You are on page 1of 91

Executive summary

The Telecom industry is one of the leading and fastest growing in the world as communication plays a vital role in the world and especially in India. It acts as a major catalyst for the economic growth. BSNL has good brand awareness among the people. This could be attributed to its long history in the market and continued support from the Government. In todays competitive world, BSNL has to provide excellent services to attain a major market share and keep their Customers satisfied in all aspects. This research study is useful to understand the expectations and requirements of Customers and how BSNL can serve them in a better way.

The researcher is done in pursuance of determining the brand equity for BSNL and then the customers feedback on the various products. The samples of 25 respondents from among the BSNL users in Delhi were selected at random to conduct the study. The BSNL staffs who were

contacted to learn about the various BSNL packages and policies were also the primary source of data. Questionnaire was designed after a pre-survey interview covering all the aspects of BSNL services. Data analysis and interpretation was done using the collected data with necessary tools. This
1

study would be helpful to the BSNL Management in knowing about the Customers Satisfaction, Customer Perception, Customer Preferences, and service requirements and about the other Competitors status in the market thereby helping them in improve their quality of Services offered.

CHAPTER-1 INDUSTRY PROFILE


The Indian telecommunication network is the third largest in the world and the second largest among the emerging economies of Asia. The Indian telecommunication sector has continued to record noteworthy success throughout the year and has emerged as one of the key sectors that have been accountable for resurgent growth of the Indian economy. The rapid growth of the sector has been coupled with proactive polices and decisions taken by the Indian Government and dynamic involvement of the private sector. The liberal policies in the telecommunication sector have facilitated easy access to telecom companies and a fair regulatory framework offers services to the Indian consumers at affordable prices.

1.1 Market size


Over 20.2 million new subscribers were added in the month of February, thereby raising the total mobile phone subscription in the country to 791.38 million. Moreover, the statistics for February state that the rate of growth (2.82 per cent) in the number of rural mobile phone subscribers surpassed than those
3

of the urban areas (2.52 per cent) across the country. The broadband subscription in February, 2011 was 11.47 million as compared to 11.21 million in January, 2011. The Indian telecom sector is largely dominated by private operators that control a share of 87.9 per cent share of the entire sector. Among the top players in the telecom sector, Bharti Airtel owns the largest share at 20.09 per cent, followed by Reliance (16.7 per cent), Vodafone (16.54 per cent), state-owned BSNL (11.41 per cent), Tata (11.08 per cent) and Idea (10.97 per cent). Vodafone has recorded the fastest growth rate in the month of February, at 17.61 per cent in its subscription base. Reliance (16.36 per cent), Bharti (15.85 per cent), Idea (12.43 per cent), Aircel (8.26 per cent) and Tata (7.93 per cent) have also recorded decent growth rate figures for the month of February, 2011, according to Telecom Regulatory Authority of India (TRAI) database. As per statistics, the total number of mobile phone base in the country will rise to 900 million by the end of 2012 and it is further expected that this figure will steadily rise to 1.25 billion by 2015. It has also been projected that the users for the broadband base are going to reach 100 million mark by 2014, particularly after the telecom companies roll out their 3G services as per the research study conducted by Crisil.
4

1.2 Indian Telecommunication - Major Investments


Telecom managed services globally have been growing at a rate of 14 per cent on an yearly basis, with revenues aggregating up to US$ 190 billion, while in India, the growth rate of the telecom managed services is 19 per cent per year with revenues pegged at US$ 8-9 billion as stated by Arpita Pal Agrawal, Executive Director Telecom KPMG at the 3rd International conference organised by Bharat Exhibitions on Managed Services. Companies outside the telecom sector have shown interest in the sector investment and the Pharma company, Piramal Healthcare has decided to buy a 5.5 per cent stake in Vodafone's India unit for Rs 2,856 crore (US$ 640 million). With this deal, Vodafone has allotted over 26 per cent of the company shares to Indian investors in accordance to the foreign direct investment (FDI) guidelines for the telecom sector. Nokia, a US$ 12.7 billion telecom company intends to set up the companys largest manufacturing hub in Asia, overtaking the China facility centre. As of now, the China centre has a larger infrastructure than the Chennai centre, but going by the plans here, Chennai could possibly be the biggest in a year or so, said Herbert Merz, Global Head of operations and Executive Board

Member, Nokia Siemens Networks, a US$ 12.7 billion telecom infrastructure manufacturer. Telecom in the real sense means the transfer of information between two distant points in space. The popular meaning of telecom always involves electrical signals and as a result, people often exclude postal or any other raw telecommunication methods from its meaning. Therefore, the history of Indian telecom can be started with the introduction of telegraph. The Indian postal and telecom sectors saw a slow and uneasy start. In 1850, the first experimental electric telegraph line was started

between Kolkata and Diamond Harbour. In 1851, it was opened for the use of the British East India Company. The Posts and Telegraphs department occupied a small corner of the Public Works Department,[7] at that time. Subsequently, the construction of 4,000 miles (6,400 km) of telegraph lines connecting Kolkata (then Calcutta) and Peshawar in the north along with Agra, Mumbai (then and Chennai (then Bombay) in through the Sindwa south, as Ghats, well

Madras)

as Ootacamund and Bangalore was started in November 1853. Dr.William O'Shaughnessy, who pioneered the telegraph and telephone in India,

belonged to the Public Works Department, and worked towards the

development of telecom throughout this period. A separate department was opened in 1854 when telegraph facilities were opened to the public. 1960 First subscriber trunk dialing route commissioned

between Lucknow and Kanpur.

1975 -

First PCM system

commissioned

between Mumbai City

and Andheri telephone exchanges.

1976 - First digital microwave junction 1880, two telephone companies namely The Oriental Telephone

In

Company Ltd. and The Anglo-Indian Telephone Company Ltd. approached the Government of India to establish telephone exchangesin India. The permission was refused on the grounds that the establishment of telephones was a Government monopoly and that the Government itself would undertake the work. In 1881, the Government later reversed its earlier decision and a licence was granted to the Oriental telephone Telephone exchanges

Company Limited

of England for

opening

at Calcutta, Bombay, Madras andAhmedabad and the first formal telephone service was established in the country.[8] On the 28th January 1882, Major E. Baring, Member of the Governor General of India's Council declared open the Telephone Exchanges in Calcutta, Bombay and Madras. The exchange in
7

Calcutta named the "Central Exchange", was opened at third floor of the building at 7, Council House Street, with a total of 93 subscribers. Later that year, Bombay also witnessed the opening of a telephone exchange.

1.4 Further milestones and developments

A Mobile Phone Tower. Pre-1902 - Cable telegraph 1902 - First wireless telegraph station established between Sagar Islands and Sandheads.

1907 - First Central Battery of telephones introduced in Kanpur. 1913-1914 - First Automatic Exchange installed in Shimla. 1927 Radio-telegraph Wireless system between stations the UK and India,

with Imperial

Chain beam
8

at Khadki and Daund.

Inaugurated by Lord Irwin on 23 July by exchanging greetings with King George V.

1933 - Radiotelephone system inaugurated between the UK and India. 1953 - 12 channel carrier systemoduced. 1979 - First optical fibre system for local junction commissioned at Pune.

1980 - First satellite earth station for domestic communications established at Sikandarabad, U.P..

1983 - First analog Stored Program Control exchange for trunk lines commissioned at Mumbai.

1984

- C-DOT established

for

indigenous

development

and

production of digital exchanges.

1995 - First mobile telephone service started on non-commercial basis on 15 August 1995 in Delhi.

1995 - Internet Introduced in India starting with Delhi, Bombay, Calcutta, Chennai and Pune on 15 August 1995

While all the major cities and towns in the country were linked with telephones during the British period, the total number of telephones in 1948
9

numbered only around 80,000. Post independence, growth remained slow because the telephone was seen more as a status symbol rather than being an instrument of utility. The number of telephones grew leisurely to 980,000 in 1971, 2.15 million in 1981 and 5.07 million in 1991, the year economic reforms were initiated in the country. While certain measures were taken to boost the telecom industry from time to time, (for example introduction of the telex service in Mumbai in 1953 and commissioning of the first Subscriber trunk dialling route between Delhi and Kanpur and between Lucknow and Kanpur in 1960), the first waves of change were set going by Sam Pitroda in the eighties.[9] The real transformation in scenario came with the announcement of the National Telecom Policy in 1994.[10]

1.5 Modern policies


All villages shall receive telecom facilities by the end of 2002. A Communication Convergence Bill introduced in the Parliament on August 31, 2001 is presently before the Standing Committee of Parliament on Telecom and IT.

10

National Long Distance Service (NLD) is opened for unrestricted entry.

The International Long Distance Services (ILDS) have been opened to competition.

The basic services are open to competition. In addition to the existing three, a fourth cellular operator, one each in four metros and thirteen circles, has been permitted. Cellular operators have been permitted to provide all types of mobile services including voice and non-voice messages, data services and PCOs utilizing any type of network equipment, including circuit and/or package switches that meet certain required standards.

Policies allowing private participation have been announced as per the New Telecom Policy (NTP), 1999 in several new services, which include Global Mobile Personal Communication by Satellite (GMPCS) Service, digital Public Mobile Radio Trunked Service (PMRTS) and Voice Mail/ Audiotex/ Unified Messaging Services.

Wireless Local Loop (WLL) has been introduced to provide telephone connections in urban, semi-urban and rural areas promptly.

Two telecom PSUs, VSNL and HTL have been disinvested.


11

Steps are being taken to fulfill Universal Service Obligation (USO), funding, and administration.

A decision to permit Community Phone Service has been announced. Multiple Fixed Service Providers (FSPs) licensing guidelines were announced.

Internet Service Providers (ISPs) have been allowed to set up International Internet Gateways, both Satellite and Landing stations for submarine optical fiber cables.

Two categories of infrastructure providers have been allowed to provide end-to-end bandwidth and dark fiber, right of way, towers, duct space etc.

Guidelines have been issued by the Government to open up Internet telephony (IP).

In 1975, the Department of Telecom (DoT) was separated from Indian Post & Telecommunication Accounts and Finance Service. DoT was responsible for telecom services in entire country until 1985

when Mahanagar Telephone Nigam Limited (MTNL) was carved out of


12

DoT to run the telecom services of Delhi and Mumbai. In 1990s the telecom sector was opened up by the Government for private investment as a part of Liberalisation-Privatization-Globalization policy. Therefore, it became necessary to separate the Government's policy wing from its operations wing. The Government of India corporatised the operations wing of DoT on 1 October 2000 and named it as Bharat Sanchar Nigam Limited (BSNL). Many private operators, such as Reliance Communications,Tata

Indicom, Vodafone, Loop Mobile, Airtel, Idea etc., successfully entered the high potential Indian telecom market.

Privatization
The Indian government was composed of many factions (parties) which had different ideologies. Some of them were willing to throw open the market to foreign players (the centrists) and others wanted the government to regulate infrastructure and restrict the involvement of foreign players. Due to this political background it was very difficult to bring about liberalization in telecommunications. When a bill was in parliament a majority vote had to be passed, and such a majority was difficult to obtain, given to the number of parties having different ideologies. Liberalization started in 1981 when Prime Minister Indira Gandhi signed contracts with Alcatel CIT of France to merge with the state owned Telecom
13

Company (ITI), in an effort to set up 5,000,000 lines per year. But soon the policy was let down because of political opposition. She invited Sam Pitroda a US based Non-resident Indian NRI to set up a Center for Development of Telematics(C-DOT), however the plan failed due to political reasons. During this period, after the assassination of Indira Gandhi, under the leadership of Rajiv Gandhi, many public sector organizations were set up like the Department of Telecommunications (DoT), VSNL and MTNL.

Many technological developments took place in this regime but still foreign players were not allowed to participate in the telecommunications business.
[11]

The demand for telephones was ever increasing. It was during this period that the Narsimha Rao-led government introduced the national

telecommunications policy [NTP] in 1994 which brought changes in the following areas: ownership, service and regulation of telecommunications infrastructure. They were also successful in establishing joint ventures between state owned telecom companies and international players. But still complete ownership of facilities was restricted only to the government owned organizations. Foreign firms were eligible to 49% of the total stake. The multi-nationals were just involved in technology transfer, and not policy making.
14

During this period, the World Bank and ITU had advised the Indian Government to liberalize long distance services in order to release the monopoly of the state owned DoT and VSNL; and to enable competition in the long distance carrier business which would help reduce tariff's and better the economy of the country. The Rao run government instead liberalized the local services, taking the opposite political parties into confidence and assuring foreign involvement in the long distance business after 5 years. The country was divided into 20 telecommunication circles for basic telephony and 18 circles for mobile services. These circles were divided into category A, B and C depending on the value of the revenue in each circle. The government threw open the bids to one private company per circle along with government owned DoT per circle. For cellular service two service providers were allowed per circle and a 15 years license was given to each provider. During all these improvements, the government did face oppositions from ITI, DoT, MTNL, VSNL and other labor unions, but they managed to keep away from all the hurdles.[11] After 1995 the government set up TRAI (Telecom Regulatory Authority of India) which reduced the interference of Government in deciding tariffs and policy making. The DoT opposed this. The political powers changed in 1999 and the new government under the leadership of Atal Bihari
15

Vajpayee was more pro-reforms and introduced better liberalization policies. They split DoT in two- one policy maker and the other service provider (DTS) which was later renamed as BSNL. The proposal of raising the stake of foreign investors from 49% to 74% was rejected by the opposite political party and leftist thinkers. Domestic business groups wanted the government to privatize VSNL. Finally in April 2002, the government decided to cut its stake of 53% to 26% in VSNL and to throw it open for sale to private enterprises. TATA finally took 25% stake in VSNL. This was a gateway to many foreign investors to get entry into the Indian Telecom Markets. After March 2000, the government became more liberal in making policies and issuing licenses to private operators. The government further reduced license fees for cellular service providers and increased the allowable stake to 74% for foreign companies. Because of all these factors, the service fees finally reduced and the call costs were cut greatly enabling every common middle class family in India to afford a cell phone. Nearly 32 million handsets were sold in India. The data reveals the real potential for growth of the Indian mobile market.[12] In March 2008 the total GSM and CDMA mobile subscriber base in the country was 375 million, which represented a nearly 50% growth when compared with previous year.[13] As the unbranded Chinese cell phones
16

which do not have International Mobile Equipment Identity (IMEI) numbers pose a serious security risk to the country, Mobile of network

operators therefore planned

to suspend

the usage

around 30

million mobile phones (about 8 % of all mobiles in the country) by 30 April.


[14]

56 years the average monthly subscribers additions were around 0.05 to

0.1 million only and the total mobile subscribers base in December 2002 stood at 10.5 millions. However, after a number of proactive initiatives were taken by regulators and licensors, the total number of mobile subscribers has increased greatly to 865 million subscribers as of August 2011. India has opted for the use of both the GSM (global system for mobile communications) and CDMA (code-division multiple access) technologies in the mobile sector. In addition to landline and mobile phones, some of the companies also provide the WLL service. The mobile tariffs in India have also become lowest in the world. A new mobile connection can be activated with a monthly commitment of US$0.15 only. In 2005 alone additions increased to around 2 million per month in the year 2003-04 and 2004-05.
[citation needed]

In June 2009, the Government of India banned the import of several mobile phones manufactured in China citing concerns over quality and the lack of IMEI's which make it difficult for authorities in India to track the sale and
17

use of such phones.[15] In April 2010, the Government was also reported to be blocking Indian service providers from purchasing Chinese mobile technology citing concerns that Chinese hackers could compromise the Indian telecommunications network during times of national emergency. A series of attacks on Indian government websites and computer networks by suspected Chinese hackers has also made Indian regulators suspicious with regards to the import of potentially sensitive equipment from China. The companies reported to be affected by this areHuawei Technologies and ZTE.
[16][17][18]

Regulatory environment LIRNEasia's Telecommunications Regulatory Environment (TRE) index, which summarizes stakeholders perception on certain TRE dimensions, provides insight into how conducive the environment is for further development and progress. The most recent survey was conducted in July 2008 in eight Asian countries, including Bangladesh, India, Indonesia, Sri Lanka, Maldives, Pakistan, Thailand, and the Philippines. The tool measured seven dimensions: i) market entry; ii) access to scarce resources; iii) interconnection; iv) tariff regulation; v) anti-competitive practices; and vi)

18

universal services; vii) quality of service, for the fixed, mobile and broadband sectors. The results for India, point out to the fact that the stakeholders perceive the TRE to be most conducive for the mobile sector followed by fixed and then broadband. Other than for Access to Scarce Resources the fixed sector lags behind the mobile sector. The fixed and mobile sectors have the highest scores for Tariff Regulation. Market entry also scores well for the mobile sector as competition is well entrenched with most of the circles with 4-5 mobile service providers. The broadband sector has the lowest score in the aggregate. The low penetration of broadband of mere 3.87 against the policy objective of 9 million at then end of 2007 clearly indicates that the regulatory environment is not very conducive.[19] The total revenue in the telecom service sector was 86,720 crore (US$17.6 billion) in 2005-06 as against 71,674 crore (US$14.5 billion) in 2004-2005, registering a growth of 21%.estimted revenue of FY'2011 is Rs.835 crore (US$ 19 Bn Approx).The total investment in the telecom services sector reached 200,660 crore (US$40.7 178,831 crore (US$36.3
[20]

billion) in the

2005-06,

up

from fiscal.

billion) in

previous

Telecommunication is the lifeline of the rapidly growing Information

Technology industry. Internet subscriber base has risen to more than a 100
19

million in 2010.[21] Out of this 11.47 million were broadband connections. More than a billion people use the Internet globally. Under the Bharat Nirman Programme, the Government of India will ensure that 66,822 revenue villages in the country, which have not yet been provided with a Village Public Telephone (VPT), will be connected. However doubts have been raised about what it would mean for the poor in the country.[22] It is difficult to ascertain fully the employment potential of the telecom sector but the enormity of the opportunities can be gauged from the fact that there were 3.7 million Public Call Offices in December 2005 [23] up from 2.3 million in December 2004. The Total Revenue of Indian Telecom Services company is likely to exceed Rs 200000 Cr ( US$ 44 Bn approx) for FY 11-12 based on FY 10-11 nos and latest quarterly results. These are consolidated nos including foreign operation of Bharti Airtel. The major contributions to this revenue are as follows: Bharti Airtel 65,060 Reliance Comm 31,468 Idea Cellular 16,936 Tata Comm 11,931 MTNL 4,380 TTML 2,248 BSNL 32,045 Voda 18,376 TataTeleservice 9,200 Aircel 7,968 SSTL 600 Uninor 660 Loop 560 Stel 60 HFCL 204 Videocon Telecom 254 DB Etisalat/ Allianz 47 Grand Total Rs 201,997 Crs contributed by Sanjay Banka, FCA

20

Telephones

Communications in India Television broadcast stations (2009) Radio broadcast 800 stations (1997) Fixed lines (2011) 34 million Mobile (2011) Internet access Percent 8.5% of phones 865 million 1,400

household access households (total), 2010 (100 million) Percent broadband 1.0% of

households
21

household access (12.69 million) Internet Service 180 Providers (2010) country code top- .in level domain The primary regulator of telecommunications in India is the Telecom Regulatory Authority of India (TRAI). It closely regulates all of the industries mentioned below with the exception of newspapers and the Internet service provider industry. The telecommunications industry in India is dominated by private-sector and two state-run businesses. Most companies were formed by a recent revolution and restructuring launched within a decade, directed by Ministry of Communications and

IT, Department of Telecommunications and Minister of Finance. Since then, most companies gained 2G, 3G and 4G licenses and engaged fixed-line, mobile and internet business in India. On landlines, intra-circle calls are considered local calls while inter-circle are considered long distance calls. Foreign Direct Investment policy which increased the foreign ownership cap from 49% to 74%. Currently Government is working to integrate the whole
22

country in one telecom circle. For long distance calls, the area code prefixed with a zero is dialed first which is then followed by the number (i.e. To call Delhi, 011 would be dialed first followed by the phone number). For international calls, "00" must be dialed first followed by the country code, area code and local phone number. The country code for India is 91. Several international fiber-optic links include those to Japan, South Korea, Hong Kong, Russia, and Germany. Some major telecom operators in India include Airtel, Vodafone, Idea, Aircel, BSNL, MTNL, Reliance

Communications, TATA Teleservices, Infotel, MTS, Uninor, TATA DoCoMo, Videocon, Augere, Tikona Digital. Telephone Subscribers (Wireless and Landline): 900 million (July 2011) Land Lines: 34.29 million (June 2011) Cell phones: 851.70 million (June 2011) Monthly Cell phone Addition: 11.41 million (June 2011) Teledensity: 73.97 % (June 2011) Projected Teledensity: 1 billion, 84% of population by 2012. Mobile Telephones With a subscriber base of more than 851 million, the Mobile telecommunications system in India is the second largest in the world and it
23

was thrown open to private players in the 1990s. GSM was comfortably maintaining its position as the dominant mobile technology with 80% of the mobile subscriber market, but CDMA seemed to have stabilised its market share at 20% for the time being. By March 2010 the country had 584 million mobile subscribers, up from 350 million just 15 months earlier. The mobile market was continuing to expand at an annual rate in excess of 40% coming into 2010. The country is divided into multiple zones, called circles (roughly along state boundaries). Government and several private players run local and long distance telephone services. Competition has caused prices to drop and calls across India are one of the cheapest in the world. [25] The rates are supposed to go down further with new measures to be taken by the Information Ministry.[26] In September 2004, the number of mobile phone connections crossed the number of fixed-line connections and presently dwarfs the wireline segment by a ratio of around 20:1. The mobile subscriber base has grown by a factor of over a hundred and thirty, from 5 million subscribers in 2001 to over 851 million subscribers as of June 2011. India primarily follows the GSM mobile system, in the 900 MHz band. Recent operators also operate in the 1800 MHz band. The dominant players

are Airtel, Reliance Infocomm, Vodafone, Idea cellular and BSNL/MTNL.


24

There are many smaller players, with operations in only a few states. International roaming agreements exist between most operators and many foreign carriers. The government allowed Mobile number portability (MNP) which enables mobile telephone users to retain their mobile telephone numbers when changing from one mobile network operator to another.
[27]

India is divided into 22 telecom circles.

A list of states (including the metros Mumbai, Kolkata and Chennai in their respective states and excluding National Capital Territory Delhi) with the largest subscriber base as of Mar 03rd 2011 is given below

Fixed Telephones Until the New Telecom Policy was announced in 1999, only the Government-owned BSNL and MTNL were allowed to provide land-line phone services through copper wire in India with MTNL operating

inDelhi and Mumbai and BSNL servicing all other areas of the country. Due to the rapid growth of the cellular phone industry in India, landlines are facing stiff competition from cellular operators. This has forced land-line service providers to become more efficient and improve their quality of service. Land-line connections are now also available on demand, even in high density urban areas. India has over 35 million main line customers.
25

Internet Internet country code: .in Internet Service Providers (ISPs): 180 (2010) Internet hosts: 4,536,000; Internet users: 100 million; Broadband Internet users: 13 million (June 2011) Internet access in India is largely provided by the private sector and two state-run companies and is available in a variety of forms, using a variety of technologies, at a wide range of speeds and costs. The country has the world's fourth largest Internet users with over 100 million users (of whom 40 million use the Internet via mobile phones) as of December 2010.
[28]

However, the Internet penetration in India is one of the lowest in the

world and only accounts for 8.4% of the population compared to OECD counties where average penetration rate is over 50%.[2][29] The number of broadband Internet subscribers in India has started to become more significant, having more than doubled in the two-year period to end2009. DSL, whilst holding slightly more than 75% of the local broadband market, was steadily losing market share to other non-DSL broadband platforms, especially to wireless broadband platforms. The 3G auction was
26

followed by an equally high profile auction of 4G spectrum that set the scene for a competitive and invigorated wireless broadband market. The growth in number of broadband connections in India has accelerated since 2006. As of June 2011, total broadband Internet connections in India had reached 13 million constituting 1.0% of the population. [30] India has one of the lowest penetrations of broadband connectivity in the world.[31][32] A number of private Internet Service Providers (ISPs) offer services in India, many with their own local loop and gateway infrastructures. BSNL and MTNL have continued to dominate the ISP market because of their existing massive copper infrastructure in the last-mile across the nation. An estimated 60% of Internet users were still regularly accessing the Internet via the countrys more than 10,000 cybercafes. According to International Telecommunication Union, the international average broadband speed is at 5.6 Mbps, whereas in India the average speed hoovers at 256 kbit/s which is the minimum speed set by TRAI. The government declared 2007 to be the year of broadband. Four years later, Indian broadband failed to deliver a download speeds of which other developed nations delivers. South Korea led the list with an average of 43 Mbps, followed by Japan (10.6 Mbps) and United States (4.6 Mbps).[33][34]

27

India broadband growth is hampered by various challenges, including a complicated tariff structure, metered billing, higher charges for right of way and absence of local-loop unbundling. FTTB services are currently supplied in Hyderabad by Beam Telecom, offering a variety of plans for home users up to 6 Mbit/s, "power users" up to 20 Mbit/s and enterprises up to 30 Mbit/s. Beam Telecom have also launched fristever FTTH Solution in Hyderabad in three major townships by end of 2010, they have planned to complete FTTH setup in 20 upcoming townships by the end of 2011. Triple-play FTTH services are due to be launched in 2011 by Hayai Broadband. Services will be offered via an entirely Passive Optical Network, allowing speeds of 100+ Mbit/s to the Internet and 1000+ Mbit/s (1 Gbit/s) within its own network. The coverage area will include most suburbs in Mumbai and the company has announced intentions to spread to other cities and even rural areas. It has coverage ready in the Northern Suburbs of Mumbai based on a UTStarcom platform, however the company expects to replace this with a platform by either Alcatel Lucent or Motorola.

28

Broadcasting

AIR Radio Tower

Radio

broadcast

stations: AM 153, FM 91, shortwave 68

(1998), Domestica Radio, Broadcasting

Radios: 116 million (1997) Television broadcast stations: 1,400 (of which 82 stations have 1 kW
or greater power and 480 stations have less than 1 kW of power) (2009)

Televisions: 110 million (2006)


In India, only the government owned Doordarshan has the license for terrestrial television broadcast. Over the years, Doordarshan services have grown from a single national channel to six national and eleven regional channels.
29

Satellite/Cable television took off during the first Gulf War with CNN. There are no regulations against ownership of satellite dish antennas, or operation of cable television systems, which led to an explosion of viewership and channels, led by the Star TV group and Zee TV. Initially restricted to music and entertainment channels, viewership grew, giving rise to several channels in regional languages, especially Hindi. The main news channels available were CNN and BBC World. In the late 1990s, many current affairs and news channels sprouted, becoming immensely popular because of the alternative viewpoint they offered compared to Doordarshan. Some of the notable ones are Aaj Tak (means Till Today, run by the India Today group) and STAR News, CNN-IBN, Times Now, initially run by theNDTV group and their lead anchor, Prannoy Roy (NDTV now has its own channels, NDTV 24x7, NDTV Profit and NDTV India).New Delhi TeleVision. In the Next Generation Networks, multiple access networks can connect customers to a core network based on IP technology. These access networks include fibre optics or coaxial cable networks connected to fixed locations or customers connected through wi-fi as well as to 3G and 4G networks connected to mobile users. As a result, in the future, it would be impossible to identify whether the next generation network is a fixed or mobile network
30

and the wireless access broadband would be used both for fixed and mobile services. It would then be futile to differentiate between fixed and mobile networks both fixed and mobile users will access services through a single core network. Most telecom companies won 3G and 4G licences in a competitive auction. They have now rolled out their third-generation (3G) mobile services since early 2010, but most companies will officially launch fourth-generation (4G) mobile services based on LTE or Long Term Evolution technology from 2012. Indian telecom networks are not so intensive as developed countrys telecom networks and India's teledensity is low only in rural areas. 670,000 route kilometers (419,000 miles) of optical fibres has been laid in India by the major operators, even has in remote laid optical areas fibre to and the process

continues. BSNL alone,

30,000 Telephone

Exchanges out of their 36 Exchanges. Keeping in mind the viability of providing services in rural areas, an attractive solution appears to be one which offers multiple service facility at low costs. A rural network based on the extensive optical fibre network, using Internet Protocol and offering a variety of services and the availability of open platforms for service development, viz. the Next Generation Network, appears to be an attractive

31

proposition. Fibre network can be easily converted to Next Generation network and then used for delivering multiple services at cheap cost.

32

CHAPTER-2 COMPANYS PROFILE

2.1 PROFILE
Bharat Sanchar Nigam Limited (known as BSNL, India Communications Corporation Limited) is a public sector telecommunication company in India. 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. Within a span of five years it has become one of the largest public sectors 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, 20.1 Million GSM Capacity, more than 37382 fixed exchanges, 18000 BTS, 287 Satellite Stations, 480196 Rkm of OFC Cable,
33

63730 Rkm of Microwave Network connecting 602 Districts, 7330 cities/towns and 5.5 Lakhs villages. It is India's largest telecommunication company with 24% market share as on March 31, 258. Its headquarters are at Bharat Sanchar Bhawan, Harish Chandra Mathur Lane, Janpath, New Delhi. It has the status of Mini Ratna, a status assigned to reputed public sector companies in India.

BSNL is India's oldest and largest Communication Service Provider (CSP). It has footprints throughout India except for the metropolitan cities of Mumbai and New Delhi which are managed by MTNL. BSNL is the only service provider, making focused efforts & planned initiatives to bridge the rural-urban digital divide in ICT sector. In fact there is no telecom operator in the country to beat its reach with its wide network giving services in every nook & corner of the country & operates across India except New Delhi & Mumbai. Whether it is inaccessible areas of Siachen glacier or NorthEastern regions of the country, BSNL serves its customers with a wide bouquet of telecom services namely Wireline, CDMA mobile, GSM mobile, Internet, Broadband, Carrier service, MPLS-VPN, VSAT, VoIP, IN Services, FTTH, etc.

34

BSNL is numero uno of India in all services in its license area. The company offers wide ranging & most transparent tariff schemes designed to suit every customer. BSNL has 90.09 million cellular & 5.06 million WLL customers as on 31.07.2011. 3G Facility has been given to all 2G connections of BSNL. In basic services, BSNL is miles ahead of its rivals, with 24.58 million wireline phone subscribers i.e. 71.93% share of the wireline subscriber base. BSNL has set up a world class multi-gigabit, multi-protocol convergent IP infrastructure that provides convergent services like voice, data & video through the same Backbone & Broadband Access Network. At present there are 8.09 million broadband customers. The company has vast experience in planning, installation, network integration & maintenance of switching & transmission networks & also has a world class ISO 9000 certified Telecom Training Institute. During the 2010-11, turnover of BSNL is around Rs. 29,700 Crores.

2.2 HUMAN RESOURCE AT BSNL


With a corporate philosophy that considers Human Resource as the most prized assets of the organization, it's natural for BSNL to continually hone
35

employee skills, enhance their knowledge and their expertise and their aspirations to fruition. Even as BSNL goes about conducting 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 manpower in the telecom sector, is our biggest asset.

We believe that our future depends on our staff who provide services to our 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 spread across Country. Th ese centers are properly equipped with the requisite infrastructure facilities such as Lecture rooms, modern audio-visual aids, libraries, hostels etc.

36

To apex training centers of BSNL i.e. Advance level Telecom Training Center (ALTTC) at Ghaziabad and Bharat Ratna Bhimrao Telecom Training Center at Jabalpur are comparable to any world class Telecom Training Center. Moreover, 43 zonal training centers and a National Academy of Telecom Finance and 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 program etc.

37

2.3 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

2.4 GROWTH PLAN


BSNL has continued its growth story ever since its formation & has reached a customer base of 81.49 million as on 31 st March,2009 from 28.11 million as on 31 st March,2001. BSNL further plans to increase its customer base to 160 Million by March, 2014. New Services introduced/planned by BSNL

38

3G Services : BSNL has started 3G services in 290 cities and acquired more than 6lakh customers. It has planned to roll out 3G services in 760 cities across the country in 2010-11. Broadband services : The shift in demand from voice to data has revolutionized the very nature of the network. BSNL is poised to cash on this opportunity and has planned for extensive expansion of the Broadband services. The Broadband customer base of 3.56 Million customer in March'2009 is planned to be increased to 16.00 million by March 2014. BSNL is also offering prepaid Broadband services. The customers availing prepaid broadband have many advantages over post paid broadband like control on usage, Mobility etc. In addition to wireline broadband services, BSNL is also in the process of rolling out its Wi-MAX network in rural areas to take an initial lead and provide wireless broadband services in all rural blocks in the country during 2010-11. The Urban Wi-Max is also being deployed in Kerala & Punjab Circles and shall cover all the mojor cities in these circles. Wi-Max services are also being provided through a Franchisee agent with M/s SOMA in three states of Gujrat, AP and Maharashtra.

39

Value Added Services : BSNL is focussing on provision of value added services/features to attract high end customers and to double its revenues from VAS Fibre to Home(FTTH) : To meet the demand for high bandwidth services, BSNL is rolling out FTTH services (GPON & GE-PON) for the first time in the country, which is likely to generate substantial revenue in coming years. Services are likely to start by March 2010. Mobility in WLL: BSNL is planning to provide full mobility on its WLL network from March 2010.

2.5 CONSUMER GRIEVANCES REDRESSAL MECHANISM IN BSNL


Consumer Grievances Redressal Mechanism (Public Grievances Redressal Mechanism) BSNL has a well structured and multilayered Public Grievances Redressal Mechanism including Dispute Resolution Mechanism. The Public Redressal setup in BSNL has been introduced right from the Corporate Office to SSA(Secondary Switching Area) levels. Subscribers

40

having complaints or grievances can interactwith the organization through the following for Public Grievance / Dispute settlements: (i) Complaints are being booked on "198". This Toll Free Service of booking complaints are available in every telephone system. Grievances can be booked on "12727"(for Circle Office) or "1095" (for District Office). This special Toll Free Service has been introduced by BSNL for booking public grievances. (ii) In every office 'visiting hours' are prescribed where the subscribers having complaints or grievances can approach the officers of BSNL at various levels, (iii) Public Grievance Officers are available right from Corporate Office to SSA (Secondary Switching Area) level. The

complainant can approach these officers in person or through written complaints or communicate through e-mail or contact on telephones, (iv) Special attention is being given to holding meetings with consumer organizations. (v) Telephones Advisory Committees have been constituted,

41

(vi)

Senior Officers are available for public without prior appointment during a specified hours on working days.

(vii)

Customer Service Centres have been opened for IMPCS.

II

Open House Session: Complaints/suggestions of general nature as regard to improving the telecom services in the area are discussed in the Open House Sessions. The basic idea of conducting such Open House Sessions is to establish direct channels of communications with our customers and also to enable the telecom staff to appreciate and evaluate the customers difficulties and complaints from their point of view. A press notification is issued in leading newspaper to hold the Open House Session for inviting customers to attend and submit their suggestions/grievances. Subscribers are invited in a public hall. The session is presided over by Senior Officers i.e. Area GM/Area Manager. Customers are requested to place general grievances which are recorded. Replies are given on the spot. In few cases, whichcannot be settled on the spot a time frame is given. Efforts are

42

made to settle the case within the given time frame. Written reply is sent to the customers. III. Telephone Adalats: Subscribers whose grievances remained unsettled are invited to make petitions for redressal of their grievances in Telephone Adalats. SSA(Secondary Switching Area) Level Telephone Adalats are being conducted on bimonthly periodicity and Circle level Telephone Adalats are being conducted once in three months. Customers are asked to give their grievances in writing with all supporting documents within stipulated period to District Complaint Officer (DCO). The concerned office to whom the case relates examines the case received by DCO and settles the case. A speaking order settling the case is communicated to the customers. For unsettled cases, a date is fixed for holding the Telephone Adalat. The customers are invited to attend the Telephone Adalat. The Adalat is presided over by General Manager of the area. The concerned officers of the Department are also called to be present in the Adalat. The full details of the case is presented to the presiding officer. The order of the presiding officer is communicated in the Adalat after hearing the arguments from both the parties.
43

Appellate Jurisdiction of Telephone Adalats: Circle level adalats headed by CGMs can consider the cases of the appeals against the decisions of the adalats chaired by SSA Heads. Adalats headed by SSA Heads can consider cases of excess billing which have been rejected by them as administrative heads of SSAs.

IV.

Telecom Grievances

consumers

Protection

and

Regulation

of

[TRAI Regulation, 2007(3 of 2007)] BSNL ensures prompt rectification of any fault or complaint booked through its extensive grass root level online fault restoration system (FRS). However, in case you still have your problem unsolved timely, BSNL has implemented a three tier consumer grievance redressal mechanism comprising of call centres for various services, nodal officers at SSA and Circle level and an appellate authority for deciding cases that the consumers may wish to appeal against. As a first step, you may contact our Call Centre on toll free helpline numbers given below.

44

For basic services including broadband services:1500 or 1800-3451500 (toll free number)

For GSM Mobile services:1503 or 1800-180-1503 (toll free number). For CDMA & WiMax services: 1502 or 1800-180-1502 (toll free number).

For Broadband &Internet services:1504 or 1800-345-1504 (toll free number).

For MPLS & Other Data services: 1800-425-1957 (toll free number).

2.6 COMPOSITION OF BOARD

The Board comprise of 12 Directors, of which 6 [including the CMD] are whole time Directors; 2 Government Nominee Directors and 4 Non-official Part Time Directors. Thus, the Board has the optimum mix of 50% Wholetime and 50% part-time Directors. The composition is as per Corporate Governance Norms for the unlisted CPSEs, laid down by the Department of Public Enterprises.
45

Chairman & Managing Director- Shri R.K. Upadhyay Shri Rakesh Kumar Upadhyay, joined BSNL as Chairman & Managing Director on 30 th April 2011. Shri Upadhyay is a B. Tech in Electronics Engineering from IT, Banaras Hindu University (BHU). He is also a graduate of Defence Services Staff College , Wellington and was awarded M.Sc.(DS) degree by Madras University . He has done MBA in Marketing Management from Indira Gandhi Open University. His career began in Department of

Telecommunications in 1975 after his selection by UPSC for Indian Telecom Service. In DoT, he gained experience in areas of Planning, Installation and Commissioning, Commercial Administration and

Operations. In October 1996, he proceeded on Deputation to TCIL, where he remained till August 1999. During his deputation, he successfully worked as Project Director in the Foreign Projects at Sana and as General Manager in Yemen. On return from TCIL, he worked in BSNL as General Manager in J&K Circle from January 2000 to June 2003. He was again selected for
46

Deputation in TCIL in June 2003 where he was entrusted the job of Chief Project Director, Algeria, Group General Manager (New Technology) and Executive Director (Project Monitoring) and other important assignments. He took over the charge of Director (Projects), TCIL on 01.11.2005 and was subsequently selected as Chairman & Managing Director of TCIL. He remained at the helms of TCIL from 1 st March 2007 to 29 th April 2011. During his tenure in TCIL he gained rich experience in the fields of Planning, Project Management, Operations and Business Development. In TCIL, he guided the successful implementation of many complex projects. Some of the notable projects are: Pan African e-Network Project Providing Tele-Education and Tele-Medicine Services to 34 African Nations from seven Universities and 12 Super Specialty Hospitals of India; National Internet Backbone Project; SAARC e-Network Project; Optical Ground Wire Project over 3000 Kilometer Electrical Transmission Lines in live line conditions in Algeria. He has to his credit the turning around of TCIL as its CMD.

Director - Consumer Fixed Access(CFA)- Shri Rajesh Wadhwa

47

Shri Rajesh Wadhwa took over as Director (Operations) in BSNL on 1st August 2008. Shri Wadhwa is a B. Tech in Electrical Engineering in first class with distinction from I.I.T. Delhi. He has also done MBA from Faculty of Management Studies, University of Delhi. He of joined India the Department through of

Telecommunications,

Government

Indian

Telecommunications Services Group A in December 1975. Since then he has worked in various capacities in different units of DoT/ BSNL/MTNL and has versatile experience covering almost all the fields in

telecommunications including operations, development and management of landline and mobile networks, sales and marketing and financial management etc. Before joining as Director (Operations) on the BSNL Board, he was working as Chief General Manager (North) in Mahanagar Telephone Nigam Ltd., Delhi and had also worked as Executive Director, MTNL, Delhi for sometime. In MTNL, he had been mainly responsible for provision, operations & maintenance of landlines and broadband services, mobile services, management of transmission and leased line network, optical fibre network, marketing and distribution channels and revenue management. He was actively involved in extensive induction of IT enabled computerized
48

Operational and Customer Interface Systems and for introducing the concept of paperless working in many areas. As Director (Operations), BSNL, he is mainly responsible for improving the Systems and Methods to achieve optimal performance and maximum utilization of BSNL's extensive country-wide Infrastructure and network. He is also responsible for achieving short-term and long-term business interests of the Company by way of high customer satisfaction and timely provision of satisfactory and quality services through close coordination with various field units. He is also responsible for induction and adaptation of new technologies and managing technological changes and providing state-of-the-art modern and world class integrated telecom services in the highly competitive environment.

49

Director - Consumer Mobility(CM) & (Enterprise)-Shri R.K.Agarwal Shri Rakesh Kumar Agarwal has done his B.E. from Indian Institute of Science, Bangalore in 1973 and then M.Tech in Communications from IIT Delhi in 1975. Thereafter he joined Department of Telecommunications and worked in various fields of telecommunications. He did installation of C-400 Cross Bar Exchanges till 1983. He was sent to France for training for the installation of Digital Electronic Exchange of E-10B make in 1983 and thereafter worked as Deputy General Manager (Installation) for E-10B Exchanges in MTNL, Mumbai from 1983 till 1991. He was DoT representative for the System Selection Committee set up to finalise gateway switches for VSNL. During 1990 he represented India for APT Conference in Indonesia. He was also deputed as Project Director, TCIL to Sultanate-of-Oman from 1991 to 1996 where he handled all the projects related to setting up the external plant network for copper cable and Optical Fibre Network in Sultanate-of-Oman. From 1996-98 he worked as Chief General Manager, Andaman & Nicobar Telecom Circle and thereafter handled the charge of Jaipur Telecom District, Rajasthan from 1998-99. He was posted as General Manager (Development) in Pune in 1999 and was incharge of complete planning and installation of all switching and transmission network in Pune 50 District. He was also in-charge of

Director - Human Resource(HR) -Shri A.K.Garg Shri A.K. Garg has taken over as Director (HR) in BSNL on 28 th March, 2011. He obtained his B.E. Degree in Electronics & Communications from University of Roorkee in 1975. He has completed Master in Communications Systems also from University of Roorkee in the year 1977. He joined Department of Telecommunications, Government of India through Indian

Telecommunications Services Group A Service in December 1977. Prior to his present assignment Shri Garg was Chief General Manager, CTD, at Kolkatta. As CGM, Kolkatta Telephones, he led a large change management process encompassioning installation, QOS improvement, HR, Marketing and Finance, in addition to being instrumental in optimizing the GSM network. He has vast experience of 33 year in the DoT/BSNL . During his tenure, he has worked in various capacities as General Manager and Chief General manager and possesses wide experience in finance, human resource, creation / promotion of new services, lines and new streams for DoT / BSNL with strategic expertise in the field formation as well in Circle/Corporate Office. He has demonstrated strong capabilities in leading small and large functional teams to study and achieve specific business goals.
51

As business head for Material Management in BSNL HQ, he affected fundamental changes in procurement manual and gave the required dimensions for improving the enforcement of agreement conditions of various contract. In his new assignment of Director (HR) in BSNL Board his varied and time tested experience would give a new dimension of leading human aspects/aspirations of a workforce of nearly 3,00,000 employees.

52

Shri A.N.RAI,Director(Enterprise) Shri A.N.Rai assumed

the

charge

of

the

office

of

Director(Enterprise) on 19.9.2011. Shri Rai, an officer of Indian Telecommunications Service 1977 batch holds B.Tech Degree in Electronics and Communications Engineering from BHU Varanasi. Shri Rai, was actively associated with Installation, Commissioning and Maintenance of Switching equipments at various places in the country. He was also trained in Digital Telephone systems in various countries like UK, Germany and USA. As senior telecom management professional, he was involved with Development, Operation and Maintenance of Telecom Services at various places like Allahabad, Kanpur etc. As Deputy Director General at the Corporate Office, he handled Rural Networking and CMTS areas. Prior to the joining as Director(Enterprise), he was the Chief General Manager of Orissa Circle of the BSNL, which bagged the prestigious Telecom Circle of the Year 2010-11 Award. Shri S.R.RAO, Govt. Director

53

Shri S.R. Rao, an Indian Administrative Service Officer of the 1978 batch, was appointed as Government Director on the Board of Directors of BSNL with effect from 13 th April, 2011. Shri Rao is a Post-Graduate in Applied Sociology from Andhra University and in Rural Development from University of East Anglia (UK). Shri Rao has worked extensively at policy and strategic level in the fields of Rural Development, Industry, Urban Development, Urban Housing, Ports Management, Primary Health Service Delivery, Medical Services, Medical Education, Nuclear Energy and Information Technology. Shri Rao is recipient of National Science Foundation Award in Public Health, All Indian Management Association Award for Excellence in Public Service, UN HABITAT Award for Best Practices and is an EISENHOWER Fellow. He was conferred Padmashri by the Government of India.

Shri Maruthi P. Tangirala, Government Director Government of India, Ministry of Communications and IT, Department of Telecommunications appointed Shri Maruthi P. Tangirala as Government Director on the Board of Directors of the Company with effect from 01.08.2011. Shri Tangirala is
54

Deputy

Director

General[Licensing

Finance-I]

Department

of

Telecommunications, New Delhi, since 13.4.2010. He belongs to the 1990 batch of IP & T AFS. He has worked in various capacities in the Department of Telecom in Finance and Accounts and Vigilance, in the Training Academy of BSNL, as well as on deputation to the Telecom Regulatory Authority of India and the Union Public Service Commission. He attended Anna University for a BE in Civil Engineering and IIM Calcutta for Masters in Management before joining the Civil Services after a brief stint in the private sector. He also holds a Law Degree from Osmania University and an M.Phil in Public Administration from Panjab University. He was appointed as Government Director on the BSNL Board on August 1, 2011.

55

Shri Ashish Guha, Director

Shri Ashish Guha entered upon the office of Director of the Company wef 21 st May 2010. Shri Ashish Guha joined HeidelbergCement Group in August 2006 as the Managing Director of Heidelberg Cement India Limited. Mr.Guha consolidated Heidelberg Cements entry into India and has been instrumental in transforming the businesses of the acquired companies. Prior to joining Heidelberg Cement, Mr.Guha was an investment banker, a career spanning over two decades. He was the CEO of Lazard India and subsequently a senior partner with Amit Corproate Finance. Mr. Guha has had the distinction of varied experience in investment banking ranging from Treasury, Research, Capital Markets and Merger and Acquisitions. e has advised large multinational corporate on their entry into India as well as acquisitions. Some of the prominent clients handled by Mr.Guha include BAT, Baxter, France Telecom,
56

General

Motors,

Lafarge.

Mr.Guha has been involved with various industry forums like Confederation of Indian Industry (CII) and Federation of Indian Chambers of Commerce and Industry (FICCI) and has represented India as a delegate in many nations. He was also an active participant in the World Economic Forum at Davos in the late90s. He has been part of many Government bodies including the one on Privatisation.

Mr.Guha is an Honours Graduate in Economics and an alumnus of London Business School.

57

CHAPTER-3 MARKETING STRATEGIES OF BSNL Our visions begin with our desires.
-Audre Lorde We all have some visions of ourselves and our future, and that vision creates consequences. More than any other factor, vision affects the choices we make and the way we spend our time.

Visions drive consequences. Principles drive results. Key is to base vision on principles
Stephen R Covey. It is true for individuals as well as organizations. The strongest form of vision / motivation is to base vision on What Legacy we want to leave. And to achieve it we must take a principled centered path. History is full of examples that many organizations have vanished grown and vanished overnight as their path to achieve vision was not based on principled way.
58

Vision of the organization can only be translated into reality, if it is shared by one and all. The best way to implement is to involve them in formulation. But even if it is conceived by higher management then it has to be explained to each and every individual of the organization, otherwise it may remain as a showpiece. Marketing vision of the BSNL has to be based on overall mission and vision of the organization.

59

3.1 MISSION
The Mission of BSNL is i. To provide world class State-of-art technology telecom services on demand at affordable price.

ii.

To provide world class telecom infrastructure to develop country's economy.

And the vision of BSNL is i. To become the largest telecom Service Provider in Southeast Asia.

In dynamic environment anything permanent is CHANGE. So we must revise and review so that focus is never lost. Strong lives are motivated by dynamic purposes. Kenneth Hildebrand.

3.2 Marketing Objective


The ultimate objective of any marketing activity is to satisfy the customers and today even a step ahead i.e. delighting the customers, for which customers are offered something beyond their expectations from the service
60

or the product. The objective being to acquire and retain the customers, who should continually feel that they are getting more value of the money, they are departing with Marketing is the establishment, development, maintenance and optimization of long-term mutually valuable relationships between consumers and organization. Successful Marketing focuses on understanding the needs and desires of the customers and is achieved by placing these needs at the heart of business by integrating them with the organization strategy, people, technology and business processes. At its most basic, Marketing involves customers, organizations and relationships and the combination creates the need for the management. Marketing is about creating a competitive advantage by being the best at understanding, communicating, and delivering and developing existing customer relationships in addition to creating and keeping new customers. The concept of the product life cycle is giving way to customer life cycle, focusing on developing products that anticipate the future needs of existing customers and creating services that extend the existing customer relationship beyond the mere transaction. The customer life cycle will focus on lengthening the life span of the customer with the organization rather than the endurance of a particular product. Customers have changing needs
61

as their life styles alter- the development and provision of products and/or services that continuously seek to satisfy those needs is good Marketing. The Marketing will focus greater attention on how to deliver customer satisfaction and organization will begin to structure itself around customer segments and not product lines. A good Marketing Strategy will take the business vision and apply it to the customer base.

3.3 Marketing Process


We often talk of marketing & Sales and often use it interchangeably without understanding the difference in it. Marketing is everything we do to get and leverage a client relationship. Marketing process is broad and includes all of the following: Discovering what product, service or idea customers want. Producing a product with the appropriate features and quality. Pricing the product correctly. Promoting the product; spreading the word about why customers should buy it. Selling and delivering the product into the hands of the customer.

62

Contrasting the Sales Concept with the Marketing Concept:We Sell Confidence.
The concepts surrounding both selling and marketing also differ. There is a need for both selling and marketing approaches in different situations. One approach is not always right and the other always wrong - it depends upon the particular situation. In a marketing approach, more listening to and eventual accommodation of the target market occurs. Two-way communication (sometimes between a salesperson and a customer) is emphasized in marketing so learning can take place and product offerings can be improved. A salesperson using the sales concept, on the other hand, sometimes has the ability to individualize components of a sale, but the emphasis is ordinarily upon helping the customer determine if they want the product, or a variation on it, that is already being offered by the company. In the sales approach, not much time is spent learning what the customer's ideal product would be because the salesperson has little say in seeing that their company's product is modified. Furthermore, they aren't rewarded for spending time listening to

63

the customer's desires unless they have a product to match their desires that will result in a sale. The 7Ps for service marketing (Product, price, place, promotion, physical evidence, people & process) are the means to attain, nurture, & retain the customers and not the end.

3.4 MISSION & VISION


Most of the big companies have a Vision & Mission statement so as to guide their all energy, efforts to realize it. BSNL also has a vision To become the largest Telecom Service provider in South East Asia. Firstly we need to understand the parameter for being the largest. Is it revenue, ARPU, profit, subscribers, Network (no of exchanges, BTS etc)? From monopoly to multi operator scenario, BSNLs market share is bound to reduce. But how much down we will let it? There are lot of similarities between British Telecom & us. One must keep watch on market share in monthly growth and take timely action. To improve our share, we need to acquire more than 50% of new acquisitions while maintaining earlier. This is quite challenging in this dynamic environment. What should be our marketing Vision, will it help us in inspiring to achieve higher. Can it be something such as To retain the highest market share, build highest brand equity and maximizing the profits?
64

3.5 BRAND EQUITY:


We may think what is Brand equity? In simple words it is how far people are willing to pay if we increase our prices i.e. premium for our services. We may feel happy to say there is lot of black marketing of our SIM cards. Is it a healthy sign? We reduce prices when competitors launch new schemes. Does it imply poor brand equity? Brand Equity can be built with good equity of quality of services at the affordable price. Continuous innovation in product and delivery of services with the appropriate pricing is the key strategy for developing the trust in customer so that he keeps his loyalty with BSNL. We have to be first mover in our efforts for product and price differentiation. Presently the market is in growth phase and price could be a differentiating factor, but how long? Is any scope left for further cuts? Ultimately it is the quality, customer care, and timely availability apart from price, which will matter. Quality depends on many parameters such as tangibles (like physical facilities, Appearance of personnel, Tools or equipment used to provide service, Physical appearance of service, Other customers in the service facility), Reliability, Responsiveness, Competence, Courtesy, Credibility, Security, Access, and Communications with customer, Understanding etc. Quality definitely commands premium.

65

So where should our marketing & sales effort be more? Wholesale, retail or corporate! What means do we need to use to promote our products and in what proportion? Advertising, PR, Franchisees, 24x7 customer care, business development etc. What activities should be taken up by Corporate Office, Circles and SSAs? In advertising there is need to synergize our activities at Corporate, Circle and SSA level. In this regard Corporate office has issued division of work guidelines. There is also a need to have good relation with our advertising agencies and simultaneously their performance need to be monitored for taking quality output from them.

3.6 WHAT IS USP (UNIQUE SELLING PROPOSITION) FOR BSNL


A Government company which delivers. A government company which gives service better than private could be a deadly combination, which no competitor can copy.

3.7 Social Responsibility


We have been given Golden Peacock award for Best Corporate Social responsibility. How can we leverage these distinctions? These achievements need to be highlighted through public relation exercise like press meet. This will help us in building our marketing image. In sales and distribution front
66

though we have over one-Lakh retailers, 1000 franchisees, 3300 CSCs, 36000 exchanges why are we not visible like others? Why cant we utilize all possible space? Cant we leverage our franchisee and STD-PCO strengths? Can we make these outlets as our core strength? Why our recharge coupons, India Telephone Cards are in shortage when there is no capacity constraint? Does it imply that our planning for printing, inventory management, logistics, and supply chain and of course franchisee management is inefficient? Do we have targets for these just like DELs & Cell One? Why cant we leverage this huge network for better customer care and improve collection efficiency? We must realize that with waiver of security deposits, no OYT schemes, no advance rentals, adjustment of landline security for Cell One, we dont get fixed deposits to meet our funds requirements. Everything has to be met from Operating revenues. We need to improve collections, realize bills early, not on the last day of payment and reduce bad debts. We need to provide 24X7 culture in our organization, though we have been providing operation and maintenance on 24X7 basis in the past and we will continue to provide in future too, but what about provisioning customer care and marketing on 24X7 basis. BSNL is committed to provide quality Telecom Services at affordable price to the citizens of the remotest part of the Country. BSNL is making all effort to
67

ensure that the main objectives of the new Telecom Policy 1999 (salient points indicated below) are achieved: Access to telecommunications is of utmost importance for achievement of the country's social and economic goals. Availability of affordable and effective communications for the citizens is at the core of the vision and goal of the new Telecom policy 1999. Strive to provide a balance between the provision of universal service to all uncovered areas, including the rural areas, and the provision of high-level services capable of meeting the needs of the country's economy;

3.8 Business development


Business development units have been given the task to develop and nurture long-term relations with corporate houses. Bulk bills are being issued. Onepoint payments are being realized for multiple service locations. Key Account Manager Concept has been introduced. All this requires change of mindset in addition to the skills of marketing & sales. Do we have skilled manpower? Is our organization setup apt for better results? The staff expense to revenue ratio could be a good indicator. No doubt our revenues are up. Profit has increased. But consider the marketing budget we have in comparison to others. Even with this little
68

budget many circles are unable to utilize it. We need to probe ourselves. Corporate office has permitted delegation of upto 70% of Circle budget to SSAs. Does it mean that our budget planning is wrong? How should we allocate marketing budget and which parameter to weigh? Per DEL/Mobile Acquisition cost Life time value Competitor spend Growth targets

69

CHAPTER-4 OBJECTIVES
4.1 PURPOSE OF THE STUDY

To find out the marketing strategies of BSNL. To evaluate the channels and how they working. To know whether customer receive the service on time, and is it full filling their needs to the desired levels. This would help to plan for the better channel and improve CRM activities which assure the customer to be satisfied.

4.2 OBJECTIVES OF THE STUDY


To find out the marketing strategies of BSNL. To ascertain customer preferences of landline and mobile services. To ascertain the customer satisfaction level for mobile services as well as landline services. To analyze the customer opinion and satisfaction with specific reference to BSNL.
70

To suggest some guidelines to BSNL in order to provide better focused service. To determine the status of brand awareness & brand loyalty in order to conclude about brand equity. To learn about the brand attributes & their preferences in BSNL.

71

4.3 RESEARCH PROCESS

72

CHAPTER-5 RESEARCH METHODOLOGY


5.1 RESEARCH DESIGN

The second step of the marketing research process calls for determining the information needed and developing a plan for gathering it efficiently. A research design can be defined as The plan, structure and strategy of investigation conceived so as to obtain answers to research questions and to control variance. Designing a research plan calls for decisions on the data sources, research approaches, research instrument, sampling plan and contact methods.

5.2 SOURCES OF DATA


There are two types of data: PRIMARY DATA The primary data are collected by the survey conducted by the questionnaire prepared by me. The surveys were even conducted by telephone, by mail.

SECONDARY DATA The secondary data are of two types internal and external.
73

Internal records of the company are used as the point of the marketing research. This includes information about the product being researched, its history, companys background, market share, and competitors information. These types of informations were collected from the marketing

department, sales department and corporate cell for marketing intelligence in the company.

External secondary data contains information available from public sources such as business newspapers, business magazines. A prominent source of data is the CMIE or the Centre for Monitoring Indian Economy, which publishes monthly reports on various aspects of Indian economy and Industry

5.3 SAMPLE DESIGN

5.3.1 POPULATION I have selected the area of Delhi region.

5.3.2 SAMPLE SIZE A sample size of 25 people was taken by me to do the survey.

74

5.3.3 SAMPLING TECHNIQUE Since the study is restricted to Retail sector, all the functional Departments of BSNL and the respondents are found at the store only so according to the convenience randomly they are being picked so sampling method is used in this study is Random Convenient Sampling.

5.4 METHOD OF COLLECTION OF DATA


Survey: This technique of data collection has already been discussed about above in the report. It was conducted in person that is by meeting the person personally, over telephone, and even my mail. The main disadvantage of conducting surveys over telephone or mail is that the facial expression, body language of the respondent cant be observed. Moreover the level of reliability on the results of such surveys is very less and is prone to incorrect results. So approximately 80% of the surveys conducted were by meeting persons personally. The

questionnaire used for the survey is in the Annexure part of the report. The field work was done by me at different places like homes, offices, shops, dealerships, franchises, etc. The surveys were done in the office time, so that it is possible to meet every one.

75

Observation:

Observation is a technique where the consumers So

behaviour is recorded, usually without his/ her knowledge.

according to the definition it is clear that in this technique of data collection we basically observed which brand the customers are preferring more either they are more inclined towards BSNL or any other like the main competitors of BSNL like the Bharti, Airtel , Vodafone, TATA, RCOM, etc.

5.5 INSTRUMENTS USED


The instruments used for the survey are the questionnaires and secondary sources like information from books, websites and journal.

LIMITATIONS OF THE STUDY


76

Study has been conducted only in few areas of Delhi. For few questions researcher was not able to get proper response which is as follows: Time was not sufficient to conduct detailed study. For few questions researcher was not able to get proper response which is as follows: i. Chances of Switching. ii. Reason for Switching. iii. Monthly Income.

77

CHAPTER-6 ANALYSIS AND INTERPRETATION


QUESTION: Are you using telecom services? ANSWER: OPTIONS TOTAL CUSTOMER NO YES 66 44 % OF

70 60 50 40 30 20 10 0 YES NO

INITERPRETATION According to research still only 44% are using telecom services.

QUESTION: Which connection do you use for better service?


78

ANSWER: Maximum respondents said BSNL and the reason when asked why do they use bsnl, they said and i quote after all network is needed everywhere. OPTIONS BSNL RELIANCE VODAFONE AIRTEL IDEA TOT % OF CUSTOMER 42 22 2 14 20

45 40 35 30 25 20 15 10 5 0 BSNL RELIANCE VODAFONE AIRTEL IDEA

79

INTERPRETATION: In under developed region 42% people are using BSNL cell services. QUESTION: Are you using telecom services in city?

80

ANSWER: OPTIONS YES NO TOT % OF CUSTOMER 97 3

100 90 80 70 60 50 40 30 20 10 0

YES NO 3-D Column 3

INTERPRETATION: High percentages of customers are using telecom services in city.

81

QUESTION: Is the network of BSNL IS consistent in every area through out the city. ANSWER:

OPTIONS YES NO

TOT % OF CUSTOMER 44 66

70 60 50 40 30 20 10 0 yes no

INTERPRETATION: High % of customers are not satisfied with the network of BSNL which is not a good sign for the company.

82

QUESTION: You have landline phones or cell phones of BSNL or you are using both? ANSWER:

LANDLINE USERS CELL PHONES USER BOTH

45 35 20

NO. OFUS ERS

INTERPRETATION: Most of the people use BSNL landline as compared to mobile phones.

83

QUESTION:

Are you satisfied by the talk time offers

provided by BSNL mobile service providers?

OPTIONS SATISFIED NON-SATISFIED

RESPONSE 32 78

INTERPRETATION
Most of the people are not satisfied with the talk time plans offered by BSNL.

84

CHAPTER-7 FINDINGS
Still in under developed areas majority of people are not using telecom services. In under developed region people mostly preferred BSNL because of better network. In Raipur city 98% people are using telecom services. People are more interested by the network coverage provided by BSNL, where they face more difficulty.

CHAPTER-8 SUGGESTIONS

85

BSNL Cellular Service has been rated highly among the customers. The quality of service also rated as good by the customers. This should be maintained. Most of important factor while designing their marketing strategy. Customers are expecting more value added service like internet, E-mail, Video clips, etc. The company can make provisions for this. The signal strength is weaker in interior places: service provider should increase the signal strength. The Company can look into restructuring of tariff to maintain competitive edge over rivals. The customer care centre should pay more attention in receiving and solving customers complaints. The free incoming calls are key factor for satisfying customer. The same strategy should follow in future also. As the competitors are entering this field in this town the company can formulate appropriate marketing strategy to retrain existing customers and to attract new customers. As the company vision is BSNL LIMITED strives to be the preferred provider of mobile communication services in all its area of operation. With the visionary zeal of a customer oriented and market-driven organization, BSNL abide by its un deterred commitment to provide customer with viable
86

and cost-effective solutions in the domain of its expertise at all times The company should stick to this and always maintain customer satisfaction. From the research study, it has been found out that the Customers are very particular about the Quality of the Telecom services and hence they want BSNL to increase the Quality of BSNL services by providing the Customers an attractive instrument with new wiring connections.

BSNL may also introduce some sales promotion such as cash discounts; Quality discounts hence the promotional activities would further strengthen the market share of the Company.

BSNL may reduce the monthly rentals and also the service tax.

Caller Ids should be provided immediately after the Customers requisition.

Customer care of BSNL needs improvement. the customers opt cellular communication for their convenience. This should be considered as

87

CHAPTER-9 CONCLUSION

BSNL need to put more concentration towards the network. Although it has wide network coverage but at the same time there are lot of disturbance and conjunctions in the network. BSNL should also come with attractive packages and offers for talk time. If company wants to fetch more and more customer then it should try to solve its network problem.

REFERENCE
Websites
88

www.bsnl.co.in/network/cust_care_center.htm
www.bsnl.in/service/dataoneform.php www.bsnl.co.in/service/dataone

Wikipedia www.Bsnl.com www.bsnl.co.in/network/cust_care_center.htm www.bsnl.co.in/service/helpdesk.htm

Books
o o o o

Kotler Philip :Marketing Management: Promotion Belch and Belch: Advertising and Sales: Bajaj and Srivastav :Retail Management Cooper and Schindler :Research Methodology

JOURNALS AND MAGAZINES


Business World Business Today

ANNEXURES QUESTIONNAIRE
89

1. Which telecom connection do you use? (a)B.S.N.L, (b) Others

2. Are you satisfied with B.S.N.L network? (a)Yes, (b) No

3. For clear sound and better coverage which telecom company do you think best? (a)B.S.N.L, (c)Vodafone, (e)Others. 4. The telecom facility that B.S.N.L is providing is sufficient or not? (a)Yes (b) No. (b) Reliance, (d) Airtel,

5. Is it required to reduce further the call charge of mobile & landline connection of B.S.N.L.? (a)Yes (b) No.

6. Do you think that the sim and cash card of B.S.N.L is available in the market? (a)Yes (b) No.

7. Do you have land line connection, if so do you want to continue it? (a) Yes 8. Whose general P.C.O is best? (a)B.S.N.L (b) Others. (b) No.

9. Do you have computer at home? (a)Yes (b) No.


90

10. Do you have internet connection? (a)Yes (b) No.

11. Which internet connection do you like most? (a)Dial up using Sancharnet (c)Broadband (b) Dial up using Net one (d) Others.

12. Do you surf net? Have you visited B.S.N.L sites? (a)Yes (b) No.

13. Are you aware of the B.S.N.L services in different field? (a)Yes (b) No.

14. On which telecom service do you think that you get overall satisfaction? (a)B.S.N.L (c)Airtel (e)Airtel (b) Reliance (d) Vodafone (f) Tata indicom.

15. Any other service / facility B.S.N.L should provide? (a)Yes (b) No.

91