge the

resource gap. Thus, the private operators were allowed to render basic services in the

local loop. Initially, the provision of basic services had been deliberated as a duopoly

between a selected service provider and the DoT. In line with this, policy licenses were

awarded to 6 BTS operators in 6 state circles.

The need for independent regulation had risen with the entry of private players. Also, to

fulfill the commitments made when India joined the World Trade Organization (WTO) in

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1995, the Telecom Regulatory Authority of India (TRAI) was established in 19971 to

regulate telecom services including fixation/revision of tariffs. The establishment of

TRAI was a positive step in terms of separation of regulations from policy making and

operations, which continued to be under the purview of the DoT.

Further, in 1998, the Government also declared the policy for Internet Service Provision

(ISP) by private operators and had even begun licensing of the same around that time.

Subsequently the Global Mobile Personal Communications by Satellite (GMPCS) was

also opened up for the private players.

Although the private companies had been allowed to participate in many telecom services

segments, the results of privatization had not been satisfactory entirely. Thus, a New

Telecom Policy (NTP-99) was announced on March 26, 1999, which came into effect

from April 1, 1999. The NTP 1999 not only provided a major boost to private sector

participation in this industry but also laid down the path for significant development of

the Indian telecom industry. The NTP 1999 allowed private operators providing cellular

and basic service to migrate from a fixed license fee regime to a revenue sharing regime

to make the operations of the private companies financially successful. This policy

change provided the much needed relief to private companies who were earlier burdened

with huge debts that they had to service owing to their license fee commitments.

Current Structure of the Indian Telecom Industry:

Currently, both public sector companies as well as the private sector companies are

actively catering to the rapidly growing telecommunication needs in India. Private

participation is permitted in all segments of the telecom industry, including ILD, DLD,

basic cellular, internet, radio paging, etc. The broad structure of the telecom industry (in

terms of service providers) is depicted in the diagram below:

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Structure of the Indian Telecom Industry

Public Sector:

After the privatization of VSNL in 2002, only two premier PSUs, MTNL and BSNL

operate in India and provide various telecom services. As noted earlier, MTNL operates

in Delhi and Mumbai and BSNL provides services to the remaining country. In the post-

liberalization era, these PSUs not only have made significant progress but also have

provided stiff competition to their private counterparts.

Private Sector:

Private operators have played a very crucial role in the growth of the telecommunication

industry, primarily in the mobile services. With the liberalization of the telecom industry,

the private sector has been increasing its foothold in the telecom services space. After the

introduction of NTP-99, the contribution of private companies towards telecom services

has witnessed rapid strides. While the private sector is instrumental in providing both

fixed line as well as wireless services, it is mainly active in the wireless segment. The

fixed lines account for only about 2% of private sector's total subscriber base. While

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PUBLIC SECTOR

INDIAN TELECOM

INDUSTRY

FOREIGN

COMPANIE

INDIANCOMPANIES

MTNL BSNL

PRIVATE SECTOR


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some private companies have a pan-India presence, there are many regional companies

that cater to only certain service areas.

MARKET SHARE OF TELECOM SERVICES IN INDIA

FINANCIAL ANALYSIS

Y12 saw the continuance of growth for the Indian telecom market, which witnessed a

12% YoY increase in its subscriber base during the 12-month period. At the end of

March 2012, the countrys total telecom subscriber base (fixed plus mobile) stood at

about 951 m. The teledensity level stood at about 76% by the end of the fiscal.

Growth remained robust in the GSM mobile space. GSM added 115 m subscribers during

the year. After a robust 46% YoY increase in subscriptions during FY11, the growth in

GSM industry has slowed down to 17% YoY in FY12. The year saw the apex court of the

country cancelling the disputed 2G licenses that were issued in 2008. The cancellation

caused the exit of Etisalat and Batelco from the sector.

During FY12, India's mobile subscriber base grew by 13% YoY, from 812 m to 919 m,

while the fixed subscriber base declined by about 7%, from 34.73 m to about 32.71 m.

SWOT ANALYSIS OF INDIAN TELECOM SECTOR

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Strengths

Strong mobile growth(around 10%) , with latest technology being offered at faster

pace

An attractive business environment witnessed by number of foreign players

entering Indian market

A vast untapped rural population which needs telecom services at their fingertips

Weaknesses

Wireless business segment is growing faster than wire line and more demand is

coming for pre-paid services

The falling SIM card, lower tariff plan led to lower APRU

Delayed implementation of key policies because of dispute among TRAI, telecom

ministry

Opportunities

All of the providers are keen to provide more content which provides great

opportunity for content providers

Regulator has recommended that foreign player can participate without any local

partner

The government will cut the license fee by 33% for those operators which has

over 95% residential coverage

Threats

3 G spectrum charges are more and which will have negative impact on demand

for licenses

Due to price war , APRU is falling and further deterioration will lead to

significant decline in top line growth

Capacity constraint may hamper the expected growth in Mobile segment

MNP will become reality in 2012, but it adds further pressure to operator to retain

the existing customer.

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PORTERS FIVE FORCES ANALYSIS WITH RESPECTIVE TO INDIAN

TELECOM INDUSTRY

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THREATS OF NEW ENTRANTS IS

HIGH

It is a capital-intensive industry and

hence the biggest entry barrier is

the access to finance.

Obtaining a Telecom license can

represent a barrier to entry. Though

license fee has been reduced for

new entrants. This enabled

operators to reduce service fee to

make it affordable to most people.

Getting a good amount of radio

spectrum to support voice and data

services.

It offers tremendous opportunitiesin areas like VPN, Rural Telephony

VAS, Infrastructure sharing, 3G

and ISD, to name a few. This has

welcomed foreign investors (Virgin

etc) and has led to M&A deals

(Hutch, Vodafone). It attracts 3rd

largest FDI in India post-

liberalization.

BARGAINING POWER OF SUPPLIERS

IS LOW

Hardware requirements like

switching equipments, fiber optic

cable are infrastructure that

operators cannot do without.

However, there enough vendors for

them.

India houses many IT giants that

provide the related

software/solutions to them. Some

companies (Reliance Info & TCS)

have their own development

centers. Here some bargaining

power can be exercised sinceVodafone cannot approach Tata for,

billing software.

Mobile set suppliers are also many.

Some operators even have

backward integrated (Tata Indicom)

and some have collaborated

(Reliance & Samsung).

BARGAINING POWER OF BUYERS IS

HIGH

The products/services of

companies, differentiation is

generally not much.

Least cost is generally preferred.Demographically it may vary.

Switching cost is lower in

individual users than for business

customers.

Landline subscription has been in

decline in favour of wireless

connections.

AVAILABILITY OF SUBSTITUTES:

MODERATE

Products and services from non-

traditional telecom industries

Cable TV and satellite operators

and Railways and energy utilitycompanies are laying miles of high-

capacity telecom network alongside

their own track and pipeline assets

in countries like US. This may take

shape here too.

"Internet telephony" video

conferencing, video chat etc are

much and thus Internet Service


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COMPETITIVE RIVALRY: HIGH

The wave of industry deregulation together with the receptive Indian capital

markets due liberalized economy of the late 1990s paved the way for a rush of

new entrants.

New technology (Internet) is prompting a raft of substitute services.

All competitors operate with lower prices and more exciting services. This tends

to drive industry profitability down.

It also suffers from high exit barriers, mainly due to its specialized equipment

which have swift obsolescence and difficult liquidation.

There are some TSPs that are into the business of providing Internet like MTNL,

Airtel etc.

PEST ANALYSIS OF INDIAN TELECOM INDUSTRY

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FUTURE OF INDIAN TELECOM SECTOR

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Political Factors Antitrust Regulations

Environmental

Protection Laws

Tax Laws

Special Incentives

Foreign Trade Regulations

Attitudes toward foreign

Companies

Laws on hiring and promotion

Stability of government

Economical Factors GDP trends

Interest Rates

Money Supply

Inflation Rates

Unemployment levels

Price control

Devaluation / Revaluation

Cost

Socio cultural Factors Lifestyle Changes

Career expectation

Consumer activism

Rate of family formation

Growth rate of population

Age distribution of population

Regional shift in population

Life expectation

Birth rates

Technological Factors Total Government spending for

Research & Development

Total Industry spending for

Research & Development

Focus of Technological efforts

Patent Protection

New Products

Technology transfer from lab to

marketplace

Productivity improvements through

automation

Internet availability


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Indian telecom is worlds fastest growing telecom expected grow three fold by

2013.Tremendous strides in this industry have been facilitated by the supportive and

liberal policies of the Government. Especially the Telecom Policy of 1994 which opened

the doors of the sector for private players. Rising demand for a wide range of telecom

equipment has provided excellent opportunities for investors in the manufacturing sector.

Provision of telecom services to the rural areas in India has been recognized as another

thrust area by Government .which also helps for the enormous opportunities in this

sector. Therefore telecom sector in India is one of the fastest growing sectors in the

country and has been zooming up the growth curve at a feverish pace in the past few

years. And even the Indian Wireless Market is booming which has plenty of room for

growth.

Thus the foreign direct investment is very effective in the development of any country.

Indian economy is now firmly developed as one of the worlds foremost destinations for

FDI. Telecommunication is playing an important role in the inflow of FDI than the other

sectors. As above data shows that the FDI in Telecommunication in India without a doubt

continues to be one of the most dynamic and fastest growing major telecommunication

markets in the world.

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2. COMPANY PROFILE

a. BACKGROUND AND INCEPTION OF THE COMPANY

Bharat Sanchar Nigam Limited (abbreviated BSNL) is an Indian state-owned

telecommunications company headquartered in New Delhi, India. It is the largest

provider of fixed telephony and fourth largest mobile telephony provider in India, and is

also a provider of broadband services. However, in recent years the company's revenue

and market share plunged into heavy losses due to intense competition in Indian

telecommunications sector.

BSNL is India's oldest and largest communication service provider (CSP). It had a

customer base of 95 million as of June 2011. It has footprints throughout India except for

the metropolitan cities of Mumbai and New Delhi, which are managed by Mahanagar

Telephone Nigam (MTNL)

Bharat Sanchar Nigam Ltd. was incorporated on 15th September 2000. It took over the

business of providing of telecom services and network management from the erstwhile

Central Government Departments of Telecom Services (DTS) and Telecom Operations(DTO), with effect from 1st October2000 on going concern basis. It is one of the largest

& leading public sector units providing comprehensive range of telecom services in

India.

BSNL has installed Quality Telecom Network in the country & now focusing on

improving it, expanding the network, introducing new telecom services with ICT

applications in villages & winning customer's confidence. Today, it has about 43.74

million line basic telephone capacity, 8.83 million WLL capacity, 72.60 million GSM

capacity, 37,885 fixed exchanges, 68,162 GSM BTSs, 12,071 CDMA Towers, 197

Satellite Stations, 6,86,644 RKm. of OFC, 50,430 RKm. of microwave network

connecting 623 districts, 7330 cities/towns & 5.8 lakhs villages .

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BSNL is the only service provider, making focused efforts & planned initiatives to bridge

the rural-urban digital divide in ICT sector. In fact there is no telecom operator in the

country to beat its reach with its wide network giving services in every nook & corner of

the country & operates across India except New Delhi & Mumbai. Whether it is

inaccessible areas of Siachen glacier or North-Eastern regions of the country, BSNL

serves its customers with a wide bouquet of telecom services namely Wireline, CDMA

mobile, GSM mobile, Internet, Broadband, Carrier service, MPLS-VPN, VSAT, VoIP,

IN Services, FTTH, etc.

BSNL is numero uno of India in all services in its license area. The company offers wide

ranging & most transparent tariff schemes designed to suit every customer. BSNL has

90.09 million cellular & 5.06 million WLL customers as on 31.07.2011. 3G Facility hasbeen given to all 2G connections of BSNL. In basic services, BSNL is miles ahead of its

rivals, with 24.58 million Wireline phone subscribers i.e. 71.93% share of the wireline

subscriber base.

BSNL has set up a world class multi-gigabit, multi-protocol convergent IP infrastructure

that provides convergent services like voice, data & video through the same Backbone &

Broadband Access Network. At present there are 8.09 million broadband customers.

The company has vast experience in planning, installation, network integration &

maintenance of switching & transmission networks & also has a world class ISO 9000

certified Telecom Training Institute.

During the 2010-11, turnover of BSNL is around Rs. 29,700 Crores.

b. NATURE OF BUSINESS CARRIED

BSNL is basically a telecom (land line) service provider. But now days apart from

these services, the operations of the company has been diversified into several

areas such as 3G, customer care, call centers, mobile services, etc.

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c. VISSION:

Be the leading telecom service provider in India with global presence.

Create a customer focused organization with excellence in customer care, sales

and marketing.

Leverage technology to provide affordable and innovative telecom.

Services/products across customer segments.

MISSION:

Be the leading telecom service provider in India with global presence.

Generating value for all stakeholders - employees, shareholders,

vendors & business associates

Maximizing return on existing assets with sustained focus on

profitability

Becoming the most trusted, preferred and admired telecom brand

To explore International markets for Global presence

Creating a customer focused organization with excellence in customer care,

sales& marketing.

Developing a marketing and sales culture that is responsive to

customer needs mere care, sales& marketing

Excellence in customer service-friendly, reliable, time bound,

convenient and courteous service

Leveraging technology to provide affordable and innovative products/ services

across customer segments

Offering differentiated products/services tailored to different

service segments

Providing reliable telecom services that are value for money

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Providing a conducive work environment with strong focus on performance

Attracting talent and keeping them motivated

Enhancing employees skills and utilizing them effectively

Encouraging and rewarding individual and team/group

performance

Establishing efficient business processes enabled by IT

Changing policies and processes to enable transparent, quick and

efficient decision making

Building effective IT systems and tools

OBJECTIVES:

To be the Leading Telecom Services provider by achieving higher

rate of growth so as to become a profitable enterprise.

To provide quality and reliable fixed telecom service to ourcustomer and thereby increase customers confidence.

To provide customer friendly mobile telephone service of high

quality and play a leading role as GSM operator in its area of operation.

Strategy for:

Rightsizing the manpower

Providing greater customer satisfaction

Contribute towards:

Broadband customers base of 20 Mn in India by the end of 2011-

12 as per broadband policy 2004.

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Providing telephone connections in villages as per Government

policy.

To leverage the existing infrastructure of BSNL for facilitating implementation of

other government programmes and initiatives particularly in the rural areas.

QUALITY POLICY

BSNL goes by the motto "Connecting India, faster" and displays the same at their

homepage. The service quality of BSNL Customer service has been severely criticized as

very poor. The mobile services provided by BSNL in almost every part of the country

were and still are criticized for network outages and frequent call drops. Despite the

criticism there is very negligible or no amount of work being carried out by the

authorities to improve the performance and quality of the network. BSNL claims to offer

seamless coverage in almost all forests of India in collaboration with state forest

department.

d. PRODUCTS AND SERVICE PROFILE OF BSNL

I. PRODUCTS OF BSNL:-

bsnl landline

bsnl mobile

postpaid

prepaid

unified messaging

gprs/wap/mms

demos

tariff

bsnl wll

internet services

network

broadband

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wi- f I

co-location service

bsnl web hosting

dial up internet sms& bulk sms

bsnl broadband

bsnl managed network services

bsnl mpls-vpn

isdn

leased line

intelligent network

free phone service

premium rate service

India telephone card

virtual private network (vpn)

voice vpn

universal number

universal personal number

tele voting

video conferencing

audio conferencing

telex/ telegraph

epabx

epabx

free epabx

centrex

hvnet

inmarsat

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transponder

II. SERVICES

When it comes to connecting the four comers of the nation, and much beyond, one

solitary name lies embedded at the pinnacle - BSNL. It is working round the clock to take

India into the future by providing world class telecom services for people of India. BSNL

is India's no. 1 Telecom Service provider and most trusted Telecom brand of the Nation.

Driven by the very best of telecom technology from chosen global leaders, it

connects each inch of the nation to the infinite corners of the globe, to enable you to step

into tomorrow.

Here is an overview of the World Class services offered by the BSNL:

BASIC TELEPHONE SERVICES

The Plain old, Countrywide telephone Service through 32,000 electronic

exchanges. Digitalized Public Switched Telephone Network (PSTN) with a host

of Phone Plus value additions.

BSNL launched Data One broadband service in January 2005 which shall be

extended to 198 cities very shortly. The service is being provided on existing

copper infrastructure on ADSL2 technology. The minimum speed offered to the

customer is 256 Kbps at Rs. 250/- per month only. Subsequently, other services

such as VPN, Multicasting, Video Conferencing, Video-on-Demand, Broadcast

application etc will be added.

INTERNET

Keeping the global network of Networks networked, the countrywide Internet

Services of BSNL under the brand name includes Internet dial up/ Leased line

access, CLI based access (no account is required) and DIAS service, for web

browsing and E-mail applications. You can use your dialup sancharnet account

from any place in India using the same access no '172233', the facility which no

other ISP has. BSNL has customer base of more than 1.7 million for sancharnet

service.

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BSNL also offers Web hosting and co-location services at very cheap rates.

ISDN

Integrated Service Digital Network Service of BSNL utilizes a unique digital

network providing high speed and high quality voice, data and image transfer

over the same line. It can also facilitate both desktop video and high quality video

conferring.

INTELLIGENT NETWORK SERVICE (In Service) offers value-added

services, such as:

India Telephone Card (Prepaid card)

Free Phone Service (FPH)

Account Card Calling (ACC)

Virtual Private Network (VPN)

Tele-voting

Premium Rae Service (PRM)

Universal Access Number (UAN) and more

I-NET:

India s x.25 based packet Switched Public Data Network is operational in 104

cities of the country. It offers x.25 x.28 leased, x.28 Dial up (PSTN) Connection)

and frame relay services.

LEASED LINES & DATACOM

BSNL provides leased lines for voice and data communication for various

applications on point to point basis. It offers a choice of high, medium and low

speed leased data circuits as well as dial-up lines. Bandwidth is available on

demand in most cities. Managed Leased Line Network (MLLN) offers flexibility

of providing circuits with speeds of nx64 kbps up to 2mbps, useful for Internet

leased lines and International Principle Leased Circuits (IPLCs).

CELLULAR MOBILE SERVICES POSTPAID & PREPAID

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BSNL's GSM cellular mobile service Cell one has a customer base of over 5.2

million. BSNL Mobile provides all the services like MMS, GPRS, Voice Mail, E-

mail, Short Message Service (SMS) both national and international, unified

messaging service (send and receive e-mails) etc. You can use BSNL Mobile in

over 160 countries worldwide and in 270 cellular networks and over 1000

cities/towns across India. It has got coverage in all National and State Highways

and train routes. BSNL Mobile offers all India Roaming facility to both pre-paid

and post-paid customers (including Mumbai & Delhi)

WIRELESS IN LOCAL LOOPS:

This is a communication system that connects customers to the Public Switched

Telephone Network (PSTN) using radio frequency signals as a substitute for

conventional wires for all or part of the connection between the subscribers and

the telephone exchange.

Countrywide WLL is being offered in areas that are non-feasible for the

normal network.

Helping relieve congestion of connections in the normal cable/wire based

network in urban areas. Connecting the remote and scattered rural areas.

Limited mobility without any air-time charge

DATA ONE BROADBAND

Bharat Shanchar Nigam Ltd. is in the process of commissioning of a world class,

(multi-gigabit,) multi-protocol, convergent IP infrastructure through National

Internet Backbone-II (NIB-II), that will provide convergent services through the

same backbone and broadband access network. The Broadband service will be

available on DSL technology (on the same copper cable that is used for

connecting telephone), on a countrywide basis spanning 198 cities.

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In terms of infrastructure for broadband services NIB-II would put India at par

with more advanced nations. The services that would be supported includes

always-on broadband access to the Internet for residential and business customers,

Content based services, Video multicasting, Video-on-demand and Interactive

gaming, Audio and Video conferencing, IP Telephony, Distance learning,

Messaging: plain and feature rich, Multi-site MPLS VPNs with Quality of Service

(QoS) guarantees. The subscriber will be able to access the above services

through Subscriber Service Selection System (SSSS) portal.

Key Objectives

To provide high speed Internet connectivity (upto 8 Mbps)

To provide Virtual Private Network (VPN) service to the broadband

customers

To provide dial VPN service to MPLS VPN customers.

To provide multicast video services, video-on-demand, etc. through the

Broadband Remote Access Server (BRAS).

To provide a means to bill for the aforesaid services by either time-based

or volume-based billing. It shall provide the customer with the option to

select the services through web server

To provide both pre-paid and post paid broadband services

Services available through Broadband

High speed Internet Access -This is the always-on Internet access service

with speed ranging from 256 kbps to 8 Mbps.

Bandwidth on Demand

This will facilitate customer to change bandwidth as perhis / her

requirement. For example a customer with 256 kbps can change to

1 Mbps during the Video Conferencing session.

Multicasting

This is to provide video multicast services for application in

distance education, telemedicine etc.

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Dial VPN Service

This service allows remote users to access their private network

securely over the NIB-II infrastructure.

Video and Audio Conferencing

Bsnl provides excellent Video and Audio Conferencing Services

Content based Services Like Video on Demand, Interactive Gaming, Live

and time shifted TV

e. AREA OF OPERATION

BSNL provides a wide range of services including landline, cellular (GSM and

CDMA), Managed Services Network, MPLS VPN, VSAT, VoIP, VAS, audio,

video and web conferencing, internet and broadband services among others. The

company provides Internet services, under the brand name Sancharnet, through

various modes that include Wi-Fi, Broadband, Direct Internet Access (DIAS),

ISDN and PSTN dial-up services. The company also carries on activities of

planning, installing, network integration and maintenance of switching and

transmission networks.

The company operates through 26 circles all over India except Mumbai and

Delhi. With services in around 0.55 mn village, 7330 cities/towns and 602

districts, BSNL has a major presence in rural areas. The company has in-house

production units in Mumbai, Jabalpur, Richhai, Bhilai, Kolkata, Gopalpur and

Kharagpur engaged in the production of GSM tower, SIM cards, Pay Phones,

Mini Pillar, MPJ box, CT boxes, Line Jack units, Drop-wire units etc. The

National Internet Backbone (NIB) of the company has 432 points of presence and

provides Internet service to approximately 1 mn dial-up customers including

about 3.5 mn customers on CLI (caller line identity) basis. This network helps the

company transport IP traffic to every corner of the country

f. OWENERSHIP PATTERN

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g. COMPETITORS INFORMATION:-

Bharat Sanchar Nigam Limited (BSNL) keeps most of India talking. The

company provideslocal-exchange access and domestic long-distance services

through a network of more than47 million access lines covering most of India. (It

does not provide service in Delhi and Mumbai.) Serving business and consumer

customers, it also offers GSM and CDMA-based wireless communications,

satellite service, telegraph, data and Internet services, and managed network

services. BSNL is one of two state-controlled telcos in India, along with

Mahanagar Telephone Nigam Limited (MTNL), which serves Delhi and Mumbai.

Industries where BSNL competes:-

Telecommunications Services

Fixed-line Voice Services Providers (primary)

Data Services

Teleconferencing Services providers

Telemetry & Telematics Services Providers

Wireless Communications Services

1. Tata Communications Ltd:-

Tata Communications Limited (formerly Videsh Sanchar Nigam Limited or

VSNL) has a hold on the wholesale voice market in India and beyond. The

company, which primarily provides international long-distance telephone service,

owns and operates a network service in more than 200 countries. It also offersnetwork and data services to enterprises and supplies transmission backbone and

data services to other telecommunications companies over one of the largest

global IP networks. Tata Communications is part of Indian industrial

conglomerate Tata Group.

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2. Reliance Communications Ltd:-

Reliance Communications is one of India's largest providers of integrated

communications services. With more than 48 million customers, the company

serves consumers and enterprises with a digital network supporting voice, data,

and video. Its fixed and wireless communications services include domestic and

international voice, Internet access, messaging, and videoconferencing. It also

provides wholesale capacity, infrastructure, and managed enterprise services

through its Reliance Globalcom division. Reliance Communications is part of the

Reliance - Anil Dhirubhai Ambani Group.

3. Bharti Airtel:-

Bharti Airtel is one of the leading alternative providers of telecommunications

services in India. Through its subsidiaries, the company (formerly Bharti Tele-

Ventures) operates through three divisions: mobile, broadband and telephone, and

enterprise services. The enterprise services group includes units for both long-

distance carriers and for corporate clients. Bharti Airtel has nearly 100 million

customers in total -- approximately more than 64 million GSM mobile and almost

3 million fixed-line customers. The company was founded as Bharti Tele-

Ventures in1995 and changed its name in early 2006 to Bharti Airtel Limited. It is

a unit of Indian conglomerate Bharti Enterprises.

4. Vodafone:-

Customers have voted with their phones to make Vodafone Group the world's top

wireless phone services carrier by sales with more than 200 million customers; in

terms of subscribers, Vodafone trails only China Mobile. The company does most

of its business in Europe where its a leader in wireless markets of the UK and

Germany. In the US, the group holds a 45%stake in the #2 US wireless providers

Verizon Wireless. Vodafone also serves callers in Asia, Africa, the Middle East,

and the Pacific region through subsidiaries and joint ventures. The group also

provides wireless data, broadband Internet, as well as fixed-line phone services

through German subsidiary Arcor.

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5. IDEA Cellular:-

IDEA Cellular provides wireless services to about 24 million subscribers in 22

service areas such as Andhra Pradesh, Delhi, Gujarat, Haryana, and Maharashtra.

The company's network covers about 60% of the country. IDEA offers contract

and pre-paid cellular service options in addition to a number of value-added

services such as mobile Web browsing, video streaming, and multimedia

messaging. The company is controlled by Indian industrial manufacturing

conglomerate Aditya Birla Group.

6. Mahanagar Telephone Nigam Limited (MTNL):-

Mahanagar Telephone Nigam Limited (MTNL) can help you call a deli in Delhi,

or mumble to friend in Mumbai. The company provides fixed-line and wireless

telecommunications services for two of the largest metropolitan areas of India.

The company also provides Internet access services. It divides its operations into

two business segments: basic (fixed line, CDMA-based mobile, and Internet

access) and cellular (GSM-based mobile). Outside of India, the company offers

services in Nepal (through a joint venture) and Mauritius. The government of

India owns56% of the company.

7. Aircel:-

The Aircel Group is a joint venture between Maxis Communications Berthed of

Malaysia andApollo Hospital Enterprise Ltd of India, with Maxis

Communications holding a majority stake of 74%. Aircel commenced operations

in 1999 and became the leading mobile operator in TamilNadu within 18 months.

In December 2003, it launched commercially in Chennai and quickly established

itself as a market leader a position it has held since. It began its outward

expansion in 2005 and met with unprecedented success in the Eastern frontier

circles. It emerged a market leader in Assam and in the North Eastern provinces

within 18 months of operations. Till today, the company gained a foothold in 17

circles including Chennai, TamilNadu, Assam, North East, Orissa, Bihar, Jammu

& Kashmir, Himachal Pradesh, West Bengal, Kolkata, Kerala, Andhra Pradesh,

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Karnataka, Delhi, UP(West), UP(East) and Mumbai. The Company has currently

gained a momentum in the space of telecom in India post the allocation of

additional spectrum by the Department of Telecom, Govt. of India for 13 new

circles across India. These include Delhi (Metro), Mumbai (Metro), Andhra

Pradesh, Gujarat, Haryana, Karnataka, Kerala, Madhya Pradesh, Maharashtra &

Goa, Rajasthan, Punjab, UP (West) and UP (East). With over 17 million

customers in the country, Aircel has revved up plans to become full-fledged

national operator by end of 2009.

8. MTS:-

Mobile TeleSystems OJSC (MTS) is the largest mobile phone operator in Russia

and the CIS, and the 8th largest in the world. MTS is 52.8% majority-owned by

System, the largest private sector consumer services company in Russia and the

CIS.

Sistema Shyam TeleServicesLimited is a joint venture company between Sistema

of Russia and Shyam Group of India. Sistema has a controlling 73.71% stake in

the venture. Sistema Shyam TeleServices Limitedhas licenses and spectrum to

provide mobile telephony services on the CDMA platform in all22 circles across

the country. Shyam Telelink became Sistema Shyam TeleServices andbrought

globally renowned brand MTS to India. Shyam Telelink is the first telecom

operator to acquire the fastest 100,000 customers in the state of Rajasthan.

h. INFRASTRUCTURE FACILITIES:-

Our Corporate Office, R&D and Factory are situated at the heart of the

Trivandrum city. Our infrastructure is spread across 6000 SQ FEET with Four

Building. The main office constitutes of the Accounts, Administration, Marketing

and Directors offices. There are separate buildings for R&D centre, that houses

the Software and Quality departments, Production building where the entire

assemble is done, and a separate building for the Customer Support departments.

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Our advanced infrastructural setup gives us high production capacity of more than

5000 machines per month.

i. ACHIEVEMENT AND AWARD OF BSNL:-

BSNL National Awards 2006 distribution ceremony was held on the occasion of

World Telecom Day on 17th May 2006 at New Delhi.

Awards were given by Hon'ble Minister of State for Communications & IT Dr.

Shakeel Ahmed. Also present on the occasion were Secretary DoT Dr. J.S. Sarma,

CMD BSNL Sh. A.K. Sinha, Director Operations BSNL Sh. J.R. Gupta and other

dignitaries.

Awards such as Bharat Sanchar Doot, AtiVishist Sanchar Seva Padak, Best

Maintained Telecom System, Best Improved Telecom System and, Telegraph

award were given on this occasion.

j. WORK FLOW MODEL

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Information

made

available

throughadvertisement

s and on net

Enquiry from customers

Providing informationof products and services

to customers

Filling application andmaking order

Final payment and

delivery of services

CRM and

after sale

services

Customer

grievances

cell (toll free-

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k. FUTURE GROWTH AND PROSPECTS

BSNL has continued its growth story ever since its formation & has reached a customer

base of 81.49 million as on 31st March, 2009 from 28.11 million as on 31st March, 2001.

BSNL further plans to increase its customer base to 160 Million by March, 2014.

New Services introduced/planned by BSNL

1. 3G Services: BSNL has started 3G services in 290 cities and acquired more than

6lakh customers. It has planned to roll out 3G services in 760 cities across the country

in 2012-13.

2. Broadband services: The shift in demand from voice to data has revolutionized

the very nature of the network. BSNL is poised to cash on this opportunity and has

planned for extensive expansion of the Broadband services. The Broadband customer

base of 3.56 Million customers in March'2009 is planned to be increased to 16.00

million by March 2014.

3. BSNL is also offering prepaid Broadband services. The customers availing

prepaid broadband have many advantages over post paid broadband like control on

usage, Mobility etc.

4. In addition to wireline broadband services, BSNL is also in the process of rolling

out its Wi-MAX network in rural areas to take an initial lead and provide wireless

broadband services in all rural blocks in the country during 2010-11. The Urban Wi-

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Max is also being deployed in Kerala & Punjab Circles and shall cover all the major

cities in these circles.

5. Wi-Max services are also being provided through a Franchisee agent with M/s

SOMA in three states of Gujarat, AP and Maharashtra.

6. Value Added Services : BSNL is focusing on provision of value added

services/features to attract high end customers and to double its revenues from VAS

Important Projects under implementation

Tender for 93 Million GSM Mobile Lines to meet the requirement for next three

to five years.

Wi-Max:

1000 Base Station rural Wimax project for 12000 CSCs covering all Telecom

Circles except A&N, J&K, Kerala & Kolkata Telecom District.

6863 Base Station rural Phase-II Wimax project for 56000 CSCs covering all

Telecom circles except Kerala & A&N.

CDR based Customer Care & Convergent Billing system.

Enterprise Resource Planning (ERP) system country wide.

Replacement of life expired exchanges by Class 5 NGN

Introduction of Fixed Mobile Convergence to add value to Fixed Network.

INTERNATIONAL LONG DISTANCE

Undersea Cable: BSNL is participating/member of the following submarine cable

systems:

Bharat Lanka Cable System: Connecting to Sri Lanka and to reach in the Pacific

direction from India.

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Europe India Gateway (EIG) Cable System: Connecting UK, Portugal, Gibraltar,

France, Libya, Egypt, Saudi Arabia, Djibouti, Oman & UAE.

Millennium Cable System: It is joint venture with MTNL to lay Millennium

Cable System in two directions as follows:-

Millennium Cable Sub-System East (MCSS-E) connecting the East Coast of India

to South East Asia (Malaysia and Singapore) with optional branches to Port Blair

(Great Andaman Island), Bangladesh, Myanmar, Indonesia and Thailand.

Millennium Cable Sub-System West (MCSS-W): connecting the West Coast of

India to the Middle East (United Arab Emirates) and Djibouti with optional branches

to Pakistan, Oman and Yemen.

SEMEWE4: Connecting towards Trans-Atlantic as well as Trans-Pacific

direction.

International MPLS-VPN: BSNL has made arrangements for providing

International MPLS VPN services in about 400 cities and 150 countries.

With the above expansion plans and introduction of new services, the turnover of

the company is expected to grow from Rs. 35800 crore in March 2009 to Rs.

52,000 Crores by March 2014.

SOCIAL COMMITEMENT

BSNL is committed to provide quality Telecom Services at affordable price to the

citizens of the remotest part of the Country. BSNL is making all effort to ensure that the

main objectives of the new Telecom Policy 1999 (salient points indicated below) are

achieved.

Access to telecommunications is of utmost importance for achievement of the country's

social and economic goals. Availability of affordable and effective communications for

the citizens is at the core of the vision and goal of the new Telecom policy 1999.

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Strive to provide a balance between the provision of universal service to all uncovered

areas, including the rural areas, and the provision of high-level services capable of

meeting the needs of the country's economy.

Encourage development of telecommunication facilities in remote, hilly and tribal areas

of the country.

Transform in a time bound manner, the telecommunications sector to a greater

competitive environment in both urban and rural areas providing equal opportunities and

level playing field for all players.

3. McKENSYs 7S FRAME WORK WITH REFERNECE TO BSNL

1. STRUCTURE

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ORGANIZATION is a formalized intentional structure of roles or positions. The roles

that are asked to fill should be intentionally designed to ensure that required activities are

done and that activities fit together so that people can work smoothly, effectively, and

efficiently in group.

ORGANIZATION CHART is a diagrammatic representation of the frame work or the

structure of an organization. It involves the identification of activities & responsibilities

that the person possesses in that organization. An organization chart indicates the

functions & their inter relationships with each other. Appropriate internal communication

links between various activities are also identified in this chart.

ORGANIZATION CHART

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2. STRATEGY

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Excellent organization knows and intimately understands their customers. They

understand that customers are the final arbiters of the product and service quality. They

also understand that customer loyalty retention and market share gain is maximized

through clear focus on the needs and exceptions where appropriate they segment their

customers to improve the effectiveness of their response. They monitor competitor

activity and understand their competitive advantages.

They effectively anticipate what customers future needs and expectations will be and act

now in order to meet and where possible exceed them; they monitor and review the

experience and perception of their customers and where things go wrong they respond

quickly and effectively. They build and maintain excellent relationships with all their

customers.BSNL Brands

In year, 2008, BSNL changed the name of all its existing services to streamline its Brand

portfolio

SERVICE TYPE OLD NAME NEW NAME

Landline [Wired] phones Bfone BSNL Landline

CDMA Wirelesslandlines/mobiles

Tarang BSNL WLL

GSM Postpaid Mobiles Cell One BSNL mobile Postpaid

GSM Prepaid Mobiles Excel BSNL mobile Prepaid

Dial Up Internet Sancharnet BSNL internet

Broadband Internet Dataone BSNL Broadband

Brand associations

Brand association can be anything that connects the customer to the brand. It can

include user imagery, product attributes, use situations, Organizational associations,

brand personality and symbols. Much of brand management involves determining what

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associations to develop and then creating programs that will link the associations to the

brand.

For Ex - BSNL is collaborating with retail outlets, franchisor to increase their sale.

Merging with NOKIA cell phone.

3. SYSTEMOverall management of the Company is vested with the Board of Directors of the

Company. The Board of Directors is the highest decision making body within the

Company. As per the provisions of the Companies Act, 1956 certain matters require the

approval of the shareholders of the Company in General Meeting. The Board of Directors

is accountable to the shareholders of the Company, which is the ultimate authority of a

Company. Bharat Sanchar Nigam Limited being a Public Sector enterprise (PSE), theBoard of Directors of the Company is also accountable to Government of India.

The day-to-day management of the Company is entrusted with the Chairman cum

Managing Director and the Functional Directors and Executives of the Company. For this

purpose, the Board of Directors has delegated powers to the Chairman and Managing

Director, Functional Directors, and the Executives of the Company through Delegation of

Financial and Administrative Powers.

Board of Directors has also delegated few of its specific powers to a committee, known

as Management Committee comprising of CMD and Functional Directors. Functional

Directors and executives exercise their decision-making powers as per this delegation of

powers. The Chairman cum Managing Director, Functional Directors and other

Executives are accountable to Board of Directors for proper discharge of their duties &

responsibilities. The powers, which are not delegated are 16 exercised by the Board of

Directors subject to the restrictions and provisions of the Companies Act, 1956 and the

Articles of Association of the Company.

4. SKILLS

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Learning is a continuous process one has to update himself in the present competitive

scenario. Training is one of the methods of learning to enhance the knowledge and

improve the competencies of an individual. Training refers to the acquisition of

knowledge, skill and competencies.

Executive and employees are recruited on need basis. Fresh graduates for the post of

engineers, accounts officer, personnel officer, will be recruited through Examination

(JTO, JAO, and AO) and will be trained in Centre for Training and Development or on

the job.

The important skills required are: -

Good technical skills to operate the machines and engineering work.

Good interpersonal skills to co-ordinate and interface with the head of the

department and peers.

Excellent communication and organization skills.

Good computer and writing skills when required.

Ability to understand the nature of the job so that he can efficiently perform.

Ability to cop up with the working environment in the organization, job and

achieving the objectives and goals.

Ability to analyze the sudden changes which take place in the work place.

Other skills like leadership, supervision and strong technical skills.

5. STYLE

In this company they follow both authoritarian and participative style. If any

important and strategic decisions have to be taken, authoritarian style is followed.

The strategic decision involves selection of suppliers and customers, accepting the

customer orders, financing etc.

If any technical decisions in the work place are to be taken then the participative

style is followed, this decision involves change in production schedule,

purchasing of raw material, change of tools etc.

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Top down communication

General manager address all executives at least twice a year to share units vision,

mission, values, policies and strategies, business scenario and market condition,

units performance and companies over all perceptive. General Managers meet

all divisional heads working with them every day and departmental heads meet

their executives at least once in a month to share and discuss common issues

concerned. Similarly section head meets formally all employees at least one in a

month.

Bottom up communication

General Manager (personnel) conducts meeting with non technical units, where in

specific agenda are discussed such as matters relating to quality productivity

safety work environment etc

6. STAFF

More than 150 staffs are working in BSNL pandeshwar. Some of them are-

Managing Director

The responsibility of the managing director is to

Control the overall operations and results of the company.

Determining the quality objectives and monitoring the same.

Directing the team and leading to achieve its objectives.

Overall review of the organization of a timely basis.

Assistant General Manager

The responsibility of the assistant general manager is to

Control and monitor the operations of all the departments in the organization

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Planning the activities of all the departments

Coordinating the activities of all departments for the smooth running of the

organization

Deputy Manager Marketing

Preparation of tender.

Meeting customers and identifying their needs.

Market research, competitors study, advertisement of the projects

Human resource managerThe responsibility of the human resource manager is to

Plan the man power required for the efficient working of the organization and

recruit and select the prospective employees

Control the activities of the employees

Evaluate the performance of the employees and do the appraisal

Plan the training and development of the employees

Finance manager

The responsibility of the finance manager is to

Maintaining the accounts of the organization.

Budgeting and maintaining the costs.

Maintaining the treasury bills and operations.

Auditing the accounts periodically.

Have internal control over the accounts.

7. SHARED VALUE

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Shared values define organizational behavior and what the organization strives to

achieve. Shared values shape planning for the future, determine reaction to current

events, and guide at moments of decision. The shared value of an organization refers

customer satisfaction, implementing of automated machines and the most important one

that is to be achieved is total quality management. And the other important thing would

be the social responsibility of the organization.

With regard to the above said shared values the company is functioning in all the areas

which are explained as follows: -

Customer satisfaction: Customer satisfaction is the main objective of the

company and this is achieved by the company by maintaining the quality and the

standard of the products produced according to the need of the customer.

Quality management: The Company is providing the better quality products and

maintaining the ISO standard and follows six sigma.

Social responsibility: BSNLs contribution to society includes setting up and

managing educational institutions hospitals, school for the mentally challenged

and rehabilitation centers for the underprivileged. BSNL believes that compassion

empathy and service orientation are essential for overall excellence. BSNLfollows clean & green policy as a concern for environment through profuse

greenery in all the units. A forestation, effluent treatment, used water recycling,

generation and use of biogas and rain water harvesting.

5. FINACAIAL ANALYSIS

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company profile bsnl

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