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INDUSTRY ANALYIS BACKGROUND Telephone services have been recognized the world over as an important tool for socioeconomic development for a nation and hence telecom infrastructure is regarded as a crucial factor in achieving the socio-economic objectives in India. Indian telecom is more than 160 years old beginning with commissioning of the first telegraph line between Kolkata and diamond harbor in 1839. In 1948 India had only 0.1 million telephone connections with a telephone density of about 0.02 telephones per hundred populations. Since then India has come a long way and by 31 august 2003 there were 45.6 million telephone connections in the country with a telephone density of 5.72 telephones per hundred populations. The Indian telecom industry has undergone significant structural transformation since its liberalization in the 1990s. During the last decade, the Indian telecom industry has evolved into a multi-segment, competitive market from a small supplier-dominated market having public sector monopoly. Coherent Government policies have played a crucial role in shaping the structure of the Indian telecom sector.

Structural Evolution of the Indian Telecom Industry:

Telecom Sector in the Pre-liberalization Era (1980-1990): Before liberalization, the public sector held a monopoly in provision of telecom services. The entire telecom services operation in the country was carried out by the Department of Telecommunication (DoT), a public sector entity established in 1985. It managed the planning, engineering, installation, maintenance, management, and operations of telecom services for the whole of India. In order to ease out its operations, two new public sector corporations viz. MTNL and VSNL were set up under the DoT in 1986. Thus, before the entry of the private players, the telecom services were provided by three public entities viz. DoT, MTNL and VSNL. While MTNL primarily looked after the operation of basic telephony services in Delhi and Mumbai, VSNL provided international telecom services in India. DoT looked after basic telephony operations in regions other than Delhi and Mumbai. Prior to liberalization the telecom services were broadly classified as domestic basic (which included basic telephony, telex and fax), domestic value-added services 1|Page

(VAS) which covered all other services such as paging, cellular, data services, VSAT and international basic and VAS. Telecom Sector in the Post-liberalization Era: Private sector participation in the Indian telecom sector has been a gradual process, wherein the government initially permitted companies from the private sector to provide Value Added Services (VAS) such as Paging Services and Cellular Mobile Telephone Services (CMTS), followed by the Fixed Telephony Services (FTS) or Basic services. Eventually the private sector has been allowed to provide almost all telecom services. Liberalization process in the telecom services market began in 1992, with the unbundling of the domestic basic services and the domestic VAS and entry of private companies for providing the VAS such as cellular and paging services. During this period, the government provided licenses to private companies according to the services that were to be provided in the specified areas of service provision. The country was divided into circles (or categories) on the basis of economic potential. During 1994, through a competitive bidding process, licenses were granted to 8 CMTS operators in four metros, 14 CMTS operators in 18 state circles, paging operators in 27 cities and 18 state circles. After the domestic VAS, the basic services were opened up to private companies. The National Telecom Policy (NTP) 1994, which endeavored to build world-class telephone services in India and aimed at providing telephones on demand, enabled the entry of private companies in the provision of basic services. Given the need for resources in addition to government sources for achieving the targets of NTP-94, private investments and involvement of the private sector was considered certain to happen to bridge the resource gap. Thus, the private operators were allowed to render basic services in the local loop. Initially, the provision of basic services had been deliberated as a duopoly between a selected service provider and the DoT. In line with this, policy licenses were awarded to 6 BTS operators in 6 state circles. The need for independent regulation had risen with the entry of private players. Also, to fulfill the commitments made when India joined the World Trade Organization (WTO) in 2|Page

1995, the Telecom Regulatory Authority of India (TRAI) was established in 19971 to regulate telecom services including fixation/revision of tariffs. The establishment of TRAI was a positive step in terms of separation of regulations from policy making and operations, which continued to be under the purview of the DoT. Further, in 1998, the Government also declared the policy for Internet Service Provision (ISP) by private operators and had even begun licensing of the same around that time. Subsequently the Global Mobile Personal Communications by Satellite (GMPCS) was also opened up for the private players. Although the private companies had been allowed to participate in many telecom services segments, the results of privatization had not been satisfactory entirely. Thus, a New Telecom Policy (NTP-99) was announced on March 26, 1999, which came into effect from April 1, 1999. The NTP 1999 not only provided a major boost to private sector participation in this industry but also laid down the path for significant development of the Indian telecom industry. The NTP 1999 allowed private operators providing cellular and basic service to migrate from a fixed license fee regime to a revenue sharing regime to make the operations of the private companies financially successful. This policy change provided the much needed relief to private companies who were earlier burdened with huge debts that they had to service owing to their license fee commitments. Current Structure of the Indian Telecom Industry: Currently, both public sector companies as well as the private sector companies are actively catering to the rapidly growing telecommunication needs in India. Private participation is permitted in all segments of the telecom industry, including ILD, DLD, basic cellular, internet, radio paging, etc. The broad structure of the telecom industry (in terms of service providers) is depicted in the diagram below:

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INDIAN TELECOM INDUSTRY

PUBLIC SECTOR

PRIVATE SECTOR

MTNL

BSNL

INDIAN COMPANIES

FOREIGN COMPANIES

Structure of the Indian Telecom Industry Public Sector: After the privatization of VSNL in 2002, only two premier PSUs, MTNL and BSNL operate in India and provide various telecom services. As noted earlier, MTNL operates in Delhi and Mumbai and BSNL provides services to the remaining country. In the postliberalization era, these PSUs not only have made significant progress but also have provided stiff competition to their private counterparts. Private Sector: Private operators have played a very crucial role in the growth of the telecommunication industry, primarily in the mobile services. With the liberalization of the telecom industry, the private sector has been increasing its foothold in the telecom services space. After the introduction of NTP-99, the contribution of private companies towards telecom services has witnessed rapid strides. While the private sector is instrumental in providing both fixed line as well as wireless services, it is mainly active in the wireless segment. The fixed lines account for only about 2% of private sector's total subscriber base. While 4|Page

some private companies have a pan-India presence, there are many regional companies that cater to only certain service areas.

MARKET SHARE OF TELECOM SERVICES IN INDIA

FINANCIAL ANALYSIS Y12 saw the continuance of growth for the Indian telecom market, which witnessed a 12% YoY increase in its subscriber base during the 12-month period. At the end of March 2012, the countrys total telecom subscriber base (fixed plus mobile) stood at about 951 m. The teledensity level stood at about 76% by the end of the fiscal.

Growth remained robust in the GSM mobile space. GSM added 115 m subscribers during the year. After a robust 46% YoY increase in subscriptions during FY11, the growth in GSM industry has slowed down to 17% YoY in FY12. The year saw the apex court of the country cancelling the disputed 2G licenses that were issued in 2008. The cancellation caused the exit of Etisalat and Batelco from the sector. During FY12, India's mobile subscriber base grew by 13% YoY, from 812 m to 919 m, while the fixed subscriber base declined by about 7%, from 34.73 m to about 32.71 m. SWOT ANALYSIS OF INDIAN TELECOM SECTOR 5|Page

Strengths Strong mobile growth(around 10%) , with latest technology being offered at faster pace An attractive business environment witnessed by number of foreign players entering Indian market A vast untapped rural population which needs telecom services at their fingertips Wireless business segment is growing faster than wire line and more demand is coming for pre-paid services The falling SIM card, lower tariff plan led to lower APRU Delayed implementation of key policies because of dispute among TRAI, telecom ministry Weaknesses

Opportunities All of the providers are keen to provide more content which provides great opportunity for content providers Regulator has recommended that foreign player can participate without any local partner The government will cut the license fee by 33% for those operators which has over 95% residential coverage Threats 3 G spectrum charges are more and which will have negative impact on demand for licenses Due to price war , APRU is falling and further deterioration will lead to significant decline in top line growth Capacity constraint may hamper the expected growth in Mobile segment MNP will become reality in 2012, but it adds further pressure to operator to retain the existing customer.

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PORTERS FIVE FORCES ANALYSIS WITH RESPECTIVE TO INDIAN TELECOM INDUSTRY

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THREATS OF NEW ENTRANTS IS BARGAINING POWER OF SUPPLIERS HIGH It is a capital-intensive industry and hence the biggest entry barrier is the access to finance. Obtaining a Telecom license can represent a barrier to entry. Though license fee has been reduced for new entrants. This enabled operators to reduce service fee to make it affordable to most people. Getting a good amount of radio spectrum to support voice and data services. It offers tremendous opportunities in areas like VPN, Rural Telephony VAS, Infrastructure sharing, 3G and ISD, to name a few. This has welcomed foreign investors (Virgin etc) and has led to M&A deals (Hutch, Vodafone). It attracts 3rd largest FDI in India postliberalization. BARGAINING POWER OF BUYERS IS AVAILABILITY OF SUBSTITUTES: HIGH The products/services differentiation of is companies, MODERATE Products and services from nontraditional telecom industries Cable TV and satellite operators and Railways and energy utility companies are laying miles of highcapacity telecom network alongside Switching customers. subscription has been in 8 | P a Landline ge decline in favour of wireless connections. cost is lower in their own track and pipeline assets in countries like US. This may take shape here too. "Internet telephony" video conferencing, video chat etc are much and thus Internet Service individual users than for business IS LOW Hardware cable are requirements infrastructure cannot do like that switching equipments, fiber optic operators them. India houses many IT giants that provide the related software/solutions to them. Some companies (Reliance Info & TCS) have centers. their Here own some development bargaining without.

However, there enough vendors for

power can be exercised since Vodafone cannot approach Tata for, billing software. Mobile set suppliers are also many. Some and operators some have even have backward integrated (Tata Indicom) collaborated (Reliance & Samsung).

generally not much. Least cost is generally preferred. Demographically it may vary.

COMPETITIVE RIVALRY: HIGH The wave of industry deregulation together with the receptive Indian capital markets due liberalized economy of the late 1990s paved the way for a rush of new entrants. New technology (Internet) is prompting a raft of substitute services. All competitors operate with lower prices and more exciting services. This tends to drive industry profitability down. It also suffers from high exit barriers, mainly due to its specialized equipment which Airtel etc. have swift obsolescence and difficult liquidation. There are some TSPs that are into the business of providing Internet like MTNL,

PEST ANALYSIS OF INDIAN TELECOM INDUSTRY

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FUTURE OF INDIAN TELECOM SECTOR Political Factors Economical Factors

Antitrust Regulations Environmental Protection Laws Tax Laws Special Incentives Foreign Trade Regulations Attitudes Companies toward foreign GDP trends Interest Rates Money Supply Inflation Rates Unemployment levels Price control Devaluation / Revaluation Cost

Laws on hiring and promotion Stability of government

Socio cultural Factors

Lifestyle Changes Career expectation Consumer activism Rate of family formation Growth rate of population Age distribution of population Regional shift in population Life expectation Birth rates

Technological Factors
Total Government spending for Research & Development Total Industry spending for Research & Development Focus of Technological efforts Patent Protection New Products Technology transfer from lab to marketplace Productivity improvements through automation Internet availability

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Indian telecom is worlds fastest growing telecom expected grow three fold by 2013.Tremendous strides in this industry have been facilitated by the supportive and liberal policies of the Government. Especially the Telecom Policy of 1994 which opened the doors of the sector for private players. Rising demand for a wide range of telecom equipment has provided excellent opportunities for investors in the manufacturing sector. Provision of telecom services to the rural areas in India has been recognized as another thrust area by Government .which also helps for the enormous opportunities in this sector. Therefore telecom sector in India is one of the fastest growing sectors in the country and has been zooming up the growth curve at a feverish pace in the past few years. And even the Indian Wireless Market is booming which has plenty of room for growth. Thus the foreign direct investment is very effective in the development of any country. Indian economy is now firmly developed as one of the worlds foremost destinations for FDI. Telecommunication is playing an important role in the inflow of FDI than the other sectors. As above data shows that the FDI in Telecommunication in India without a doubt continues to be one of the most dynamic and fastest growing major telecommunication markets in the world.

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2. COMPANY PROFILE a. BACKGROUND AND INCEPTION OF THE COMPANY Bharat Sanchar Nigam Limited (abbreviated BSNL) is an Indian state-owned telecommunications company headquartered in New Delhi, India. It is the largest provider of fixed telephony and fourth largest mobile telephony provider in India, and is also a provider of broadband services. However, in recent years the company's revenue and market share plunged into heavy losses due to intense competition in Indian telecommunications sector. BSNL is India's oldest and largest communication service provider (CSP). It had a customer base of 95 million as of June 2011. It has footprints throughout India except for the metropolitan cities of Mumbai and New Delhi, which are managed by Mahanagar Telephone Nigam (MTNL)

Bharat Sanchar Nigam Ltd. was incorporated on 15th September 2000. It took over the business of providing of telecom services and network management from the erstwhile Central Government Departments of Telecom Services (DTS) and Telecom Operations (DTO), with effect from 1st October2000 on going concern basis. It is one of the largest & leading public sector units providing comprehensive range of telecom services in India. BSNL has installed Quality Telecom Network in the country & now focusing on improving it, expanding the network, introducing new telecom services with ICT applications in villages & winning customer's confidence. Today, it has about 43.74 million line basic telephone capacity, 8.83 million WLL capacity, 72.60 million GSM capacity, 37,885 fixed exchanges, 68,162 GSM BTSs, 12,071 CDMA Towers, 197 Satellite Stations, 6,86,644 RKm. of OFC, 50,430 RKm. of microwave network connecting 623 districts, 7330 cities/towns & 5.8 lakhs villages .

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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 North-Eastern 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. 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. b. NATURE OF BUSINESS CARRIED BSNL is basically a telecom (land line) service provider. But now days apart from these services, the operations of the company has been diversified into several areas such as 3G, customer care, call centers, mobile services, etc.

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c. VISSION:

Be the leading telecom service provider in India with global presence. Create a customer focused organization with excellence in customer care, sales and marketing. Leverage technology to provide affordable and innovative telecom.

Services/products across customer segments. MISSION: Be the leading telecom service provider in India with global presence.

Generating value for all stakeholders - employees, shareholders, Maximizing return on existing assets with sustained focus on Becoming the most trusted, preferred and admired telecom brand To explore International markets for Global presence

vendors & business associates

profitability

Creating a customer focused organization with excellence in customer care, sales& marketing.

Developing a marketing and sales culture that is responsive to Excellence in customer service-friendly, reliable, time bound,

customer needs mere care, sales& marketing

convenient and courteous service Leveraging technology to provide affordable and innovative products/ services across customer segments

Offering differentiated products/services tailored to different Providing reliable telecom services that are value for money

service segments

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Providing a conducive work environment with strong focus on performance

Attracting talent and keeping them motivated Enhancing employees skills and utilizing them effectively Encouraging and rewarding individual and team/group

performance Establishing efficient business processes enabled by IT

Changing policies and processes to enable transparent, quick and Building effective IT systems and tools

efficient decision making

OBJECTIVES:

To be the Leading Telecom Services provider by achieving higher To provide quality and reliable fixed telecom service to our To provide customer friendly mobile telephone service of high

rate of growth so as to become a profitable enterprise.

customer and thereby increase customers confidence.

quality and play a leading role as GSM operator in its area of operation. Strategy for:

Rightsizing the manpower Providing greater customer satisfaction

Contribute towards:

Broadband customers base of 20 Mn in India by the end of 2011-

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Providing telephone connections in villages as per Government

policy. To leverage the existing infrastructure of BSNL for facilitating implementation of other government programmes and initiatives particularly in the rural areas.

QUALITY POLICY
BSNL goes by the motto "Connecting India, faster" and displays the same at their homepage. The service quality of BSNL Customer service has been severely criticized as very poor. The mobile services provided by BSNL in almost every part of the country were and still are criticized for network outages and frequent call drops. Despite the criticism there is very negligible or no amount of work being carried out by the authorities to improve the performance and quality of the network. BSNL claims to offer seamless coverage in almost all forests of India in collaboration with state forest department.

d. PRODUCTS AND SERVICE PROFILE OF BSNL

I. PRODUCTS OF BSNL:-

bsnl landline bsnl mobile postpaid prepaid unified messaging gprs/wap/mms demos tariff bsnl wll internet services 16 | P a g e network broadband

wi- f I co-location service bsnl web hosting dial up internet sms& bulk sms

bsnl broadband bsnl managed network services bsnl mpls-vpn isdn leased line intelligent network 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 hvnet inmarsat 17 | P a g e epabx epabx free epabx centrex

 transponder

II. SERVICES
When it comes to connecting the four comers of the nation, and much beyond, one solitary name lies embedded at the pinnacle - BSNL. It is working round the clock to take India into the future by providing world class telecom services for people of India. BSNL is India's no. 1 Telecom Service provider and most trusted Telecom brand of the Nation. Driven by the very best of telecom technology from chosen global leaders, it connects each inch of the nation to the infinite corners of the globe, to enable you to step into tomorrow. Here is an overview of the World Class services offered by the BSNL: BASIC TELEPHONE SERVICES The Plain old, Countrywide telephone Service through 32,000 electronic exchanges. Digitalized Public Switched Telephone Network (PSTN) with a host of Phone Plus value additions. BSNL launched Data One 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. The minimum speed offered to the customer is 256 Kbps at Rs. 250/- per month only. Subsequently, other services such as VPN, Multicasting, Video Conferencing, Video-on-Demand, Broadcast application etc will be added. INTERNET

Keeping the global network of Networks networked, the countrywide Internet Services of BSNL under the brand name includes Internet dial up/ Leased line access, CLI based access (no account is required) and DIAS service, for web browsing and E-mail applications. You can use your dialup sancharnet account from any place in India using the same access no '172233', the facility which no other ISP has. BSNL has customer base of more than 1.7 million for sancharnet service. 18 | P a g e

BSNL also offers Web hosting and co-location services at very cheap rates. ISDN Integrated Service Digital Network Service of BSNL utilizes a unique digital network providing high speed and high quality voice, data and image transfer over the same line. It can also facilitate both desktop video and high quality video conferring. INTELLIGENT NETWORK SERVICE (In Service) offers value-added services, such as: I-NET: India Telephone Card (Prepaid card) Free Phone Service (FPH) Account Card Calling (ACC) Virtual Private Network (VPN) Tele-voting Premium Rae Service (PRM) Universal Access Number (UAN) and more

India s x.25 based packet Switched Public Data Network is operational in 104 cities of the country. It offers x.25 x.28 leased, x.28 Dial up (PSTN) Connection) and frame relay services. LEASED LINES & DATACOM

BSNL provides leased lines for voice and data communication for various applications on point to point basis. It offers a choice of high, medium and low speed leased data circuits as well as dial-up lines. Bandwidth is available on demand in most cities. Managed Leased Line Network (MLLN) offers flexibility of providing circuits with speeds of nx64 kbps up to 2mbps, useful for Internet leased lines and International Principle Leased Circuits (IPLCs). CELLULAR MOBILE SERVICES POSTPAID & PREPAID

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BSNL's GSM cellular mobile service Cell one has a customer base of over 5.2 million. BSNL Mobile provides all the services like MMS, GPRS, Voice Mail, Email, Short Message Service (SMS) both national and international, unified messaging service (send and receive e-mails) etc. You can use BSNL Mobile in over 160 countries worldwide and in 270 cellular networks and over 1000 cities/towns across India. It has got coverage in all National and State Highways and train routes. BSNL Mobile offers all India Roaming facility to both pre-paid and post-paid customers (including Mumbai & Delhi)

WIRELESS IN LOCAL LOOPS:

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. Countrywide WLL is being offered in areas that are non-feasible for the Helping relieve congestion of connections in the normal cable/wire based Connecting the remote and scattered rural areas. Limited mobility without any air-time charge normal network. network in urban areas.

DATA ONE BROADBAND

Bharat Shanchar Nigam Ltd. is in the process of commissioning of a world class, (multi-gigabit,) multi-protocol, convergent IP infrastructure through National Internet Backbone-II (NIB-II), that will provide convergent services through the same backbone and broadband access network. The Broadband service will be available on DSL technology (on the same copper cable that is used for connecting telephone), on a countrywide basis spanning 198 cities.

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In terms of infrastructure for broadband services NIB-II would put India at par with more advanced nations. The services that would be supported includes always-on broadband access to the Internet for residential and business customers, Content based services, Video multicasting, Video-on-demand and Interactive gaming, Audio and Video conferencing, IP Telephony, Distance learning, Messaging: plain and feature rich, Multi-site MPLS VPNs with Quality of Service (QoS) guarantees. The subscriber will be able to access the above services through Subscriber Service Selection System (SSSS) portal. Key Objectives To provide high speed Internet connectivity (upto 8 Mbps) To provide Virtual Private Network (VPN) service to the broadband customers To provide dial VPN service to MPLS VPN customers. To provide multicast video services, video-on-demand, etc. through the Broadband Remote Access Server (BRAS). To provide a means to bill for the aforesaid services by either time-based or volume-based billing. It shall provide the customer with the option to select the services through web server To provide both pre-paid and post paid broadband services Services available through Broadband High speed Internet Access -This is the always-on Internet access service with speed ranging from 256 kbps to 8 Mbps. Bandwidth on Demand This will facilitate customer to change bandwidth as perhis / her requirement. For example a customer with 256 kbps can change to 1 Mbps during the Video Conferencing session. Multicasting This is to provide video multicast services for application in distance education, telemedicine etc. 21 | P a g e

 Dial VPN Service This service allows remote users to access their private network securely over the NIB-II infrastructure. Video and Audio Conferencing Bsnl provides excellent Video and Audio Conferencing Services Content based Services Like Video on Demand, Interactive Gaming, Live and time shifted TV

e. AREA OF OPERATION BSNL provides a wide range of services including landline, cellular (GSM and CDMA), Managed Services Network, MPLS VPN, VSAT, VoIP, VAS, audio, video and web conferencing, internet and broadband services among others. The company provides Internet services, under the brand name Sancharnet, through various modes that include Wi-Fi, Broadband, Direct Internet Access (DIAS), ISDN and PSTN dial-up services. The company also carries on activities of planning, installing, network integration and maintenance of switching and transmission networks. The company operates through 26 circles all over India except Mumbai and Delhi. With services in around 0.55 mn village, 7330 cities/towns and 602 districts, BSNL has a major presence in rural areas. The company has in-house production units in Mumbai, Jabalpur, Richhai, Bhilai, Kolkata, Gopalpur and Kharagpur engaged in the production of GSM tower, SIM cards, Pay Phones, Mini Pillar, MPJ box, CT boxes, Line Jack units, Drop-wire units etc. The National Internet Backbone (NIB) of the company has 432 points of presence and provides Internet service to approximately 1 mn dial-up customers including about 3.5 mn customers on CLI (caller line identity) basis. This network helps the company transport IP traffic to every corner of the country f. OWENERSHIP PATTERN 22 | P a g e

g. 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. (It does not provide service in Delhi and Mumbai.) Serving business and consumer customers, it also offers GSM and CDMA-based wireless communications, satellite service, telegraph, data and Internet services, and managed network services. BSNL is one of two state-controlled telcos in India, along with Mahanagar Telephone Nigam Limited (MTNL), which serves Delhi and Mumbai.

Industries where BSNL competes:Telecommunications Services Fixed-line Voice Services Providers (primary) Data Services Teleconferencing Services providers Telemetry & Telematics Services Providers Wireless Communications Services

1.

Tata Communications Ltd:Tata Communications Limited (formerly Videsh Sanchar Nigam Limited or VSNL) has a hold on the wholesale voice market in India and beyond. The company, which primarily provides international long-distance telephone service, owns and operates a network service in more than 200 countries. It also offers network and data services to enterprises and supplies transmission backbone and data services to other telecommunications companies over one of the largest global IP networks. Tata Communications is part of Indian industrial conglomerate Tata Group.

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2. Reliance Communications Ltd:Reliance Communications is one of India's largest providers of integrated communications services. With more than 48 million customers, the company serves consumers and enterprises with a digital network supporting voice, data, and video. Its fixed and wireless communications services include domestic and international voice, Internet access, messaging, and videoconferencing. It also provides wholesale capacity, infrastructure, and managed enterprise services through its Reliance Globalcom division. Reliance Communications is part of the Reliance - Anil Dhirubhai Ambani Group. 3. Bharti Airtel:Bharti Airtel is one of the leading alternative providers of telecommunications services in India. Through its subsidiaries, the company (formerly Bharti TeleVentures) operates through three divisions: mobile, broadband and telephone, and enterprise services. The enterprise services group includes units for both longdistance carriers and for corporate clients. Bharti Airtel has nearly 100 million customers in total -- approximately more than 64 million GSM mobile and almost 3 million fixed-line customers. The company was founded as Bharti TeleVentures in1995 and changed its name in early 2006 to Bharti Airtel Limited. It is a unit of Indian conglomerate Bharti Enterprises. 4. Vodafone:Customers have voted with their phones to make Vodafone Group the world's top wireless phone services carrier by sales with more than 200 million customers; in terms of subscribers, Vodafone trails only China Mobile. The company does most of its business in Europe where its a leader in wireless markets of the UK and Germany. In the US, the group holds a 45%stake in the #2 US wireless providers Verizon Wireless. Vodafone also serves callers in Asia, Africa, the Middle East, and the Pacific region through subsidiaries and joint ventures. The group also provides wireless data, broadband Internet, as well as fixed-line phone services through German subsidiary Arcor.

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5. IDEA Cellular:IDEA Cellular provides wireless services to about 24 million subscribers in 22 service areas such as Andhra Pradesh, Delhi, Gujarat, Haryana, and Maharashtra. The company's network covers about 60% of the country. IDEA offers contract and pre-paid cellular service options in addition to a number of value-added services such as mobile Web browsing, video streaming, and multimedia messaging. The company is controlled by Indian industrial manufacturing conglomerate Aditya Birla Group. 6. Mahanagar Telephone Nigam Limited (MTNL):Mahanagar Telephone Nigam Limited (MTNL) can help you call a deli in Delhi, or mumble to friend in Mumbai. The company provides fixed-line and wireless telecommunications services for two of the largest metropolitan areas of India. The company also provides Internet access services. It divides its operations into two business segments: basic (fixed line, CDMA-based mobile, and Internet access) and cellular (GSM-based mobile). Outside of India, the company offers services in Nepal (through a joint venture) and Mauritius. The government of India owns56% of the company. 7. Aircel:The Aircel Group is a joint venture between Maxis Communications Berthed of Malaysia andApollo Hospital Enterprise Ltd of India, with Maxis Communications holding a majority stake of 74%. Aircel commenced operations in 1999 and became the leading mobile operator in TamilNadu within 18 months. In December 2003, it launched commercially in Chennai and quickly established itself as a market leader a position it has held since. It began its outward expansion in 2005 and met with unprecedented success in the Eastern frontier circles. It emerged a market leader in Assam and in the North Eastern provinces within 18 months of operations. Till today, the company gained a foothold in 17 circles including Chennai, TamilNadu, Assam, North East, Orissa, Bihar, Jammu & Kashmir, Himachal Pradesh, West Bengal, Kolkata, Kerala, Andhra Pradesh, 25 | P a g e

Karnataka, Delhi, UP(West), UP(East) and Mumbai. The Company has currently gained a momentum in the space of telecom in India post the allocation of additional spectrum by the Department of Telecom, Govt. of India for 13 new circles across India. These include Delhi (Metro), Mumbai (Metro), Andhra Pradesh, Gujarat, Haryana, Karnataka, Kerala, Madhya Pradesh, Maharashtra & Goa, Rajasthan, Punjab, UP (West) and UP (East). With over 17 million customers in the country, Aircel has revved up plans to become full-fledged national operator by end of 2009. 8. MTS:Mobile TeleSystems OJSC (MTS) is the largest mobile phone operator in Russia and the CIS, and the 8th largest in the world. MTS is 52.8% majority-owned by System, the largest private sector consumer services company in Russia and the CIS. Sistema Shyam TeleServicesLimited is a joint venture company between Sistema of Russia and Shyam Group of India. Sistema has a controlling 73.71% stake in the venture. Sistema Shyam TeleServices Limitedhas licenses and spectrum to provide mobile telephony services on the CDMA platform in all22 circles across the country. Shyam Telelink became Sistema Shyam TeleServices andbrought globally renowned brand MTS to India. Shyam Telelink is the first telecom operator to acquire the fastest 100,000 customers in the state of Rajasthan. h. INFRASTRUCTURE FACILITIES:Our Corporate Office, R&D and Factory are situated at the heart of the Trivandrum city. Our infrastructure is spread across 6000 SQ FEET with Four Building. The main office constitutes of the Accounts, Administration, Marketing and Directors offices. There are separate buildings for R&D centre, that houses the Software and Quality departments, Production building where the entire assemble is done, and a separate building for the Customer Support departments. 26 | P a g e

Our advanced infrastructural setup gives us high production capacity of more than 5000 machines per month. i. 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. Awards were given by Hon'ble Minister of State for Communications & IT Dr. Shakeel Ahmed. Also present on the occasion were Secretary DoT Dr. J.S. Sarma, CMD BSNL Sh. A.K. Sinha, Director Operations BSNL Sh. J.R. Gupta and other dignitaries. Awards such as Bharat Sanchar Doot, AtiVishist Sanchar Seva Padak, Best Maintained Telecom System, Best Improved Telecom System and, Telegraph award were given on this occasion. j. WORK FLOW MODEL Enquiry from customers
Information made available through advertisement s and on net

Providing information of products and services to customers

Filling application and making order

Final payment and delivery of services

CRM and after sale services

grievances 27 |Page cell (toll free198)

Customer

Feedback and follow

k. FUTURE GROWTH AND PROSPECTS BSNL has continued its growth story ever since its formation & has reached a customer base of 81.49 million as on 31st March, 2009 from 28.11 million as on 31st March, 2001. BSNL further plans to increase its customer base to 160 Million by March, 2014. New Services introduced/planned by BSNL 1. 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 2012-13. 2. 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 customers in March'2009 is planned to be increased to 16.00 million by March 2014. 3. 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. 4. 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-

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Max is also being deployed in Kerala & Punjab Circles and shall cover all the major cities in these circles. 5. Wi-Max services are also being provided through a Franchisee agent with M/s SOMA in three states of Gujarat, AP and Maharashtra. 6. Value Added Services : BSNL is focusing on provision of value added services/features to attract high end customers and to double its revenues from VAS

Important Projects under implementation Tender for 93 Million GSM Mobile Lines to meet the requirement for next three to five years. Wi-Max: 1000 Base Station rural Wimax project for 12000 CSCs covering all Telecom Circles except A&N, J&K, Kerala & Kolkata Telecom District. 6863 Base Station rural Phase-II Wimax project for 56000 CSCs covering all Telecom circles except Kerala & A&N. CDR based Customer Care & Convergent Billing system. Enterprise Resource Planning (ERP) system country wide. Replacement of life expired exchanges by Class 5 NGN Introduction of Fixed Mobile Convergence to add value to Fixed Network. INTERNATIONAL LONG DISTANCE Undersea Cable: BSNL is participating/member of the following submarine cable Bharat Lanka Cable System: Connecting to Sri Lanka and to reach in the Pacific

systems: direction from India.

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Europe India Gateway (EIG) Cable System: Connecting UK, Portugal, Gibraltar, Millennium Cable System: It is joint venture with MTNL to lay Millennium Millennium Cable Sub-System East (MCSS-E) connecting the East Coast of India

France, Libya, Egypt, Saudi Arabia, Djibouti, Oman & UAE. Cable System in two directions as follows:to South East Asia (Malaysia and Singapore) with optional branches to Port Blair (Great Andaman Island), Bangladesh, Myanmar, Indonesia and Thailand. Millennium Cable Sub-System West (MCSS-W): connecting the West Coast of India to the Middle East (United Arab Emirates) and Djibouti with optional branches to Pakistan, Oman and Yemen. SEMEWE4: Connecting towards Trans-Atlantic as well as Trans-Pacific International MPLS-VPN: BSNL has made arrangements for providing With the above expansion plans and introduction of new services, the turnover of the company is expected to grow from Rs. 35800 crore in March 2009 to Rs. 52,000 Crores by March 2014. SOCIAL COMMITEMENT 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 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.

direction. International MPLS VPN services in about 400 cities and 150 countries.

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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. Encourage development of telecommunication facilities in remote, hilly and tribal areas of the country. Transform in a time bound manner, the telecommunications sector to a greater competitive environment in both urban and rural areas providing equal opportunities and level playing field for all players.

3. McKENSYs 7S FRAME WORK WITH REFERNECE TO BSNL

1. STRUCTURE

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ORGANIZATION is a formalized intentional structure of roles or positions. The roles that are asked to fill should be intentionally designed to ensure that required activities are done and that activities fit together so that people can work smoothly, effectively, and efficiently in group. ORGANIZATION CHART is a diagrammatic representation of the frame work or the structure of an organization. It involves the identification of activities & responsibilities that the person possesses in that organization. An organization chart indicates the functions & their inter relationships with each other. Appropriate internal communication links between various activities are also identified in this chart.

ORGANIZATION CHART

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2. STRATEGY
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Excellent organization knows and intimately understands their customers. They understand that customers are the final arbiters of the product and service quality. They also understand that customer loyalty retention and market share gain is maximized through clear focus on the needs and exceptions where appropriate they segment their customers to improve the effectiveness of their response. They monitor competitor activity and understand their competitive advantages. They effectively anticipate what customers future needs and expectations will be and act now in order to meet and where possible exceed them; they monitor and review the experience and perception of their customers and where things go wrong they respond quickly and effectively. They build and maintain excellent relationships with all their customers. BSNL Brands In year, 2008, BSNL changed the name of all its existing services to streamline its Brand portfolio SERVICE TYPE OLD NAME Landline [Wired] phones Bfone CDMA Wireless Tarang landlines/mobiles GSM Postpaid Mobiles GSM Prepaid Mobiles Dial Up Internet Broadband Internet Cell One Excel Sancharnet Dataone NEW NAME BSNL Landline BSNL WLL BSNL mobile Postpaid BSNL mobile Prepaid BSNL internet BSNL Broadband

Brand associations
Brand association can be anything that connects the customer to the brand. It can include user imagery, product attributes, use situations, Organizational associations, brand personality and symbols. Much of brand management involves determining what 34 | P a g e

associations to develop and then creating programs that will link the associations to the brand. For Ex - BSNL is collaborating with retail outlets, franchisor to increase their sale. Merging with NOKIA cell phone.

3. SYSTEM
Overall management of the Company is vested with the Board of Directors of the Company. The Board of Directors is the highest decision making body within the Company. As per the provisions of the Companies Act, 1956 certain matters require the approval of the shareholders of the Company in General Meeting. The Board of Directors is accountable to the shareholders of the Company, which is the ultimate authority of a Company. Bharat Sanchar Nigam Limited being a Public Sector enterprise (PSE), the Board of Directors of the Company is also accountable to Government of India. The day-to-day management of the Company is entrusted with the Chairman cum Managing Director and the Functional Directors and Executives of the Company. For this purpose, the Board of Directors has delegated powers to the Chairman and Managing Director, Functional Directors, and the Executives of the Company through Delegation of Financial and Administrative Powers. Board of Directors has also delegated few of its specific powers to a committee, known as Management Committee comprising of CMD and Functional Directors. Functional Directors and executives exercise their decision-making powers as per this delegation of powers. The Chairman cum Managing Director, Functional Directors and other Executives are accountable to Board of Directors for proper discharge of their duties & responsibilities. The powers, which are not delegated are 16 exercised by the Board of Directors subject to the restrictions and provisions of the Companies Act, 1956 and the Articles of Association of the Company.

4. SKILLS

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Learning is a continuous process one has to update himself in the present competitive scenario. Training is one of the methods of learning to enhance the knowledge and improve the competencies of an individual. Training refers to the acquisition of knowledge, skill and competencies. Executive and employees are recruited on need basis. Fresh graduates for the post of engineers, accounts officer, personnel officer, will be recruited through Examination (JTO, JAO, and AO) and will be trained in Centre for Training and Development or on the job. The important skills required are: Good technical skills to operate the machines and engineering work. Good interpersonal skills to co-ordinate and interface with the head of the department and peers. Excellent communication and organization skills. Good computer and writing skills when required. Ability to understand the nature of the job so that he can efficiently perform. Ability to cop up with the working environment in the organization, job and achieving the objectives and goals. Ability to analyze the sudden changes which take place in the work place. Other skills like leadership, supervision and strong technical skills.

5. STYLE
In this company they follow both authoritarian and participative style. If any important and strategic decisions have to be taken, authoritarian style is followed. The strategic decision involves selection of suppliers and customers, accepting the customer orders, financing etc. If any technical decisions in the work place are to be taken then the participative style is followed, this decision involves change in production schedule, purchasing of raw material, change of tools etc.

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Top down communication

General manager address all executives at least twice a year to share units vision, mission, values, policies and strategies, business scenario and market condition, units performance and companies over all perceptive. General Managers meet all divisional heads working with them every day and departmental heads meet their executives at least once in a month to share and discuss common issues concerned. Similarly section head meets formally all employees at least one in a month.

Bottom up communication
General Manager (personnel) conducts meeting with non technical units, where in specific agenda are discussed such as matters relating to quality productivity safety work environment etc

6. STAFF
More than 150 staffs are working in BSNL pandeshwar. Some of them are-

Managing Director
The responsibility of the managing director is to Control the overall operations and results of the company. Determining the quality objectives and monitoring the same. Directing the team and leading to achieve its objectives. Overall review of the organization of a timely basis.

Assistant General Manager

The responsibility of the assistant general manager is to Control and monitor the operations of all the departments in the organization 37 | P a g e

 Planning the activities of all the departments Coordinating the activities of all departments for the smooth running of the organization

Deputy Manager Marketing

Preparation of tender. Meeting customers and identifying their needs. Market research, competitors study, advertisement of the projects

Human resource manager

The responsibility of the human resource manager is to Plan the man power required for the efficient working of the organization and recruit and select the prospective employees Control the activities of the employees Evaluate the performance of the employees and do the appraisal Plan the training and development of the employees

Finance manager
The responsibility of the finance manager is to Maintaining the accounts of the organization. Budgeting and maintaining the costs. Maintaining the treasury bills and operations. Auditing the accounts periodically. Have internal control over the accounts.

7. SHARED VALUE

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Shared values define organizational behavior and what the organization strives to achieve. Shared values shape planning for the future, determine reaction to current events, and guide at moments of decision. The shared value of an organization refers customer satisfaction, implementing of automated machines and the most important one that is to be achieved is total quality management. And the other important thing would be the social responsibility of the organization. With regard to the above said shared values the company is functioning in all the areas which are explained as follows: Customer satisfaction: Customer satisfaction is the main objective of the company and this is achieved by the company by maintaining the quality and the standard of the products produced according to the need of the customer. Quality management: The Company is providing the better quality products and maintaining the ISO standard and follows six sigma. Social responsibility: BSNLs contribution to society includes setting up and managing educational institutions hospitals, school for the mentally challenged and rehabilitation centers for the underprivileged. BSNL believes that compassion empathy and service orientation are essential for overall excellence. BSNL follows clean & green policy as a concern for environment through profuse greenery in all the units. A forestation, effluent treatment, used water recycling, generation and use of biogas and rain water harvesting.

5. FINACAIAL ANALYSIS 39 | P a g e

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