Declaration

I hereby certify that the work which is being presented in the project entitled, “Bharat

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

Acknowledgement

Success of every project depends largely on the SELF & encouragement

and guidance of many others. We take this opportunity to express my

gratitude to the people who have been instrumental in the successful

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.

INDEX

CONTENT PAGE NO.

CHAPTER - 1

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

5.2.7 - Shared value

CHAPTER - 6

6.1 - Suggestions

6.2 – Recommendations

CHAPTER – 7

7.1 - Learning experience

7.2 - Bibliography

7.3 - Annexures

CHAPTER-1

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, so that

the facts are revealed and the meaningful conclusion can be derived at the end of this project

by readers , from any background.

Objective of the study:-

1. To do a through analysis on the company and its ethics, norms etc.

2. To understand the culture and basis of the service provider (BSNL).

3. To throw light upon the functional areas of the company and its mutual co-operation

with other departments.

4. To undertake a SWOT analysis on the company and to find out the key areas of

success.

5. To inform and to educate the readers and provide them the necessary and sufficient

details with examples for their better understanding.

6. To analyse the recent financial statements of the company.

Methodology of the study:-

1. Secondary data with the help of internet, journals, magazines, newspaper etc are the

basic tools for this project.

2. Primary data (unauthorised) has also been considered.

3. Apart from the data, the analysation, interpretation of the team members had played a

crucial role in this project.

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.

CHAPTER- 2

Telecom Industry in India

(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.

Today, it is the fastest growing market in the world. 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.

Telecom sector accounts for 1 percent of India’s GDP. Likely to double in 2-

3 years.

Telecom services contribute 30 percent to India’s total service tax revenue

The Indian telecom sector gives direct employment to more than 4,00,000

people, compared to about 6,00,000 people in China.

Not just the enabler of software, BPO and ITeS companies, it is also the

lifeline of a fast growing E-commerce space.

State-of-the-art telecom infrastructure has led to the rise of cities like Mysore,

Mangalore, Jaipur, Ahmedabad, Kochi on the software services map.

This has helped spread the benefits of a booming Indian economy to beyond

metros and large cities, and wealth creation is happening in tier-2 cities.

Growth:-

The sector, which was growing in the range of 20 to 25 per cent up to the year 2002-03,

has moved to a higher growth path of an average rate of 40-45 per cent during the last

two years.

94-95

95-96

96-97

97-98

98-99

99-00

00-01

01-002

02-003

03-004

04-005

05-006

06-007

07-008

08-009

0

5

10

15

20

25

30

35

40

45

1517 18

22 2224.7 25.2

21.924.7

27.724

21.2

40

29

42.4

Indian Telecom Subscriber Annual Growth Rate

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. 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.

Teldensity:-

The telecom sector has shown robust growth during the past few years. From a

teledensity of mere 0.5 per cent in the year 1989, it has grown to double digit in the

year 2005.

89-91 91-93 93-95 95-97 97-99 99-01 01-003 03-005 05-007 07-0090

5

10

15

20

25

0.5 0.6 0.8 1.1 1.6 2.33.6

5.1

11.4

22

India's Growing Teledensity

Buoyed by the better-than-expected teledensity in 2005 (11.4 per cent against 8.6 per

cent in 2004) due to the mobile boom in India, Department of Telecommunications

(DoT) has revised the upwards the target of 22 per cent teledensity by 2007.

Internet Services:-

Internet services were launched in India on August 15, 1995. In November 1998 the

government opened up the sector to private operators. A liberal licensing regime was put

in place to increase Internet penetration across the country. Though a large number of

Internet Service Providers (ISPs) has been licensed (389) to operate Internet service

today, just the top 20 ISPs service 98 per cent of subscribers.

Similarly, while internet telephony is permitted to 128 ISPs, only 32 actually provide the

service. 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.

The growth of IP telephony or grey market is also a serious concern. Government loses

revenue, while unlicensed operation by certain operators violates the law and depletes

licensed operators market share.

New services like IP-TV and IP-Telephony are becoming popular with the demand likely

to increase in coming years. The scope of services under existing ISP license conditions

are unclear.

44%

19%

9%

7%

6%

5%

2% 1%5%

Internet Subscriber Base In Per cent

BSNLMTNLSifyBharti AirtelRelianceVSNLYou TelecomHath Way Cable & DataOthers

Internet subscribers stood at 8.6 million for the quarter ending 31st

December 2006,

registering an increase of 6.00 per cent. The growth trend during the quarter is positive

as compared with last quarter where it was 5.02 per cent. The total Internet subscribers

increased from 6.7 million at the end of December 2005 to 8.6 million at the end of

December 2006 registering a growth of 28.03 per cent.

Bharat Sanchar Nigam Ltd (BSNL) has retained its top position and reported a

subscriber base of 38.12 Lakhs Internet subscribers against 3.55 million during the last

quarter. Mahanagar Telephone Nigam Limited (MTNL) has retained second position

with a subscriber’s base of 1.66 million. Sify Limited is third with a base of 8,06,000

subscriber.

Major Players:-

There are three types of players in telecom services:

• State owned companies (BSNL and MTNL)

• Private Indian owned companies (Reliance Infocomm, Tata Teleservices,)

• Foreign invested companies (Hutchison-Essar, Bharti Tele-Ventures, Escotel, Idea

Cellular, BPL Mobile, Spice Communications)

20%

21%

18%

16%

10%

8%

7%

Market Share of Wireless Operators

RelianceBharti AirtelBSNLHutchTTSLIDEAOthers

(b)BSNL Company Profile

Bharat Sanchar Nigam Ltd. formed in October, 2000, is World’s 7th largest

Telecommunications Company providing comprehensive range of telecom services in

India: Wireline, CDMA mobile, GSM Mobile, Internet, Broadband, Carrier service,

MPLS-VPN, VSAT, VoIP services, IN Services etc. Presently it is one of the largest &

leading public sector unit in India.

BSNL has installed Quality Telecom Network in the country and now focusing on

improving it, expanding the network, introducing new telecom services with ICT

applications in villages and wining customer’s confidence. Today, it has about 47.3

million line basic telephone capacity, 4 million WLL capacity, 49.76 Million GSM

Capacity, more than 37382 fixed exchanges, 46565 BTS, 3895 Node B ( 3G BTS), 287

Satellite Stations, 480196 Rkm of OFC Cable, 63730 Rkm of Microwave Network

connecting 602 Districts, 7330 cities/towns and 5.5 Lakhs villages.

BSNL is the only service provider, making focused efforts and planned initiatives to

bridge the Rural-Urban Digital Divide 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 country and operates across India except Delhi & Mumbai. Whether it is inaccessible

areas of Siachen glacier and North-eastern region of the country. BSNL serves its

customers with its wide bouquet of telecom services.

BSNL is numero uno operator of India in all services in its license area. The company

offers vide ranging & most transparent tariff schemes designed to suite every customer.

BSNL cellular service, CellOne, has more than 52.09 million cellular customers,

garnering 16.96 percent of all mobile users in its area of operation as its subscribers. In

basic services, BSNL is miles ahead of its rivals, with 35.1 million Basic Phone

subscribers i.e. 85 per cent share of the subscriber base and 92 percent share in revenue

terms.

BSNL has more than 2.5 million WLL subscribers and 2.5 million Internet Customers

who access Internet through various modes viz. Dial-up, Leased Line, DIAS, Account

Less Internet(CLI). BSNL has been adjudged as the NUMBER ONE ISP in the country.

BSNL has set up a world class multi-gigabit, multi-protocol convergent IP infrastructure

that provides convergent services like voice, data and video through the same Backbone

and Broadband Access Network. At present there are 0.6 million DataOne broadband

customers.

The company has vast experience in Planning, Installation, network integration and

Maintenance of Switching & Transmission Networks and also has a world class ISO 9000

certified Telecom Training Institute.

Scaling new heights of success, the present turnover of BSNL is more than Rs.351,820

million (US $ 8 billion) with net profit to the tune of Rs.99,390 million (US $ 2.26

billion) for last financial year. The infrastructure asset on telephone alone is worth about

Rs.630,000 million (US $ 14.37 billion).

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. 733 crores

(US$ 16.67 million) in the next three years.

The turnover, nationwide coverage, reach, comprehensive range of telecom services and

the desire to excel has made BSNL the No. 1 Telecom Company of India.

Interesting Facts:-

There are 2 million BSNL mobile connections in rural

India(a record, no other connection is as famous as bsnl

in rural areas) .

BSNL supplies phone lines to all other network such as

Airtel,Vodafone etc.

BSNL is the only network which offers broadband

connections .

More than 50% of the international calls coming to India,

use Reliance network.

Largest pan India coverage-over 11000 towns & 3 lakh

villages.

India’s No. 1 wireless service provider with more than 50

million customers.

An incredible speed of 2mbps is only offered by BSNL.

The only Mobile service available through out the country including Jammu and

Kashmir and North Eastern states like Arunachal Pradesh, Nagaland, Mizoram etc.

ASPIRATION   :-

Be the leading Telecom Service Provider in  India with global presence.  

Create a customer focused organisation with excellence in sales, marketting and

customer care.  

Leverage technology to provide affordable and innovative products/services across

customer segments

Provide a conducive work environment with strong focus on performance

Establish efficient business processes enabled by IT

Nature of the business carried:-

BSNL is basically a telecom(land line) service provider. But now a days apart from these

services, the operations of the company has been diversified into several arenas such as

3G,customer care,call centres, mobile services,etc.

Vision of BSNL:-

To become the largest telecom Service Provider in Asia.

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.

Quality Policy:-

BSNL  Telecom  Factory Mumbai is committed to continually improve through excellence

and customer satisfaction with employee’s participation.

Products / Services Profile:-

1. Products of BSNL:-

BSNL LANDLINE

BSNL MOBILE

POSTPAID

PREPAID

UNIFIED MESSAGING

GPRS/WAP/MMS

DEMOs

TARIFF

BSNL WLL

INTERNET SERVICES

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 EPABX

EPABX

FREE EPABX

CENTREX

HVNET

INMARSAT

TRANSPONDER

1. Services of BSNL:-

When it comes to connecting the four corners of the nation, and much beyond, one solitary

name lies embedded at the pinnacle - BSNL.  A company that has gone past the number

games and the quest to attain the position of a leader .  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 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. 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.

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 conferencing.

 

Intelligent Network:-

Intelligent Network Service (In Service) offers value-added services, 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.

I-Net:- 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 application 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 upto

2mbps, useful for Internet leased lines and International Principle Leased Circuits (IPLCs).

Cellular Mobile Service :- 

Postpaid and Prepaid

BSNL’s GSM cellular mobile service Cellone has a customer base of over 5.2 million. BSNL

Mobile  provides all the services  like MMS, GPRS, Voice Mail, E-mail, 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 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.

Countrywide WLL is being offered in areas that are non-feasible for the normal network.

Helping relieve congestion of connections in the normal cable/wire based network in urban

areas.

Connecting the remote and scattered rural areas.

Limited mobility without any air-time charge.

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

andMumbai.) Serving business and consumer customers, it also offers GSM and CDMA-

basedwireless communications, satellite service, telegraph, data and Internet services, and

managednetwork 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

holdon the wholesale voice market in India and beyond. The company, which primarily

providesinternational long-distance telephone service, owns and operates a network service in

morethan 200 countries. 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. Tata Communications is part of Indian industrial

conglomerateTata Group.

2. Reliance Communications Ltd:-

Reliance Communications is one of India's largest providers of integrated

communicationsservices. With more than 48 million customers, the company serves

consumers andenterprises with a digital network supporting voice, data, and video. Its fixed

and wirelesscommunications services include domestic and international voice, Internet

access,messaging, and videoconferencing. It also provides wholesale capacity, infrastructure,

andmanaged enterprise services through its Reliance Globalcom division.

RelianceCommunications 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 Tele-Ventures) operates

through threedivisions: mobile, broadband and telephone, and enterprise services. The

enterprise servicesgroup includes units for both long-distance carriers and for corporate

clients. Bharti Airtel hasnearly 100 million customers in total -- approximately more than 64

million GSM mobile andalmost 3 million fixed-line customers. The company was founded as

Bharti Tele-Ventures in1995 and changed its name in early 2006 to Bharti Airtel Limited. It

is a unit of Indianconglomerate Bharti Enterprises.

4. 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; in terms of

subscribers,Vodafone trails only China Mobile. The company does most of its business in

Europe where itis a leader in wireless markets of the UK and Germany. In the US, the group

holds a 45%stake in the #2 US wireless provider Verizon Wireless. Vodafone also serves

callers in Asia,Africa, the Middle East, and the Pacific region through subsidiaries and joint

ventures. Thegroup also provides wireless data, broadband Internet, as well as fixed-line

phone servicesthrough German subsidiary Arcor.

5. IDEA Cellular:-  

IDEA Cellular provides wireless services to about 24 million subscribers in 22 service

areassuch as Andhra Pradesh, Delhi, Gujarat, Haryana, and Maharashtra. The company's

networkcovers about 60% of the country. IDEA offers contract and pre-paid cellular service

options inaddition to a number of value-added services such as mobile Web browsing, video

streaming,and multimedia messaging. The company is controlled by Indian industrial

manufacturingconglomerate 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 afriend in Mumbai. The company provides fixed-line and wireless telecommunications

servicesfor two of the largest metropolitan areas of India. The company also provides Internet

accessservices. It divides its operations into two business segments: basic (fixed line, CDMA-

basedmobile, and Internet access) and cellular (GSM-based mobile). Outside of India, the

companyoffers 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 Berhad 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 quicklyestablished itself as a market leader ± a position it has held since. It began its

outwardexpansion in 2005 and met with unprecedented success in the Eastern frontier circles.

Itemerged 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, Karnataka, Delhi, UP(West), UP(East) and

Mumbai. TheCompany has currently gained a momentum in the space of telecom in India

post the allocationof additional spectrum by the Department of Telecom, Govt. of India for

13 new circles acrossIndia. These include Delhi (Metro), Mumbai (Metro), Andhra Pradesh,

Gujarat, Haryana,Karnataka, Kerala, Madhya Pradesh, Maharashtra & Goa, Rajasthan,

Punjab, UP (West) andUP (East). With over 17 million customers in the country, Aircel has

revved up plans to becomea 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 Sistema, the largest

privatesector 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 toacquire the fastest 100,000 customers in the state of Rajasthan.

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 Director’s 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 another separate building for the

Customer Support departments. Our advanced infrastructural setup gives us high production

capacity of more than 5000 machines per month.

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.

Achievements/Milestones:-

Since BSNL's formation on October 1, 2000  up to September 2001, significant growth has

been achieved in almost all the infrastructural parameters:

Number of exchanges has grown by 14% to 32369.

Equipped capacity has grown by 21.5% to 36.43 million in one year.

Direct exchange lines have grown by 21.5% to 29.4 million.

TAX capacity has grown by 7.8% to 25,40,000.

OFC route kms has grown by about 26.9% to 241841.

Achievements April-December 2000: -

New Telephone Connections:-

During 1999-2000 a record number of 45.40 lakh new telephone connections were

provided by BSNL, bringing the total number of DELs to 224.8 lakh.

 During the current year (April-Dec. 2000) 27.23 lakh lines have been installed.

 Total lines installed as on 31-12-2000 is 252.4 lakh.

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, it was decided that the accessibility should be improved

by providing a large number of PCOs for general public.

Total number of PCOs 326574, STD PCOs, 5449 NHPTs have been provided up to

March 21, 2000.

 As on March, 31,2000 the number of villages having Village Public

Telephones(VPTs)was 374605 out of 607491.

 During 2000-01(April-December 2000), 152,150 PCOs have been provided.

Provisions of Cellular Mobile Phones:-

It has been planned to introduce WLL technology in the network. Its salient features of

WLL are its fast and easy deployment, flexibility, limited mobility etc. Initially this

service is being introduced in 27 cities by BSNL in the form of pilot project. The

estimated cost of this project shall be about Rs.50 Crore.

Telephone Services:-

3010 New telephone exchanges (Net addition) were commissioned during 1999-2000

raising the total number of exchanges to 27569. The equipped capacity of Telephone

Exchanges rose to 281.28 lakh lines with the net addition of 63.02 lakh new lines during

the year representing an increase of 28.87% over the previous year.

The equipped capacity of Telephone Exchanges as on December 31, 2000

was 311.31 lakh lines.

All electromechanical exchanges in the country have been scrapped and

decommissioned. Now the total switching network is electronic type.

CHAPTER -3

Organization structure of BSNL:-

Main offices of BSNL:-

BSNL Registered Office

10th floor, Statesman House,B-148. Barakhamba RoadNew Delhi-110 001

BSNL Corporate Office

Statesman House,B-148, Barakhamba RoadNew Delhi-110001

CHAPTER – 4

(a)Functional Areas:-

FINANCE DEPARTMENT:-

  Bharath Sanchar Nigam Limitted , the largest public sector undertaking of the nation, is

certainly on a financial ground that’s sound. The corporation has a networth of Rs.78757

crores (US $ 17.71 billion), authorized equity capital of Rs.10,000crores (US $ 2.25 billion),

paid up equity capital of Rs 5,000 crores (US $ 1.12 billion)and Revenue is Rs.40,177 crores

(US $ 9.04 billion) in 2005-06. (Note: INR 1 = USD0.02249 as on 31-03-2006)

Corporate Assets:- 

Bharath Sanchar Nigam Limitted has got fixed assets valuing more thanRs.62862 crores (US

$ 14.29 billion), which are in the form of Land, Buildings, Cablesand Apparatus and Plants

etc. BSNL had gross fixed asset of over Rs1,11,692 crores(US  $ 25.12 billion) as on 31-03-

2006.

Annual Capital Investment :- 

AnnualCapital Investment in the network has increased from Rs.785 crores(US $ 0.18

billion) in 1986-87 to over Rs.6383 crores (US $ 1.53 billion) in   2005-06.This investment

has been financed mainly by the internal accruals. 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.

Revenue :-

BSNL has shown sustained growth in past five years. The growth rate in2005-06 was

11.32%.

Revenue earned by BSNL during last five years:-

Gross Investment in Fixed Assets:-

The BSNL is making substantial investment year to year for its network expansion and

modernization. During the current financial year BSNL has made the gross investment of Rs.

28,227 crore( US $ 6.28 billion) in Fixed Assets.

Cumulative Capital Outlay:-

BSNL has Gross Fixed Assets of over Rs. 132243 Crores (US $ 25.96 billion) as on

31.03.2009.

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. Facing stiff

competition from private sector, public players are taking upmeasures to increase their

customer base to fixed lines and internet services. MTNL andBSNL are investing in internet

infrastructure to provide much reliable network.

Private players are striving hard to capture more and more customers. Theyare introducing

low cost tariff plans and discount schemes in fixed line telephony andinternet services to

increase their customer base. They are also in the process of enlargingtheir network area

providing more coverage in urben as well as rural areas. Finance department is the key

department which maintain and over allcontrol of finance over each SSA in Kerala. The

revenue generated from all the servicesis accounted through cash/bank books and other

records. In providing the services, lot of expenditure is involved under capital and revenue.

MARKETING DEPARTMENT:-

Marketing is as old man kind. Now marketing has become a broadterm in BSNL. Marketing

department is associated with the exchange of goods, serviceand ideas. Goods it is a physical

entity eg. CD-ROM, shirt etc. service: human effortclubbed with mechanical effort to provide

intangible benefits to the customers. Eg.Telecom, Banking and Transport etc. Ideas provide

intellectual or spiritual benefits to thecustomers. Eg. The blue print of a business plan,

computer software. Marketing aims at³meeting needs profitable´.

BSNL is marketing their services. There are four characteristicsuniquely allied with services.

This department is adopting these strategies. 

Intangibility:-

In services customer is unable to experience the µproduct¶ prior toµpurchase¶. To over come

this difficult BSNL is thinking of converting the intangibles tothe tangibles by providing

suitable physical evidence among prospective customers.Eg. The telephone house wiring, the

instrument, the behaviour, the BSNL identity carddisplay by employees, the attitude, the road

side cabinet, logo display, advertisementseverything matters.

Perishability:-

Service can¶t be stored. Once lost means lost forever. For example just think of an airline

service flying with 50% vacant seats. The ticket charges for that 50% seatswere lost forever.

Give suitable offers to the customers to attract them, even if they arecollecting one rupee per

seat that would have been vacant other wise is additionalrevenue to the organization. Night

unlimited down load in Broad band is an example totackle the perishability nature.

OPERATIONS DEPARTMENT:-

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

department are :-

 

Launching of packages for BSNL

Telegram booking

Cash management

All India MIS

Fleet management

Web based telegram message system

  This department is the heart of BSNL. IT cell is mainly for the purpose introducingnew

software for BSNL. Implementation of Inventory Package(MIS) has been includedas a part of

BBS.

Human Resources Development:-

With a corporate philosophy that considers Human Resource as the most prized assets of the

organization, it's natural for BSNL to continually hone employee skills, enhance

their knowledge and their expertise and their aspirations to fruition. Even as BSNL goes

aboutconducting its business activities, it lays emphasis on constant enhancement

of knowledge and skills through regular training programmes.Bharat Sanchar Nigam

Limited has a vast reservoir of highly skilled and experienced work force of about

3,57,000 personnel.

We be l i eve tha t ou r s t a f f , wh ich i s one o f t he bes t t r a ined

manpower in t he telecom sector, is our biggest asset.

We be l i eve tha t ou r fu tu re depends on ou r s t a f f who p rov ide

se rv i ces t o ou r  valued customers and stay in touch with them.

To meet the technological challenges, employees are trained for

technology up-gradation, modernization, computerization etc in BSNL's training

Centers spreadacross Country. These centers are properly equipped with the

requisiteinfrastructure facilities such as Lecture rooms, modern audio-visual aids,

libraries,hostels etc.

To apex training centers of BSNL i.e. Advance level Telecom Training

Center (ALTTC) at Ghaziabad and Bharat Ratna Bhimrao Telecom

Training Center atJabalpur are comparable to any world class Telecom Training

Center. Moreover,43 zona l t r a in ing cen te r s and a Na t iona l Academy o f

Te lecom F inance and Management have been running for several years now.

Different curriculum run in these centers to impart technology based

training,training for Attitudinal change, basic educational and skill development

programetc.

RECRUITMENT & SELECTION:-

  RECRUITMENT: -

 Recruitment is the process of searching the prospective employees & encouragesthem to

apply for the job. Vimal Oil & Food Ltd. A recruitment staff & workers differently.1)

Recruitment for staff: -For recruiting staff company uses external sources, gives

advertisement, select theappropr i a t e cand ida t e s , a r r ange some t e s t t o ma jo r

t he i r j ob knowledge & gene ra l knowledge, their background, & if they come

successfully they will be selected.2) Recruitment for workers: - For recruiting workers,

Vimal uses ITI students & mostly company recruits unskilled workers & company

itself trains them.

SELECTION: -

Selection is the process of choosing the best among bests. For selection of staff & workers,

the company department in respect in their defective procurement or selecting the right men

as efficient & connected labor force.

TRAINING & DEVELOPMENT DEPARTMENT:-

TRAINING:-

Training programmers should be devised to impart knowledge, develop skills andstimulate

motivates needed to perform the job.

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.Learning centers at our

units are supported by several training courses. Weprovide professional learning

opportunities to select employees through our tie-ups withIIM Ahmedabad. Nirma institute,

IIM Banglore. Key managers attend trainingprogrammers to enhance their competencies and

skills in line with global standards.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.We have always accorded high priority to employee training in both in

theclassroom and on the job. Training is imparted across all the level of employee. It

spansleadership development, coaching for performance, building competencies for

managersand skill. Profiling as well as behavioral coaching for the staff and workers.

CHAPTER - 5

SWOT Analysis:-

STRENGTHS: -

Pan-India reach

Experienced telecom service provider

Total telecom service provider

Huge Resources (financial & technical pool)

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

Lack of strategic alliances

Problems associated with incumbency like outdated technologies,

unproductive rural assets, social obligations, political interference,

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, telecom and

entertainment industry.

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 “OneIndia” rates

CHAPTER - 6

Suggestions / Recommendations:-

1. The 24x7 (around the clock) service of BSNL is to be appreciated.

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, which is a private secter banks.

3. It is worth to consider the changing trends, tastes and preferences of (transitional)

consumers.

4. Target marketing is also recommended to the company.

CHAPTER - 7

(a) Learning experience:-

1. First of all, we learnt to be co-operative with one another among all of our team

members.

2. With the help of this project, we could know how to approach a corprate firm to get

information.

3. It was indeed a new experience to go out and seek information with the employer,

employees, customers, suppliers etc.

4. Along with this experience, eduction etc a bit of entertainment and enjoyment was

also there owing to this project.

(b) BIBLIOGRAPHY:-

www.bsnl.co.in

www.cellone.co.in

www.bharatsancharnigam.com

www.wikipedia.com