NATIONAL COLLEGE OF BUSINESS ADMINISTRATION

AND ECONOMICS

BAHARAT SANCHAR NIGAM LIMITED (BSNL)

PROGRAM:
BBA-I

SUBMITTED TO:
Ms. Mehreen Ashraf

SUBMITTED BY:
Syed Muhammad Zargham Ali (2183184)
Arsla Saleem (2183388)
Anum Rafiq Butt (2183386)
 INTRODUCTION

 TYPE COMMUNICATION SERVICE PROVIDER

 AVAILABLITY COUNTRYWIDE

 OWNER GOVERNMENT OF INDIA

 KEY PEOPLE CHAIRMAN & DIRECTOR-RAJESH KUMARUPADHYAY

 FOUNDED 19TH CENTURY, INCORPORATED IN 2000

 WEBSITE WWW.BSNL.IN

1.1 OVERVIEW OF THE BSNL:

BSNL is India's oldest and largest Communication Service Provider (CSP).

Currently BSNL has a customer base of 64.8 million (Basic & Mobile telephony).
It has footprints throughout India except for the metropolitan cities of Mumbai
and New Delhi which are managed by MTNL. As on March 31, 2007 BSNL
commanded a customer base of 33.7 million Wire line, 3.6 million CDMA-WLL
 and 27.5 million GSM Mobile subscribers. BSNL's earnings for the Financial
Year ending March 31, 2006 stood at INR 401.8b (US$ 9.09 B) with net profit
of INR 89.4b (US$ 2.02 billion). Today, BSNL is India's largest Telco and one of
the largest Public Sector Undertaking of the country with authorized
share capital of US$ 3.95 billion (INR 17,500 Crore) and net worth of
US$ 14.32 billion.

HISTORY:
The foundation of Telecom Network in India was laid by the British sometime in
19th century. The history of BSNL is linked with the beginning of Telecom in India.
In 19th century and for almost entire 20th century, the Telecom in India was operated
as a Government of India wing. Earlier it was part of erstwhile Post & Telegraph
Department (P&T). In 1975 the Department of Telecom (DoT) was separated from
P&T. DoT was responsible for running of Telecom services in entire country until
1985 when Mahan agar Telephone Nigam Limited (MTNL) was carved out of DoT to
run the telecom services of Delhi and Mumbai. It is a well-known fact that BSNL was
carved out of Department of Telecom to provide level playing field to private
telecoms. Subsequently in 1990s the telecom sector was opened up by the
Government for Private Investment, therefore it became necessary to separate the
Government's policy wing from Operations wing. The Government of India
corporatized the operations wing of DoT on October 01, 2000 and named it as Bharat
Sanchar Nigam Limited (BSNL).BSNL operates as a public sector.

“MAIN SERVICES BEING PROVIDED BY BSNL”

BSNL provides almost every telecom service, however following are the main

Telecom Services being provided by BSNL in India:-

1. UNIVERSAL TELECOM SERVICES: Fixed wire line services &
Wireless in Local loop (WLL) using CDMA Technology called bfone and
Tarang respectively. BSNL is dominant operator in fixed line. As on March 31,
2007 (end of financial year) BSNL had 76% share of fixed and WLL phones.
 BSNL MOBILE PRE-PAID MOBILE

2. CELLULAR MOBILE TELEPHONE SERVICES: BSNL is major

provider of Cellular Mobile Telephone services using GSM platform under
brand name CellOne. Pre-paid Cellular services of BSNL are know as Excel.
As on March 31, 2007 BSNL had 17% share of mobile telephony in the
country

3. INTERNET: BSNL is providing internet as dial-up connection (Sancharnet)

and ADSL-Broadband Data one. BSNL has around 50% market share in
broadband in India. BSNL has planned aggressive rollout in broadband for
current financial year.

4. INTELLIGENT NETWORK (IN): BSNL is providing IN services like tele-

voting, toll free calling, premium calling etc.

BSNL PRESENT & FUTURE

Since its corporation in October 2000, BSNL has been actively providing
Connections in both Urban and Rural areas and the efficiency of the company has
drastically improved from the days when one had to wait for years to get a phone
connection to now when one can get a connection in even hours. Pre-activated Mobile
connections are available at many places across India. BSNL has alsounveiled very
cost-effective Broadband internet access plans (DataOne) targeted at homes and small
businesses. At present BSNL enjoys 47% of market share of ISP services.

Year of Broadband 2007

Former Indian Communications Minister Thiru Dayanidhi Maran had declared year

2007 as "Year of Broadband" in India and BSNL is gearing up to provide 5

 million Broadband connectivity by the end of 2007. BSNL has upgraded existing
Dataone (Broadband) connections for a speed of up to 2 Mbit/s without any extra
cost. This 2 Mbit/s broadband service is being provided by BSNL at a cost of just
US$ 5.5 per month. Further, BSNL is planning to upgrade its broadband services to
Triple play (telecommunications) in 2007.

BSNL has been asked to add 108 million customers by 2010 by Former Indian
Communications Minister Thiru Dayanidhi Maran. With the frantic activity in the
communication sector in India, the target appears achievable, however due to intense
competition in Indian Telecom sector in recent past BSNL's growth has slowed
down.
BSNL is pioneer of Rural Telephony in India. BSNL has recently bagged 80% of
US$ 580 m (INR 2,500 crores) Rural Telephony project of Government of India.

CHALLENGES:

During Financial Year 2007-2008 (From April 01, 2006 to March 31, 2007) BSNL has
added 9.6 million new customers in various telephone services taking its customer base to
64.8 million. BSNL's nearest competitor Bharti Airtel is standing at a customer base of 39
million. However, despite impressive growth shown by BSNL in recent times, the fixed line
customer base of BSNL is declining. In order to woo back its fixed-line customers BSNL has
brought down long distance calling rate under One India plan, however, the success of the
scheme is not known.

However, BSNL faces bleak fiscal 2006-2007 as users flee, which has been accepted by
the CMD BSNL.

Presently there is an intense competition in Indian Telecom sector and various

Telco‟s are rolling out attractive schemes and are providing good customer services.
However, BSNL being legacy operator and its conversion from a Government
Department earns lot of criticism for its poor customer service. Although in recent past
there have been tremendous improvement in working of BSNL but still it is much below
the Industry's Expectations. A large aging (average age 49 years (appx)) workforce
(300,000 strong), which is mostly semiliterate or illiterate is the main reason for the
poor customer service. Further, the Top management of BSNL is still working in BSNL
on deputation basis holding Government employee status thus having little commitment
to the organization. Although in coming years the retirement profile of the workforce is
very fast and around 25% of existing workforce will retire by 2010, however, still the
workforce will be quite large by the industry standards. Quality of the workforce will
also remain an issue.
Access Deficit Charges (ADC, a levy being paid by the private operators to BSNL for
provide service in non-lucrative areas especially rural areas) has been slashed by 37% by
TRAI, w.e.f. April 01, 2007. The reduction in ADC may hit the bottom-line of BSNL.

VISION

 To become the largest telecom Service Provider.

MISSION

 To provide world class State-of-art technology telecom services to its

 Customers on demand at competitive prices.
 To Provide world class telecom infrastructure in its area of operation and to
Contribute to the growth.

OBJECTIVES

 MP Telecom looks over the management, control and operation of the telecom
 network with the following aims and objective

 To build a high degree of customer confidence by sustaining quality and

reliability in service.
 To upgrade the quality of telecom service to international level.

 Provision of telephone connections on demand in all the villages of M.P.

 Expansion of new services like Internet, Intelligent Network, ISDN,

Internet
 Telephony, Video Conferencing, Broadband etc.
 Popularize Broadband Services and to be on-demand in the whole State.
 Expansion of Cellular Mobile Telephone to all towns.

 To open Internet Kiosks (Cafe's) at all Block Head Quarters.

 To improve the quality of present services being given to the subscribers.

 To open more Customer Service Centers and upgrade the existing Customer
Service Centers for better and friendly Customer care.

 Modernize PSTN network by making RSUs & AN-RAX.

 Plantation of Trees to make environment Clean & Green.

 To raise necessary financial resources for its developmental needs.

 To increase accessibility of services, by providing a large number of Local and

 NSD/ISD Public Call Offices (PCOs) so as to reach out to the masses.
 ORGANIZATION STRUCTURE

Corporate structure of BSNL Board consists of CMD & Five full time Directors Human
Resource Development (HRD), Planning & New Services, Productions & Operations,
Finance and Commercial & Marketing, who manages the entire gamut of BSNL operations.
There are five other Directors in the full Board of BSNL. CMD (Chairman & Managing
Director)

 Director – Consumer Fixed Access (CFA)

 Director (Finance)

 Director (HRD) & (Enterprise)

 Government Director

FINANCE DEPARTMENT:

Bharat Sanchar Nigam Limited, the largest Public Sector Undertaking of the Nation, is
certainly on a financial ground that's sound.

The Company has a net worth of Rs. 88,634 crores (US$ 17.40 billion), authorized equity
capital of Rs. 10,000 crores (US $ 1.96 billion), Paid up Equity Share Capital of Rs. 5,000
crores (US $ 0.98 billion) and Revenues is Rs. 35,812 crores (US $ 7.03 billion) in 2008-09.

(Note: 1 US $ = 50.9500 INR as on 31-03-2009)

ASSETS:

Bharat Sanchar Nigam Limited has got net fixed assets valuing more than Rs. 54,321 Crores
(US $ 10.67 billion), which are in the form of Land, Buildings Cables, Apparatus & Plants
etc. as on 31.03.2009.
REVENUE:

Revenue earned by BSNL during last five years

MARKETING DEPARTMENT:

This department is adopting these strategies.

 Intangibility

 Perishability & Inseparability

 Variability (Heterogeneity)

 The service marketing mix of BSNL In addition to the four P’s.,BSNL is stating
three P’s for their service.

 People

 Physical evidence

 Process

PRODUCTION & OPERATIONS DEPARTMENT:

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

 Launching of packages for BSNL

 Telegram booking

 Cash management

 All India MIS i.e. Management Information System

 Fleet management
HUMAN RESOURCE DEPARTMENT:

This department is mainly intended for all the administrative policies related to the
organization. It includes human resource management consist of recruitment, selection,
training etc. Human resource in an organization that is concerned with the creation of
harmonious working relationships among its participants and bringing about utmost
individual development. This department is formulated for all the personnel policies related
with the organization and also coordinating all the functions of the employees or staff.

SWOT Analysis
(Strength / Weakness/ Opportunities / Threats)

 Strength
The telecom sector is poised for continued high growth and our company is well placed

to benefit from this phenomenon. BSNL is the largest telecom operator providing all

kind of telecom services throughout the country. The widest network reach of the

company is its USP.

 Weakness
BSNL being Government Company has no any major weakness in the business.

 Opportunities
Having biggest infrastructure provider it is easy for company to enter into any area.

BSNL has vast range of product as well as better infrastructure it makes the deal with

any kind of customer. Dealing in urban area now it has also opportunities in rural area.
  Threats

The company operates in an industry, which is highly competitive and faces

intense Competition from other service provider, who enjoy certain advantages in their

Procurement as well as in selection of technology.

STRATEGY FORMULATION

 Clear technology strategy

 Customer Orientation Strategy

 Shorten the purchase-decision cycle

1. Clear technology strategy

BSNL should go in for innovative products based on convergent technology in order to

acquire dominant market position. This can be achieved by

 Replacement of all the outdated technologies immediately,

 Redeployment of unutilized capacities should be considered first.

 Early deployment of cost effective wifi/wi max technologies •

 Increasing the capital investment in convergent technologies even if it renders

certain in use technologies redundant
 2. Customer orientation strategy

It will retain existing customers as well as to attract new customers by

 Creating a Service-Oriented culture within the organization.

 Introducing flexible Registration Terms so that new customers are attracted.

 Educating the customer about services in detail and respective tariff structure

 Introducing service at door-step.

 A successful loyalty programme becomes the driving force in customer

relationship management strategy

3. Shorten the purchase-decision cycle

 BSNL should redefine procurement processes to shorten the purchase-decision cycle,

which is critical in project implementation to any telecom service provider.

 BSNL should enter in long term supply contract with world-class players to come
out of mantra of tendering process.

 This will help BSNL to counter the strategy of its competitors to stall the very
procurements of critical items.

FINDINGS

Following are that findings that we have made from this study:

 Customers are basically satisfied with present offerings of BSNL.

 In our study we found that most of the customer were facing some
 problems.

 It was observed that most of the customers expressed their

unhappiness because they are facing problems like signal problem and
(particularly postpaid) they were wrongly charged or they never received
bills on time

 Through our study we found that BSNL takes at least 2-3 days to rectify
the problem

SUGGESTIONS

 To retain existing customers BSNL has to offer better or improved schemes from
time to time to compete with the competitors. This would automatically attract
new customers.

 BSNL should continue to offer the best toppings to stay at the top.

 There should be no compromise in quality and the network facility.

 BSNL has to spend more on advertisement to attract customers.

 To ensure better customer satisfaction and maintain higher level of Customer

relationship management, BSNL has to strengthen its network coverage.
 CONClUSION:
Indian economy is an emerging one and is growing very fast in market
competition level among telecommunication services providers. New players are
coming who will necessarily intensify the competition. New products and new schemes
are being offered by the telecom service providers. The need for large information
capacity has grown tremendously due to the demand of real time information.

BSNL company is providing cheaper call rates and good service to the customers,the
company advertisement and marketing strategy are impressive and attracting customers
they have many tariff plans for different category of people. BSNL is a well-
experienced company which has its own reputation.

Indian telecom companies are putting in their best offer to rope in major telecom
operators of the world e.g. BSNL, Aircel and MTNL etc. are playing their role in
synergy with the operation of the Indian companies. Process of acquisition and merger
are in process and future will be only for those companies who have an edge over others
in the field. Service provided and the better quality of network etc.

BSNL has various functional departments such as human resource management,

training and development, sales and marketing, supply chain management and finance
department.

In a very competitive telecom market in India due to its brand image and brand
positioning the company has a huge growth potential