I hereby certify that the work which is being presented in the project entitled, ³Bharat Sanchar Nigam Limited´ in partial fulfilment of the requirements for the award degree of Post Graduation Programme in Business Management offered by FALCON INSTITUTE OF MANAGEMENT, BANGALORE is an authentic record of our own work . The matter presented in this Project Report has not been submitted by us for the award of any other degree of this or any other institution.

1. Rajnish Singh


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





completion of this study project.

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

in their

esteemed institution.

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


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

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

 Clerical 5.1 .2 .7 .Suggestions 6.Learning experience 7.Bibliography 7.1 .2.Annexures CHAPTER-1 .3 .2 ± Recommendations CHAPTER ± 7 7.6 6.Shared value CHAPTER .

2. norms etc. 5. To analyse the recent financial statements of the company.2 Telecom Industry in India . To do a through analysis on the company and its ethics. 3. To undertake a SWOT analysis on the company and to find out the key areas of success. interpretation of the team members had played a crucial role in this project. To throw light upon the functional areas of the company and its mutual co-operation with other departments. 4. journals. CHAPTER. Methodology of the study:1. from any background. Primary data (unauthorised) has also been considered. To understand the culture and basis of the service provider (BSNL). Objective of the study:1. magazines.Introduction:This project on Bharat Sanchar Nigam Ltd(BSNL) is being prepared and presented with a view to educate the readers by bringing out the potentials of the team members. The mission of the project is that it would concentrate on conglomerated BSNL in all dimensions. Apart from the data. To inform and to educate the readers and provide them the necessary and sufficient details with examples for their better understanding. 6. 2. Limitations of the study:The major limitation of this project is that the primary data that have been taken place are not subject to authorization. so that the facts are revealed and the meaningful conclusion can be derived at the end of this project by readers . the analysation. 3. Secondary data with the help of internet. newspaper etc are the basic tools for this project.

 Telecom services contribute 30 percent to India¶s total service tax revenue  The Indian telecom sector gives direct employment to more than 4. Likely to double in 23 years. Ahmedabad.00. Jaipur.00. Kochi on the software services map. compared to about 6.000 people. The telecommunication sector continued to register significant success during the year and has emerged as one of the key sectors responsible for India¶s resurgent India¶s economic growth. it is the fastest growing market in the world. Mangalore.000 people in China.(a) INDUSTRY PROFILE:- Background:- The Indian Telecommunications network with 203 million connections is the third largest in the world and the second largest among the emerging economies of Asia.  State-of-the-art telecom infrastructure has led to the rise of cities like Mysore. it is also the lifeline of a fast growing E-commerce space.  Telecom sector accounts for 1 percent of India¶s GDP. Today. BPO and ITeS companies. and wealth creation is happening in tier-2 cities. which was growing in the range of 20 to 25 per cent up to the year 2002-03.  This has helped spread the benefits of a booming Indian economy to beyond metros and large cities. . Growth:- The sector. has moved to a higher growth path of an average rate of 40-45 per cent during the last two years.  Not just the enabler of software.

2 21.2 42.9 24. Teldensity:The telecom sector has shown robust growth during the past few years.7 25. . The rapid strides in the telecom sector have been facilitated by liberal policies of the Government that provide easy market access for telecom equipment and a fair regulatory framework for offering telecom services to the Indian consumers at affordable prices.4 22 15 17 18 22 24. it has grown to double digit in the year 2005.7 27.Indian Telecom Subscriber Annual Growth Rate 45 40 35 30 25 20 15 10 5 0 40 29 24 21. From a teledensity of mere 0.7 This rapid growth has been possible due to various proactive and positive decisions of the Government and contribution of both by the public and the private sector.5 per cent in the year 1989.

while unlicensed operation by certain operators violates the law and depletes licensed operators market share.4 per cent against 8.India's Growing Teledensity 25 22 20 15 11. only 32 actually provide the service. Though a large number of Internet Service Providers (ISPs) has been licensed (389) to operate Internet service today.6 91-93 0. A liberal licensing regime was put in place to increase Internet penetration across the country. New services like IP-TV and IP-Telephony are becoming popular with the demand likely to increase in coming years. just the top 20 ISPs service 98 per cent of subscribers. 1995. while internet telephony is permitted to 128 ISPs. Government loses revenue. . Internet Services:- Internet services were launched in India on August 15. Similarly.4 10 5 3.6 0 0.8 93-95 1. The slow growth of internet and broadband will make the target of 18 million internet subscribers and 9 million broadband connections by 2007 tough to achieve.5 89-91 0.6 97-99 2.6 per cent in 2004) due to the mobile boom in India. The scope of services under existing ISP license conditions are unclear.3 99-01 5.1 95-97 1. Department of Telecommunications (DoT) has revised the upwards the target of 22 per cent teledensity by 2007. The growth of IP telephony or grey market is also a serious concern.1 01-003 03-005 05-007 07-009 Buoyed by the better-than-expected teledensity in 2005 (11. In November 1998 the government opened up the sector to private operators.

000 subscriber. BPL Mobile. Escotel. registering an increase of 6. The growth trend during the quarter is positive as compared with last quarter where it was 5.55 million during the last quarter.66 million.06.6 million for the quarter ending 31st December 2006. Sify Limited is third with a base of 8.12 Lakhs Internet subscribers against 3. Bharti Tele-Ventures. Idea Cellular.03 per cent.7 million at the end of December 2005 to 8.Internet Subscriber Base In Per cent 2% 5% 1% 6% BSNL MTNL 6% 45% 7% 9% Sify Bharti Airtel Reliance VSNL You Telecom 19% Hath Way Cable & Data Others Internet subscribers stood at 8. Major Players:There are three types of players in telecom services: ‡ State owned companies (BSNL and MTNL) ‡ Private Indian owned companies (Reliance Infocomm. Spice Communications) . Mahanagar Telephone Nigam Limited (MTNL) has retained second position with a subscriber¶s base of 1.) ‡ Foreign invested companies (Hutchison-Essar.6 million at the end of December 2006 registering a growth of 28. Tata Teleservices. The total Internet subscribers increased from 6. Bharat Sanchar Nigam Ltd (BSNL) has retained its top position and reported a subscriber base of 38.00 per cent.02 per cent.

Presently it is one of the largest & leading public sector unit in India. 46565 BTS. 7330 cities/towns and 5. 4 million WLL capacity. BSNL is the only service provider. 49. 2000. making focused efforts and planned initiatives to bridge the Rural-Urban Digital Divide ICT sector. 63730 Rkm of Microwave Network connecting 602 Districts. 287 Satellite Stations. IN Services etc.3 million line basic telephone capacity. 480196 Rkm of OFC Cable. 3895 Node B ( 3G BTS). it has about 47. Carrier service.Market Share of Wireless Operators 7% 8% 20% Reliance Bharti Airtel 10% BSNL Hutch 21% 16% TTSL IDEA Others 18% (b)BSNL Company Profile Bharat Sanchar Nigam Ltd. more than 37382 fixed exchanges. formed in October. introducing new telecom services with ICT applications in villages and wining customer¶s confidence. GSM Mobile. expanding the network. Internet. Today. Broadband. CDMA mobile.5 Lakhs villages. MPLS-VPN.76 Million GSM Capacity. VoIP services. VSAT. is World¶s 7th largest Telecommunications Company providing comprehensive range of telecom services in India: Wireline. BSNL has installed Quality Telecom Network in the country and now focusing on improving it. In fact there is no telecom operator in .

Account Less Internet(CLI). BSNL has been adjudged as the NUMBER ONE ISP in the country. BSNL plans to expand its customer base from present 47 millions lines to 125 million lines by December 2007 and infrastructure investment plan to the tune of Rs.5 million Internet Customers who access Internet through various modes viz. Scaling new heights of success. the present turnover of BSNL is more than Rs. network integration and Maintenance of Switching & Transmission Networks and also has a world class ISO 9000 certified Telecom Training Institute.26 billion) for last financial year. multi-protocol convergent IP infrastructure that provides convergent services like voice. Whether it is inaccessible areas of Siachen glacier and North-eastern region of the country. with 35. BSNL serves its customers with its wide bouquet of telecom services. Dial-up.390 million (US $ 2. CellOne. BSNL has set up a world class multi-gigabit. 733 crores .000 million (US $ 14.351.6 million DataOne broadband customers.630. The company has vast experience in Planning.09 million cellular customers.e. The company offers vide ranging & most transparent tariff schemes designed to suite every customer.820 million (US $ 8 billion) with net profit to the tune of Rs.5 million WLL subscribers and 2. has more than 52. Installation. Leased Line.the country to beat its reach with its wide network giving services in every nook & corner of country and operates across India except Delhi & Mumbai. At present there are 0.37 billion). BSNL is miles ahead of its rivals. BSNL has more than 2. garnering 16.99. BSNL cellular service. BSNL is numero uno operator of India in all services in its license area.96 percent of all mobile users in its area of operation as its subscribers. 85 per cent share of the subscriber base and 92 percent share in revenue terms. DIAS. data and video through the same Backbone and Broadband Access Network. In basic services. The infrastructure asset on telephone alone is worth about Rs.1 million Basic Phone subscribers i.

Nagaland. no other connection is as famous as bsnl in rural areas) . Interesting Facts: There are 2 million BSNL mobile connections in rural India(a record. 1 Telecom Company of India. comprehensive range of telecom services and the desire to excel has made BSNL the No. ASPIRATION :- .  More than 50% of the international calls coming to India.  BSNL supplies phone lines to all other network such as Airtel. nationwide coverage.67 million) in the next three years. use Reliance network.  An incredible speed of 2mbps is only offered by BSNL.  BSNL is the only network which offers broadband connections . The turnover.Vodafone etc. 1 wireless service provider with more than 50 million customers. Mizoram etc. reach.(US$ 16.  India¶s No.  The only Mobile service available through out the country including Jammu and Kashmir and North Eastern states like Arunachal Pradesh.  Largest pan India coverage-over 11000 towns & 3 lakh villages.

Mission of BSNL: To provide world class State-of-art technology telecom services to its customers on demand at competitive prices.  To Provide world class telecom infrastructure in its area of operation and to contribute to the growth of the country's economy. Create a customer focused organisation with excellence in sales. the operations of the company has been diversified into several arenas such as 3G. y y Leverage technology to provide affordable and innovative products/services across customer segments y Provide a conducive work environment with strong focus on performance Establish efficient business processes enabled by IT y Nature of the business carried:BSNL is basically a telecom(land line) service provider. marketting and customer care.etc. . mobile services. But now a days apart from these centres.customer care.y Be the leading Telecom Service Provider in India with global presence. Vision of BSNL:To become the largest telecom Service Provider in Asia.


FREE PHONE SERVICE PREMIUM RATE SERVICE INDIA TELEPHONE CARD VIRTUAL PRIVATE NETWORK (VPN) VOICE VPN UNIVERSAL NUMBER UNIVERSAL PERSONAL NUMBER TELE VOTING  VIDEO CONFERENCING  AUDIO CONFERENCING  TELEX/ TELEGRAPH EPABX EPABX FREE EPABX CENTREX  HVNET  INMARSAT  TRANSPONDER 1. it connects each inch of the nation to the infinite corners of the globe. 1 Telecom Service provider and most trusted Telecom brand of the Nation. and much beyond. to enable you to step into tomorrow. Here is an overview of the World Class services offered by the BSNL:- .BSNL. Driven by the very best of telecom technology from chosen global leaders. BSNL is India's no. Services of BSNL:When it comes to connecting the four corners of the nation. A company that has gone past the number games and the quest to attain the position of a leader . one solitary name lies embedded at the pinnacle . It is working round the clock to take India into the future by providing world class telecom services for people of India.

BSNL has customer base of more than 1.000 electronic exchanges. 250/. for web browsing and E-mail applications. Video Conferencing. ISDN :Integrated Service Digital Network Service of BSNL utilizes a unique digital network providing high speed and high quality voice.Basic Telephone Services:The Plain old. BSNL launched DataOne broadband service in January 2005 which shall be extended to 198 cities very shortly. The service is being provided on existing copper infrastructure on ADSL2 technology. It can also facilitate both desktop video and high quality video conferencing. Countrywide telephone Service through 32. CLI based access (no account is required) and DIAS service.per month only. the countrywide Internet Services of BSNL under the brand name includes Internet dial up/ Leased line access. Intelligent Network:- . Internet :Keeping the global network of Networks networked. Broadcast application etc will be added. data and image transfer over the same line. You can use your dialup sancharnet account from any place in India using the same access no '172233' . Videoon-Demand.7 million for sancharnet service. other services such as VPN. Multicasting. The minimum speed offered to the customer is 256 Kbps at Rs. the facility which no other ISP has. BSNL also offers Web hosting and co-location services at very cheap rates. Digitalized Public Switched Telephone Network (PSTN) with a host of Phone Plus value additions. Subsequently.

It has got coverage in all National and State Highways and train routes. Managed Leased Line Network (MLLN) offers flexibility of providing circuits with speeds of nx64 kbps upto 2mbps. I-Net:. unified messaging service (send and receive emails) etc. medium and low speed leased data circuits as well as dial-up lines. It offers a choice of high. GPRS. x. Cellular Mobile Service :- Postpaid and Prepaid BSNL¶s GSM cellular mobile service Cellone has a customer base of over 5. E-mail.25 x.2 million. It offers x.25 based packet Switched Public Data Network is operational in 104 cities of the country. useful for Internet leased lines and International Principle Leased Circuits (IPLCs). You can use BSNL Mobile in over 160 countries worldwide and in 270 cellular networks and over 1000 cities/towns across India. BSNL Mobile offers all India Roaming facility to both prepaid and post-paid customers (including Mumbai & Delhi).28 leased.India s x. Bandwidth is available on demand in most cities.Intelligent Network Service (In Service) offers value-added services. Short Message Service (SMS) both national and international. . such as: Free Phone Service (FPH) India Telephone Card (Prepaid card) Account Card Calling (ACC) Virtual Private Network (VPN) Tele-voting Premium Rae Service (PRM) Universal Access Number (UAN) and more. BSNL Mobile provides all the services like MMS.28 Dial up (PSTN) Connection) and frame relay services. Voice Mail. Leased Lines & Datacom:BSNL provides leased lines for voice and data communication for various application on point to point basis.

Helping relieve congestion of connections in the normal cable/wire based network in urban areas.) Serving business and consumer customers. which serves Delhi and Mumbai. Countrywide WLL is being offered in areas that are non-feasible for the normal network. satellite service. data and Internet services.Wireless in Local Loop:This is a communication system that connects customers to the Public Switched Telephone Network (PSTN) using radio frequency signals as a substitute for conventional wires for all or part of the connection between the subscribers and the telephone exchange. Limited mobility without any air-time charge. and managednetwork services. Connecting the remote and scattered rural areas. Industries where BSNL competes: Telecommunications Services  Fixed-line Voice Services Providers (primary)  Data Services  Teleconferencing Services providers . telegraph. it also offers GSM and CDMAbasedwireless communications. along with Mahanagar Telephone Nigam Limited (MTNL). COMPETITORS INFORMATION:Bharat Sanchar Nigam Limited (BSNL) keeps most of India talking. The company provideslocal-exchange access and domestic long-distance services through a network of more than47 million access lines covering most of India. BSNL is one of two state-controlled telcos in India. (It does not provide service in Delhi andMumbai.

The company. andmanaged enterprise services through its Reliance Globalcom division. infrastructure. The company was founded as . It also provides wholesale capacity. Internet access. Reliance Communications Ltd:- Reliance Communications is one of India's largest providers of integrated communicationsservices.messaging.Through its subsidiaries. broadband and telephone. the company (formerly Bharti Tele-Ventures) operates through threedivisions: mobile. 2. It also offers network and data services to enterprises and suppliestransmission backbone and data services to other telecommunications companies over one of the largest global IP networks. With more than 48 million customers. and videoconferencing. the company serves consumers andenterprises with a digital network supporting voice. Its fixed and wirelesscommunications services include domestic and international voice. owns and operates a network service in morethan 200 countries. Bharti Airtel hasnearly 100 million customers in total -. The enterprise servicesgroup includes units for both long-distance carriers and for corporate clients. and video. Telemetry & Telematics Services Providers  Wireless Communications Services 1. 3. Bharti Airtel:Bharti Airtel is one of the leading alternative providers of telecommunications services in India. or VSNL) has a holdon the wholesale voice market in India and beyond. and enterprise services. Tata Communications is part of Indian industrial conglomerateTata Group. RelianceCommunications is part of the Reliance . data.approximately more than 64 million GSM mobile andalmost 3 million fixed-line customers.Anil Dhirubhai Ambani Group. which primarily providesinternational long-distance telephone service. Tata Communications Ltd:Tata Communications Limited (formerly Videsh Sanchar Nigam Limited.

The company is controlled by Indian industrial manufacturingconglomerate Aditya Birla Group. and the Pacific region through subsidiaries and joint ventures. The company provides fixed-line and wireless telecommunications servicesfor two of the largest metropolitan areas of India. broadband Internet. or mumble to afriend in Mumbai. Gujarat. IDEA offers contract and pre-paid cellular service options inaddition to a number of value-added services such as mobile Web browsing. The company also provides Internet accessservices. 4. the Middle East. and Maharashtra. and Internet access) and cellular (GSM-based mobile).and multimedia messaging. Vodafone also serves callers in Asia. CDMAbasedmobile. video streaming. Outside of India.Bharti Tele-Ventures in1995 and changed its name in early 2006 to Bharti Airtel Limited. The government of India owns56% of the company. Haryana. Mahanagar Telephone Nigam Limited (MTNL):- Mahanagar Telephone Nigam Limited (MTNL) can help you call a deli in Delhi. 5. In the US. the companyoffers services in Nepal (through a joint venture) and Mauritius.Africa. IDEA Cellular:IDEA Cellular provides wireless services to about 24 million subscribers in 22 service areassuch as Andhra Pradesh. Delhi. It is a unit of Indianconglomerate Bharti Enterprises. Thegroup also provides wireless data. 6. as well as fixed-line phone servicesthrough German subsidiary Arcor. It divides its operations into two business segments: basic (fixed line. in terms of subscribers. . The company's networkcovers about 60% of the country.Vodafone trails only China Mobile. the group holds a 45%stake in the #2 US wireless provider Verizon Wireless. The company does most of its business in Europe where itis a leader in wireless markets of the UK and Germany. Vodafone:Customers have voted with their phones to make Vodafone Group the world's top wirelessphone services carrier by sales with more than 200 million customers.

Itemerged a market leader in Assam and in the North Eastern provinces within 18 months of operations.000 customers in the state of Rajasthan. Govt. Sistema Shyam TeleServicesLimited is a joint venture company between Sistema of Russia and Shyam Group of India. Kerala. TamilNadu. UP(East) and Mumbai.Sistema has a controlling 73. In December 2003. Punjab. Jammu & Kashmir. 7. TheCompany has currently gained a momentum in the space of telecom in India post the allocationof additional spectrum by the Department of Telecom. Aircel has revved up plans to becomea full-fledged national operator by end of 2009. Assam.Karnataka. Gujarat. Orissa. Delhi. 8. the company gained a foothold in 17 circles including Chennai. Aircel:The Aircel Group is a joint venture between Maxis Communications Berhad of Malaysia andApollo Hospital Enterprise Ltd of India. Aircel commenced operations in 1999 and became the leading mobile operator in TamilNadu within 18 months. Shyam Telelink became Sistema Shyam TeleServices andbrought globally renowned brand MTS to India . Rajasthan. Himachal Pradesh. West Bengal.71% stake in the venture. Andhra Pradesh. Infrastructure facilities:- .8% majority-owned by Sistema. the largest privatesector consumer services company in Russia and the CIS. UP (West) andUP (East).. These include Delhi (Metro). Haryana. Shyam Telelink is the first telecom operator toacquire the fastest 100. it launched commercially in Chennai and quicklyestablished itself as a market leader a position it has held since.and the 8th largest in the world. MTS is 52. MTS:Mobile TeleSystems OJSC (MTS) is the largest mobile phone operator in Russia and the CIS. With over 17 million customers in the country. of India for 13 new circles acrossIndia. North East. Karnataka.Kolkata. Andhra Pradesh. Mumbai (Metro). It began its outwardexpansion in 2005 and met with unprecedented success in the Eastern frontier circles. Maharashtra & Goa. Till today. Kerala. Bihar. Sistema Shyam TeleServices Limitedhas licenses and spectrum to provide mobile telephony services on the CDMA platform in all22 circles across the country. with Maxis Communications holding a majority stake of 74%. UP(West). Madhya Pradesh.

Marketing and Director¶s offices. J. Achievements/Milestones:Since BSNL's formation on October 1. J. Telegraph award were given on this occasion.43 million in one year. R&D and Factory are situated at the heart of the Trivandrum city. that houses the Software and Quality departments. AtiVishist Sanchar Seva Padak. The main office constitutes of the Accounts. and a another separate building for the Customer Support departments.5% to 36. Sarma.5% to 29. . Direct exchange lines have grown by 21. Best Maintained Telecom System.K. Gupta and other dignitaries.S.Our Corporate Office. CMD BSNL Sh. Also present on the occasion were Secretary DoT Dr. Awards were given by Hon'ble Minister of State for Communications & IT Dr. Administration. Our advanced infrastructural setup gives us high production capacity of more than 5000 machines per month. A.R. significant growth has been achieved in almost all the infrastructural parameters: y y y Number of exchanges has grown by 14% to 32369. Director Operations BSNL Sh. There are separate buildings for R&D centre. Sinha. Awards such as Bharat Sanchar Doot. Production building where the entire assemble is done. Our infrastructure is spread across 6000 SQ FEET with Four Building.4 million. Achievement and Award of BSNL:- BSNL National Awards 2006 distribution ceremony was held on the occasion of World Telecom Day on 17th May 2006 at New Delhi. Equipped capacity has grown by 21. Best Improved Telecom System and. 2000 up to September 2001. Shakeel Ahmed.

2000 the number 374605 of 2000.8% to 25. OFC route kms has grown by about 26.y y TAX capacity has grown by 7.8 lakh. bringing the total number of DELs to 224. 2000) 27. Achievements April-December 2000:New Telephone Connections:During 1999-2000 a record number of 45. During the current year (April-Dec. 5449 NHPTs have been provided up to March As on March. it was decided that the accessibility should be improved by providing a large number of PCOs for general public. . villages having Village Public out of 607491.150 PCOs have been provided.40 lakh new telephone connections were provided by BSNL.40. Public Call Office (PCOs):In the urban areas. since there is a long waiting list for telephone connections and also considering the fact the telephone facility is needed by general public who can not afford to have a telephone of their own. 21. Total lines installed as on 31-12-2000 is 252. 152. Total number of PCOs 326574.4 lakh. 31.23 lakh lines have been installed.000. STD PCOs. Telephones(VPTs)was During 2000-01(April-December 2000).9% to 241841.

31 lakh lines. The equipped capacity of Telephone Exchanges rose to 281. The estimated cost of this project shall be about Rs. Telephone Services:3010 New telephone exchanges (Net addition) were commissioned during 1999-2000 raising the total number of exchanges to 27569.50 Crore.  All electromechanical exchanges in the country have been scrapped and decommissioned. Its salient features of WLL are its fast and easy deployment.  The equipped capacity of Telephone Exchanges as on December 31.Provisions of Cellular Mobile Phones:It has been planned to introduce WLL technology in the network.02 lakh new lines during the year representing an increase of 28. limited mobility etc. Now the total switching network is electronic type. Initially this service is being introduced in 27 cities by BSNL in the form of pilot project. 2000 was 311.28 lakh lines with the net addition of 63. CHAPTER -3 Organization structure of BSNL:- . flexibility.87% over the previous year.

Chief Executive Officer Personnel / HRD Administration Finance & Account Marketing / Sales Export & Import Investment Costing Main offices of BSNL: BSNL Registered Office 10th floor. is certainly on a financial ground that¶s sound.10.78757 crores (US $ 17.B-148.12 billion)and Revenue is Rs. authorized equity capital of Rs.000 crores (US $ 1. Barakhamba RoadNew Delhi-110001 CHAPTER ± 4 (a)Functional Areas: FINANCE DEPARTMENT:Bharath Sanchar Nigam Limitted .04 billion) in 2005-06. The corporation has a networth of Rs. Barakhamba RoadNew Delhi-110 001  BSNL Corporate Office Statesman House.000crores (US $ 2.02249 as on 31-03-2006) .71 billion). paid up equity capital of Rs 5. the largest public sector undertaking of the nation. Statesman House.177 crores (US $ 9.B-148.40. (Note: INR 1 = USD0.25 billion).

32%.785 crores(US $ 0.11. Revenue earned by BSNL during last five years:- . Cablesand Apparatus and Plants etc. Buildings. The growth rate in2005-06 was 11.12 billion) as on 31-032006. The annual capitalinvestment of BSNL can shown graphically as below with the current year in X axis andamount or capital investment required to be invested for that particular year in the Y axis. BSNL had gross fixed asset of over Rs1.692 crores(US $ 25.This investment has been financed mainly by the internal accruals. Annual Capital Investment :AnnualCapital Investment in the network has increased from Rs.Corporate Assets:Bharath Sanchar Nigam Limitted has got fixed assets valuing more thanRs. Revenue :BSNL has shown sustained growth in past five years. which are in the form of Land.6383 crores (US $ 1.29 billion).62862 crores (US $ 14.18 billion) in 1986-87 to over Rs.53 billion) in 2005-06.

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

132243 Crores (US $ 25. .96 billion) as on 31.Cumulative Capital Outlay:BSNL has Gross Fixed Assets of over Rs.2009.03.

Ideas provide intellectual or spiritual benefits to thecustomers. To over come this difficult BSNL is thinking of converting the intangibles tothe tangibles by providing suitable physical evidence among prospective customers. This department is adopting these strategies. CD-ROM. Marketing department is associated with the exchange of goods. Facing stiff competition from private sector. Intangibility:In services customer is unable to experience the µproduct prior toµpurchase . The blue print of a business plan. There are four characteristicsuniquely allied with services. Banking and Transport etc. Eg.Investment in Telecom Sector :Both public players and private players are investing huge sums to expandtheir network and provide more coverage in fixed line telephony as well as mobiletelephony. Goods it is a physical entity eg.Telecom. MTNL andBSNL are investing in internet infrastructure to provide much reliable network. BSNL is marketing their services. The telephone house wiring. They are also in the process of enlargingtheir network area providing more coverage in urben as well as rural areas. computer software. Finance department is the key department which maintain and over allcontrol of finance over each SSA in Kerala.Eg. Theyare introducing low cost tariff plans and discount schemes in fixed line telephony andinternet services to increase their customer base. In providing the services. Private players are striving hard to capture more and more customers. Marketing aims at meeting needs profitable . The revenue generated from all the servicesis accounted through cash/bank books and other records. service: human effortclubbed with mechanical effort to provide intangible benefits to the customers. serviceand ideas. the . lot of expenditure is involved under capital and revenue. shirt etc. MARKETING DEPARTMENT:- Marketing is as old man kind. Eg. public players are taking upmeasures to increase their customer base to fixed lines and internet services. Now marketing has become a broadterm in BSNL.

For example just think of an airline service flying with 50% vacant seats. Once lost means lost forever. IT cell is mainly for the purpose introducingnew software for BSNL. the attitude. Night unlimited down load in Broad band is an example totackle the perishability nature. Perishability:Service can t be stored. the BSNL identity carddisplay by employees. . The ticket charges for that 50% seatswere lost forever.instrument. advertisementseverything matters. the road side cabinet. The functions of this department are :-  Launching of packages for BSNL  Telegram booking  Cash management  All India MIS  Fleet management  Web based telegram message system This department is the heart of BSNL. OPERATIONS DEPARTMENT:This sector is mainly intended for developing software packages. even if they arecollecting one rupee per seat that would have been vacant other wise is additionalrevenue to the organization. Give suitable offers to the customers to attract them. logo display. Implementation of Inventory Package(MIS) has been includedas a part of BBS. the behaviour.

Human Resources Development:With a corporate philosophy that considers Human Resource as the most prized assets of the organization. Adva nce level Telecom Training Center (ALTTC) at Ghaziabad and Bharat Ratna Bhimrao Telecom Training Center atJabalpur are comparable to any world class Telecom Training Center.Bharat Sanchar Niga m Limited has a vast res ervoir of highly skilled and experiencedwork force of about 3.000 personnel.  Different curriculum run in thes e cent ers to impart technology based training.  To meet t he t echnological challenges.  W e b el i e v e t ha t our f ut ur e d e p e n ds o n ou r s t a f f w h o pr o vi d e s er v i c es t o ou r valued customers and stay in touch with them.hostels etc.  W e b el i e v e t ha t our s t a f f. libraries. Moreover. modernization. These centers are properly equipped with the requisiteinfrastructure facilities such as Lecture rooms. enhance their knowledge and their expertise and their aspirations to fruition.  To apex training centers of BSNL for Attitudinal change. it's natural for BSNL to continually hone employee skills. is our biggest asset. modern audio-visual aids. . employees are trained for technology up-gradation. w hi c h i s o n e o f t h e b es t t r a i n e d ma np o w er i n t h e telecom sector. basic educational and skill development programetc.57.e. it lays emphasis on constant enhancement of knowledge and skills through regular training programmes. computerization etc in BSNL's training Centers spreadacross Country. Even as BSNL goes aboutconducting its business activities.4 3 z o na l t r a i ni n g c e n t e r s a n d a N a t i o na l Ac a d e m y of T e l ec o m F i na nc e a n d Management have been running for several years now.

gives advertisement. For selection of staff & workers. Vimal Oil & Food Ltd.2) Recruitment for workers: . Vimal uses ITI students & mostly company recruitsunskilled workers & company itself trains them. their background. SELECTION: - Selection is the process of choosing the best among bests.1) Recruitment for staff: -For recruiting staff company uses external sources.For recruiting workers. A recruitment staff & workers differently. the company department in respect in their defective procurement or selecting the right men as efficient & connected labor force. . a r r a n g e s o me t es t t o ma j or t hei r j ob k n o wl e d g e & g e n e r a l knowledge. & if they come successfully they will be selected. select thea p p r opr i a t e ca n d i d a t e s .RECRUITMENT & SELECTION:RECRUITMENT: - Recruitment is the process of searching the prospective employees & encouragesthem to apply for the job.


CHAPTER .5 SWOT Analysis:STRENGTHS:  Pan-India reach  Experienced telecom service provider  Total telecom service provider  Huge Resources (financial & technical pool) .We have always accorded high priority to employee training in both in theclassroom and on the job.We strive relentlessly to improve the capabilities of our people so that wecontinue to deliver out standing result while adding to the skills of those who works us.Learning centers at our units are supported by several training courses.TRAINING & DEVELOPMENT DEPARTMENT:TRAINING:Training programmers should be devised to impart knowledge. coaching for performance. Key managers attend trainingprogrammers to enhance their competencies and skills in line with global standards. DEVELOPMENT :Development is the over all in all the fields of the personnel so the depth of theknowledge is vest with the growth of employees in all respects. Nirma institute. It spansleadership development. develop skills andstimulate motivates needed to perform the job. IIM Banglore. Profiling as well as behavioral coaching for the staff and workers. Weprovide professional learning opportunities to select employees through our tie-ups withIIM Ahmedabad. building competencies for managersand skill. Training is imparted across all the level of employee.

 Huge customer base  Most trusted telecom brand  Transparency in billing  Easy deployment of new services  Copper in last mile can be used for easy broadband deployment  Huge Optical Fibre network and associated bandwidth WEAKNESSES:  Non-optimization of network capabilities  Poor marketing strategy  Bureaucratic organizational set up  Inflexibility in mindset (DOT period legacies)  Limited number of value added services  Poor franchisee network  Legacy of poor service image  Huge and aged manpower  Procedural delays .

 Poor IT penetration within organization  Poor knowledge Management OPPORTUNITIES: Tremendous market growing at 20 lac customers per month  Untapped broadband services  Untouched international market  Can capitalize on public sector image to grab government¶s ICT initiatives  ITEB service markets  Diversification of business to turn-key projects  Leveraging the brand image to source funds  Almost un-invaded VSAT market  Fuller utilization of slack resources  Can make a kill through deep penetration and low cost advantage  Broaden market expected from convergence of broadcasting. social obligations. Lack of strategic alliances  Problems associated with incumbency like outdated technologies. telecom and entertainment industry. unproductive rural assets. political interference. .

tastes and preferences of (transitional) consumers. which is a private secter banks. 3.THREATS : Competition from private operators  Keeping pace with fast technological changes  Market maturity in basic telephone segment  Manpower churning  Multinational eyeing Indian telecom market  Private operators demand for sharing last mile  Decreasing per line revenues due to competitive pricing  Private operators demand to do away with ADC can seriously effect revenues  Populist policies of government like ³OneIndia´ rates CHAPTER . 4. The 24x7 (around the clock) service of BSNL is to be appreciated. It is worth to consider the changing trends.6 Suggestions / Recommendations:1. 2. It would be better if BSNL carries all its accounting transactions in any of the public secter banks rather then going for ICICI bank Ltd. . Target marketing is also recommended to the company.

we could know how to approach a corprate firm to get . 4. (b) . Along with this experience. suppliers etc. First of all.bharatsancharnigam. employees. It was indeed a new experience to go out and seek information with the www. customers. www. eduction etc a bit of entertainment and enjoyment was also there owing to this project. With the help of this project.cellone.7 (a) Learning experience:1. we learnt to be co-operative with one another among all of our team members.

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