BHARAT SANCHAR NIGAM LIMITED

(A Government of India Enterprise)

MANUAL OF SALES AND DISTRIBUTION POLICY FOR BSNL PRODUCTS AND SERVICES

Bharat Sanchar Nigam Limited Statesman House, Barakhamba Road, New Delhi – 110001

Sales and Distribution Policy - 2006
(For Internal Circulation Only)

TABLE OF CONTENTS

No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 37. 38.

Title Preamble Sales and Distribution Objective Sales and Distribution Policy – Need Deployment of Staff Expression of Interest Route Concept of Franchisee network Eligibility for BSNL Franchisee ship and selection Requirement for Franchisee after approval of EOI Selection of Franchisee Selection Criteria Relaxation for rural area in selection criteria Right Responsibilities Review Sales work by outlets directly run / control by BSNL Discounts / Commissions & Incentive Policy. Refund of expenditure by Franchisee Office Support to franchisee Payment Terms Operations and Accounting Procedure Office Support Inspection General Terms and Conditions T & C for existing Franchisee having more than 4 franchisee area Viability of Different Channels Quota for Distribution Support Structure Business Associates Direct Selling Agent Post Offices Customer Service Centers Other Retail Outlets PCO Holders Tax Details Verification of Identity of Subscribers Conclusion Clarifications / Feedback Annexure – ‘A’ Annexure – ‘B’

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Sales and Distribution Policy 2006

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For Internal Circulation only.

1. PREAMBLE
a. BACKGROUND: i. In order to strengthen the sales and distribution channels, apart from the company’s own outlets i.e. Customer Service centre, etc. the Distributors/Dealers were appointed as Franchisees of the Company in accordance with the Franchisee Policy 2004, which th was effective from 8 July 2004. b. Franchisee Policy 2004: i. This policy contained the detailed procedures, guidelines to be followed by the company to ensure smoother and faster decision making both for appointment and the functioning of the franchisees. ii. Based on the selection criteria as laid down in the policy, Franchisees were appointed in all Telecom circles. The franchisees are required to function in the demarcated area in every SSA. iii. The area demarcation is based on the Telecom Points i.e. total sum of basic telephone connections, WLL connections and cellular subscribers as on 1.4.2004 in an area. iv. Franchisees are required to provide exclusive showroom and appoint at least ten sub franchisees and any number of retailers. In addition the franchisees have to necessarily ensure the availability of BSNL services within 500 meters in commercial areas and within 1 km in residential areas. c. Observation : i. In spite of laying down of detailed guidelines in the Franchisee policy there was a general feeling that there was serious lacuna in its implementation. ii. Despite provisions for customer services by franchisee, nothing substantial was achieved on this front. iii. Despite passage of 2 years franchisees are yet to be appointed in many demarcated areas. iv. By and large franchisees have only worked in the area of per-paid SIM Cards and recharge coupons. v. As a result there were many complaints/representations from VIPs and franchisees which mainly relate to overlapping of jurisdiction 3 / 35 For Internal Circulation only.

Sales and Distribution Policy 2006

2. as well as Direct Selling Agents for the other routine products and to serve the customer at their premises needs to be developed in parallel. Viability of franchisees working solely for BSNL without any other regular source of revenue. This will not only help in developing sound sales and distribution system. The following three main reasons were observed for the policy not meeting its objective fully: 1. b. In this competitive era the most challenging areas for BSNL are i.of Franchisees. Hence this Sales and Distribution Policy 2006 has been drafted which is in supercession of existing Franchisee Policy. Lack of adequate manpower for monitoring. a comprehensive sales and distribution strategy for BSNL needs to be adopted giving emphasis on marketing. sales. Sales and Distribution Policy 2006 4 / 35 For Internal Circulation only. vi. 2. To serve the customers in 2 hours or less. Post Offices. . Progressively it should be on real time basis. d. SALES AND DISTRIBUTION OBJECT IVE: a. recharge coupons etc. The systems and structures required within the organization to facilitate smooth working of the scheme needs to be strengthened. The business process reengineering has not been done.Need a. In addition to the franchisees all other channels like PCO’s. and ii. Marketing of all services of the company and brand building. c. supporting and execution of the policy. including after sales customer care. To meet the objective. favoritism to certain franchisees and black marketing of SIM cards. Sales and after sales Customer Care not only to retain the existing customer base but to acquire larger market share by adding more number of subscribers. b. 3. use of other retail network chains and separate Business Associates for selling high end products. and 3. In the light of these observations it is concluded that the Franchisee Policy has not met its objective fully. The ultimate objective is to serve the customer up to their satisfaction in real time basis and delight them. Sales and Distribution Policy . but will also avoid monopolistic situation by any of the groups.

5. within three months of the issue of revised policy. b. c. the contract shall be awarded for a period of two years with the approval of competent authority to the successful bidder(s) as per the terms and conditions stipulated in the EOI. guidelines to be followed by BSNL Corporate Office as well as by Telecom Circles and SSA’s to ensure smoother and faster decision making both for appointment of all sales and distribution channels and their functionalities. the bidders satisfying the terms of EOI will be short-listed. New franchisees must be appointed by the SSA’s after floating EOI.4. b. In situations where BSNL proposes to induct new franchisees. The basic duties and responsibilities of each such staff posted in marketing and sales division be clearly outlined. BSNL may Invite Expression of Interest (EOI) from the willing parties. Expression of Interest Route: a. For separate channels the procedure for selection has been mentioned in respective places. The requirement of immediate deployment of adequate executive and staff in Marketing & Sales Division is urgent. The Marketing division is completely responsible for all marketing. The staff and executive deployed in Marketing Division should not be shifted as part of normal transfer/posting policy. e. Immediate attention is needed on deployment of adequate manpower for the marketing. The new EOI / terms and condition will contain all the relevant clauses of this Sales and Distribution Policy pertaining to that channel and other common clauses. This manual contains the detailed procedures. DEPLOYMENT OF STAFF: a. e. After evaluation by a designated committee. d. Concept of Franchisee network a. c. sales and after sales customer care functions. 6. Definition of Geographical areas: The BSNL area of operation can be divided into three categories for the purpose of channel policy of BSNL. . sales and after sales customer care functions. To start with the present set up of commercial department in SSA’s should be converted into full-fledged sales department for sales and after sales customer care. f. Based on the offers received from the bidders who choose to participate in the EOI. Sales and Distribution Policy 2006 5 / 35 For Internal Circulation only. d.

i. g. subject to a minimum of three franchisees per SSA and minimum of two in revenue District. h.000 Telecom Points c. In no case franchisee is allowed to sell outside the SSA. Any violation is to be viewed seriously and the agreement with such franchisee be discontinued and the franchisee may even be barred for further dealing with BSNL for a period of 3 years in case the violation so warrants. This will be their primary area and the franchisee must fulfill all the requirements as per the policy in this primary area. . b. and all contractual obligations and responsibilities as per franchisee policy should remain for this primary area only. Franchisee will be eligible for franchisee ship in the circle where it is registered / operating and can apply for franchisee ship in one circle only as per their choice. All Franchisees should have well defined geographical area (to be defined and notified by SSA/Circle). action should be taken in accordance with franchisee agreement. however the operations of franchisees will be allowed in the in whole of SSA. In such cases the existing demarcations will continue. A particular franchisee can have 30% of total area in a circle. it will be total sum of basic telephone connections and Fixed WLL connections as on 1st April of the year of floating of EOI. subject to maximum four franchisee areas in the circle / country. Type C SSA other than type A and type B SSA’s.000 Telecom Points iii. * Telecom Points means total sum of basic telephone connections and Fixed WLL connections as on 1st April-2006.000 Telecom Points ii. Periodic monthly review is to be done and in case of a franchisee notmeeting the performance standards as per franchisee policy in its primary area. ii. For Class C SSA: 30. In every SSA.i. f. iii. For Class B SSA: 40. Subsequently. For Class A SSA: 50. The number of new areas demarcated in SSA based on telecom points defined on 01-04-2006 will not be less than existing demarcations. one Franchisee per Telecom Points (B-fone + Fixed WLL as on 1st April-2006) as detailed below is to be appointed. e. The demarcated area for which they are appointed should be the primary area for the franchisee’s operation. d. Sales and Distribution Policy 2006 6 / 35 For Internal Circulation only. Type B SSA where Telecom points* as on date are 2 lakhs and less than 5 lakhs. Type A SSA where Telecom points* as on date are 5 lakhs or more.

Franchisee will have to provide exclusive BSNL showroom as per BSNL’s design. Rs. 3 Crore for A type SSA 2. 7. At least five sub-franchisee / retailers of each franchisee should operate round the clock. Franchisee can directly serve retailers. BSNL can directly appoint all other channels to distribute and sale various telecom services and their cash cards. n. m. 50 Lakhs for other SSA 7 / 35 For Internal Circulation only. Franchisee will appoint sufficient number (Minimum ten) of subfranchisees at suitable locations. Eligibility i. Rs. Franchisee is supposed to serve sub-franchisee as well as retailers at their premises. o. However franchisees are free to appoint more than 10 subfranchisees. Franchisee must ensure availability of BSNL products and services at least within each 200 meters in commercial areas and within 0. ELIGIBILITY FOR BSNL FRANCHISEESHIP & SELECTION a. Franchisee/sub-franchisee will have to keep handsets/instrument of at least five major makes to facilitate the customer requirements. l. Sub-franchisee can do the same work as done by franchisee and need not be exclusive to BSNL like Franchisees. k. Rs.5 km in residential areas.i. Sub-franchisee network made by franchisee will not only act also as retail network but also help franchisee in serving at their premises the retail network set up by them. Turn over 1. They must implement any bundling scheme of instruments by BSNL. Sales and Distribution Policy 2006 . j. p. Minimum 80% of the basic fixed commission / discounts received by them should be passed on to their network for smooth working of retail network. BSNL should be part of selection process for subfranchisees. Educational Qualification: Graduate. 50% of BSNL PCO Holders of their primary area must be their retailers. Franchisee is responsible for Distribution network. 2 Crore for B type SSA 3. Franchisee can appoint any numbers of retailers for sale of all the BSNL products and services permitted to them. ii. Existing customer service centers and all other channels will also work as sales outlet for all type of services offered by BSNL.

200 sq. BSNL reserves the right to forfeit/adjust/apply the said EMD/PBG amount in full or part satisfactions of any sums due from the franchisee to BSNL at any time. in B type SSA iii. b. 2 lakhs with EOI b. Requirements for Franchisees after approval of EOI. 150 sq. Franchisee shall continue to be liable for balance. ft. Sales and Distribution Policy 2006 8 / 35 For Internal Circulation only. if any. Staff of franchisee working for BSNL product and services should be in uniform specified by BSNL. EMD Rs. 8. 2 years for other SSA c. ft. a. Location in commercial area with sufficient parking Space. ii. reserves the rights to seek/verify financial information from franchisee’s Bankers/credit providers & sue another sources as to carry out other verifications. BSNL reserves the right to increase the amount of PBG at any time in its sole discretion with respect any/some/all franchisee. /day (8:00 AM to 10:00 PM). 5 years for A type SSA. Space is to be ensured within 7 days of LOI for award of Franchisee ship/ Franchisees ship. e. in other SSA d. Layout and Location to be submitted along with EOI. c. 5 Lakhs for B type SSA and Rs. d. Rs. PBG (Performance Bank Guarantee) of Rs.7 days a week. .iii. e. on main road or clearly visible from main road. Attending Complaints (8:00 AM to 8:00 PM) 7 days a week. submitted for last financial year. 3 Lakhs for C type SSA to be submitted before signing of agreement within 15 days of LOI. in A type SSA ii. Manning at least 14 hrs. for last : i. f. On Ground floor only. ft. 250 sq. No interest will be paid on the deposit. Franchisee shall deposit the aforesaid EMD/PBG of said amount as BSNL may determine from time to time.10 Lakhs for A type SSA . Space i. Turnover: Sales proceed as per audited P&L account. 3 years for B type SSA iii. Experience –Dealing in Telecom or FMCG or Electronic/Electrical goods. BSNL.

a faculty member of Management / Marketing stream from the institute may be kept. but this is not mandatory as in past two years sufficient experience have been gained by BSNL officers. but the same will be taken care by some designated district headed by TDM/GM/PGM. v. The Agreement shall be signed by the SSA and the PBG shall also remain in the SSA. Selection of Franchisees a. Since the franchisees / retailers etc. are front end of BSNL’s interaction with customers. their feedback on various issues including formulation of timely customized tariffs will be of great use. selection of the franchisees to be done at SSA level by calling for EOI. ii. Based on combined marks final selection will be done. c. iii. The selection criteria for selection of franchisees having the minimum eligibility conditions fulfilled may be as follows: i. d.Selection Criteria a. In case of TDE setup. and two DGM and one DGM (F) in case of GM/PGM/CGM setup shall evaluate the tender. TDE will be one of the members of the committee. Since the main user is SSA. b. Short listing will be done on the basis of point number (i) to (iv) and top two should be called for interview. 10. SSA Head will convene monthly review meeting. Franchisees will be monitored and supported by SSA. the EOI may be floated by them. then. iv. Sales and Distribution Policy 2006 9 / 35 For Internal Circulation only. Experience Carpet area and Location of the showroom Turnover Place Interview / Presentation 30 marks 25 marks 15 marks 15 marks 15 marks b. The EOI / Agreement will be framed by concerned circle / SSA based on the provisions in this sales and distribution policy.9. Payments will be done from SSA. A committee consisting of two DE’s and one CAO in case of TDM setup. If any management institute is locally available. e. f. this aspect shall also be reviewed in the above meetings. As such. Circle will convene quarterly review meeting. .

directly or through sub-franchisees or retailers. c. Responsibilities of Franchisee.c. Franchisee shall redress all possible complaints on the spot. Sales and Distribution Policy 2006 10 / 35 For Internal Circulation only. performance related etc. The decision of BSNL will be final and binding. the information provided by the franchisee/ gathered by BSNL shall become BSNL’ s property even if application is rejected and can be used by BSNL in any manner. Selling of all BSNL Products and services assigned to them. 12. 11. RIGHT. The detailed breakup is given in Annexure – ‘A’. ii. The location of showrooms can only be in predefined places decided beforehand by Empowered Committee for Marketing in the concerned circle.) will be handled directly by Franchisee. iii.Relaxation for Rural Area in Selection Criteria. d. BSNL franchisee will target both individual and corporate customers. After sales services: Receiving. b. a. . it deem fit. i. 13. if it is having a mix of urban / rural SDCA’s. Generation of demand for providing services permitted by BSNL to franchisee. then the area will be classified as a rural area only if more than 50% of landline connections are in rural areas as on the date of Ist April of the year in which EOI is being floated. attending & rectifying complaints. If required the help from specially designated call centers for franchisee may be taken and forward the remaining to call center / designated official for further disposal. without liability. Not only the targets set are to be achieved but also efforts are to be made to surpass it. All forms of complaints on phone and walk-in-complaints (hardware related. The BSNL reserves the right to reject any application of franchisee for any reason. All the eligibility criteria for rural areas earmarked can be relaxed by concerned CGM up to 50%. b. billing. a. Rural SDCA will be taken as rural area. The requirement of show rooms etc. in rural areas can also be relaxed by CGM but all these relaxed things must be mentioned in the EOI. Any franchisee area.Responsibilities a.

Franchisee must ensure that BSNL products are available in sub-franchisee as well as retail networks in sufficient quantity on demand. Responsibilities of Circle i. Issue receipts. Franchisees will be responsible for the verifications done by all the channels i. Listing of sub-franchisees and retailers to BSNL.e. vi. Receiving advertisement material from BSNL. Sales and Distribution Policy 2006 . To market and sell the capacities available and provide after sales customer care in the circle and achieve the targets set forth for the Circle in the time schedule prescribed. xiv. sub-franchisees and retailers working under them. xiii. Arranging special promotional events as per BSNL guidelines at Franchisee’s cost. Response time . ii. Franchisees will be responsible for all the work done through its sub-franchisees and retailers. At no time customer will have two receipts. Rectification time . Setup support infrastructure to service customers to meet the objective of serving customer in 2 hour or less and progressively in real time basis so that the customer is delighted. vii. xii. displaying them and distribution to sub-franchisees and retailers at their premises.iv.Same day if complaint is received up to 5 P. safeguarding BSNL interest. Storage of SIM’s. xv. xi. v. Promotion of BSNL brands at Franchisee’s cost. Franchisee must ensure that no blackmarketing or mall treatment to customer is done through its network. Serving them at their doorsteps. Checking Viability of all Channels and taking corrective actions. b.M. BSNL receipts will also be distributed through franchisees. MIS as per BSNL format to BSNL officials as per frequency specified. Verification of credentials of new customers – Both as per documents submitted as well as per physical verifications.15 minutes. Timely submission of bills and claims to the nodal officer. 11 / 35 For Internal Circulation only. viii. Franchisees will ensure that BSNL receipt is handed over after taking back the receipt issued by franchisee. x. instruments and other telecom stores. ix.

Get MIS from franchisees and other sale points. xii. xv. The high end services for the customers are made available on priority. Marketing Research on periodic basis. Standard board designs are to be used. viii. v. iv. Ensuring timely selection of Franchisees by the SSA.iii. x. Ensure no black marketing happens in any circumstances. vii. it must be ensured that the franchisee / PCO Holders have desired network to carry out the work as per BSNL norms. Use only standard design of creative approved by corporate office for all publicity material in all channels and medias. vi. It must be ensured that the basic requirements of the customers are fulfilled. 1. Framing of EOI / Agreement based on this Sales and Distribution policy document. By simplified procedures for availing the services. Employing the judicious mix of different Sales and Distribution Channels to serve the customers in 2 hours or less. Sales and Distribution Policy 2006 12 / 35 For Internal Circulation only. Through Business Associates capture 80% of new market in data segment. xi. xiv. With their help take action for retaining customers in data market. . material to Franchisees through SSA. xiii. Ensure Support to Franchisees and all other channels as envisaged in this policy. ix. CGM to take action for INTERNAL BUSINESS PROCESS REENGINEERING simultaneously for providing reliable quality services to customers. Periodic Inspections / Surprise Inspections to ensure all channels are working properly. Implement the provisions of this Sales and Distribution Policy completely and give feedback to Marketing Wing of Corporate Office. In Bill Distribution before awarding work. Each circle to make up their detailed procedures for back end handling of each customer response either in CSC or in Call centers or at any other channel so that the customers can be served in the time frame decided. Distribution of Mktg. Progressively it should be on real time basis with the ultimate objective to serve the customer up to their satisfaction in real time basis and delight them.

Customer Verification: BSNL will have final responsibility. c. xviii. Responsibilities of SSA i. Reliable quality services during operations. Quarterly meeting with all channel partners. safeguarding BSNL interest. xx. Though Bill Collection by cheque has been allowed. Co-ordination of training of Franchisee. Ensuring timely payments to channel partners. xxii. Approve the BSNL products and services SSA wise for which target incentive and / or retention bonus will be applicable in SSA. In case of fault. xvi. xxiii. hence every care as prescribed on the subject time to time must be taken. 13 / 35 For Internal Circulation only. To market and sell the capacities available and provide after sales customer care in the SSA and achieve the targets set forth for the SSA in the time schedule prescribed. xvii. CGM concerned in consultation with IFA can allow Bill collection in cash by Franchisees and Business Associates at the same rate as that of the bill collection by cheque after taking sufficient security deposit and taking other necessary actions safeguarding full BSNL interest. xxiv. attending the same with in reasonable period of time and with desired promptness. Ensure mobile connection to all nodal officers for discharging their duties and responsibilities. Only SSA specific BSNL products and services target incentive and / or retention bonus can vary. All media publicity should include name of franchisee. 3. operation and after sales services.2. Sales and Distribution Policy 2006 . Checking Viability of all Channels in SSA though circle and taking corrective actions. ii. Fast provisioning of the services. xxi. 5. xix. Ensure one vehicle per SSA to marketing units in SSA for discharging their duties and responsibilities. One window interface for all its requirements across the circles and beyond for provisioning. 4.

Franchisees need to be managed. 1. vi. 4. PBG and signing of the agreement will be at SSA level. v. xii. To make up and implement the detailed procedures for back end handling of each customer response either in CSC or in Call centers or at any other channel so that the customers can be served in the time frame decided. SSA Head shall appoint Franchisees in consultation with IFA after following the procedure. By simplified procedures for availing the services. ix. iv. Fast provisioning of the services. With their help take action for retaining customers in data market. Framing of EOI / Agreement based on this Sales and Distribution policy document. x. Take the help of Business Associate in Key Account Management. SSA to take action for INTERNAL BUSINESS PROCESS REENGINEERING simultaneously for providing reliable quality services to customers. viii. Sales and Distribution Policy 2006 14 / 35 For Internal Circulation only. SSA head will nominate the nodal officer and ensure that nodal officer acts as a single window to franchisees. SSA head will review at least on monthly basis. Reliable quality services during operations. operation and after sales services. supported and monitored at SSA level. Getting employed the judicious mix of different Sales and Distribution Channels to serve the customers in 2 hours or less. Through Business Associates capture 80% of new market in data segment. The high end services for the customers are made available on priority. SSA head will be reviewing the performance of the Franchisees under its jurisdiction on monthly basis.iii. The review of the working of nodal officer and franchisee will be done at fortnightly basis at DGM level and on daily basis at DE / SDE level. It must be ensured that the basic requirements of the customers are fulfilled. One window interface for all its requirements across the circles and beyond for provisioning. Progressively it should be on real time basis with the ultimate objective to serve the customer up to their satisfaction in real time basis and delight them. 2. vii. . xi. 3.

Ensure mobile connection to all nodal officers for discharging their duties and responsibilities. including sub-franchisee shall interact with the nodal officer for their day-to-day activity. attending the same with in reasonable period of time and with desired promptness. instruments etc. Only SSA specific BSNL products and services target incentive and / or retention bonus can vary.5. ii. Identify and declare the BSNL products and services in consultation with CGM for which target incentive and / or retention bonus will be applicable in SSA. In Bill Distribution before awarding work. Use only standard design of creative approved by corporate office for all publicity material in all channels and medias. SSA Head to set up the targets for the Franchisees. who will act as single window for franchisee. Ensure one vehicle per SSA to marketing units in SSA for discharging their duties and responsibilities. Distribution of service related material like SIM cards. xvi. Customer Verification: BSNL will have final responsibility. Franchisee. xix. d. Sales and Distribution Policy 2006 15 / 35 For Internal Circulation only. xxii. . In case of fault. xx. iii. Responsibilities of Nodal Officer / SSA. xvii. xv. A nodal Officer preferably SDE In-charge of CSC or SDE Internal / External or any other officer is nominated by head of SSA. it must be ensured that the franchisee / PCO Holders have desired network to carry out the work as per BSNL norms. shall be through nodal officer. xxi. xviii. Ensure timely payments to all channel partners. xiv. All Franchisees will report to SSA Head through the nodal officer appointed by him. SSA Head may support GM (Cellular) and GM (Mktg) / GM (BD) in areas identified and guided by CGM. The targets should be on realistic basis and for the services/capacity. xiii. hence every care as prescribed on the subject time to time must be taken. which is available and feasible. i.

v. It will be responsibility of the nodal officer to reconcile the inventory and remit the collection from the franchisee to Account officer to credit to Company’s account on a daily basis and ensure realization of the cheque.. vii. The stocks and distribution of publicity materials like brochures etc. deposit with the bank and realization of the cheque(s) as any delay in taking action by nodal officer would necessarily cause interest loss to BSNL. Details of SIM cards issued to the franchisee to be maintained with number of SIM cards issued. Head of circle / SSA will ensure that stocks are available in sufficient quantity in required denominations well in advance. Nodal officer shall maintain an account of inventory received. sub-franchisee / retailers not serviced properly will also intimate to this nodal officer. preferably in local languages also should be available in sufficient quantity. viii. x. . The letter No. xii. In case of post offices. 2006 issued by DDG (CA) should be followed in letter and spirit. The SSA should maintain a stock of inventory for three months so that they can fulfill the demand for provisioning pf the stock as required by the franchisees and other point of sales. the CGM concerned in consultation with IFA may consider Sales and Distribution Policy 2006 16 / 35 For Internal Circulation only.iv. sold and payments realized on daily basis and sent it to accounts wing along with Remittance statement. The cheque deposited by the Franchisees should be deposited with bank for realization on the same day. Defective stock with the channel partners should be replaced immediately. Nodal officer to ensure the Proper inventory records of SIM cards and recharge coupons and other BSNL products sold through franchisees. date of sale. xi. 500-31/2005/CA-1/BSNL dated Jan. The stock register giving details of material given to the Franchisee should be properly maintained and inspected on a fortnightly basis by nodal officer and on monthly basis by DE and on quarterly basis by a DGM rank officer and once in a six-month by Head of SSA/GM Area in a PGM/CGM set up. This would curb black marketing. xiii. Head of SSA will ensure that this single window concept effectively works in their area. vi. The nodal officer shall be responsible for ensure collection. ix. date of activation at any given time. Wherever franchisee. xiv. MRP of the products in whole numbers should be displayed.

Target achievement bonus iii. BSNL reserves the right to change the commission structure as well as the rate of commission in the interest of organization for all channels at any time without any notice. BSNL apart from franchisee is free to use any retail network or appoint Direct Selling agents. 14. Direct Selling Agent. . Basic Fixed Discount / Commission ii. xvii. a. CSC officials/officers will mandatory carry name plate with BSNL logo during working hours. Staff manning CSC may be exclusively selected by SSA with an aptitude for customer service. Post Offices. Vehicle should be provided to Marketing cell in SSA for monitoring franchisees. The stock should be recouped as soon as 50% is exhausted. Nodal officer is to be given mobile facility for discharging his duties and responsibilities efficiently. Discounts / Commission to these channels may be defined by BSNL. BSNL perform all its sales activities through these customer services centers. EOI – every year for the Franchisee ship and all other channels only for vacancies created. Ensure timely payments to all channel partners. Retention bonus b.the provisioning of the stock for one month in PO on credit.Sales work by outlets directly run/control by BSNL. xvi. d. 16. 15. xv. CSC’s are eligible to sell all type of services defined for franchisee plus other services permitted by BSNL from time to time. Post Offices. c.DISCOUNTS / COMMISSION & INCENTIVE POLICY a. for meeting the objectives of Sales and Distribution policy. Sales and Distribution Policy 2006 17 / 35 For Internal Circulation only. Business Associate. Services of BSNL are also offered through PCO holders. engage PCO holders. which will also sell BSNL product and Services. There are more than 3000 customers services centers (CSC) as on date. Business Associate. other retail network chains. etc. Following Discount / Commission Structure shall apply i. b.Review a.

As in 4 Plus 40% of basic commission on activations above 300%. e. Retention bonus will be equivalent to 10% of Basic Commission already paid for that activation. . As in 3 Plus 30% of basic commission on activations above 200%. For calculation of annual target achievement. Share of commission between franchisee and sub franchisee / Retailer will be decided mutually. Sales and Distribution Policy 2006 18 / 35 For Internal Circulation only. The commission to be paid to sub-franchisees and retailers by franchisee will from their own discount / commission. The work allotted and rate of the commission for various products for different channels is as per Annexure – ‘B’.Target achievement bonus will be given on the select BSNL product and services. however it can not be less than 80% of the basic fixed discount / commission given to the franchisee. quarterly. Retention bonus:. Target achievement bonus shall be calculated on the basis of net activations (for all those connections which have paid at least one bill). Any subscriber brought in by the Franchisee staying with BSNL for 365 days or more shall entitle the Franchisee for a retention bonus. whether target bonus is applicable or not. which will be announced in advance by SSA with approval of CGM concerned. Discount / Commission on Recharge Coupons: There will be uniform commission for Recharge Coupons in BSNL license area. i. ii. which will be announced in advance by SSA in consultation with CGM concerned. The SSA shall fix the monthly. half yearly & annual targets for concerned Franchisees. Target achievement bonus:. then performance of the franchisee be critically examined and BSNL may consider the termination of the franchisee ship. Maximum Target Bonus Ceiling SN Target Achievement 1 <100% 2 101-150% 3 151-200% 4 5 201-300% >300% Bonus Nil 10% of Basic commission As in 2 Plus 20% of basic commission on activations above 150%. d.c.Retention bonus shall be payable for select BSNL product and services. Penalty: The target set is to be achieved by franchisee. Basic Fixed Discount / Commission: i. If target set is not achieved for two consecutive months. the monthly achievements shall be clubbed.

Refund of Expenditure by Franchisee. which a franchisee can use as a special incentive for promotion. The amount shall further be limited to 50% of actual expenses incurred. BSNL shall provide the glow sign board for franchisees and sub franchisees.25/. This expenditure is required to be undertaken with prior information to BSNL. The BSNL connections could be either CellOne / Excel / Bfone / WLL or Dataone etc. 20% of this provision shall be deducted by BSNL towards the free advertisement materials given to franchisee by BSNL. . d.ii. b. Payment of incentive for marketing/promotion will be on production of expenditure proof in original. may lead to change in BSNL commission policy and BSNL’s decision in this regard will be final and binding. h. Sales and Distribution Policy 2006 19 / 35 For Internal Circulation only. The claim has to be submitted within 30 days of expenditure. including for demo purpose. f. c. i. 17. g. All lawful promotional activities with the prior approval of Head of SSA/Circle head will be under its purview. k. Decision of BSNL on payment will be final. a. Special incentive for marketing & promotion will be given in addition to basic commission. Design of these glow sign boards will be approved by BSNL CO. Tariff revisions. Subscribers included in (i) should have no outstanding as on last billing cycle. e. Market forces etc. f. Office Support to franchisee:a. The following items shall be given to franchisees for performing their responsibilities. Rs. j. 18. Budget allocation for promotional activities to be given to franchisee is determined on the basis of Rs. However franchises must arrange glow sign board for retailers. Government Directives. Marketing and promotion include expenditure on any media by the franchisee with prior approval to SSA / Circle head. and is not linked with the targets. BSNL.25 per BSNL connection sold. Target incentive and Retention incentive to Franchisee.per BSNL connections sold (either Cellone /Excel /Bfone /WLL/Dataone etc) is a total provision.

BSNL reserves the right to change the target and commission along with commission structure at any time during the period of agreement. 2 Landline connections – both rent free. iii. All other claims may be submitted on monthly basis. 50 percent after payment of 1st Bill by customer. Connections to be booked in plan specified by BSNL. 1 broadband connection 256 kbps – 1 GB download limit. i. to be paid automatically by BSNL. SSA will give a detailed report regarding payment of all claims to franchisee on monthly basis to Circle office. 100 Hour / Six month Sancharnet connection. 19. Since all daily transactions are through nodal officer. 1 IN PCO.i. hence verifying and certifying bill should not take time. Payment must be made with in 2 weeks of the receipt of claim. 50 percent upfront. unless and otherwise specified in Annexure ‘B’:1. a.Discount for prepaid items are given 100% upfront unless and otherwise specified in Annexure – ‘B’. For Post Paid connections the structure will be as follows. Basic Commission. iii. v. iv. iv. Payment will be from SSA Headquarter preferably through ECS / Direct credit to account. Nodal officer shall be responsible for ensuring that the payment is done. Any other item for demo purpose with due approval of CGM. Sales and Distribution Policy 2006 20 / 35 For Internal Circulation only. Target will be fixed on start of operation on per month basis. If Franchisees are not complying as per terms and condition then action should be taken. one with incoming only and the other one with 1000 free calls per month. vi. Designated BSNL’s nodal officer to verify and sign the claim and forward it to the Accounts Department. : The present basic discount / commission set by the company are as per Annexure – ‘B’.Payment terms. . ii. Pre Paid . 3 excel connections – no recharge coupons. ii. 2.

20. BSNL receipts will also be distributed through franchisees. All service activation requests (forms) to be collected by the Franchisee & their representatives (e. Accounting procedu res: .) along with requisite payment in Cheque / Draft verify them as per rules. For target achievement and retention bonus.Procedure For Commission / rewards / marketing expenses claim: i. Franchisee will retain the basic commission payable to them and submit the remaining amount collected to the customer service center. The claim should reach the company by 5th of every month and by the 10th of every Quarter end. ii. Franchisee then shall submit the service activation requests along with payment particulars to concerned nodal officer who in turn shall take necessary action & also issue acknowledgement to concerned customer/applicant. Sales and Distribution Policy 2006 21 / 35 For Internal Circulation only. etc. Operations i. ii. A receipt on behalf of Franchisee as per approved Performa of BSNL shall be issued acknowledging the form & payments. sub-franchisees / retailers etc. iii. iv. iii.Operations & Accounting procedures a. At no time customer will have two receipts.g. Franchisees will ensure that BSNL receipt is handed over after taking back the receipt issued by franchisee. Waiting list is to be merged on daily basis for all channels. Franchisee shall have to ensure submission of all received requests with BSNL on daily basis as per schedule mutually agreed by Franchisee & designated BSNL unit. Franchisee shall deposit all such collections to the nearest designated BSNL counter on daily basis as per mutually agreed schedule of time. Franchisee to submit a claim every month for target achievement and retention bonus due to them . b.for the duration which ends in the previous month. Franchisee shall be required to maintain list of transactions. which will be converted to Exchange W/L later on. BSNL shall issue separate payment receipts for individual cases. Franchisee will get upfront payment for basic commission / discounts wherever specified. . do commercial verification. The connection should be released up to a particular date for all the channels. Waiting lists (W/L). Franchisee shall have access to nodal officer in working hours but payments receipts shall be governed by BSNL accounts timings.

iii. BSNL may at its sole discretion decide to provide free of cost computer connectivity to the Franchisee for online activities such as bill payment/enquiries/booking etc. BSNL shall have free access to the Franchisee premises & to inspect all records. a separate communication will follow on the applicable commission. Franchisees may be given right to view Franchisee portion of intranet. Designated BSNL officer to verify and sign the claim and forward it to the Accounts Department. vi. The company’s decision will be final on all matters relating to the business and will be binding on the Franchisee.General Terms and Conditions: a. However the layout/design of the stationery shall be supplied by BSNL.iv. vouchers. . First payment default will be considered for subscribers who do not pay even their first month bill. demand registers etc. All stationary items related to sales. c.Office supp ort a. 21. Bills/Vouchers shall be the responsibility of Franchisees. which they are supposed to view periodically and take necessary actions. The company reserves the right to change the terms of trade from time to time with notice period of 30 days. b. The company reserves the right to withhold or delay the commission for the Franchisees in case of any pending disputes in matters relating to activations or cancellations. v. Sales and Distribution Policy 2006 22 / 35 For Internal Circulation only. Whenever any new products are launched. In case of dispute arising between the Franchisee and BSNL. iv. 23. the same shall be adjudicated by the CGM or any official appointed by the CGM. sale books. receipts.Inspection a. 22. Commercial Terms & Conditions: i. ii. Franchisee shall be responsible for furnishing of the office as approved by BSNL.

Salary etc to its employees & shall comply with all statutory laws. PF. xiii. bye Laws rules. wages. The payment to the Franchisees will be made through a cheque / ECS after deducting applicable taxes. depend & hold BSNL harmless from and against all claims. indicating the name & logo/Brand name of BSNL as may be prescribed by the BSNL. rules. The franchisee has to fully cooperate with BSNL to investigate any complaint from the public. franchisee will not be permitted to provide services to any other service provider. The Franchisee shall comply with all applicable laws. . directions notifications etc of the Govt./ Court/Tribunals and shall also comply with all directions issued by BSNL and provide BSNL with all information and cooperation that BSNL may reasonably require from time to time. BSNL Shall not be liable for any act of commission or omission of any third party. That franchisee shall display prominently the information prescribed by BSNL from time to time & will display a signboard . Losses or damages recoveries. xvii. taxes /Lessees/ duties etc thus may be levied by the govt/Local authorities etc. pay or suffer directly or indirectly in connection with any breach Franchisee’s agreement by franchisee or its agents. employees. The Franchisee shall fully indemnify. relating to employment. xv. All taxes present & Future additional. of size decided by BSNL. proceedings. xi. ID. offices. charges & expenses which may be made or brought or commences against the BSNL or which the BSNL may or may have to bear. All Franchisees will report to SSA Head through the nodal officer appointed by him. Judgments costs. regulations. During the currency of agreement. xvi.vii. will be to the franchisee a/c. It will be the Company’s endeavor to make the payment to the Franchisees as per the schedule. however this may stretch beyond the scheduled time only in case of delays in getting claims from the Franchisees or in case of incorrect claims. xviii. act etc. viii. actions. Franchisee shall be liable for all payments of wages. orders. That franchisee should have to pay minimum guarantee revenue as prescribed by BSNL from time to time. ix. x. Liability. xiv. Sales and Distribution Policy 2006 23 / 35 For Internal Circulation only. xii.

Self declaration from franchisee is to be taken that not more than four franchisees area in the country is with them. abide by the policy rules. But this will in no way confer any right upon them for future franchisee agreement. Pre-activated properties like SIM Card may be deactivated after 15 days if not reported sold. The declaration. 50% of such reports may be personally verified by DGM concerned. Viability of Different Channels on the commission structure given by BSNL needs to be reviewed periodically. they may be allowed to continue till the expiry of the existing contract. IFA to SSA Head xxii.xix. They will be allowed to choose and keep four of their choice. 25. xxiii. 24. That franchisee shall pay all dues & outstanding to BSNL during the currency of assessment or on termination of the agreement as the case may. 10% of such reports may be personally verified by SSA Head.Terms and Condition for Existing Franchisee having more than four franchisee areas: a. sold and available with him and all his sub franchisees / retailers on 3rd day of every month. will disqualify all franchisee ship areas. Sales and Distribution Policy 2006 24 / 35 For Internal Circulation only. if found wrong. suggesting involvement of Franchisee/Sub Franchisee/retailer or any other channels. GM (Marketing). b. The franchisee will have to instructions of BSNL as without any prior notice to including security deposit franchisee etc.Viability of Different Channels a. commission payable to the If any proof is found. even if any dispute is pending between the franchisee & BSNL. Franchisee will submit list of material received. the franchisee in respect of all matters / PBG. The existing franchisees. . which are having franchisee ship at more than 4 areas in a circle. 2. xxi. SSA Head 3. They will also submit detailed utilization of all publicity material given by BSNL. c. xx. a committee of 3 officers as below will decide and propose cancellation of Franchisee license. It must be done at least once every six months. Circle Office. The same shall be adjustable by the CGM or official appointed by CGM. The committee may be as below: 1. regulations & revised/modified from time to time.

They will have only “Viewing Rights” and “Level – 1 ( Only name.SUPPORT STRUCTURE a. Connectivity with Server. b. hence it can be given as per the requirements. c.b. d. will be projected by CGM periodically. SIM Cards. web hosting. The franchisees will be provided a connection from Mobile as well as Landline Billing and Commercial server. Bill distribution. ISDN etc. GM (BD) / any other GM of circle or SSA. Most of the BSNL products are on demand. In every circle the committee consisting of GM (Marketing). The commission structure of pre-paid recharge coupons. if any. leased lines per single end within Circle / SSA. d. They will submit their recommendations to CGM. i. The ultimate objective is to serve the customer up to their satisfaction in real time basis and delight them. Internet leased lines. Free phone service. Wherever some or all products are not available on demand. The release of the short supply products should be up to a particular date. sancharnet cards. e. The commission structure can vary SSA wise for the SSA specific products like selling of landlines. The waiting lists should be merged on daily basis for all sales and distribution channel. 27. Sales and Distribution Policy 2006 25 / 35 For Internal Circulation only. ) data feeding rights” in mobile. DGM (F) Circle Office. ACC services. Efforts to be made to clear all demand from all channels up to a particular date. 26. and a Professor of Marketing of a reputed institute will examine the viability of the all channels regularly on the commission structure given. server co-location. Necessary action is to be taken by CGM to meet selling targets and to serve customers in 2 hours or less. Broadband services. UAN service. However the need to change the commission on these items. address etc. web-fone cards and ITC card will be same on all India basis and will be decided by corporate office. value added services of Mobile phones. ECS. ii. e. waiting list needs to be maintained. c. phone plus facilities. There will be no quota system for any channel. Quota for Distribution: a. . MPLS VPN.

free of cost. v. Dial-up or Lease line. iv. iii. Each circle will make up their detailed procedures for back end handling of each customer response either in CSC or in Call centers or at any other channel so that the customers can be served in the time frame decided.“Sales and Distribution Software” will be provided by BSNL so that at any point of time one should be able to know the “Sales trend” of each product with reference to specific scheme. which should help in settling their bills etc. The franchisees / channel partners marking should be made available in Database and with the viewing rights the franchisees / channel partners will be able to serve the retained customer.iii. b. Sales and Distribution Policy 2006 26 / 35 For Internal Circulation only. Franchisees log in should be password protected. The link will be provided by BSNL either on Broadband. or in BSNL office will be opened for online support on real time basis. To start with some field in Billing and customer care software should be used for identifying franchisee. The scheme aims to serve the customers through many channels and the add value for the customers and business of the company. vi. The computer. ii. There is a need to create awareness amongst all BSNL staff that franchisees and other channels of selling are BSNL’s partners in furthering business goals. Website – Corporate/Circle office shall provide links on any information it would like to share with the franchisee through an extranet/website on our intranet portal. c. This help line will be made available in at least two shifts and preferably in all the three shifts. iii. as per feasibility and requirement. . iv. Activities that give any appearance of unhealthy competition amongst the selling of the products through CSC and the franchisees be avoided. and to monitor their performance. ii. Sales and distribution software:. printer as well as modem will be provided by franchisees / channel partners. either in BSNL call center. General information page as well as links to specific Circle/SSA should be provisioned in the website. TRAINING: i. IT SUPPORT i. A dedicated help line for franchisees / channel partners.

The franchisees and other channel partners be periodically briefed by SSA on the various products and services of the BSNL launched proposed etc.iv. Sales and Distribution Policy 2006 27 / 35 For Internal Circulation only. . Whatever schemes and services are launched these should be equally available to all channels to avoid any confusion. vi. Wide publicity of the services available at franchisee / subfranchisee / retailers and other channel partners should be made. v.

The agreement for BA is on exclusive basis. . Broadband services. UAN service. Sales and Distribution Policy 2006 28 / 35 For Internal Circulation only. e. Two Lakh with validity for 3 years may be taken before the signing of the Agreement. To start with all currently empanelled Type ‘C’ system integrators of BSNL in circles may be considered for appointment as Business Associate. The marketing in this category needs to be done aggressively with the motive to capture 80% of new market in this segment. An additional PBG of the value of Rs. f. as it will require more personalized treatment. g. server co-location. if they are willing for the same. value added services of Mobile phones. b. The data market is a very big market and its sales and distribution offers a greater challenge. which is defined as 25 or less new MPLS / Leased circuits per customer per annum. j. The system Integrators which is either themselves or their sister concerns (company’s under same group) are if ISP then the same will not be eligible. As a part of Sales and Distribution policy. BRI and PRI ISDN etc. In case the applicant is a company and the company. c. Free phone service. BA will work under Marketing Cell to take care of small requirements of the customers. The agreement copy is being sent separately. i. leased lines. d. It can also be extended suo moto by BSNL. The salient features will be as follows. h. Internet leased lines. it is proposed to appoint Business Associate (BA) for direct marketing and for selling of MPLS VPN. Beyond that System Integrators will deal the cases though BD cell. Selling of SIM Cards / bfone / Recharge coupons etc.BUSINESS ASSOCIATES a. ACC services. as detailed in Annexure –‘B’ have also been allowed so that complete range of services can be given by them. The BA will be initially for a period of two years extendable by another one year on mutual agreement. The concerned GM (Marketing) will take necessary action on their appointment as Business Associate and complete the activity with in one-month time. web hosting. other IN Services.28. They Business Associates are supposed to take care of the small requirements of the customer. is either itself or its sister concerns (company’s under same group) an ISP then the same will not be eligible for consideration as BA. BSNL reserves the right to appoint more than one Business Associate in this category in each circle.

i. After approval necessary action will be taken by concerned GM (Marketing) / SSA Head. CGM. The CGM in consultation of IFA can consider additional incentive over and above mentioned in Annexure – ‘B’ for the same. in case of high end services. The INTERNAL BUSINESS PROCESS REENGINEERING must be done simultaneously for providing reliable quality services to customers. iv. By simplified procedures for availing the services. attending the same with in reasonable period of time and with desired promptness. in consultation of IFA may engage Business Associates. o.k. One window interface for all its requirements across the circles and beyond for provisioning. n. Business Associate may make / use their own distribution network. Sales and Distribution Policy 2006 29 / 35 For Internal Circulation only. Reliable quality services during operations. to customers through them for which additional incentive can be worked out based on the quality and quantum of support envisaged. They will also help Key Account managers in SSA. The high end services for the customers are made available on priority. . for the activities mentioned above. Fast provisioning of the services. iii. v. m. The commission structure given in Annexure B is for Marketing and selling of BSNL services in this category. EOI will be floated centrally by marketing cell at corporate office. operation and after sales services. q. l. p. The present range of services of Business Associate along with commission structure is as per Annexure – ‘B’. It must be ensured that the basic requirements of the customers are fulfilled. for providing support. ii. For further appointments. In case of fault. Special efforts should be made for attracting the customers from other operators to BSNL. The area of operation will be whole telecom circle for which they are appointed.

. e.29. The CGM in consultation with IFA will have full right to take all initiative and strengthen Post offices as a sales and distribution partner. th d. b.Direct Selling Agent (DSA) a. The retired BSNL employees / spouses are also eligible to work as direct selling agent. d. mobile services and serving the customers at their doorstep.each can be done through them. SSA Heads may appoint any person 10 pass as Direct Selling Agent on the pattern of earlier marketing agent. It should be recouped as soon as 50% is exhausted or one month. The commission structure for Post Office has been given in Annexure – ‘B’. following additional privileges based on local conditions can be given. Action taken is to be intimated to corporate office. the commission structure up to that of franchisee can be given by concerned CGM in consultation with IFA depending upon the merit of the case. There is no limit on the number of DSA’s to be appointed in this category. suitably modified. To take care of this aspect as a part of Sales and Distribution policy. f. They should be used for selling landline. but because of its reach and government body. e. such as commitment to sell certain volume etc. c. The other eligibility criterion will be same as per the earlier Marketing Agents scheme. Though in the concept they fit in as sub-franhisees. However. The customer identity verification as well as customer credit rating at the rate of RS 25/. Servicing customers at their doorstep is a necessity. The cash products can be given on one-month credit by concerned CGM in consultation with IFA. Sales and Distribution Policy 2006 30 / 35 For Internal Circulation only. Its reach particularly in rural areas is very good and be invariably used by BSNL. 30. b. The agreement will also be on the pattern of earlier Marketing agent. The post office is a vast network of Department of Post. it is proposed to appoint DIRECT SELLING AGENT (DSA). The recommended jobs along with commission structure are given in Annexure – ‘B’. c. Post Offices a. This section will cater door-to-door marketing of bfone & mobile services.

The area of operation is restricted with in circle of concerned CGM. 32. PCO Holders means all types of PCO’s offered by BSNL. b. as mentioned above is discretion of BSNL management and can not be claimed as a matter of right. All BSNL products and Services will be sold through BSNL owned and operated CSC’s spread across the country. The range of BSNL services and the present commission structure is as per Annexure – ‘B’. if any. Progressively more and more CSC’s should work for full 8 AM to 8 PM all seven days. c. GM Marketing can approve other retail outlets like shopping malls etc. All categories of staff working in only such CSC’s operating 8 AM to 8 PM all seven days will be eligible for incentive. 33. The staff must have worked in shift duty at least for a week in a month and must not be on leave for more than 3 days in a month. It will be obligatory on the part of the franchisees to make PCO holders as their retailers. c. CGM in consultation with IFA. d. Servicing customers with in 2 hours or less is a necessity. b. No commission or discounts will be given to BSNL officials manning the CSC’s. Monthly Incentives for all categories of staff working frontline or in back office of CSC can be given. Sales and Distribution Policy 2006 31 / 35 For Internal Circulation only. The discount structure as that of Direct Selling Agent (DSA) to start with may be given.PCO HOLDERS a. PCO of various types are a strong network of BSNL.31. At least three CSC in Urban SDCA and one CSC in rural should be opened 8 AM to 8 PM all seven days transacting all business. c. d. Customer Service Centers (CSC) a. Incentive. if the PCO holder is willing for the same and service them at their premises. b. .Other Retail Outlets a. To take care of this aspect as a part of Sales and Distribution policy. The CGM will have power to fix and approve any other commission structure through viability study. e.

O. Director General (Marketing) BSNL Corporate Office 1003 Statesman House B. The arrangement should be reviewed periodically. TAX DEDUCT ED AT SOURCE: a.in Sales and Distribution Policy 2006 32 / 35 For Internal Circulation only. c. There will be flexibility to adapt the commission / discount structure SSA wise for SSA specific products. d. The instructions as laid down in CMD D. lr.MOB-27/Security –2004 nd dated 22 April. 36. The channels in the form of franchisee ship / sub – franchisee ship / retailers. the BSNL CO Finance Wing will issue comprehensive guidelines on tax structure and liability of payments by the different channels as well as BSNL units’ and on their role and responsibilities for smooth working. 37. CLARIFICATIONS / FEE DBACK: a. 2006 and any further instructions issued on the subject from time to time shall be scrupulously followed by the franchisees/Point of Sale in all channels. Corporate Office. Although sales tax. 35. Direct Selling Agents. During the meeting with franchisee.in www . CONCLUSION a.SERVICES TAX & OCTROI TAX & INCOME TAX. BSNL Sales and Distribution Policy – its framing and implementation at corporate office are taken care by Marketing Wing. octroi and local taxes vary from state to state. PCO’s and option to engage any other retail network will provide BSNL the synergy of multiplicity of various channels in the network. BSNL policy in order to serve customer in 2 hours or less progressively and ultimately in real time basis.No.bsnl. Business Associates. Post Offices. For any query / clarification / feedback. . VERIFICATION OF IDENTITY OF SUBSCRIBE RS: a. will be to adopt the mix of Sales and distribution network suggested above. kindly address to Dy. it was pointed out that they face lot of difficulties because of non-clarity on various tax structures and their liability to pay.34.148 Barakhambha Road New Delhi – 110001 Tel : 011 – 23734045 (O) Fax : 011 – 23734046 Email: marketing@bsnl. b.

(Total Marks=30) Marks allotment 05 10 15 05 10 15 Fulfillment of Minimum Criteria and up to 1 year in excess Greater than 1 year in excess but less than 2 years in excess Greater than 2 years in excess Franchisee/Dealer/Distributor experience in BSNL for 1 year or less Franchisee/Dealer/Distributor experience in BSNL for 1 – 2 year Franchisee/Dealer/Distributor experience in BSNL for more than 2 years The company’s track record of growth should take into account. Franchisee belongs to same SDCA b. Franchisee belongs to same SSA c. In case of tie. Fulfillment of Minimum Criteria up to 20 percent in excess b. d. Size and Location of showroom (Total Marks = 25) a. marks first in Place and if tie is not broken then experience and if still tie is not broken then marks in location should be seen.ANNEXURE – ‘A’ CRITERIA FOR ALLOCATION OF MARKS FOR SELECTION OF FRANCHISEE A. B.‘B’ 15 10 05 15 10 13 15 Sales and Distribution Policy 2006 33 / 35 For Internal Circulation only. b. Fulfillment of Minimum Criteria up to 10 percent in excess Greater than 10 percent but less than 20 percent in excess Greater than 20 percent in excess Prime Location 10 13 15 10 C. Place (Total Marks – 15) a. Interview/presentation before the selection committee by the proprietor SELE CTION & TIE – BREAKER The franchisee with the highest marks out of 100 should be selected. Experience a. Annexure . branded products. d. FMCG means wide distribution network trough retailers selling packaged. Companies selling wines/liquor. f. . Turnover (Total Marks = 15) a. c. e. c. petrol/kerosene is excluded. If tie is still there then franchisee showing more profit in last to last financial year in their account should be made eligible. b. Greater than 20 percent but less than 30 percent in excess c. Franchisee belongs to same Circle E. Greater than 30 percent in excess D.

or whichever is more HMR.5% 5% 150/120/200/160/250/200/Rs 150/.100 > 100 7 Conversion of existing Landline / Fixed Wireless (Any technology) Rent / Plan <= Rs 300/.whichever is more.whichever is more. limited to RS 400/> 100 Rs 200/.Rent / Plan > Rs 300/per month. Rs 200/.B & C 50/40/Note . whichever is more.H 10% 8% 51 .or HMR.or whichever is more HMR. Rs 160/. limited to RS 480/Rs 250/.or HMR. whichever is more.or HMR.100 > 100 1. whichever is more.or HMR.Rent / Plan <= Rs 300/per month.G & H 1.whichever is more.whichever is more. whichever is more.or HMR. limited to RS 600/.whichever is more. Rs 100/. limited to RS 700/. limited to RS 600/. whichever is more.or whichever is more HMR.300 > 300 1.C Note . limited to RS 400/Rs 160/. whichever is more. limited to RS 500/See Note .200 201 . Rs 160/. (See Note C) 1. ( See Note . limited to RS 400/Rs 200/.or HMR. limited to RS 500/.or whichever is more HMR. limited to RS 480/Rs 200/.or whichever is more HMR. DISCOUNT / COMMISSION PER CONNECTION TO DISTRIBUTION CHANNELS (in Rupees) SN Name of service Number of Connections per month. limited to RS 500/.per month plan. 5 Landline / Fixed Wireless (Any technology) . limited to RS 500/40/8% 1 Pre-paid Excel Connection.100 101 .or HMR. Rs 120/.A) 51 . limited to RS 320/- 8 Reconnection of Landline / Fixed Wireless (Any technology) / CellOne 9 CD ROM Rs 150/.A) 3 Conversion of Excel to CellOne 4 Pre-paid Recharge coupons.300 > 300 Note . limited to RS 320/Rs 120/.200 201 . limited to RS 400/. (See Note .or HMR.100 101 .per month to > Rs 500/. limited to RS 560/Rs 125/.H) 2 Post paid CellOne Connections / WLL Connections.or HMR.50 Franchisee BA PCO HOLDERS / DSA / PO 80/100/120/160/160/200/240/280/80/5% 120/160/200/Rs 120/.or HMR.whichever is more.100 . (Note .or HMR.50 100/80/125/100/150/120/200/160/200/160/250/200/300/240/350/280/100/80/6. 1.A) 6 Landline / Fixed Wireless (Any technology) . limited to RS 400/Rs 160/.or HMR.or whichever is more HMR. Rs 120/. (Note . limited to RS 560/Rs 100/.JOBS FOR FRANCHISEES / RETAILERS / POST OFF CIES / STD PCO’S / DSA / BA ALONG WITH COMMISSION STRUCTURE.50 51 .

90% of PO Rate 90% of PO Rate 16 HIGH END SERVICES A MPLS VPN Note .H : Upfront Note General J : On monthly bill submission. DSA / PO 10 Broadband Note . then commission for both will be payable.C Note .C & D Note .H Note .A: 50% upfront.C 1500/1200/1200/E Premium Rate Services Note . Note .C Note .F & H 7% D Web Hosting Note . Note General : HMR .F & H 7% B Leased Lines Note . DISCOUNT / COMMISSION PER CONNECTION TO DISTRIBUTION CHANNELS (in Rupees) SN Name of service Number of Franchisee BA PCO HOLDERS / Connections per month.Normal Note .F & H 7% 17 IN SERVICES A India Telephone Card Note .F & H 7% E Server – Co-Location Note .C 1500/1200/1200/C Universal Access Number Note .J OMR 5% 5% 25/50/100/25/25/OMR 80% of OMR 4% 4% 20/40/80/20/20/80% of OMR 80% of OMR 4% 4% 20/40/80/20/20/80% of OMR 5/.C & D Note .C OMR 80% of OMR 80% of OMR Note .D : If New Connection is also involved along with this facility. Note .H 6.C OMR 80% of OMR 80% of OMR 11 12 13 14 A B C D E F 15 A B Broadband & Landline Combo Sancharnet Cards.E : Channel Partner is expected to sell CLIP Instrument to the customer and submit the bill as a proof.H Note . 50% after realization of first bill .) CUG / VPN in CellOne on plan value <= Rs 300/.C Note . Note .per bill.One Month Rental Sales and Distribution Policy 2006 35 / 35 For Internal Circulation only.C 1500/1200/1200/G FLPP Note .G 12% 10% 10% B Free Phone Services Note .J Note .F & H 7% C Internet leased lines Note . - 5/. then commission for both will be payable.C HMR 80% of HMR 80% of HMR D PRA . (Minimum 5 connections. OMR .C 1500/1200/1200/F Tele-voting Note . CENTREX / VPN / CUG in Landline. ECS CLIP GPRS / MMS / UMS / Edge etc.5% 5% 5% 18 ISDN A BRI ISDN Note .JOBS FOR FRANCHISEES / RETAILERS / POST OFF CIES / STD PCO’S / DSA / BA ALONG WITH COMMISSION STRUCTURE. 5/.B : If Plan Conversion is also involved along with reconnection. Web Phone Cards Add on features.A 750/600/600/B BRI ISDN Rent Free Note . Telephone Bills Bill Collection by Cheque Bill Distribution Note .G : Minimum purchase of Rs 100. Note .to be paid automatically by BSNL.F : Of annual rental of selected tariff plan which is to be paid automatically after receipt of payment From customer monthly / quarterly / half-yearly / annually as the Payment is received from customer. In case of advance payment upfront Commiss Note .per month.per bill.Half Month Rental. .C & D Note .C : 100% after realization of first bill .E & H Note . CUG / VPN in CellOne on plan value > Rs 300/.000/Note .per bill.H 150/120/120/C PRA only Incoming Note .C 1500/1200/1200/D ACC Service Note . Note .to be paid automatically by BSNL.per month.

.Sales and Distribution Policy 2006 36 / 35 For Internal Circulation only.

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