Declaration

I hereby certify that the work which is being presented in the project entitled, “Bharat Sanchar Nigam Limited” in partial fulfilment of the requirements for the award degree of Post Graduation Programme in Business Management offered by FALCON INSTITUTE OF MANAGEMENT, BANGALORE is an authentic record of our own work .

The matter presented in this Project Report has not been submitted by us for the award of any other degree of this or any other institution.

1. Rajnish Singh

Acknowledgement

Success of every project depends largely on the SELF & encouragement and guidance to of the many people others. who We have take been this opportunity in to express my

gratitude

instrumental

the

successful

completion of this study project.

First of all we would like to thank the Management at FALCON INSTITUTE OF
MANAGEMENT for giving us the opportunity to do our one-month project

in their

esteemed institution.

We also thank our Internal Guide Ms.Sneha singh for providing me with valuable advice and endless supply of new ideas and support for this project.

INDEX
CONTENT CHAPTER - 1 PAGE NO.

1.1 - Introduction 1.2 - Objective of the study 1.3 - Methodology of the study 1.4 - Limitations of the study CHAPTER - 2 2.1 - Industrial Profile 2.2 - Company Profile: Background of the company  Interesting facts  Aspiration  Nature of the business carried  Mission & Vision and Quality Policy  Product / Services Profile  Competitors Information  Infrastructure facilities  Achievement or Awards if any CHAPTER – 3 3.1 - Organizational structure 3.2 - Main Offices CHAPTER – 4 4.1 - Finance department 4.2 - Marketing department 4.3 - Operation department 4.4 – Human Resource department 4.5 – Training & Development department

CHAPTER – 5 5.1 - The SWOT Analysis: Strengths  Weaknesses  Opportunities &  Threats 5.2 - Mckinsey’s 7s Model 5.2.1 - Structure: Board of Directors  Functional head etc. 5.2.2 - Skills: On the JOB  Off the JOB 5.2.3 - Style: Top down /Bottom up  Authoritarian / Participative 5.2.4 - Strategy: Pricing / waste elimination etc. 5.2.5 - System: Inventory control system  Order execution system  Merit rating system etc. 5.2.6 - Staff: Management team  Technical  Supervisory

 Clerical 5.2.7 - Shared value CHAPTER - 6 6.1 - Suggestions 6.2 – Recommendations CHAPTER – 7 7.1 - Learning experience 7.2 - Bibliography 7.3 - Annexures

CHAPTER-1

Introduction:This project on Bharat Sanchar Nigam Ltd(BSNL) is being prepared and presented with a view to educate the readers by bringing out the potentials of the team members. The mission of the project is that it would concentrate on conglomerated BSNL in all dimensions, so that the facts are revealed and the meaningful conclusion can be derived at the end of this project by readers , from any background.

Objective of the study:1. To do a through analysis on the company and its ethics, norms etc. 2. To understand the culture and basis of the service provider (BSNL). 3. To throw light upon the functional areas of the company and its mutual co-operation with other departments. 4. To undertake a SWOT analysis on the company and to find out the key areas of success. 5. To inform and to educate the readers and provide them the necessary and sufficient details with examples for their better understanding. 6. To analyse the recent financial statements of the company.

Methodology of the study:1. Secondary data with the help of internet, journals, magazines, newspaper etc are the basic tools for this project. 2. Primary data (unauthorised) has also been considered. 3. Apart from the data, the analysation, interpretation of the team members had played a crucial role in this project.

Limitations of the study:The major limitation of this project is that the primary data that have been taken place are not subject to authorization.

CHAPTER- 2
Telecom Industry in India

(a) INDUSTRY PROFILE:-

Background:-

The Indian Telecommunications network with 203 million connections is the third largest in the world and the second largest among the emerging economies of Asia. Today, it is the fastest growing market in the world. The telecommunication sector continued to register significant success during the year and has emerged as one of the key sectors responsible for India’s resurgent India’s economic growth.  Telecom sector accounts for 1 percent of India’s GDP. Likely to double in 23 years.  Telecom services contribute 30 percent to India’s total service tax revenue  The Indian telecom sector gives direct employment to more than 4,00,000 people, compared to about 6,00,000 people in China.  Not just the enabler of software, BPO and ITeS companies, it is also the lifeline of a fast growing E-commerce space.  State-of-the-art telecom infrastructure has led to the rise of cities like Mysore, Mangalore, Jaipur, Ahmedabad, Kochi on the software services map.  This has helped spread the benefits of a booming Indian economy to beyond metros and large cities, and wealth creation is happening in tier-2 cities.

Growth:-

The sector, which was growing in the range of 20 to 25 per cent up to the year 2002-03, has moved to a higher growth path of an average rate of 40-45 per cent during the last two years.

Indian Telecom Subscriber Annual Growth Rate
45 40 35 30 25 20 15 10 5 0 15 17 18 22 22 24.7 25.2 21.9 24.7 27.7 24 21.2 29 40 42.4

This rapid growth has been possible due to various proactive and positive decisions of the Government and contribution of both by the public and the private sector. The rapid strides in the telecom sector have been facilitated by liberal policies of the Government that provide easy market access for telecom equipment and a fair regulatory framework for offering telecom services to the Indian consumers at affordable prices. Teldensity:The telecom sector has shown robust growth during the past few years. From a teledensity of mere 0.5 per cent in the year 1989, it has grown to double digit in the year 2005.

India's Growing Teledensity
25 22 20

15 11.4

10

5 0.5 89-91 0.6 91-93 0.8 93-95 1.1 95-97 1.6 97-99 2.3 99-01 3.6

5.1

0

01-003 03-005 05-007 07-009

Buoyed by the better-than-expected teledensity in 2005 (11.4 per cent against 8.6 per cent in 2004) due to the mobile boom in India, Department of Telecommunications (DoT) has revised the upwards the target of 22 per cent teledensity by 2007. Internet Services:-

Internet services were launched in India on August 15, 1995. In November 1998 the government opened up the sector to private operators. A liberal licensing regime was put in place to increase Internet penetration across the country. Though a large number of Internet Service Providers (ISPs) has been licensed (389) to operate Internet service today, just the top 20 ISPs service 98 per cent of subscribers. Similarly, while internet telephony is permitted to 128 ISPs, only 32 actually provide the service. The slow growth of internet and broadband will make the target of 18 million internet subscribers and 9 million broadband connections by 2007 tough to achieve. The growth of IP telephony or grey market is also a serious concern. Government loses revenue, while unlicensed operation by certain operators violates the law and depletes licensed operators market share. New services like IP-TV and IP-Telephony are becoming popular with the demand likely to increase in coming years. The scope of services under existing ISP license conditions are unclear.

Internet Subscriber Base In Per cent
1% 2% 5% 6% 7% 9% 45% 6% BSNL MTNL Sify Bharti Airtel Reliance VSNL You Telecom 19% Hath Way Cable & Data Others

Internet subscribers stood at 8.6 million for the quarter ending 31st December 2006, registering an increase of 6.00 per cent. The growth trend during the quarter is positive as compared with last quarter where it was 5.02 per cent. The total Internet subscribers increased from 6.7 million at the end of December 2005 to 8.6 million at the end of December 2006 registering a growth of 28.03 per cent. Bharat Sanchar Nigam Ltd (BSNL) has retained its top position and reported a subscriber base of 38.12 Lakhs Internet subscribers against 3.55 million during the last quarter. Mahanagar Telephone Nigam Limited (MTNL) has retained second position with a subscriber’s base of 1.66 million. Sify Limited is third with a base of 8,06,000 subscriber. Major Players:There are three types of players in telecom services: • State owned companies (BSNL and MTNL) • Private Indian owned companies (Reliance Infocomm, Tata Teleservices,) • Foreign invested companies (Hutchison-Essar, Bharti Tele-Ventures, Escotel, Idea Cellular, BPL Mobile, Spice Communications)

Market Share of Wireless Operators

7% 8% 10% 20% Reliance Bharti Airtel BSNL Hutch 16% 21% TTSL IDEA Others 18%

(b)BSNL Company Profile

Bharat Sanchar Nigam Ltd. formed in October, 2000, is World’s 7th largest Telecommunications Company providing comprehensive range of telecom services in India: Wireline, CDMA mobile, GSM Mobile, Internet, Broadband, Carrier service, MPLS-VPN, VSAT, VoIP services, IN Services etc. Presently it is one of the largest & leading public sector unit in India.

BSNL has installed Quality Telecom Network in the country and now focusing on improving it, expanding the network, introducing new telecom services with ICT applications in villages and wining customer’s confidence. Today, it has about 47.3 million line basic telephone capacity, 4 million WLL capacity, 49.76 Million GSM Capacity, more than 37382 fixed exchanges, 46565 BTS, 3895 Node B ( 3G BTS), 287 Satellite Stations, 480196 Rkm of OFC Cable, 63730 Rkm of Microwave Network connecting 602 Districts, 7330 cities/towns and 5.5 Lakhs villages.

BSNL is the only service provider, making focused efforts and planned initiatives to bridge the Rural-Urban Digital Divide 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 country and operates across India except Delhi & Mumbai. Whether it is inaccessible areas of Siachen glacier and North-eastern region of the country. BSNL serves its customers with its wide bouquet of telecom services.

BSNL is numero uno operator of India in all services in its license area. The company offers vide ranging & most transparent tariff schemes designed to suite every customer. BSNL cellular service, CellOne, has more than 52.09 million cellular customers, garnering 16.96 percent of all mobile users in its area of operation as its subscribers. In basic services, BSNL is miles ahead of its rivals, with 35.1 million Basic Phone subscribers i.e. 85 per cent share of the subscriber base and 92 percent share in revenue terms.

BSNL has more than 2.5 million WLL subscribers and 2.5 million Internet Customers who access Internet through various modes viz. Dial-up, Leased Line, DIAS, Account Less Internet(CLI). BSNL has been adjudged as the NUMBER ONE ISP in the country.

BSNL has set up a world class multi-gigabit, multi-protocol convergent IP infrastructure that provides convergent services like voice, data and video through the same Backbone and Broadband Access Network. At present there are 0.6 million DataOne broadband customers. The company has vast experience in Planning, Installation, network integration and Maintenance of Switching & Transmission Networks and also has a world class ISO 9000 certified Telecom Training Institute.

Scaling new heights of success, the present turnover of BSNL is more than Rs.351,820 million (US $ 8 billion) with net profit to the tune of Rs.99,390 million (US $ 2.26 billion) for last financial year. The infrastructure asset on telephone alone is worth about Rs.630,000 million (US $ 14.37 billion).

BSNL plans to expand its customer base from present 47 millions lines to 125 million lines by December 2007 and infrastructure investment plan to the tune of Rs. 733 crores

(US$

16.67

million)

in

the

next

three

years.

The turnover, nationwide coverage, reach, comprehensive range of telecom services and the desire to excel has made BSNL the No. 1 Telecom Company of India.

Interesting Facts: There are 2 million BSNL mobile connections in rural India(a record, no other connection is as famous as bsnl in rural areas) .

 BSNL supplies phone lines to all other network such as Airtel,Vodafone etc.

 BSNL is the only network which offers broadband connections .  More than 50% of the international calls coming to India, use Reliance network.  Largest pan India coverage-over 11000 towns & 3 lakh villages.  India’s No. 1 wireless service provider with more than 50 million customers.  An incredible speed of 2mbps is only offered by BSNL.  The only Mobile service available through out the country including Jammu and Kashmir and North Eastern states like Arunachal Pradesh, Nagaland, Mizoram etc.

ASPIRATION :-

 

Be the leading Telecom Service Provider in India with global presence. Create a customer focused organisation with excellence in sales, marketting and customer care.

Leverage technology to provide affordable and innovative products/services across customer segments

 

Provide a conducive work environment with strong focus on performance Establish efficient business processes enabled by IT

Nature of the business carried:BSNL is basically a telecom(land line) service provider. But now a days apart from these services, the operations of the company has been diversified into several arenas such as 3G,customer care,call centres, mobile services,etc.

Vision of BSNL:To become the largest telecom Service Provider in Asia.

Mission of BSNL: To provide world class State-of-art technology telecom services to its customers on demand at competitive prices.  To Provide world class telecom infrastructure in its area of operation and to contribute to the growth of the country's economy.

Quality Policy:BSNL Telecom Factory Mumbai is committed to continually improve through excellence and customer satisfaction with employee’s participation.

Products / Services Profile:1. Products of BSNL: BSNL LANDLINE  BSNL MOBILE POSTPAID PREPAID UNIFIED MESSAGING GPRS/WAP/MMS DEMOs TARIFF  BSNL WLL  INTERNET SERVICES NETWORK BROADBAND 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  TRANSPONDER

1. Services of BSNL:When it comes to connecting the four corners of the nation, and much beyond, one solitary name lies embedded at the pinnacle - BSNL. A company that has gone past the number games and the quest to attain the position of a leader . 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 DataOne 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, Videoon-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.

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 conferencing.

Intelligent Network:-

Intelligent Network Service (In Service) offers value-added services, such as: Free Phone Service (FPH) India Telephone Card (Prepaid card) 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 application 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 upto 2mbps, useful for Internet leased lines and International Principle Leased Circuits (IPLCs).

Cellular Mobile Service :-

Postpaid and Prepaid BSNL’s GSM cellular mobile service Cellone 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 emails) 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 prepaid and post-paid customers (including Mumbai & Delhi).

Wireless in Local Loop: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.

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 andMumbai.) Serving business and consumer customers, it also offers GSM and CDMAbasedwireless communications, satellite service, telegraph, data and Internet services, and managednetwork 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 holdon the wholesale voice market in India and beyond. The company, which primarily providesinternational long-distance telephone service, owns and operates a network service in morethan 200 countries. It also offers network and data services to enterprises and suppliestransmission backbone and data services to other telecommunications companies over one of the largest global IP networks. Tata Communications is part of Indian industrial conglomerateTata Group.

2. Reliance Communications Ltd:-

Reliance

Communications

is

one

of

India's

largest

providers

of

integrated

communicationsservices. With more than 48 million customers, the company serves consumers andenterprises with a digital network supporting voice, data, and video. Its fixed and wirelesscommunications services include domestic and international voice, Internet access,messaging, and videoconferencing. It also provides wholesale capacity, infrastructure, andmanaged enterprise services through its Reliance Globalcom division.

RelianceCommunications 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 threedivisions: mobile, broadband and telephone, and enterprise services. The enterprise servicesgroup includes units for both long-distance carriers and for corporate clients. Bharti Airtel hasnearly 100 million customers in total -- approximately more than 64 million GSM mobile andalmost 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 Indianconglomerate Bharti Enterprises.

4. Vodafone:Customers have voted with their phones to make Vodafone Group the world's top wirelessphone 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 itis a leader in wireless markets of the UK and Germany. In the US, the group holds a 45%stake in the #2 US wireless provider Verizon Wireless. Vodafone also serves callers in Asia,Africa, the Middle East, and the Pacific region through subsidiaries and joint ventures. Thegroup also provides wireless data, broadband Internet, as well as fixed-line phone servicesthrough German subsidiary Arcor.

5. IDEA Cellular:IDEA Cellular provides wireless services to about 24 million subscribers in 22 service areassuch as Andhra Pradesh, Delhi, Gujarat, Haryana, and Maharashtra. The company's networkcovers about 60% of the country. IDEA offers contract and pre-paid cellular service options inaddition to a number of value-added services such as mobile Web browsing, video streaming,and multimedia messaging. The company is controlled by Indian industrial manufacturingconglomerate 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 afriend in Mumbai. The company provides fixed-line and wireless telecommunications servicesfor two of the largest metropolitan areas of India. The company also provides Internet accessservices. It divides its operations into two business segments: basic (fixed line, CDMAbasedmobile, and Internet access) and cellular (GSM-based mobile). Outside of India, the companyoffers 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 Berhad 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 quicklyestablished itself as a market leader ± a position it has held since. It began its outwardexpansion in 2005 and met with unprecedented success in the Eastern frontier circles. Itemerged 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, Karnataka, Delhi, UP(West), UP(East) and Mumbai. TheCompany has currently gained a momentum in the space of telecom in India post the allocationof additional spectrum by the Department of Telecom, Govt. of India for 13 new circles acrossIndia. These include Delhi (Metro), Mumbai (Metro), Andhra Pradesh, Gujarat, Haryana,Karnataka, Kerala, Madhya Pradesh, Maharashtra & Goa, Rajasthan, Punjab, UP (West) andUP (East). With over 17 million customers in the country, Aircel has revved up plans to becomea 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 Sistema, the largest privatesector 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 toacquire the fastest 100,000 customers in the state of Rajasthan.

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 Director’s 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 another separate building for the Customer Support departments. Our advanced infrastructural setup gives us high production capacity of more than 5000 machines per month.

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.

Achievements/Milestones:Since BSNL's formation on October 1, 2000 up to September 2001, significant growth has been achieved in almost all the infrastructural parameters:
  

Number of exchanges has grown by 14% to 32369. Equipped capacity has grown by 21.5% to 36.43 million in one year. Direct exchange lines have grown by 21.5% to 29.4 million.

 

TAX capacity has grown by 7.8% to 25,40,000. OFC route kms has grown by about 26.9% to 241841.

Achievements April-December 2000:New Telephone Connections:During 1999-2000 a record number of 45.40 lakh new telephone connections were provided by BSNL, bringing the total number of DELs to 224.8 lakh. During the current year (April-Dec. 2000) 27.23 lakh lines have been installed. Total lines installed as on 31-12-2000 is 252.4 lakh. Public Call Office (PCOs):In the urban areas, since there is a long waiting list for telephone connections and also considering the fact the telephone facility is needed by general public who can not afford to have a telephone of their own, it was decided that the accessibility should be improved by providing a large number of PCOs for general public.

Total number of PCOs 326574, STD PCOs, 5449 NHPTs have been provided up to March 21, 2000.

As on March, 31,2000 the number of villages having Village Public Telephones(VPTs)was 374605 out of 607491.

During 2000-01(April-December 2000), 152,150 PCOs have been provided.

Provisions of Cellular Mobile Phones:It has been planned to introduce WLL technology in the network. Its salient features of WLL are its fast and easy deployment, flexibility, limited mobility etc. Initially this service is being introduced in 27 cities by BSNL in the form of pilot project. The estimated cost of this project shall be about Rs.50 Crore. Telephone Services:3010 New telephone exchanges (Net addition) were commissioned during 1999-2000 raising the total number of exchanges to 27569. The equipped capacity of Telephone Exchanges rose to 281.28 lakh lines with the net addition of 63.02 lakh new lines during the year representing an increase of 28.87% over the previous year.

 The equipped capacity of Telephone Exchanges as on December 31, 2000 was 311.31 lakh lines.  All electromechanical exchanges in the country have been scrapped and decommissioned. Now the total switching network is electronic type.

CHAPTER -3
Organization structure of BSNL:-

Chief Executive Officer

Personnel / HRD

Administration

Finance & Account

Marketing / Sales

Export & Import

Investment

Costing

Main offices of BSNL: BSNL Registered Office 10th floor, Statesman House,B-148. Barakhamba RoadNew Delhi-110 001  BSNL Corporate Office Statesman House,B-148, Barakhamba RoadNew Delhi-110001

CHAPTER – 4
(a)Functional Areas: FINANCE DEPARTMENT:Bharath Sanchar Nigam Limitted , the largest public sector undertaking of the nation, is certainly on a financial ground that’s sound. The corporation has a networth of Rs.78757 crores (US $ 17.71 billion), authorized equity capital of Rs.10,000crores (US $ 2.25 billion), paid up equity capital of Rs 5,000 crores (US $ 1.12 billion)and Revenue is Rs.40,177 crores (US $ 9.04 billion) in 2005-06. (Note: INR 1 = USD0.02249 as on 31-03-2006)

Corporate Assets:Bharath Sanchar Nigam Limitted has got fixed assets valuing more thanRs.62862 crores (US $ 14.29 billion), which are in the form of Land, Buildings, Cablesand Apparatus and Plants etc. BSNL had gross fixed asset of over Rs1,11,692 crores(US $ 25.12 billion) as on 31-032006.

Annual Capital Investment :AnnualCapital Investment in the network has increased from Rs.785 crores(US $ 0.18 billion) in 1986-87 to over Rs.6383 crores (US $ 1.53 billion) in 2005-06.This investment has been financed mainly by the internal accruals. The annual capitalinvestment of BSNL can shown graphically as below with the current year in X axis andamount or capital investment required to be invested for that particular year in the Y axis.

Revenue :BSNL has shown sustained growth in past five years. The growth rate in2005-06 was 11.32%. Revenue earned by BSNL during last five years:-

Gross Investment in Fixed Assets:The BSNL is making substantial investment year to year for its network expansion and modernization. During the current financial year BSNL has made the gross investment of Rs. 28,227 crore( US $ 6.28 billion) in Fixed Assets.

Cumulative Capital Outlay:BSNL has Gross Fixed Assets of over Rs. 132243 Crores (US $ 25.96 billion) as on 31.03.2009.

Investment in Telecom Sector :Both public players and private players are investing huge sums to expandtheir network and provide more coverage in fixed line telephony as well as mobiletelephony. Facing stiff competition from private sector, public players are taking upmeasures to increase their customer base to fixed lines and internet services. MTNL andBSNL are investing in internet infrastructure to provide much reliable network. Private players are striving hard to capture more and more customers. Theyare introducing low cost tariff plans and discount schemes in fixed line telephony andinternet services to increase their customer base. They are also in the process of enlargingtheir network area providing more coverage in urben as well as rural areas. Finance department is the key department which maintain and over allcontrol of finance over each SSA in Kerala. The revenue generated from all the servicesis accounted through cash/bank books and other records. In providing the services, lot of expenditure is involved under capital and revenue.

MARKETING DEPARTMENT:-

Marketing is as old man kind. Now marketing has become a broadterm in BSNL. Marketing department is associated with the exchange of goods, serviceand ideas. Goods it is a physical entity eg. CD-ROM, shirt etc. service: human effortclubbed with mechanical effort to provide intangible benefits to the customers. Eg.Telecom, Banking and Transport etc. Ideas provide intellectual or spiritual benefits to thecustomers. Eg. The blue print of a business plan, computer software. Marketing aims at³meeting needs profitable´. BSNL is marketing their services. There are four characteristicsuniquely allied with services. This department is adopting these strategies.

Intangibility:In services customer is unable to experience the µproduct¶ prior toµpurchase¶. To over come this difficult BSNL is thinking of converting the intangibles tothe tangibles by providing suitable physical evidence among prospective customers.Eg. The telephone house wiring, the

instrument, the behaviour, the BSNL identity carddisplay by employees, the attitude, the road side cabinet, logo display, advertisementseverything matters.

Perishability:Service can¶t be stored. Once lost means lost forever. For example just think of an airline service flying with 50% vacant seats. The ticket charges for that 50% seatswere lost forever. Give suitable offers to the customers to attract them, even if they arecollecting one rupee per seat that would have been vacant other wise is additionalrevenue to the organization. Night unlimited down load in Broad band is an example totackle the perishability nature.

OPERATIONS DEPARTMENT:This sector is mainly intended for developing software packages. The functions of this department are :-

 Launching of packages for BSNL  Telegram booking  Cash management  All India MIS  Fleet management  Web based telegram message system

This department is the heart of BSNL. IT cell is mainly for the purpose introducingnew software for BSNL. Implementation of Inventory Package(MIS) has been includedas a part of BBS.

Human Resources Development:With a corporate philosophy that considers Human Resource as the most prized assets of the organization, it's natural for BSNL to continually hone employee skills, enhance their knowledge and their expertise and their aspirations to fruition. Even as BSNL goes aboutconducting its business activities, it lays emphasis on constant enhancement of knowledge and skills through regular training programmes.Bharat Sanchar Nigam Limited has a vast reservoir of highly skilled and experienced work force of about 3,57,000 personnel.  We believe that our staff, which is one of the best trained m a n p o w e r i n t h e telecom sector, is our biggest asset.  We believe that our future depends on our staff who provide s e r v i c e s t o o u r valued customers and stay in touch with them.  To

meet

the

technological

challenges,

employees

are

trained

for

technology up-gradation, modernization, computerization etc in BSNL's training Centers spreadacross Country. These centers are properly equipped with the requisiteinfrastructure facilities such as Lecture rooms, modern audio-visual aids, libraries,hostels etc.  To apex training centers of BSNL i.e. Advance level Telecom Training Center (ALTTC) at Ghaziabad and Bharat Ratna Bhimrao Telecom Training Center atJabalpur are comparable to any world class Telecom Training Center. Moreover,4 3 z o n a l t r a i n i n g c e n t e r s a n d a N a t i o n a l A c a d e m y o f T e l e c o m F i n a n c e a n d Management have been running for several years now.  Different curriculum run in these centers to impart technology based training,training for Attitudinal change, basic educational and skill development programetc.

RECRUITMENT & SELECTION:RECRUITMENT: -

Recruitment is the process of searching the prospective employees & encouragesthem to apply for the job. Vimal Oil & Food Ltd. A recruitment staff & workers differently.1) Recruitment for staff: -For recruiting staff company uses external sources, gives advertisement, select thea p p r o p r i a t e c a n d i d a t e s , a r r a n g e s o m e t e s t t o m a j o r t h e i r j o b k n o w l e d g e & g e n e r a l knowledge, their background, & if they come successfully they will be selected.2) Recruitment for workers: - For recruiting workers, Vimal uses ITI students & mostly company recruits unskilled workers & company itself trains them.

SELECTION: -

Selection is the process of choosing the best among bests. For selection of staff & workers, the company department in respect in their defective procurement or selecting the right men as efficient & connected labor force.

TRAINING & DEVELOPMENT DEPARTMENT:TRAINING:Training programmers should be devised to impart knowledge, develop skills andstimulate motivates needed to perform the job. DEVELOPMENT :Development is the over all in all the fields of the personnel so the depth of theknowledge is vest with the growth of employees in all respects.Learning centers at our units are supported by several training courses. Weprovide professional learning opportunities to select employees through our tie-ups withIIM Ahmedabad. Nirma institute, IIM Banglore. Key managers attend trainingprogrammers to enhance their competencies and skills in line with global standards.We strive relentlessly to improve the capabilities of our people so that wecontinue to deliver out standing result while adding to the skills of those who works us.We have always accorded high priority to employee training in both in theclassroom and on the job. Training is imparted across all the level of employee. It spansleadership development, coaching for performance, building competencies for managersand skill. Profiling as well as behavioral coaching for the staff and workers.

CHAPTER - 5 SWOT Analysis:STRENGTHS:  Pan-India reach  Experienced telecom service provider  Total telecom service provider  Huge Resources (financial & technical pool)

 Huge customer base  Most trusted telecom brand  Transparency in billing  Easy deployment of new services  Copper in last mile can be used for easy broadband deployment  Huge Optical Fibre network and associated bandwidth

WEAKNESSES:  Non-optimization of network capabilities  Poor marketing strategy  Bureaucratic organizational set up  Inflexibility in mindset (DOT period legacies)  Limited number of value added services  Poor franchisee network  Legacy of poor service image  Huge and aged manpower  Procedural delays

 Lack of strategic alliances  Problems associated with incumbency like outdated technologies, unproductive rural assets, social obligations, political interference,  Poor IT penetration within organization  Poor knowledge Management

OPPORTUNITIES: Tremendous market growing at 20 lac customers per month  Untapped broadband services  Untouched international market  Can capitalize on public sector image to grab government’s ICT initiatives  ITEB service markets  Diversification of business to turn-key projects  Leveraging the brand image to source funds  Almost un-invaded VSAT market  Fuller utilization of slack resources  Can make a kill through deep penetration and low cost advantage  Broaden market expected from convergence of broadcasting, telecom and entertainment industry.

THREATS : Competition from private operators  Keeping pace with fast technological changes  Market maturity in basic telephone segment  Manpower churning  Multinational eyeing Indian telecom market  Private operators demand for sharing last mile  Decreasing per line revenues due to competitive pricing  Private operators demand to do away with ADC can seriously effect revenues  Populist policies of government like “OneIndia” rates

CHAPTER - 6
Suggestions / Recommendations:1. The 24x7 (around the clock) service of BSNL is to be appreciated. 2. It would be better if BSNL carries all its accounting transactions in any of the public secter banks rather then going for ICICI bank Ltd, which is a private secter banks. 3. It is worth to consider the changing trends, tastes and preferences of (transitional) consumers. 4. Target marketing is also recommended to the company.

CHAPTER - 7

(a) Learning experience:1. First of all, we learnt to be co-operative with one another among all of our team members. 2. With the help of this project, we could know how to approach a corprate firm to get information. 3. It was indeed a new experience to go out and seek information with the employer, employees, customers, suppliers etc. 4. Along with this experience, eduction etc a bit of entertainment and enjoyment was also there owing to this project.

(b) BIBLIOGRAPHY:www.bsnl.co.in www.cellone.co.in www.bharatsancharnigam.com www.wikipedia.com

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