EXECUTIVE SUMMARY

EXECUTIVE SUMMARY
The project is an extensive report on how the BSNL Company markets its strategies and how the company has been able in tackling the present tough competition and how it is scooping up by the allegations of the quality of its products. The report begins with the history of the products and the introduction of the BSNL Company. This report also contains the basic marketing strategies that are used by the BSNL Company of manufacturing process, technology,

production policy, advertising, collaboration, export scenario, future prospect and government policies. The report includes some of the key salient features of market trend issues.

In todays world of cutthroat fierce competition, it is very essential to not only exist but also to excel in the market. Todays market is enormously more complex. Hence forth, to survive in the market, the company not only needs to maximize its profit but also needs to satisfy its customers and should try to build upon from there.

INTRODUCTION OF ORGANIZATION

INTRODUCTION OF ORGANIZATION
COMPANY PROFILE
4

Bharat Sanchar Nigam Ltd. formed in June, 2011, is World's 7th largest Telecommunications Company providing comprehensive range of telecom services in India: Wire line, CDMA mobile, GSM Mobile, Internet, Broadband, Carrier service, MPLS-VPN, VSAT, VoIP services, IN Services etc. Within a span of five years it has become one of the largest public 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, 20.1 Million GSM Capacity, more than 37382 fixed exchanges, 18000 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 5

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 numerousUno 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 17.8 million cellular customers, garnering 24 percent of all mobile users as its subscribers. That means that almost every fourth mobile user in the country has a BSNL connection. 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. 6

Dial-up, Leased Line, DIAS, and 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 turnover, nationwide coverage, reach, comprehensive range of telecom services and the desire to excel has made BSNL the No. 1 Telecom Company of India.

Aspiration

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

Create a customer focused organization with excellence in sales, marketing 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

BRIEF HISTORY OF ORGANIZATION

Brief history of organization

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. 8,613 crore( US $ 1.69 billion) in Fixed Assets. These investments have been financed by the internal accruals.

BSNL has Gross Fixed Assets of over Rs. 132243 Crores (US $ 25.96 billion) as on 31.03.2011. . 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. 10

In the early 1990s, the Indian government adopted a new economic policy aimed at improving India's competitiveness in the global markets and the rapid growth of exports. Key to achieving these goals was a world-class telecom infrastructure. In India, the telecom service areas are divided into four metros (New Delhi, Mumbai, Chennai and Kolkata) and 20 circles, which roughly correspond to the states in India. The circles are further classified under "A," "B" and "C," with the "A" circle being the most attractive and "C" being the least attractive. The regulatory body at that time the Department of Telecommunications (DOT) allocated two cellular licenses for each metro and circle. Thirty-four licenses for GSM900 cellular services were auctioned to 22 firms in 1995. The first cellular service was provided by, Modi Telstra in Kolkata in August 1995. For the auction, it was stipulated that no firm can win in more than one metro, three circles or both. The circles of Jammu and Kashmir and Andaman and Nicobar had no bidders, while West Bengal and Assam had only one bidder each. In 1996, the Telecom Regulatory Authority of India (TRAI) bill was introduced in the Lok-Sabha, and the president officially announced 11

the TRAI ordinance on 25 January 1997. The government decided to set up TRAI to separate regulatory functions from policy formulation, licensing and telecom operations. Prior to the creation of TRAI, these functions were the sole responsibility of the DOT. High license fees and excessive bids for the cellular licenses put tremendous financial burden on the operators, diverting funds away from network development and enhancements. As a result, by 1999 many operators failed to pay their license fees and were in danger of having their licenses withdrawn. In March 1999, a new telecom policy was put in place (New Telecom Policy [NTP] 1999). Under this new policy, the old fixed-licensing regime was to be replaced by a revenue-sharing scheme whereby between 8-12 percent of cellular revenue were to be paid to the government.

1.1 INDIAN CELLULAR MARKET - EARLIER ROADBLOCKS AND THEIR RESOLUTION

Indian Cellular market immediately after the first round of licensing in 1994-96 was beset by several problems for 3 - 4 years till the New

12

Telecom Policy of 1999 was announced. Some of these roadblocks / current position is tabulated below:

ROADBLOCKS CURRENT POSITION

High license fees
Migration to revenue sharing mode in 1999 mitigates high initial fund requirements for payment of license fees.

Inadequately funded businesses / weak and fragmented promoters

Businesses that have since been adequately funded growing at over 60% per annum, while businesses with weak promoters continuing to languish - spate of acquisitions / mergers, with 4/5 major groups emerging in the last one/two years.

Regulatory authority not in place

Telecom Regulatory Authority of India (TRAI) firmly in place, and its role being accepted by all operators; Dept of Telecommunications (DOT) restructured, with operations and policy making roles vested in different bodies.

13

Issues relating to unfavorable interconnect terms for private operators, pass through income, intra circle long distance, spectrum availability and allocation and the like remained unresolved for long periods. Interconnect terms since rationalized, risks on pass through income to DOT / BSNL(BHARAT SANCHAR NIGAM Ltd.) resolved to the satisfaction of all parties with changes in methodology / revenue sharing, intra circle long distance allowed, spectrum availability cleared with vacation of frequencies for usage by GSM operators.

Problems in Financial closures due to:

Licensing tenure of 10 years Large upfront cash requirements from promoters due to heavy license fee burden in initial stages of deployment Asset based financing approach by Indian Financial Institutions. Licensing tenure increased from 10 to 20 years Large upfront cash requirements for license fee payments mitigated with migration to revenue sharing mode allowing promoters to deploy more capital for capital expenditure;

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project

financing

being

considered

by

most

financial

institutions.

Foreign ownership / change of partner limitations

Foreign ownership norms clarified, and change of partners allowed as a matter of routine allowing ease of entry / exit - paves the way for full control of businesses by foreign companies. Inadequate growth of market / subscribers Roadblocks spelt out earlier resulted in low market / subscriber growth, but with corrective measures taken, market / subscriber base expected to zoom

1.2 DEVELOPMENTS IN THE CELLULAR INDUSTRY

The interconnection regime betweencellular operators and fixed-line operators is still biased against the former. Despite the recent gains of the cellular industry, not everything is rosy. The cellular penetration rate is still very low at 0.8 percent in a nation of over one billion people.

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In recent years, many foreign companies had pulled out from their cellular joint ventures in India due to the difficult operating environment and bureaucracy. In 1999 alone, Swisscom pulled out from Sterling Cellular, Telstra from Modi Telstra and both the Telecom Organization of Thailand and Jasmine International from JT Mobile. In 2000, Telecom Malaysia sold its stake in Usha Martin Telecom, and both Shinawatra of Thailand and Bezel exited from Fascel. In June 2001, British Telecom exited from BSNL Cellular. Bell South

International has also indicated its intention to pull out from Skycell Communications, and Hong Kong-based Distacom is seeking to sell its stake in Spice Communications. First Pacific's (based in Hong Kong) continued commitment to Escotel is uncertain, and the former is reviewing various options. The string of sell-outs notwithstanding, there has been a merger and acquisition wave sweeping across the Indian cellular industry in recent years. Hong Kong-based Hutchison Whampoa, via Hutchison

Telecommunications (HK), acquired major stakes in Sterling Cellular (December 1999), Usha Martin Telecom (mid-2000) and Fascel (September 2000). Through a partnership with local company, Kotak 16

Mahindra Finance, Hutchison Whampoa practically controls Fascel and Usha Martin Telecom, thus circumventing the 49 percent limit on foreign ownership in Indian cellular operators. Hutchison Whampoa is also the controlling shareholder of Hutchison Max Telecom. Not to be outdone, BSNL Enterprises another major cellular player acquired control of JT Telecom, which was later renamed BSNL Mobile (December 1999), and Skycell Communications renamed BSNL Mobinet (August 2000). BSNL also acquired the Punjab license of Essar and started operations, giving competition to the lone operator there, Spice Communications. Going forward, BSNL is likely to merge all its cellular companies into one entity. Five companies together bid Rs16.3 billion to bag the licenses for the fourth operator slots in four metros and 13 circles. BSNL emerged as the No. 1 bidder with eight new licenses, followed by Escotel with four, Hutchison with three, and Reliance and Idea cellular with one each. BSNL and Hutchison have already commenced operations in all the circles while Idea is set to launch in Delhi. Escotel and Reliance have not made any headway.

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BSNL, the third cellular operator for Delhi and Mumbai, started services in March 2001. BSNL, as the third nationwide cellular operator, launched services in Kolkata and Bihar in January 2002. This was followed by Tamil Nadu in July 2002. A nationwide launch was scheduled for 2 October 2002. However, this has been postponed until after mid-October. Once BSNL rolls out its service, most telecom circles will have four cellular operators. There will be tremendous competitive pressure, which will result in lower tariffs. Future rate cuts are expected, which will drive demand, together with falling handset prices and the introduction of prepaid services. In the midst of declining interest in technology stocks, BSNL came out with its long-awaited initial public offering (IPO) in January 2002. Leveraging on the success of its cellular service, the company got a very good response from the primary market. The total size of the IPO was 185 million shares at a floor price of Rs10. The issue was oversubscribed by more than 2.5 times, netting Rs8.3 billion. This will be used to fuel its investment in long-distance, basic and cellular services.

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As of October 2002, only BPL Mobile has launched commercial general packet radio service (GPRS) in Mumbai. However, large-scale uptake remains elusive. While both BSNL and Idea have GPRS-enabled networks, there is caution on their part to launch the service. With hardly any applications, the success of GPRS remains a question.

Building visibility and awareness

Deviating from competing on the price platform, cellular operators are actively promoting their brand and service portfolio through highvisibility advertising and promotional campaigns. Cellular operators like BSNL, Orange and BPL Mobile have been advertising aggressively on hoardings and kiosks. Public transport like the city rail system and cabs are used widely to carry the message of mobility. Customer-focused activities are gaining traction among cellular operators with the establishment of longstanding consumer benefit programs. Orange in Mumbai offers "Orange Holidays" and "Orange Monsoon Offers" at very attractive rates and added benefits like discounts on airfare, food and beverages, among others. Others offer special privileges in retail outlets, cinemas and music shops.

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Enterprise mobile applications promising revenue stream

All along, customer acquisition and the top line have been the focus. Few operators have concentrated on offering differentiated services for businesses. However, as operators realize that offering basic voice and Short Message Service (SMS) will get them the numbers but not the margins, some are now seriously looking at the enterprise segment for provisioning superior services. Cost-centered solutions like closed user group (CUG), value-adds like unified messaging and instant alerts are being offered. A variety of mobile applications are finding takers among the enterprise segment. BSNL is in the process of introducing a facility to fleet management companies so that they can improve the efficiency of trucks or buses by tracking movement and ensuring higher-use, accurate route planning. Premium automakers are also installing a global system for mobile communications inside a vehicle to help trace lost vehicles and track down stolen cars. 20

Corporations can choose enhanced services like user-defined call routing to prevent misuse. Calls can be barred, limiting access to select numbers and diverting calls to one single number. Broadcasting services are also quite popular, especially among fast food centers that have a central number. Group SMS is quite popular, especially among enterprises both in the service as well as the fast-moving consumer goods (FMCG) segment that have a large field force and need to provide regular updates on inventory status, discount schemes and movement of goods from warehouse to the retail outlet. Banks too find bulk SMS service very useful to forward transactional alerts to their customers.

1.3 FUTURE TRENDS AND DEVELOPMENT

There will be more competition, forcing operators to constantly focus on differentiations to maintain their lead. The implementation of enhanced networks like 2.5G will enable operators to offer data services. This is an opportunity to customize and differentiate better.

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The entry of state-run operators like BSNL and BSNL means that prices will no longer be controlled, thus there is less chance of a cartel being formed.

Network coverage in terms of geographic spread and quality of coverage is crucial especially for the business subscriber.

The bigger the service provider's national presence, the better it is for businesses. On the roaming front, signing up with a national operator is advantageous.

Limited mobility wireless in local-loop services (by fixed network service providers) will be a disadvantage for cellular operators in the short term. Consequently, operators need to streamline their customer relation activities and adopt aggressive subscriber acquisition and retention strategies.

1.4 REGULATORY ISSUES

The operations of this sector are determined as under the Indian Telegraph Act of 1885. A document buried in the sands of time. The next major policy document, which was produced, was the National 22

Telecom Policy of 1994, a consequence of the ongoing process of liberalization.

IMPOR

Year

Event

1851

First telephones in India

1943

Nationalization of telephone companies

1985

DoT was created

1986

Creation of BSNL and VSNL

1991

Telecom equipment liberalized

1994

Licenses for paging

1994

Telecom policy announced

September 1994

Guidelines for private sector participation in basic services

November 1994

Cellular licenses issued for metros

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December 1994

Tenders for cellular licenses in 19 cities apart from 4 metros

January 1995

Tenders for 2nd operator in basic services apart from DoT on circle basis.

August 1995

VSNL launches Internet services

January 1996

TRAI formed

November 1998

Internet policy announced

The National Telecom Policy of 1994 document, which laid out broad policy guidelines rather than a series of action points. Like other policies, it sought to achieve the impossible in finite time like improve quality of service and its availability, wide coverage (a phone in every village), at reasonable rates, etc. The targets in quantifiable terms were installation of 9.5mn additional lines, telephone on demand by 1997, and a PCO pop of 500. The Eighth Plan had also allowed private operators in value added services. To facilitate licensing, the nation was divided into 20 circles (akin to a state) for basic and 21 circles for

24

cellular telephony. Mumbai falls in Maharashtra circle and Delhi in itself a circle. The basic premise on which competition has been introduced is that every circle will have one private operator apart from Dot/ BSNL for basic and two operators for cellular. Dot/ BSNL have the option to become the third cellular operator in future. Government did not achieve most of its stated targets. The basic theme, which was broadening the reach of telephony in India, has not been met. Even liberalization policies were not implemented properly. The regulator TRAI was set up after delays and confusion and even after its creation, Dot continued to fight with it in courts. It was also affected by the resource crunch, and financing options like BOT, BOOT and BOLT was not used at all. The major policy direction it showed was to allow private sector entry in both basic and value added services. The intention, though noble failed to achieve its goals because of improper implementation, the economic costs are still borne by the end user.

25

The telecom sector has witnessed some fundamental structural and institutional reforms in the past decade. telecom equipment

manufacturing was completely deregulated in 1991. Value-added services (including cellular services) were thrown open to private sector participation in 1992. Basic services were opened to private participation in 1994 by dividing the country into 21 telecom Circles and allowing one private operator per Circle to compete with DoT. An independent telecom regulatory Authority of India was set up in 1997. A new Policy for Internet Service Policy Providers (ISPs) was announced in 1998 allowing independent service providers to enter the sector ending the earlier monopoly of VSNL. Reorganization of DoT, separating policymaking of DoT's function and service network provision are two and major

corporatization

operational

institutional reforms, which need to be implemented.

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Board of Directors
The Board comprise of 12 Directors, of which 6 [including the CMD] are whole time Directors; 2 Government Nominee Directors and 4 Non-official Part Time Directors. The present composition is as under 27

Chairman & Managing Director- Shri R.K. Upadhyay Director - Consumer Fixed Access(CFA)- ShriN.K.Gupta Director - Consumer Mobility(CM) - ShriR.K.Agarwal Director - Enterprise - Shri A.N.RAI Director - Finance - Shri KCGK Pillai ShriShahbaz Ali, Govt. Director ShriAshishGuha, Director ShriAjaiVikram Singh, Director Prof. N. Balakrishnan, Director

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MISSION of BSNL

Be the leading telecom service provider in India with global presence.

Generating value for all stakeholders - employees, shareholders, vendors & business associates

Maximizing return on existing assets with sustained focus on profitability

Becoming the most trusted, preferred and admired telecom brand

To explore International markets for Global presence

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

Developing a marketing and sales culture that is responsive to customer needs customer care, sales& marketing

Excellence in customer service-friendly, reliable, time bound, convenient and courteous service

Leveraging technology to provide affordable and innovative products/ services across customer segments 29

Offering differentiated products/services tailored to different service segments

Providing reliable telecom services that are value for money

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 efficient decision making

Building effective IT systems and tools

30

Growth Plan

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

New Services introduced/planned by BSNL

3G Services: BSNL has started 3G services in 290 cities and acquired

more than 6lakh customers. It has planned to roll out 3G services in 760 cities across the country in 2010-11. 31

Broadband services: The shift in demand from voice to data has

revolutionized the very nature of the network. BSNL is poised to cash on this opportunity and has planned for extensive expansion of the Broadband services. The Broadband customer base of 3.56 Million customer in March'2009 is planned to be increased to 16.00 million by March 2014.

BSNL is also offering prepaid Broadband services. The customers availing prepaid broadband have many advantages over post paid broadband like control on usage, Mobility etc.

In addition to wire line broadband services, BSNL is also in the process of rolling out its Wi-MAX network in rural areas to take an initial lead and provide wireless broadband services in all rural blocks in the country during 2010-11. The Urban Wi-Max is also being deployed in Kerala & Punjab Circles and shall cover all the major cities in these circles.

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Wi-Max services are also being provided through a Franchisee agent with M/s SOMA in three states of Gujarat, AP and Maharashtra.

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

Fiber to Home(FTTH) : To meet the demand for high bandwidth services, BSNL is rolling out FTTH services (GPON & GE-PON) for the first time in the country, which is likely to generate substantial revenue in coming years. Services are likely to start by March 2010.

Mobility in WLL: BSNL is planning to provide full mobility on its WLL network from March 2010. Important Projects under implementation

Tender for 93 Million GSM Mobile Lines to meet the requirement for next three to five years.

Wi-Max:

33

1000 Base Station rural Weimar 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 systems: Bharat Lanka Cable System: Connecting to Sri Lanka and to reach in the Pacific direction from India. Europe India Gateway (EIG) Cable System: Connecting UK, Portugal, Gibraltar, France, Libya, Egypt, Saudi Arabia, Djibouti, Oman & UAE. Millennium Cable System: It is joint

34

venture with MTNL to lay Millennium Cable System in two directions as follows:-

Millennium Cable Sub-System East (MCSS-E) connecting the East Coast of India 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 direction.

International MPLS-VPN: BSNL has made arrangements for providing International MPLS VPN services in about 400 cities and 150 countries.

With the above expansion plans and introduction of new services, the

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turnover of the company is expected to grow from Rs. 35800 crore in March 2009 to Rs. 52,000 crores by March 2014.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.

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. 36

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.

Staff

Distribution of Group-wise staff strength of BSNL (numbers) as on 31st March 2011 is indicated below:

BSNL UP(E) Circle at a Glance

The Organization 37

In order to manage efficiently and better way U. P. Telecom Circle was bifurcated on 01.04.1995 into two separate Circles viz. U. P. (East) Telecom Circle with Headquarter at Lucknow and U. P. (West)Telecom Circle with Headquarter at Dehradun ( at Present Meerut).The Circle is headed by an officer of the rank Chief General Managerand is assisted by one PGM(D) and nine General Managers forOperation, Mobile Services (03 GMs), Marketing, NC,

BusinessDevelopment, Land & Building, WLL, Telegraph and Finance and twoChief Engineers(Civil and Electrical) at headquarter. Apart from this there are one Principal General Manager for Lucknow, Thirteen GM in Major Telecom District and Nineteen Telecom District Managers at minor Telecom District in the field. Total around 16 thousandemployees are there to manage BSNL UP East Telecom Services.

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BSNL RTTC Lucknow

PROFILE
Regional Telecom Training Centre, Lucknow was started in rented building in 1985 at Vivekanandpuri, near Vivekanand Polyclinic Lucknow. The new building was completed in May 2003 and it was finally shifted in its own building at Sector-G, LDA Colony, Kanpur Road, Lucknow on 26th May 2003. It is 08 Km from Charbagh Railway Station, Lucknow, 05 Km away from BhimRaoAmbedkar Inter-State Bus Station, Alambagh, Lucknow and 05 Km away from Amausi Airport, Lucknow. Lucknow is also called City of Nawabs. Places like Bara Imambara, Chota Imambara, Rumi Darwaza, British Residencey, Shahi Masjid, Sheed Smarak, Shahnazaf Imambara are of historical importance. OBJECTIVES:

1. To

Impart

In-service

courses

relating

to

latest

telecom

technologies for the Officers of BSNL especially UP(East) Circles. 2. To Impart Induction Training to Group B executives of BSNL. 3. To conduct Seminars on latest technologies in fields of Telecommunication. 4. To conduct Workshops on different topics concerning BSNL. 39

5. To exercise Technical control over CTTC Lucknow and CTTC Meerut 6. To conduct field Training Programmes in all SSAs of U.P. (East) Circle.

HOW TO REACH RTTC LUCKNOW

CAMPUS
Campus Area of RTTC Lucknow is 1,15,013.67 Sq. Mt. and Constructed Area is 14,703.8 Sq. Mts. Main building, i.e.,

Administrative cum Academic Block and RTTC Hostel building are housed in RTTC Campus.

At present main building has constructed area of 11,671 Sq. Mts. and it accommodates Class Rooms, Laboratories, Audio-Visual Lab, Library, Administrative block, Well furnished Seminar Hall and Conference Room.

Regional Telecom Training Center Lucknow

40

The RTTC Hostel is situated very near to Administrative building in the same campus. About 100 trainers can be accommodated in the Hostel. Three seated & Two seated rooms are available. One separate ladies wing is also available. There is one recreation room equipped with TT Table, Carom Board, and Color TV etc. Outdoor game facility is also available like Badminton, Lawn Tennis. Hostel Mess is running on Co-operative basis & managed by Trainees.

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ORGANIZATION PERFORMANCE

Organization performance
PROJECTS RECENTLY IMPLEMENTED/UNDER DEVELOPMENT

National Internet Backbone of BSNL

42

Voice over IP

Broadband Services - ADSL & High Speed Internet

Managed Leased Line Network (MLLN)

Access Network - LMDS, DLCs, RLC etc.

Internet Exchange Points - IXP & Internet Data Centers (IDC)

E-Commerce

Telephone

Basic Telephone (Bfone)

as on Total Number of connections 30.04.2011 69593752

WLL (Tarang)
as on Total Number of connections 30.04.2011 45,95,807

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Village Public Telephones

as on Total Number of Telephones 31.03.2011 555,325

as on Total Number of Public Telephones 31.03.2011 28,64,174

STD Stations

as on Number of STD Stations 31.03.2011

41,915

Transmission Systems as on 31.07.2008 Transmission Systems Digital

44

(Route kms) Coaxial Microwave UHF Optical Fiber 7,024 73,730 55,130

(Route kms)

5,80,196

Satellite Based Services (as on 31.05.2011) MCPC-VSATs IDR Systems (2 Mb/ 8 Mb) 301 64/17

Mobile Services

(As on 30.05.2011)

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District Headquarters covered Total number of villages covered National Highway covered (Km) State Highway covered (Km) Railway route covered (Km)

592

2,39,021

55,438

41,339

25,730

Total number of connections

69593752

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ORGANIZATION PRODUCTS SERVICES

Organization products / Services

47

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. Keeping the global network of Networks networked, the countrywide Internet Services of BSNL under the brand

48

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.

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Intelligent Network
Intelligent Network Service (In Service) offers valueadded 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

50

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.

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OBJECTIVE OF THE STUDY

OBJECTIVE OF THE STUDY

52

1. To identify the difference in market performance of BSNL and its competitors. 2. To study the market of BSNL Industry in big scale sector. 3. To compare various parameters of manufacturing process,

technology, production policy, advertising, collaboration, export scenario, future prospect and government policies.

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SCOPE OF STUDY

54

SCOPE OF STUDY

Corporate may promote their products directly to consumer through advertising and promotion and/or direct marketing efforts or through reseller and sales people. (selling function exist mostly in large corporation and smaller companies that is as a link to reseller or dealers in B2B transaction). Depending on the role define by the org., the responsibilities and specific task of sales people may differ, but ultimately these task are design to help attain communication and marketing objectives. it tells management has been achieved through public relation activities . it provides management with a way to measure public relation achievement quantitatively. It gives management way to judge the quality of public relation, achievement and activities. 55

56

LITERATURE REVIEW

Literature review
VISION

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"As we spread wings to expand our capabilities and explore new horizons, the fundamental focus remains unchanged: seek out the best technology in the world and put it at the service of our ultimate user: our customer." These are the premise on which BHARAT SANCHAR NIGAM LIMITED has based its entire plan of action. BSNL has been at the forefront of technology and has revolutionized telecommunications with its world-class products and services. Established in 1985, BSNL has been a pioneering force in the telecom sector. With many firsts and innovations to its credit, ranging from being the first mobile service in Delhi, first private basic telephone service provider in the country, first Indian company to provide comprehensive telecom services outside India in Seychelles and first govt. sector service provider to launch National Long Distance Services in India. BSNL had approximately 3.21 million total customers nearly 2.88 million mobile and 334,000 fixed line customers. Its services sector businesses include mobile operations in Andhra Pradesh, Chennai, Delhi, Gujarat, Haryana, Himanchal Pradesh,

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Karnataka, Kerala, Kolkata, Madhya Pradesh circle, Maharashtra circle, Mumbai, Punjab, Tamil Nadu and Uttar Pradesh (West) circle. In addition, it also has a fixed-line operations in the states of Madhya Pradesh and Chhattisgarh, Haryana, Delhi, Karnataka and Tamil Nadu and nationwide broadband and long distance networks. BSNL has recently launched national long distance services by offering data transmission services and voice transmission services for calls originating and terminating on most of India's mobile networks. The Company is also implementing a submarine cable project connecting Chennai-Singapore for providing international bandwidth. BSNL also manufactures and exports telephone terminals and cordless phones. Apart from being the largest manufacturer of telephone instruments, it is also the first telecom company to export its products to the USA. BSNL Tele-Ventures' strategic objective is tocapitalise on the growth opportunities that the Company believes are available in the Indian telecommunications market and consolidate its position to be the leading integrated telecommunications services

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provider in key markets in India, with a focus on providing mobile services. The Company has developed the following strategies to achieve its strategic objective: Focus on maximizing revenues and margins; Capture maximum telecommunications revenue potential with minimum geographical coverage; Offer multiple telecommunications services to provide

customers with a "one-stop shop" solution; Position itself to tap data transmission opportunities and offer advanced mobile data services; Focus on satisfying and retaining customers by ensuring high level of customer satisfaction; Leverage strengths of its strategic and financial partners; and Emphasize on human resource development to achieve

operational efficiencies.

Businesses

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BSNL Tele-Ventures current businesses include Mobile services Fixed-line National and international long distance services VSAT, Internet services and network solutions

Competitive Strengths
BSNL Tele-Ventures to the believes that the following as elements an will

contribute

Company's

success

integrated

telecommunication services provider in India and will provide the Company with a solid foundation to execute its business strategy: Nationwide Footprint - approximately 92% of India's total mobile subscribers resided in the Company's fifteen mobile circles. These 15 circles collectively accounted for approximately 56% of India's land mass; Focus on telecommunications to enable the Company to better anticipate industry trends and capitalize on new

telecommunications-related business opportunities;

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The strong brand name recognition and a reputation for offering high quality service to its customers; Quality management team with vision and proven execution skills; and The Company's strong relationships with international strategic and financial investors such as SingTel, Warburg Pincus, International Finance Corporation, Asian Infrastructure Fund Group and New York Life Insurance.

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Brand Architecture
BSNL is working on a complex

three-layered

branding

architecture to:
Create specific brands for each service, Build sub-brands within each of these services and Use BSNL as the mother brand providing the group its corporate identity as well as defining its goal to become a national builder of telecoms infrastructure.

BSNL- The flagship brand for cellular operations all across the
country.

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Brand Strategy
To understand the brand strategy, lets first look at the brand building exercise associated with BSNL a brand that had to be repositioned recently to address new needs in the market. When the brand was launched seven years ago, cellular telephony wasnt a mass market by any means. For the average consumer, owning a cellular phone was expensive as tariff rates (at Rs 8 a minute) as well as instrument prices were steep sometimes as much as buying a second-hand car. BSNL could have addressed the customer by rationally explaining to him the economic advantage of using a mobile phone. But Sachdev says that such a strategy would not have worked for the simple reason

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that the value from using the phone at the time was not commensurate with the cost. Instead of the value-proposition model, we decided to address the sensory benefit it gave to the customer as the main selling tack. The idea was to become a badge value brand, he explains. So the BSNL leadership series campaign was launched showing successful men with their laptops and in their deluxe cars using the mobile phone. In simple terms, it meant BSNL was positioned as an aspirational brand that was meant for leaders, for customers who stood out in a crowd. Did it work? Repeated surveys following the launch showed that there were three core benefits that were clearly associated with the brand leadership, dynamism and performance. These were valuable qualities, but they only took BSNL far enough to establish its presence in the market. As tariffs started dropping, it became necessary for BSNL to appeal to a wider audience. And the various brand-tracking exercises showed that despite all these good

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things, there was no emotional dimension to the brand it was perceived as cold, distant and efficient. Sachdev and his team realized that in a business in which customer relationships were the core this could be a major weakness. The reason? With tariffs identical to competitor Essar and roughly the same level of service and schemes, it had now become important for BSNL to humanize and use that relationship as a major differentiation. The brand had become something like Lufthansa cold and efficient. What they needed was to become Singapore Airlines, efficient but also human. A change in tack was important because this was a time when the cellular market was changing. The leadership series was okay when you were wooing the crme de la crme of society. Once you reached them you had to expand the market so there was need to address to new customers. By that time, BSNL was already the leading cellular subscriber in Delhi with a base of 3.77 lakh (it now has 1.2 million customers). And with tariffs becoming more affordable as cell companies started cutting prices it was time to expand the market.

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How could BSNL leverage this leadership position down the value chain? Surveys showed that the concept of leadership in the customers minds was also changing. Leadership did not mean directing subordinates to execute orders but to work along with a team to achieve common objectives it was, again, a relationship game that needed to be reflected in the BSNLbrand. Also, a survey showed that 50 per cent of the new customers choose a mobile phone brand mostly through word-of-mouth endorsements from friends, family or colleagues. Thus, existing customers were an important tool for market expansion and BSNL now focused on building closer relationships with them. That is precisely what the brand tried to achieve through its new positioning under the BSNL Touch Tomorrow brand campaign. This set of campaigns portrayed mobile users surrounded by caring family members. Says Sachdev: The new campaign and positioning was designed to highlight the relationship angle and make the brand softer and more sensitive.

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As it looks to expand its cellular services nationwide to eight new circles apart from the seven in which it already operates BSNL is now realizing that there are new compulsions to rework the BSNL brand, and a new exercise is being launched to this effect. Right now, the company is unwilling to discuss the new positioning in detail. But broadly, the focus is on positioning BSNL as a power brand with numerous regional sub-brands reflecting customer needs in various parts of the country. If BSNL is becoming more humane and more sensitive as a brand, BSNL has also understood that one common brand for all cellular operations might not always work in urban markets that are now getting increasingly saturated. To bring in new customers, the company decided that it needed to segment the market. One such experiment, launched last year, is Youtopia, a brand aimed at the youth in the 14 to 19 age bracket and for those who are young at heart. With its earlier positioning, BSNL was perceived as a brand for the well-heeled older customer; there was nothing for younger people. With Youtopia, BSNL hoped to reverse that. 68

In order to deliver the concept, BSNL offered rock bottom tariff rates (25 paisa for 30 seconds) at night to Youtopia customers a time when they make the maximum number of calls. It also set up merchandising exercises around the scheme like a special portal for young people to buy things or bid for goods. The company is now looking at offering other services at affordable prices to this segment which include music downloads on the mobile and bundling SMS rates with normal calls to make it cheaper for young people to use. The other experiment that BSNL has worked on is to go in for product segmentation through the Tango brand name. The brand was created to offer mobile users Internet-interface services or what is known as WAP (Wireless Application Protocol). The idea was to bring Internet and mobile in perfect harmony. The name was chosen from the popular movie title It Takes Two To Tango: basically, you need the two services to tango to offer customers a new choice, says Sachdev.

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This, however, had less to do with the branding exercise as with inefficiency of service (accusingly slow download speeds) and the limited utility of WAP services. Subsequently, the ads were withdrawn, but the company re-iterated that the branding exercise could be revived because Tango will be the brand to offer GPRS services or permanent Internet connectivity on the mobile phone which BSNL is expected to launch soon.

The Magic:

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Perhaps the more ambitious experiment has been with Magic the pre-paid card. The idea was to make the brand affordable, accessible and, most importantly, feasible as a means of expanding the market even faster.

PHASE I
Magic was aimed at bringing in infrequent users of a mobile phone into the market and assure him that he would have to pay only if he made a call. Such a customer used the phone sparingly mostly for emergencies and was not willing to pick up a normal mobile connection with its relatively high rentals (pre-paid cards do not include rental charges). To achieve its objectives BSNL did three things. * One, the product was made available at prices ranging from Rs 300 to Rs 3,000 with no strings attached and was simple to operate. * Two, the product was made accessible and distributed through small stores, telephone booths and even kirana shops so that the offering was well within arms reach. 71

Third, to make the product more approachable to the customer, the company came with vernacular ad campaigns like

BSNL Connecting India which appealed to local sensibilities.

This apart, the company roped in "Prityjinta "for a major ad campaign all across Delhi, a ruse that saw the number of subscribers go up from 5.47 lakh to 12 lakh today, overtaking Essars branded pre-paid card

Speed, which was launched much ahead of Magic. The company is now
re-working its Magic strategy even further. Earlier, the branding strategy was aimed at roping in only interested customers that is, customers who were already inclined to opt for mobile services. But now, with basic service providers having been allowed limited mobility at far cheaper rates, mobile service providers could find themselves under threat again. That is why the new exercise is aimed at co-opting non-adopters. While the exact strategy is under wraps, insiders say the new branding strategy would be aimed at offering them value which they had not perceived would be available from using a pre-paid card.

PHASE II -

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First time ever in India - any pre-paid card brand goes on TV A combination of the film genre exposed through the TV medium designed to connect with the masses of India Youth based - romance driven strategy platform makes the value proposition of BSNL. All elements - user imagery, context, tone & language created to connect the category to the lives of the SEC B & SEC C segment the middle class non-mobile user. BSNL positions itself on the platform of being excellent for emergency situations - increasing productivity as a part of everyday life.

The brand is positioned to be relevant to the mass-market who want to make all their dreams, hopes & desires come alive instantly. (At just Rs.300/- per month BSNL is so easy to buy.)Improving productivity, letting you befriend the world and opening up new horizons.

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The genre of this new strategy & campaign is Hindi cinema led. This genre connects millions across India. The spirit of romance, dancing the Indian cinema, well known to most as Bollywood, holds millions of Indians together as one. (Poignantly conveying that special feeling we all get when a dream is made possible and a victory of the heart is won). The strategy & new brand campaign is targeted at the large untapped base of intending mobile customers from Sec A, B & C. The estimated addressable market of such customers in the next two years is around 25 million in 20 states. The new strategy aims at correcting the

perception that the mobile category is useful mainly for business or work related scenarios. The new strategy, brand positioning & brand slogan is an outcome of an extensive nationwide research and is an integral part of BSNL new multi-media campaign. Advertising. The campaign has been created by Percept

PHASE III -

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BSNL to build a strong value proposition and accelerate market expansion through Indias first national pre-paid card TV brand campaign First time ever in India - any pre-paid card brand gives such

freedom to recharge any value A combination of the film genre exposed through the TV medium designed to connect with the masses of India Youth based - romance driven strategy platform makes the value proposition of" BSNL Connecting India come alive. The value proposition is centered around a persons desire to make all his / her dreams, ambitions & aspirations instantly possible. The new campaign for BSNL is all about empowering millions of Indians to be on top of their lives. The brand is positioned to be relevant to the mass-market who want to make all their dreams, hopes & desires come alive instantly .At a amount of your choice you can recharge your account with available validity time .Improving productivity, letting you befriend the world and opening up new horizons. It gives you the freedom to control

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your life in a way never possible before.

Indeed, anything that you

think is Connect with BSNL. The new brand slogan "Connecting India" been specially created to capture this effectively.

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BSNL plans
Talk Amount Service Tax (Rs.) 54 60 75 100 125 150 175 200 (8%) 4 4.44 5.56 7.41 9.26 11.11 12.96 14.81 Fees(Rs.) 25 25 25 25 50 50 50 50 (Rs.) 25 30.56 44.44 67.59 65.74 88.89 112.04 135.19 (Days) 5 5 5 5 10 10 10 10 Processing Time Validity

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216 225 250 275 300

16 16.67 18.52 20.37 22.22

85 85 85 85 85

115 123.33 146.48 169.63 183.78

20 20 20 20 20

Talk Amount Service Tax (Rs.) 324 350 360 375 400 425 475 500 525 540 600 (8%) 24 25.93 26.67 27.78 29.63 31.48 35.19 37.04 38.89 40 44.44 Fees(Rs.) 150 150 150 150 150 150 150 150 150 150 150 (Rs.) 150 174.07 183.33 197.22 220.37 243.52 289.81 312.96 336.11 350 405.56 (Days) 30 30 30 30 30 30 30 30 30 30 30 Processing Time Validity

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650 700 775 800

48.15 51.85 57.41 50.36

150 150 150 150

451.56 498.15 567.59 580.74

30 30 30 30

Tax ( Rs.) 850 900 1000 1080 1200 1300 1400 1500 1800 2000 2160 3000 5000 6000 (8%) 62.96 66.67 74.07 80 88.89 96.3 103.7 111.11 133.33 148.15 160 222.22 370.37 444.44 Fees(Rs.) 150 150 150 150 150 150 150 150 150 150 150 150 300 300 (Rs.) (Days) 637.04 683.33 775.93 850 961.11 1053.7 1146.3 1238.89 1516.67 1701.85 1850 2627.78 4329.63 5255.56 60 60 60 60 60 60 60 60 60 60 60 60 366 366

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7000 8000 9000 9999

518.52 592.59 666.67 740.67

300 300 300 300

6181.48 7107.41 8033.33 8958.33

366 366 366 366

YOUR TALK TIME = MRP - PROCESSING FEE SERVICE TAX

Other Brand Building Initiatives

The main idea is to stay ahead of competition for at least six months. Working on the above game plan BSNL is constantly coming up with newer product offerings for the customers. The focus, of course, is to offer better quality of service. * To make the service simpler for customers using roaming facilities, BSNL has devised common numbers for subscribers across the country for services like customer care, food services and cinema amongst others.

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It will also launch a unified billing system across circles so, customers moving from one place to another do not have to close and then again open new accounts at another place.

To assist customer care personnel to deal with subscriber queries, a storehouse of 40,000 frequently asked questions and their answers have been stored on the computers.

BSNL expects that most of its new customers (one estimate is that it would be 60 to 70 per cent of the total new subscriber base) would come from the pre-paid card segment. So, they must be given value-added products and services which competitors dont provide.

BSNL, for the first time for a cellular operator, has decided to offer roaming services even to its pre-paid customers, but the facility would be limited to the region in which they buy the card. To ensure that customers dont migrate to other competing services (which is known as churn and ranges from 10 to 15 per cent of the customer base every month), the company is also

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working on a loyalty program. This will offer subscribers tangible cash benefits depending upon their usage of the phone. * The loyalty program will not be only for a badge value, it will provide real benefits to customers. The idea is to create an BSNL community. * Another key area which BSNL is concentrating its attention upon is a new roaming service launched in Delhi under which calls of a roaming subscriber who is visiting the city will be routed directly to his mobile instead of traveling via his home network. * The company also offers multi-media messaging systems under which customers having a specialized phone with a in-built camera can take pictures and e-mail it to friends or store it in the phone. The cost per picture is between Rs 5 to Rs 7. * BSNL is also aware that it has to make owning a ready-to-use cellular service much easier than it is today. A key area is to increase the number of activation centers. Earlier BSNL had 250 BSNL Connect stores which were exclusive outlets (for its services) and about 250 BSNL Points which were kiosks in larger

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shops. Now activation can be done by all of them, and not only by Connect outlets, all within 15 to 20 minutes. In comparison, the competition takes two to four hours. * Pre- paid cards are really catching up with the mobile phone users and it is actually helping the market to increase. First, they are easier to obtain and convenient to use. Unlike post-paid, one need not pay security deposits for picking up a pre-paid card. It is often available even with paanwalas. As befits a fast-moving consumer service, the game is now moving beyond price to expanding distribution reach and servicing a well-spread-out clientele with technology and strategic alliances. BSNL is focusing on two factors to make pre-paid cards more attractive. Keeping the entry cost low for consumers and making

recharging more convenience. * BSNL is in the process of launching a new system in alliance with Mumbai-based company Venture InfoTech which will enable a pre-paid card user to renew his subscription by just swiping a card. The system will not only save users the hassle of going out

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and buying a card every time it expires but also enable mobile companies to reduce the cost of printing and distributing cards. * BSNL Televentures has tied up with 'Waiter on wheels,' a company delivering food at home, to reach its Magic pre-paid cards to subscribers' doorsteps. The company is also joining hands with local grocery shops which will enable users to recharge their cards by just making a phone call to the shop. Apart from improving the convenience of recharging, mobile operators are beefing up their distribution channels. The company is constantly innovating to enhance the value

proposition for its pre-paid service. They are leveraging technology to expand their distribution network and deliver round-the-clock recharge options to its MOTS (Mobile On the Spot) subscribers. * BSNL Cellular has also launched a special service, CareTouch, for high-value, corporate customers, providing them with instant, single-point access for any assistance they require. Customers can dial 777 and enjoy a slew of services, which includes easier payment of bills, service on priority basis, and value-added 84

services without any additional paper work. BSNL Cellular is offering a range of services without going through an interactive voice recorder ensuring that they save time. Dedicated Care Touch executives are expected to assist customers with any service on priority basis. Besides the regular proactive reminder calls for bill payment, customers can also call Care Touch for bill payments at free of cost. * BSNL presented MTV Inbox; the first on-air SMS based interactive music dedication show exclusively for BSNL and BSNL Magic customers. Highly interactive VJ based show with realtime feedback mechanism. Both brands joined hands to target the high growth youth segment.

BSNLs View on its Branding strategy

First, brand building efforts in todays context have to be seen in a more holistic manner. Delivering value on a sustained basis is perhaps the most potent key to build a brand that lasts.

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Unflinching orientation to customer needs is the second key success factor. Customers (be it for industrial products or consumer goods and services) across the world are more informed and, at the same time, becoming more individualistic in their needs and far more demanding with the passage of time. Pro-active tracking of shifts in consumer behavior, anticipating redefined or emerging customer needs, and then reacting in realtime are essential to attract and retain customer loyalty a key element of creating brand equity in the present situation. Customizing the product (and communication of its benefit) to meet the specific needs of various consumer/customer sub-segments is the third element in creating brand appreciation. As far as allocation of time and financial resources are concerned, too many companies mistakenly allocate a disproportionate amount on mere advertising and promotion. This is not to say that advertising and promotion are less relevant. On the contrary, with more choices and higher media clutter, businesses need to budget for an increasingly higher spend on their brand promotion but this has to be undertaken

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in tandem with enterprise-wide reengineering of the business philosophy and core design, production, and delivery operations for the product itself. The positive spin to this argument is that by first addressing the fundamentals, the enterprise itself becomes more competitive. This can be the beginning of a virtuous cycle wherein brand equity continues to increase as the enterprise sustains delivery of an appropriate product or service at an ever increasing value. It is, however, crucial to note that in the years to come, not only will the cost of building a regional or a national (or an international) brand will continue to rise but also the time taken to do so will be longer and will need sustained and focused efforts

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88

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY
Achieving accuracy in any research requires in depth study regarding the subject. As the prime objective of the project is to compare BSNL with the existing competitors in the market and the impact of landline & WLL on BSNL, the research methodology adopted is basically based 89

on primary data via which the most recent and accurate piece of firsthand information could be collected. Secondary data has been used to support primary data wherever needed.

Primary data was collected using the following techniques

Questionnaire Method Direct Interview Method and Observation Method The main tool used was, the questionnaire method. Further direct interview method, where a face-to-face formal interview was taken. Lastly observation method has been continuous with the questionnaire method, as one continuously observes the surrounding environment he works in.

Procedure of research methodology

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#To conduct this research the target population was the mobile users, Who are using GSM technology. # Target geographic area. Sample size of 100 was taken. #To these 100 people a questionnaire was given, the questionnaire was a combination of both open ended and closed ended questions. #The date during which questionnaires were filled. #Some dealers were also interviewed to know their prospective. Interviews with the managers of GSM service providers were also conducted. # Finally the collected data and information was analyzed and compiled to arrive at the conclusion and recommendations given.

Sources of secondary data

Used to obtain information on, current issues, policies, procedures etc, wherever required. # Internet # Magazines # Newspapers

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# Journals

FINDING AND ANALYSIS

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FINDING AND ANALYSIS

AGE GROUP

70% 60% 50% 40% 30% 20% 10% 0% 15-21 21-28 28-35 15-21 28-35 21-28

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Age Group Graph

As we can see from the above graph, the people who are in the age group of 21-28 years are the ones who are the maximum users of mobile phones. This segment is the one which gives maximum

business to the mobile operators. This segment constitutes the young executives and other office going people. They are 65% of the total people who were interviewed. The next age group are the people who are 28-35 years old. They are 20% of the total. They are those who are at home or have small business units etc. And the next age group is the youngest generation who are 15-21 years old. They are school and college going students and carry mobile phones to flaunt. They are 15% of the total interviewed people.

Occupation Graph

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OCCUPATION

EXECUTIVES

STUDENTS

Series1

As the above graph shows that 55% of the total people interviewed are working. So, these people are the ones who are the maximum users of mobile phones. They are the young executives, managers, Tele callers etc. who require mobile for their official purposes. The next category is the households, who are either housewives, small units which operate from their homes etc. They are 20% of the whole . The next segment is the students. They are 15% of the whole. And 10% of the whole is a category who are the professionals.

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HOUSEHOLDS

OTHERS

60% 50% 40% 30% 20% 10% 0%

55% 20% 10%

15%

Service Provider Graph

SERVICE PROVIDER
60% 50% 40% 30% 20% 30% 10% 0% 15% 5% 50%

Series1

The above graph shows a slice of 50%. These are the total no. of people who are using BSNL. It seems that people are more aware of BSNL than any other brand. The next popular brand is BSNL. 305 of the people interviewed had BSNL connections. The next popular brand was Idea. 15% people had Idea connections. As it came very late in the market when BSNL had established it self very well. So, that could be

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one of the reasons of such a low percentage. The remaining 5% had trump connections.

Customer Service at BSNLGraph

CUSTOMER SATISFACTION LEVEL

10%
60% 20% 10%

FULLY PARTIALLY DISSATISFIED

As the above graph clearly shows that customer services at BSNL is 60% of the people are dissatisfied with the customer services provided by BSNL. They are the ones who have the maximum share in the

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market but they are lagging behind in the customer services. 10% of the people were fully satisfied with the customer services of BSNL. This could leave an impact on the mind of the consumer. He can even switch over his brand. 20% of the people seemed partially satisfied with the customer services and only 10% seem to be fully satisfied with BSNLs customer services, which is a very small amount.

Type Of Card Graph

TYPES OF CARDS
90%

80%
70% CASH CARD 60% 50% 40%

30%
20% 10% 0%

CASH CARD

SIM CARD

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SIM CARD

Cash cards seemed quite popular among the people interviewed. 85% of the total mobile users were having cash card connections. This means that the cash cards should be easily and readily available in the local markets. BSNL should make sure that is available in each and every nook and corner of the market. 15% of the people were having sim connections which is the regular bill.

Monthly Expense

24%

12%
Rs 600 Rs 450

64%

Rs 200

Monthly expense graph

People on an average spend RS 500 per month as their mobile phone expense. 64% people spend this amount. 24% people spend RS 300 per month as their monthly mobile expense. And the remaining 12% 99

had an expense more than RS 1000, they could the ones having sim connections or having cash cards and having a lot of business calls on their mobiles.

Awareness About WLL Graph

100

AWARENESS ABOUT WLL

60%

50%

40%

30% YES NO 20%

10%

0% YES NO

WLL seemed to be a new word for many of the people. 45% of the people were not at all aware of such a technology. So, in order to get the answer for this question they were first explained the concept. Only, 55% people knew what WLL is all about.

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Awareness of WLL Players Graph

AWARENESS OF WLL PLAYERS

90% 80% 70% 50% 40% 30% 20% 10% 0% TATA INFOCOM RELIANCE RELIANCE 85 % 60% TATA INDICOM 15%

Reliance was the brand which was popular amongst the interviewed people. As Reliance had done so much advertising and has it banners and hoarding spread all over Delhi. So, this could be one the reasons of its popularity. Tata was hardly a known brand in this new field.

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Possibly, because of less promotions done by them as compared to Reliance. On the basis of analysis of the questionnaire I have found that the maximum no. of people who use mobile phones are in the age group of 20 to 28. who are the young executives and other office goers. They spend a maximum of RS. 500 as their mobile expense. There is more no. of prepared cards than postpaid cards. The mobile users want to spend money side by side than to spend money at the end of the month on a big bill. Now when I compared BSNL with its competitor from the point of view of the consumer I found that on the basis of Tariff plan, value added services and billing accuracy BSNL is at par or ahead of its

competitor but in the case of customer care and availability they lag behind their competitors. As, BSNL has a hold in the market because it has the maximum no. of connections, so it must improve upon it customer services. As far as WLL is concerned people are aware

about it but not many people are aware about Tata. They only Know

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more about Reliance. People at this point of time are not interested to switch over from GSM to WLL.

SWOT ANALYSIS
Strengths
* Being one of the largest companies in India the company has achieved a degree of focus in its core business of its products. * It has a strong brand name, superior quality products and an enviable distribution network. * It has a clear and well-defined organization structure and limits of financial authority. 104

* *

Increase in advertisement spends affect the companys margins. The companys bottom line falls victim to the bloated and highly paid workforce, which affects its margins.

Weakness:

1 Little efforts over the Advertising of products. 2 Distribution channel is not accurately categorized. 3 Premium priced products, hence cant compete in low price segment. 4 No separate strategy for rural market.

Opportunities:
* The company's financial performance can receive a major boost from its cost reduction efforts.

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* *

There is a lot of scope of product and market diversification. Exports of products will also have huge chances in the coming years.

BSNL's business has ample scope for gaining market share from the unorganized sector. Rural penetration too holds vast potential to bring about growth.

Threats * The slowdown in the economy has restricted topline growth of most FMCG majors and for BSNL also it will be difficult to maintain historical growth rates in such a depressed scenario. * Companys major raw materials are influenced by government policies / controls as well as vagaries of the monsoons.

Fluctuations in the prices of raw materials would have significant impact on costs and margins of the company. Moreover, inordinate hike in Broad Band Internet products would also increases companys production and distribution cost.

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SUGGESTIONS

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SUGGESTIONS

Following are the few suggestions to BSNL for improving the market share and image of the products concerned.

1. PRODUCT

*Modification must be brought about in BSNL, in terms of quality. Its demand should be increased.

2. PLACE

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* The brands must be made available easily in, PCO & general stores.

3. PROMOTION

*Company must undertake extensive promotional activities like advertisements must be released in different Medias to create brand awareness. *Free samples should be distributed among the prospects. Sales promotion tools like gifts, contests and coupons must be given to retailers as well as customers and prospects. * Catalogues should be distributed among customers.

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CONCLUSION

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CONCLUSION
After analyzing the findings of the research, I can conclude that BSNL lagged behind its competitors as far as customer service and availability is concerned. The maximum no. of people who use the mobile are in the age group of 20 to 28. Cash cards are the most popular type of mobile connections, as they are consumer friendly and recharging the connection is not a problem. Maximum no. of people spend RS 500 on their connections. As BSNL is the only company having the maximum no of mobile connections so it must seriously look into the loop holes of the existing customer service department. As we know that now BSNL has already launched its product with logo Connecting India has already became popular in market. So we can say that inspire of so many competitor in the market BSNL is having a good position just because every time, it tries its best to understand the need of its important customer.

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I have made following recommendation to the company after doing the summer training there:

1 The company should modify its credit policy as they only target the cash paying customers who are not easy to trace. 2 The company should emphasis more on the quality of Pharmaceuticals Products it was mostly claimed by the exporters that their receipts from company doesnt matches with the samples quality shown before giving orders. 3 The company should make its marketing strategy flexible enough in order to face competition. 4 The company should keep an eye on the proper delivery of the goods to exporter on time, as it has been recommended by exporters to make the delivery on time. 5 The company rate policy must be flexible enough to catch new customers because if company offers lower price to a new customer then he may continue buy the goods and can be a permanent customer for the company.

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6 The company should offers such rate in the market so that it may able to catch a bigger market share and it should be able to compete with the local traders and commission agents while having a brand name. The company should take the opinion of exporters from time to time to know what problems they are facing from the companys side. And if any change they require in present supplying condition?

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BIBLIOGRAPHY

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BIBLIOGRAPHY

In this project report, while finalizing and for analyzing quality problem in details the following Books, Magazines/Journals and Web Sites have been referred. All the material detailed below provides effective help and a guiding layout while designing this text report.

Books:
Marketing Management, Philip Kotler Naresh K. Malhotra, Marketing Research, Dorling Kindersley (6th Edition) Hubert D. Hennessy, Global Marketing Strategies, Jaico Publication House (2nd Edition)

Magazines:
BSNL (2 July to 10 July 2010) BSNL India page of HT paper (Thursday 1December 2010) Cowards India (26 December to 4 Jan. 2010)

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Websites:
www.bsnl.co.in www.google.com www.india.com

LIMITATIONS
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LIMITATIONS

No project is without limitations and it becomes essential to figure out the various constraints that we underwent during the study. The following points in this direction would add to our total deliberations:-

1. During the study, on many occasions the respondent groups gave us a cold shoulder. 117

2. The respondents from whom primary data was gathered any times displayed complete ignorance about the complete branded range, which was being studied. 3. Lack of time is the basic limitation in the project. 4. Some retailers/wholesalers refuse to cooperate with the queries. 5. Some retailers/wholesalers gave biased or incomplete information regarding the study. 6. Money played a vital factor in the whole project duration. 7. Lack of proper information and experience also because hurdle for me. 8. Some retailers did not answer all the questions or do not have time

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APPENDIX

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APPENDIX

QUESTIONNAIRE

Dear Sir/Madam, I am a student of MBA of Raj Kumar Goel institute of technology, Ghaziabad doing my summer training project on

consumer behavior from BSNL. filling these details.

Please give your precious time for

Q.1 for how long you have been using BSNL Product?

1 0-2 Years 2 2-5 Years 3 5-10 Years

( ) ( ) ( )

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4 More than 10 years

( )

Q.2 Are you using other product instead of BSNL?

1 Yes 2 No

( ) ( )

Q.3 Among them, which Brand you, prefer most?

1 Idea 2 BSNL 3 BSNL

( ) ( ) ( )

Excellent

Good

Average

Below

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Q. 4 How would you rate the experience with Brand?

Average

1 Idea 2 Reliance 3 BSNL

Q.5 Do you collect any information search before making purchase?

1 Yes 2 No.

( ) ( )

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Q.6 If yes, which sources are used?

1 Magazines 2 Dealers 3 Sales Executives 4 Operators reference 5 Pamphlets and catalogue

( ) ( ) ( ) ( ) ( )

6 Reference from friends and relatives ( ) 7 Any other ( )

Q.7

What are the features you look for in a product before making purchase decision? Give preferences (1-Highest, 6- least)

1 Brand credibility 2 Price and Discount 3 After sales services and parts, network 123

( ) ( ) ( )

4 Value for money 5 Vehicle performance 6 Add on features or ergonomics of design

( ) ( ) ( )

Q.8. Which of these marketing / sales schemes attracts you while purchasing any connection? 1 Good Network ( )

2 Discount scheme ( ) 3 Service package 4 Any other ( ) ( )

Q.9

If you have to purchase a new connection or product in near

future, which Brand will you go for and why?

_______________________________________________________________ _____________________________________ __________________________________________________ __________________________________________________ 124

Q.10 Are you aware of various promotional activities being run by BSNL, if yes then how? Are you satisfied with these promotional activities? 1 Customer Care 2 By Ad Films 3 By Camp 4 24 hrs. call center services ( ( ( ( ) ) ) )

Q.11

How would you rate BSNL performance as your expectation on 5 points scale

(5 Highest?) 1 After Sale service 2 Maintenance 3 Product as per expectation 4 Connectivity 5 Speed Very Satisfied Satisfied ( ) ( ) ( ) ( ) ( ) Somewhat Satisfied Not satisfied

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1 2 3 4 5

Q.12

What are you suggestions for improving the product quality, service availability and parts availability? _______________________________________________________________ _____________________________________

LETTER ADDRESSED TO CUSTOMERS BY BSNL MANAGEMENT

Dear Customers,

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BSNL wishes its 120 million strong customer family a Very Happy and Prosperous New Year. May the new year bring all joys, happiness and prosperity to your homes and the Year 2012 proves to be a promising year for all of you.

It has always been our endeavour to serve our customers with seamless and integrated state-of-the-art world class technology services at competitive price without any discrimination.

Telecommunication is no longer a plain vanilla voice service. Data services have taken a ride over voice services and telecommunication has established itself as key to economic prosperity. We take pride in taking forward the policies of the Government of India in creating an equitable Information Society. We strongly believe in and work for inclusive growth of the society. BSNL has been instrumental in unleashing growth and prosperity in rural India and has always strived to reach the masses to fulfil universal service obligations. We will continue to work for the development of Information and

Communications Technologies to the farthest and remotest places in the country to enable a better life for rural communities and bridging the digital divide. In pursuit of our mission for better life for rural 127

communities, backbone infrastructure is being created to provide broadband connectivity to Village Panchayats, Post Offices, Common Service Centres, Schools, Colleges and Universities. We have provided 5.76 lakh Village Public Telephones, 21958 Rural Community Phones, 41 million phone connections and 9.3 lakh broadband connections in rural areas. Special focus is being given on broadband connectivity to CSCs, Panchayats, Colleges and Universities. Broadband accessibility will make it possible to drive information, knowledge and content to the people in rural India.

For urban households, Business and Corporate class, we have rolled out Fiber to The Home (FTTH) technology. This technology allows 2.5 Gbps bandwidth for upstream/ downstream and supports high bandwidth services such as Voice, High speed Internet, IPTV, Video on Demand, High Speed Gaming, VPN, Lease Circuits etc. The service has been rolled out in 140 cities so far and is being expanded gradually. Triple play services on FTTH are available at a very nominal price. We have also launched a new scheme for mobile service (Choose Your Mobile Number Scheme) which facilitates you to select a number of your choice. Don't miss the opportunity and contact the nearest BSNL 128

Customer Service Centre or log on to BSNL website for details of various tariff plans/schemes. We shall be launching more attractive and useful tariff plans for land-line segment of our business very soon.

Search for innovations is a continuous process at BSNL end. Let me assure you that BSNL will always strive to offer widest possible total telecom solutions to its customers. We thank you for selecting us as a preferred service provider. We value your trust in our services and derive strength from this trust. We look forward to your continued patronage and strengthening this relationship further.

I extend best wishes for upcoming festivals of Lohri, MakarSankranti, Pongal, BasantPanchmi and Republic Day.

[Chairman & Managing Director]

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