BSNL Gramseva Kendra Project Final Report

Complete Marketing Services

29th August, 2012

Objectives of Study , Coverage

35

B
C D E F G H

Summary : Commercial Establishments

Summary : Consumer Segment Summary : Dip-Stick survey on R. E. SWOT Analysis Conclusions Detailed Report : District wise Annexures

6 17
18 31 32 33 34 35 36 37 221 222 - 240

Respondent Criteria : Cyber Cafe / Computer Center / Mobile retailers, etc.

1. Whether they have noticed the BSNL Gramseva Ad in ABP 2. Whether they have understood the Ad & visited website 3. Existing availability of services provided 4. Their perceptions about reliability of BSNL services 5. Availability of persons eligible as franchisee for BSNL project 6. Perception about the viability of the project in that area

7. Willingness for doing business with BSNL, as per offered terms

8. Suitable locations for Kiosks in the identified areas

Respondent Criteria : Users of Fixed line / Mobile services / Broad Band 1. Awareness of Broadband based services like Online train & air tickets E-learning courses Placement linked vocational training Tele-medicine services / Online Eye checkup Online financial & Insurance services Internet surfing Bill payments for phone / electricity etc 2. Demand for above online services, in order of priority 3. Frequency of requirement of such services 4. Requirement for other Broadband based services, if any

5. Affordability of service charges for above mentioned services

6. Existing availability of such services 7. Who are currently providing such services 8. Perceptions about reliability of BSNL services

District South 24 Pgs East Midnapore Murshidabad

Consumer 100 100 100

Commercial 26 26 26

Total 126 126 126

Burdwan
Coochbehar

100
100 Total

26
26

126
126

630

Respondent Criteria : Commercial : Internet users e.g. Cyber caf, Mobile retailers, TMK etc. Consumer : User of Landline, Mobile or Broadband Questionnaires were back-checked telephonically by Research Executives: Commercial : 100% & Consumer : 50% Hence the quality of data collected is reliable

Years in Business
71 80 70 60 50 40 30 20 10 3 3 23

40 35 30 25 20 15 10 5 0

37.4

Type of Establishment

28.2

19.1 15.3

1-5

6-10

11-15

15 above

Mobile Retailer

Others

Cyber Caf

Computer Center

Duration in business : 4.9 years average Others consist of : Studio, Xerox Centers, Share Trading Firms, Tathya Mitra Kendras,

Courier Services, Electronic Goods Shops, LIC Agents

They are mostly using Dongles or Broadband Connection or even 2G SIM

District

% Noticed Ad

% Visited Website

% Contacted

South 24 Pgs
East Midnapore Burdwan Murshidabad Coochbehar Mean

14.8
3.8 0.0 19.2 3.8 8.3 %

3.8
0.0 0.0 0.0 3.8 1.5 %

0.0
0.0 0.0 0.0 3.8 0.8 %

Amongst Commercial Enterprises, the Ad effectiveness was rather low Along with Ad, other means of communication should be used for Franchisee identification

Very low correlation between Ad noticed & Website Visited : (r) = +0.109

District South 24 Pgs E Midnapore Murshidabad Burdwan Coochbehar

% Website Visited

Willingness to do business ( after explanation )

0 0 3.8 0 3.8
1.5 %

85.5 65.3 64.5 38.5 57.7

62.3 %

Mean

2- Way communication had a positive effect on interest of potential GSK franchisees 2-Way communication is essential to resolve doubts & generate interest amongst them

This enumerates the respondents opinion about the reliability on BSNL Services.

The relative score for degree of Reliability on different BSNL services are derived by statistical means. Since 5-point rating scale has been used, the interval for the range in measuring each service was calculated as : (5-1) / 5 = 0.8 , as below

Score 1 to 1.8 1.81 to 2.6

Degree of Reliability Least Low

2.61 to 3.4
3.41 to 4.2 Above 4.2

Average
High Most

BSNL USERS Parameters Mean Score

Non - BSNL USERS Mean Score 3.15 3.23 3.00

Degree of Reliability
Average High Average

Degree of Reliability
Average Average Average

BSNL Mobile Services

BSNL Landline Services Tower Signal Strength

3.02 3.48 2.70

Quick Response to Breakdown

Solution to Billing Problems Recharge Related issues

2.47
3.28 2.60

Low
Average Low

2.38
2.85 2.31

Low
Average Low

Users & Non users are satisfied with Landline Services due to consistency in services & less competition People were dissatisfied with the lag time for resolution to breakdowns Availability of recharge cards is an issue Respondents feel BSNL have higher call charges for mobile services than their competitors

Establishment Type Cyber Cafe Computer Centre

BSNL Services

Mean

Degree of Reliability

Mobile retailer

Other

Landline LL & BB Mobile Landline LL & BB Mobile Landline LL & BB Mobile Landline
LL & BB

3.57 3.43 2.67 3.25 2.67 3.29 3.60 3.67 3.33 3.56
3.00

High High Average Average Average Average High High Average High
Average

Response for Landline and Broadband is mostly positive from all the respondent segments Light Broadband users feel that Landline & Broadband have higher rental charges & inconsistency in connection, as indicated by higher Coefficient of Variation values from mean (see Appendix)

People were very skeptical about Signal Strength of Mobile Services

District South 24 Pgs E. Midnapore Burdwan Murshidabad

More Awareness A, B, H, E, I ditto A, B, H, E, F, I A, B, H, I , E

Less Awareness
F, C, G, D ditto D, G, C F, D, G, C

Usage
A, B, H, E, I ditto A, B, H A, B, H, E

* Coochbehar

A, B, H, E, F, I

D, G, C

A, B, H, F, I, E

Awareness & Usage are given in descending order

A = Net Surfing F = IT Courses

B = e- Ticketing G = Tele medicine

C = e- Learning H = Bill payment

D = Voc Trng

E = e Application

I = e Fin Services

In Coochbehar one of the R.E. villages was also having a Krishi Mahavidyalaya Hence the level of Education & Awareness was higher than the other village

Services Net surfing e- Ticketing e-Learning Vocational Training e - Application IT Courses

Mean Awareness (%) 100 99 18 22 86 65

Mean Usage (%) 95 55 0 3 15 14

Telemedicine
Bill-payments

8
97

0
58

Financial Services

63

22

High Correlation Coefficient between the two variables (r) = + 0.81 Hence it can be inferred with increase in Awareness, Usage is likely to go up

35

District
31 31 24
South 24 Parganas

1st

2nd

3rd

4th
Bill Payments

30

Net Surfing

Ticketing

e-Application

25

Ranking

20

E Midnapore

-do-

-do-

Telemedicine

-do-

%
15

10

7 5 1 1 1

Burdwan

-do-

Bill Payments

Ticketing

e-Financial Services

Murshidabad

-do-

Ticketing

Bill Payments

Telemedicine

Coochbehar

Ticketing

Net Surfing

-do-

e-Application

Usage of less preferred services is likely to go up with awareness, as Awareness & Usage have +ve correlation

Willingness
Others Mobile retailer Computer Centre Cyber Cafe
.0 20.0 40.0 55 68 90 80 70 60 50 40 30 20 10 0

District Wise

63.3

85.5 64.5 65.3 57.7 38.5

56.8

60.0

80.0

100% respondents agreed that the GSK business had good chance of success due to :

Range of services to be offered is very wide targeting customers from different age groups
Very optimistic about Net surfing, Bill-payments, e-Ticketing, e-Application & e-Financial Services Monthly Financial Support from BSNL will reduce risk factor 62.3 % of the establishments have shown interest in further details about business model

For e-Booking of Cement & Steel bars responses were not so encouraging : It may not generate positive response without credit May work if customers get them in less than market price

District
South 24 Pgs East Midnapore Burdwan Murshidabad Coochbehar Mean

Estimated BEP
13.5 months 16.0 " 17.0 " 16.5 " 15.5 " 15.7 months

FEs explained about the Investment and the Assistance to be provided

Statistically it has been proved that BEP does not depend upon Establishment type

40 Occupation School 5-9 yrs SSC HSC Under Grad Grad / P.G. Gen Grad / P.G. Proff.

35

33

30 Skilled Workers 25 22 D C C B2 B2

Petty Traders

B2

B2

20

18.1 Shop owners 11.8 11.1 Businessman : B2 B1 A2 A2 A1 3.6 No Employee Self-Employed A1 A2 B1 B2 C D Professionals C B2 B1 A2 A2

15

10

B2

B1

A2

A1

The sampling process has covered all strata of society (A to D)

Telecom Services used

83.8
90.0 80.0 70.0

100 90 80 70 60 50

95

Landline Users

50.0

%
8.8 7.4

60.0

40
30 20 10 0

%
40.0
30.0 20.0 10.0 .0

2.5

2.5

Mobile Phone

Mob & LL

Mob & LL & BB

BSNL

Airtel

Tata

Out of total respondents 16.2% were Landline Users , of which 95% were BSNL Landline Users

Only 7.4 % were using Internet connections. Of which 27 % were using BSNL Broadband Services;
the rest were using dongles, other Broadband connections or even 2G SIM

1st Service Provider

40 35 30 25 23 36 50 45 40 35 30 25 20 15 10 5 0 46

2nd Service Provider

20 15 10 5

14 11 5

18 9

7 2 1 1

Vodafone & Airtel seems to be the first choice as service providers BSNL is the most preferred 2nd service provider 30.8 % respondents out of total have a 2nd Telecom connection Only 11.3 % have a 3rd Telecom connection

Feedback
Signal Quality 40 35 30 25 20 15 10 5 0 2

1 34 22 11 4 3 3 4 1 4 4 2 1 1 2

FEEDBACK PARAMETERS

Offers

Call Charges Good Avearge Poor

Vodafone & Airtel Users are satisfied with the service quality , due to good signal quality Only 27% of the BSNL users feel that BSNL Service is good Lack of offers, poor signal quality are the two likely reasons for such response Reliance & Tata Users are happy as the call charges are less

Feedback on BSNL
50.0 47.6 45.0 40.0 35.0 30.0 34.0

40 35 30 25
%

11

Switched from BSNL

6.8

25.0 20.0 15.0 10.0 5.0 0.0 1.8 3.3 13.3

20 15 10 5 0
6.6 25.4 16.2 7.4 2.6 2.8 1.4 2.6 1.2 1.2 1.2 1 0.6

1.2

Very Good

Good

Average

Poor

Very Poor

Yes

No

68.6 % were BSNL users (Ex & Current), of which 64.2 % said BSNL Services were average, poor or very poor
57.6 % people have switched to other services providers : 41.6 % to Vodafone & Airtel

District South 24 Pgs E. Midnapore

Awareness A, B , C, D A, B, C, E

Usage A, B , C, D B , A , C, E

District S. 24 Pgs E. Midnapore Burdwan Murshidabad Coochbehar

Cyber Cafe 22 20 42 23 32 27.8

Home 7 3 4 7 15 7.2

Others 8 45 15 17 22 21.4

Burdwan
Murshidabad

A, B, C, E
A, B, C, D

A, B, C, E
A, B, C, D

Coochbehar A = Net Surfing

A, B, C, D B = Bill Payment

A, B, C, D

Mean Value

C = e- Ticketing D = e- Application E = e Financial Services

Services with Low Awareness & Usage :Telemedicine, e-Learning, Vocational Training, IT Courses High Correlation exits between awareness & usage This shows with increase in awareness level usage of these services are likely to increase Others include CSCs (Tathya Mitra Kendra) and house of friends & relatives

Type of Services Net Surfing e- Ticketing e-Learning Vocational Training e- Application IT Courses

Awareness (%)

Usage (%)

87.4
76.4 10.8 28.6 53

41.2
27.2 0 1.6 18

36.2
2 60 40.6

2.8
0 38.4 11.6

Telemedicine
Bill-Payments Financial Services

From the above table: Correlation coefficient (r) = + 0.90, It shows High Correlation between awareness & usage

District South 24 Pgs

Future Need B , A, D, C, E A = Net Surfing B = Bill Payment C = e- Ticketing

E. Midnapore

B, E, D, C

Burdwan

B, A, D, C D = Telemedicine E = e- Application

Murshidabad Coochbehar

B, A, D, C, E A, B, C, D E

Probable Frequency of Future Usage

Net Surfing: Weekly e-Ticketing: Occasionally Bill payment: Monthly

e-Application: Occasionally
e-Financial Services: Occasionally Telemedicine: Occasionally

Ranking
20 18 16 14 12 10 8 6 4 2 0

19

19 15 12 9 9 8

Top 4 services :

1. Net Surfing

2. Bill payment 3. e-Ticketing 4. e-Application

A strong dependency can be seen among awareness & preferred services After explanation by the F.E., preference for some of the less known services went up Similarly, preference for Telemedicine have also gone up due to its necessity Respondents shown keen interest about e-Learning for their children in future

Willingness : Age wise

30

26

Willingness : Education
<25
22

25

In Years

20

18 26-35
24

15

12

12

10

>35

27

0 10th Graduate 12th Others UG

10

15
%

20

25

30

Statistically , willingness to use GSK Services does not depend upon age & education This is largely due to the wide range of services offered

 Objectives of the BSNL RE survey was to : 1. 2. 3. 4.

Check operational issues Check feasibility of Broadband connection for GSK Explain the GSK program to RE staff Get contact details of 3 business units with potential for becoming GSK

12 RE have been visited - N 24 Pgs : 4, S 24 Pgs : 4, Burdwan : 2, Hooghly : 2

Findings of the Dip Stick Survey :

75 % of R.E. visited were unaware of GSK project 25% of 12 RE said equipment not functioning properly.

17% RE are unable to provide BB connection now.

34 Potential franchisees contacted in 4 districts Reasons for R.E. non - cooperation : No BSNL Auth letter & GSK unawareness

25% of these 12 REs said the equipment were not working properly
RE Name Gobardanga RE Jibantala RE Pratapnagar RE District N 24 Pgs S 24 Pgs S 24 Pgs Problem ABR & AC are not functioning properly Control Card not working Shortage in Cable

17% REs were not able to provide BB connection presently

RE Name Charghat RE Pratapnagar RE District N 24 Pgs S 24 Pgs Problem Old copper wires causing problem in connectivity They dont have Modem

This highlights the urgent need for an operational Census of all R.Es

Opportunities 1. 68.1% out of 9.13 Crores population of W.B are residing in rural areas 2. Virgin Rural Market for Telemedicine, e-Learning, IT- Course & Vocational training 3. National HR requirements till 2022 for top 15 sectors is 178 mn 4. Good demand of Net Surfing, e- Ticketing, Bill payment & e-Application 5. Online money transfer has substantial demand in rural market Strengths 1. Well Designed Business Model : Wide range of services to customers of different age & educational qualification Profit sharing with franchisee owners & ILFS 2. Financial Support by ILFS to GSK Franchisees

3. Placement assistance after vocational training

4. 1100 R.E. across West Bengal 5. 95% of the landline & 27% of BB users were BSNL consumers

Weaknesses

1. GSK Franchisee appointment is a time consuming and difficult operation

2. Low effectiveness of GSK Advt. 3. Lack of Internal Communication among BSNL Rural Exchanges regarding the GSK project 4. Lack of monitoring & maintenance by BSNL causing breakdowns to services

5. Lack of marketing & sales activity as compared to other competitors

6. Poor Distribution network across West Bengal 7. Negative perception about BSNL services : Poor signal strength & Slow response to breakdowns 8. From Dip-Stick R.E. Survey : 25% of 12 RE have equipment not functioning properly 17% RE are unable to provide BB connection now Threats 1. Continuity and speed of the Broadband connection for GSK 2. Commercial respondents were reluctant to invest in GSK due to the failure of some CSCs

3. Presence of 5822 CSCs over 18 districts of W.B.

4. Lack of Awareness of some services like Telemedicine, e-Learning, Vocational Training 5. Entry of Major Private Players like Airtel, Reliance into the rural market

 Commercial establishments have confidence in the GSK Business : Est BEP :15.7 months Positive Factors : 1. Wide range of services 2. Monthly Financial Support Negative Factors : 1. Weak CSC model 2. Skeptical about BSNL BB connection continuity 62.3 % have shown interest in further details about business model after F.E. visit

Irrespective of Age, Education & Occupation, people showed interest in GSK Services

Only 8.3% of the commercial respondents noticed the GSK Advt, it shows that the

effectiveness was very low

Low positive correlation (r= +0.109) between Ad noticed & website visited

Dip Stick survey of R.E. shows an operational census is necessary

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