EXECUTIVE SUMMERY

As a part of curriculum, summer internship program undergo at 5nd may to 21th June 2010 in

order to get clear idea about the various departments and to be familiarized with the industry

functioning.

The report gives information about the various departments in the organization. This report also

includes profile of the industry that gives the brief history of origin of telecom industry, it also

include company profile and information about the working system BSNL, the main objective of

summer internship training are to get an idea about the management practices of the company,

identify the trends , efficiency and effectiveness of the various department and to identify the

future prospect of the company.

This is the report of summer internship training under go in order to gain knowledge

practicability of the theoretical knowledge learned in the classroom. This report gives an idea

about how Mckensy’s 7s model is applied in the functioning of the organization.

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PART - A

2

INDUSTRY PROFILE

The telecom industry is one of the fastest growing industries in India. India has nearly 200

million telephone lines making it the third largest network in the world. With a growth rate of

45%, Indian telecom industry has the highest growth rate in the world.

The telecom network in India is the fifth largest network in the world meeting up with global

standards. Presently, the Indian telecom industry is currently slated to an estimated contribution

of nearly 1% to India’s GDP.

INTRODUCTION:

The Indian Telecommunications network with 110.01 million connections is the seventh largest

in the world and the second largest among the emerging economies of Asia.Today, it is the

fastest growing market in the world and represents unique opportunities for U.S. companies in

the stagnant global scenario. The total subscriber base, which has grown by 40% in 2005, is

expected to reach 250 million in 2007.According to Broadband Policy 2004, Government of

India aims at 9 million broadband connections and 18 million internet connections by 2007. The

wireless subscriber base has jumped from 33.69 million in 2004 to 62.57 million in FY 2004-

2005. In the last 3 years, two out of every three new telephone subscribers were wireless

subscribers. Consequently, wireless now accounts for 54.6% of the total telephone subscriber

base, as compared to only 40% in 2003. Wireless subscriber growth is expected to bypass 2.5

million new subscribers per month by 2007. The wireless technologies currently in use are

Global System for Mobile Communications (GSM) and Code Division Multiple Access

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(CDMA). There are primarily 9 GSM and 5 CDMA operators providing mobile services in 19

telecom circles and 4 metro cities, covering 2000 towns across the country.

HISTORY OF INDIAN TELE COMUNICATION

Like the ocean that is made of tiny drops, the post and telegraph had a slow and uneasy start .the

sprawling posts and telegraphs department, for instance, occupied a small corner of the public

works department in 1851. Dr William O’Shaughnessy who pioneered telegraph and telephone

in India belonged to the public works department all through the experimental stage. A regular,

separate department was opened around 1854 when telegraph facilities were thrown open to the

public.

The telegraph department during 1854-1857 comprised a department of telegraph, with tHree

deputy super dent at Bombay, Madras and Pegu Buram. There was inspector at Indore, Agra,

Kanpur and Banaras an operating and maintenance staff. Dr. O Shaughnessy was the first

superintend of electronic telegraph in India and later became the first director general. The Indo-

European telegraph department. Which later came to be known as the overseas communication,

was administered by a director –in-chief whose head quarters in London.

On 15 February 1888, it was merged with the director general of the Indian telegraph

department. it was decided that administration reports of two departments, Indian telegraph and

Indo –European department, should be separated so as to show how each unit affected the

finances of the country. The operations of the two separate services, post office and telegraph

department developed side by side. On the eve of world war1, in 1914, the next big

administrative change came. The postal administered that should be neither any substantial profit

nor any substantial loss on its working on the conditions.

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As has already been indicated, the achievement of this ideal has not proved possible owing

mainly to the exceptional economic and trades conditions of recent years. One of the main

contributory causes was the revision and improvement of pay of the great bulk of employees of

the department in recent years. This was undertaken with the approval of and indeed under

pressure by the legislative assembly. While department is commonly spoken of as a

‘commercial’ one and through as far as possible it is guided by the commercial consideration of

its business, it must be realized that in many directions it is debarred from observing strict

business principles.

After the implementation of the federal financial integration scheme of 1 st April 1950, the

administration of the entire network of telegraph and telephone systems of the nation, including

Those that. Previously existing in the former princely states became a major adventure in 1950

the number of telephone exchange absorbed Form Princely states was 196. These systems, which

were working with different degrees of efficiency, could fit in to general telecommunication

network; the installed capacity of these 196 exchanges was 13,362 lines wits 11,296 working

connections. Soon after the absorption an attempt was made to improve their technical efficiency

by Replacing obsolete and unserviceable equipment and lending well qualified and experienced

staff simultaneously, isolated exchange were integrated with the general pool. The more

complicated task was acquisition of the staff. Their final absorption into the different cadres of

service in posts and telegraphs was a major step

Indian Telecom Sector

The Indian Telecommunications sector has undergone or major process of transformation

through significant policy reforms particularly beginning in the year 2000 historically, while

there was hardly any time lag between the invention of telephone in 1876 and the

commencement of use of telecommunications in India, the process of expansion of the network

was long being managed and used Primarily by the government. Intact at the beginning of the

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twentieth century telecommunications was universally accepted ‘natural monopoly’ - Whether it

is in the public or Private sector. In India, as in many other countries in Europe and Asia,

telecom services were operated by the government department by the early 1090s This concept

of “natural monopoly” was increasingly challenged in many countries by technological changes

leading to reforms Process in competition and greater consumer welfare, particularly in terms of

lowering of tariffs and improvement quality of service. This led to dismantling of both private

and government monopolies.

Telecommunication sector in India can be divided into two segments:

Fixed Service Provider (FSPs),

Cellular Services.

Fixed line services consist of basic services, national or domestic long distance and

International long distance services. The state operators (BSNL and MTNL), account

for almost 90 per cent of revenues from basic services. Private sector services are

presently available in selective urban areas, and collectively account for less than 5 per

cent of subscriptions. However, private services focus on the business/corporate sector,

and offer reliable, high- end services, such as leased lines, ISDN, closed user group and

videoconferencing.

Cellular services can be further divided into two categories: Global System for Mobile

Communications (GSM) and Code Division Multiple Access (CDMA). The GSM sector

is dominated by Airtel, Vodfone-Hutch, and Idea Cellular, while the CDMA sector is

dominated by Reliance and Tata Indicom. Opening up of international and domestic long

distance telephone services are the major growth drivers for cellular industry. Cellular

operators get substantial revenue from these services, and compensate them for reduction

in tariffs on airtime, which along with rental was the main source of revenue. The

reduction in tariffs for airtime, national long distance, international long distance, and

handset prices has driven demand.

6

COMPANY PROFILE

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Inception of the company

On the October 1, 2000 the Department of Telecom Operations, Government of India became a

corporation and was christened as Barath Sanchor Nigam Limited CBSNL). Today BSNL is Not

Telecommunications company and the largest-public sector undertaking of India with authorized

share capital of $ 3600 million and net worth of 13.85 billion it has a network of over 45

million lines covering 5000 towns with over 35 million telephone connections. With latest digital

switching technology like OCB, EESD, AXE-10, FETEX, NEC etc. It is world’s 7 th largest

telecommunication company providing comprehensive range of telecom services. In India wire

line, CDMA mobile, GSM mobile, internet, broadband, carrier services, MPLS –VPN, VSAT,

services, etc. Within a span of five years it has become one of the largest public sector units in

India

BSNL has installed quality telecom network in the country and now focusing on improving its

expanding the network, introducing new telecom services with ICT applications in villages and

winning customer’s confidence. Today, it has about 47.3 million line basic telephone capacity, 4

million WLL capacities, 20.1 million GSM capacity, more than 37382 fixed

Nature of business carried

Type : Telecommunication provider

Availability : All over India

Founded : 19th century

Slogan : Connecting India

Revenue : 339.49$ Billion

Owner : Government of India

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Profile

Bharat Sanchar Nigam Limited (known as BSNL, India Communications Corporation

Limited) is a public sector communications company in India. It is the India's

largest telecommunication

Company with 24% market share as on March 31, 2008. Its headquarters are at Bharat

Sanchar Bhawan, Harish Chandra Mathur Lane, Janpath, New Delhi. It has the status of

Mini-ratna - a status assigned to reputed Public Sector companies in India. BSNL is

India's oldest and largest Communication Service Provider (CSP). Currently . It has

footprints throughout India except for the metropolitan cities of Mumbai and New Delhi

which are managed by MTNL.

THE EMERGING SCINARIO AND FUTURE CONVERGENCE

In 10 year perspective of India’s telecom sector, the Tele-density will increase more than 5 folds

and the traffic volume will increase many times than that. The data services are still in the

nascent stage. The tremendous potential of IT sector. In India and aspiration to become a world

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superpower in I.T Will have a direct bearing on the future telecom growth in the country; these

two sectors will grow hand-in hard in the era of convergence. Broad casting sector will later slip

into the continuously changing mould of digital clay. The private sector participation and

investment is the key to realize these objectives .BSNL with its dominant market share, will

provide the best network reach. It will be able to face the competition by adapting to the

competitive environment. The Technological developments are likely to make the telecom

services more and more affordable. Therefore, India is likely to emerge as strong force in

Telecom and IT. Areas. Steps are also being taken for rapidly moving towards enacting a

comprehensive statute communications convergence bill 2001 to address the convergence of

technologies and markets. The new act will replace the Indian Telegraph Act 1885 and several

other related acts. It will cover the aspects of both carriage and content of transmitted

information. This will be a major step forward in the development of national infrastructure for

information based society and establish a licensing and regulatory framework in the context of

convergence

BSNL plans to expand its customer base from present 47 million lines to 125 lines by December

2009 and infrastructure investment plan to the tune of Rs 733 corers 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.

BSNL DHAKSHINA KANNADA DISTRICT

Dhakshina kannada is the biggest telecom district in Karnataka telecom circle with the

subscriber base of more than 2.6 lakhs covering an area of 8441 square kilometers. The

telephone density of this district is 10.4 per 100 populations, which is much higher than national

average.

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All the 248 telephone exchanges in the telecom district are digital electronic and have STD/ISD

facilities. All the exchanges are provided with a stable media such as optical fiber/microwave

UHF links. We plan to cover the reaming exchanges in this year. Optical fiber system of SDH

type are also planned for interconnection of some of the major exchange s. plans are also there to

introduce WILL (wireless on local loop).Technology to serve inaccessible areas. GSM mobile

services also planned to be introduced during this year.

Recently intelligent network services and premium rate services have been launched. In addition

to departmental counters, a number of bank counters have also been opened for easy bill

payment.

Mangalore telecom system is a communications window to the rest of the world. They offer a

wide range of telecom services from basic telecom services from basic telecom services to high-

speed data circuits up to 2 Mbps. a modern and reliable services at affordable rate is their aim .all

the services except basic telephone services are provided on demand. They have planned to

provide the basic telephone service on demand in about a year’s time. Some of the basic and

supplementary services currently provided by Mangalore telecom district are

Basic telephone services

I-Net [x25 based packet switched public data service (up to 64 kbps)

ISDN service

Leased data and speed circuits

Internet facilities

Shifting of telephone

Transfer of telephone

Extra telephone service

Some of the miscellaneous services provided to a telecom user are

Directory enquiry

Time announcement

Phonogram

Kaunda /Hindi vishesh seva services

11

Associability to telephone services has been made easy by opening a number of

LOCAL and STD, ISD payphones all over the district.

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VISSION, MISSION AND QUALITY POLICY

VISSION;

Vision statement describes a desirable state that a company wishes to attain at some time in the

future vision statement of BSNL ‘to become the largest telecom service provider in south east

assai’

A] Be the leading telecom service provider in India with global presence

B] Create a customer focused organization with excellence in the sales, marketing, and customer

care.

C] Leverage technology to provide affordable and innovation product or services across

customer segments

D] Provide or conductive work environment with Strong focus on performance

E]. Establish efficient business Processes enabled by IT.

F] To expand the services of the company in all area through franchisees arrangement as well as

alternative means.

G] to create a focused business oriented by suitable bringing synergy between the marketing and

business development activities towards meeting customer requirement.

H] to focus concentration for communication for masses by expanding the services of PCOs,

Internet Database, Sanchar kiosks, PTIC, MCT etc.

I] to expand broad band, leased lines, cellular, VVLL services with state of the art technology.

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Mission

A mission statement is a brief statement of the purpose of an organization. The intention of a

mission statement is to keep member and users aware of the organization’s purpose.

BSNL mission is to provide world class telecom services on demand using state of the art

technology for company’s valued customers at affordable price. Changing regulations,

converging markets, competing technologies and ever demanding customer needs have

generated enormous additional opportunities for BSNL and so for. The challenges. There Is a

grdual shift in demand from telephone centric to the data centric environment, which has defined

a new paradigm in telephone business. The Company with a sound financial base is ready to face

the impact of the Upcoming competition. BSNL have received an overwhelming response to its

simultaneous launch of GSM Cellular Mobile Telephone services amiss across the country.

BSNL has ranched various modes of internet services like dialup, leased line, DIAS, account free

internet etc, resulting in putting BSNL as No I ISP with more than 9 Lakh internet customers

introduction of internet Telephony “ WEBPHONE” has Proved company, commitment towards

“providing world class telecom service at a very affordable price to our valued customer”.

Commissioning of DWDM, in the main routes through “Sanchar Sager Project” has laid the

foundation for the formation of National Information super Highway. For basic telephone a

customer, BSNL has rationalized tariff to suit every pocket, introduced host of value added

services like Answering Machine service CAMS). SMS on fixed line etc. that is FREE of cost.

Recently introduced MPLS- VPN and broadband services are showing very encouraging results.

The company is committed to provide a combination of products and professional services with a

wide choice of end-to-end Solutions and self came to meet the aspiration of the customers and to

give them the satisfaction

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QULITY POLICY

BSNL Karnataka telecom circle will stairs to provide state - the-or out telecom services as per

corporate goals, with A view to Maintain long team relationship with customers.

BSNL will enable the organization to focus on meeting the customer expectation by exploring

strategies by continual improvement in quality, process, technology and services.

SOCIAL COMMITMENT

BSNL is committed to provide quality telecom services at affordable price to the citizens of the

country. BSNL is making all efforts 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 communication of the citizen 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 service capable of meeting the needs of

the country’s economy, encouraging development of communication facility in remote, hilly and

tribal areas of the country, transform in a time bound manner, the telecommunication sector to a

greater competitive environment in both urban and rural area providing equal opportunities and

level playing field for all players.

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PRODUCT PROFILE

BSNL Provides almost every telecom service, however following are the main telecom services

being provided by BSNL in India.

Universal Telecom Services: - Fixed wire line services and wireless in local loop(WLL)

using CDMA Technology called B-fone and Taranga respectively .BSNL is a dominal

operator in fixed line. As on December 31, 2007, BSNL had 81% market share of fixed

line.

Cell One

BSNL Mobile

Ex-cel

Pre-Paid Mobile

Cellular Mobile Telephone Services:- BSNL is a major provider of cellular mobile

telephone services using GSM platform under brand name Cell one. Prepaid cellular

services of BSNL are known as Excel as on march31, 2007 BSNL had 17% share of

mobile telephony in the country.

BSNL Broadband

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BSNL has launched its broadband services under brand name “BSNL BROADBAND” on 14-

01-05. This offers High Speed Internet Access with speed ranging from 256 Kbps to 8 Mbps.

Ever since its inception BSNL is continuously expanding its broadband network in response to

ever growing demand of broadband service throughout India

Present customer base is 3.56 million, with equipped capacity of 6.1 million. BSNL Broadband

service is available in more than 3800 cities & 83000 villages.

The services provided are

High Speed Internet Connectivity(up to 8 Mbps)

Band width on Demand(planned)

Virtual Private Network(VPN) service over broadband

Dial VPN services to MPLS VPN customers

IPTV services(at present available in 66 cities)

Games on Demand Service

Video tutoring service

VOIP

Video Surveillance service

Entertainment portal.

Internet: - BSNL is providing internet as dialup connection (sancharnet) as prepaid,(Net one) as

postpaid and ADSL-Broadband. BSNL has around 50% market share broadband in India. BSNL

has planned aggressive role out in broadband for current financial year.

Intelligent Network (IN):- BSNL is providing IN services like Tele-voting, Toll-free calling,

Premium calling etc.

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BSNL Land line

BSNL Land line :- BSNL is the largest telecom operator in India and is known to everybody

for basic Telephony Services for over 100 years. Presently the plain old, Country side telephone

service is being provided through 32,00 electronic exchanges, 326 Digital Trunk Automatic

Exchange(TAX), Digitalized public switched telephone Network(PSTN) all interlinked by over

2.4 lakh km of optical fiber cable.

MARKET DEPARTMENT

Vision of the organization can only be translated into reality, if it is shared by one and all. The

best way to implement is to involve them inJ formulation. But even if it is conceived by higher

management then it has to be explained to each and every individual of the organization,

otherwise it may remain as a showpiece.

 

Marketing vision of the BSNL has to be based on overall mission and vision of the organization.

The mission of BSNL is

To provide world class State-of-art technology telecom services on demand at affordable

price.

To provide world class telecom infrastructure to develop   country's economy.

 

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Marketing Objective;

 The ultimate objective of any marketing activity is to satisfy the customers and today even a

step ahead i.e. ‘delighting’ the customers, for which customers are offered something beyond

their expectations from the service or the product. The objective being to acquire and retain the

customers, who should continually feel that they are getting more value of the money, they are

departing with.

 Marketing is the establishment, development, maintenance and optimization of long-term

mutually valuable relationships between consumers and organization. Successful Marketing

focuses on understanding the needs and desires of the customers and is achieved by placing these

needs at the heart of business by integrating them with the organization strategy, people,

technology and business processes. At its most basic, Marketing involves customers,

organizations and relationships and the combination creates the need for the management.

 Marketing is about creating a competitive advantage by being the best at understanding,

communicating, and delivering and developing existing customer relationships in addition to

creating and keeping new customers. The concept of the product life cycle is giving way to

customer life cycle, focusing on developing products that anticipate the future needs of existing

customers and creating services that extend the existing customer relationship beyond the mere

transaction. The customer life cycle will focus on lengthening the life span of the customer with

the organization rather than the endurance of a particular product. Customers have changing

needs as their life styles alter- the development and provision of products and/or services that

continuously seek to satisfy those needs is good Marketing. The Marketing will focus greater

attention on how to deliver customer satisfaction and organization will begin to structure itself

around customer segments and not product lines. A good Marketing Strategy will take the

business vision and apply it to the customer base.

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MARKETING PROCESS

 We often talk of marketing & Sales and often use it interchangeably without understanding the

difference in it. Marketing is everything we do to get and leverage a client relationship.

Marketing process is broad and includes all of the following: -

Discovering what product, service or idea customers want.

Producing a product with the appropriate features and quality.

Pricing the product correctly.

Promoting the product; spreading the word about why customers should buy it.

Selling and delivering the product into the hands of the customer.

 Selling is one activity of the entire marketing process. Selling is the act of persuading or

influencing a customer to buy (actually exchange something of value for) a product or service.

HUMAN RESOURCE DEPARTMENT

Employees are the important part of the organization and an organization cannot gain or achieve

its goals without the help of the employees, customers always will make opinion about the

company based on the their interaction with the company build, the services which the company

provides, and the company’s services to solve the problem and the employees knowledge about

the process and the services etc. So it is very important to establish a good relationship with

employees and customers. Moreover, to boost the employees to achieve the aim of organization a

healthy and proper relationship between the employees and the management.

Dhakshina kannda telecom office has around 2300 employees. The staff strength of BSNL is

divided into 4 categories that is A,B, C and D employees group A and B includes officials

and group C and D includes line staff, office staff, operational staff and technical staff . under

dhakshinna kannda circle around 300 A and B group employees are working and 2000 C and D

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employees also the head office of dhakshinna kannada telecom in Pandeshwara. The head office

has or working Strength of 305. They are normally called as senior Telecom Asst. General DK

Telecom district has around 226 telephone exchanges. HQ customers case centers and all the

employees are distributed among in the office-

The main functions of HR Department are:

Recruitment

Selection

Training

Appointment

Transfer

Preparation of seniority list and Gradation list

Preparation and maintenance service book

Promotion

Retirement

Pent-ion

Recruitment and selection

The recruitment of candidates for The grade of Junior engineers will be effected by means of

competitive examination from the following services.

A] By resentment of departmental candidates.

Means select the officials from the employees who already exist in the organization. The

selection of candidates based on their performance in the qualifying examinations conducted by

the organization.

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B By direct recruitment of outside candidates:

Means selecting the candidates from outside the organization, The selection is based on the

performance in The competitive examination.

Training and appointment

The officials taken on the basis of merit in the examination by the appointment authority will be

deputed for training in batches in accordance with instructions received from time to time from

the director general. The period of training will be 3 months.

Transferor

The powers of the director general the head of or circle and subordinate authorized to sanction

transfers and postings of a member of the department. All transfers, changes of head equators

and special duties of gazette officers should be communicated to the director general and to the

audit officer. Transfer should be made in April of each year

Gradation List

A head of circle will publish once in a five years and issue copies of to all officers concerned, as

also to the director general. Circle gradation list corrected up to first of July. All gradation lists

should be maintained in Form. In each gradation Lists the names of officials of each class should

be entered separately and in strict order of seniority, one or more pages being left blank after

each class. Each list should be kept corrected up to date.,

Seniority List

This is The list of employees based on their seniority. The seniority of an official in the cadre to

which he belongs should be fixed according to the date of his permanent appointment to that

cadre. Seniority should be determined according to the following principles-

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If the examination is competitive, seniority should be fixed according to the order of merit in the

examination. Where the recruitment is made partly from departmental candidates and partially

from outsiders the former should always rank senior to the latter. If the examination is

qualifying. Seniority should be fixed according to The position of the official on the waiting list.

Service Book

Service book Maintenance is necessary for all non-gazette officials except those appointed

temporary vacancies of not more than or year and for all go-retted officers. The service book will

be opened from the date of the first appointment in the prescribed form. It should be kept in the

custody of the head of office concerned. On the transfer of official to another office, the service

book will be transferred. Service book will remain in the custody of head of office even after

resignation. Refinement etc. of the official and no ton be returned to him

Freely steps in officials career should be recorded and each entry attested by the head of the

office who will ensure that the entries are correct and also that there is no erasure, over wasting

etc. the entries in the service books are name, address. Education qualification, cast leaves

entries. Scale of Pay and pay etc. and the important events like suspension, reversion, as penalty,

training, conformation, termination of probation, fixation of pay in revised scale, stepping up of

the pay etc. To be entered in the body of the service book giving reference to authority.

FINANCIAL OVERVIEWBSNL ended the financial year 2008-09 with a revenue of Rs 333.59 billion, down around 12%

from the previous year’s Rs 380.53 billion, according to a report in Mint. 

The government-run telecom service provider earned a net profit of Rs 49 billion in fiscal 2009,

up 38.58% from the previous year’s Rs 30.09 billion. The paper did not provide any breakup of

the revenue but quoted an unnamed BSNL official saying that the revenues in the fiscal year

gone by includes 12% of financial income.

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On October 1st, 2000, BSNL was formed by converting service providing functions of erstwhile

DOT to provide level playing field to private Telecoms. Since then BSNL has emerged as the 7th

largest Telecom Operating Company in the World. BSNL has played major role in spreading

telephones to rural areas of the country at affordable rates. As per TRAI report “5.3 lakh villages

have been provided access to telecom network through VPTs covering 87% of the villages. Most

of the VPTs have been provided by BSNL. BSNL has provided 13.59 million (July 2005) rural

DELs in the country”. By this statement we can judge the important role played by BSNL right

from its inception.

Revenues earned by BSNL in last 5 Years

2003-04 2004-05 2005-06 2006-07 2007-0830000320003400036000380004000042000

33919

36090

40177 39715

38053

Revenues

Revenue

Financial Year

Rupe

es In

Cro

res

Gross Investment in Fixed Assists

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

7180 corers ($ 1.79 billion) in fixed assets. These investments have been financed by the internal

accruals.

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2003-04 2004-05 2005-06 2006-07 2007-080

2000

4000

6000

8000

10000

12000 111019763

8824 8153

7180

Gross Investment in Fixed Assets

Financial Year

Rupe

es In

Cro

res

25

BSNL has gross fixed assets of over Rs124578 Corers ($31.13 billion)

2003-04 2004-05 2005-06 2006-07 2007-080

20000

40000

60000

80000

100000

120000

140000

95288

104102111692

118649 124578

Gross Fixed Assets

Financial Year

Rupe

es In

Cro

res

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CUSTOMER SATISFACTION

After four and half year of corporatization of BSNL, a customer-focused approach among its

employees is still not present. In this era of intense competition, it is very important for any

service company to understand that merely acquiring customers is not sufficient because there is

a direct link between customer retention over time and profitability & growth. Customer

retention to a great extent depends on service quality and customer satisfaction. It also depends

on the ability of the organization to encourage customers to complain and then recover when

things go wrong. Complaints are natural part of any service activity as mistakes are an

unavoidable feature of all human endeavor and thus also of service recovery. Service recovery is

the process of putting things right after something goes wrong in the service delivery.

Importance of Customer Retention

Why are customers more profitable for service firms over a period of time? There are a number

of reasons for this. To begin with, to acquire a customer a company incurs promotional costs like

advertising, sales promotion etc. It is said that it costs five times more to attract a new customer

than retaining one. The operating cost decreases when a customer stays. Services being rich in

experience and credence qualities, it takes some time for customers to get accustomed to it and

once they are used to the service and are satisfied with the service provider ,they tend to

purchase more over a period of time.

As they remain satisfied with a service provider, they spread a positive word of mouth, which is

very effective in case of services for attracting new customers. Longer the customer stays with an

organization, more the organization knows about him, which enables it to offer customized

services which make it difficult for the customer to defect. This may even provide opportunities

to the organization to charge price premium by offering individualized services which may be

difficult for the competitors to offer.

Considering the importance of retaining customers in service business, Reichheld & Sasser

coined a term ‘Zero Defection’. They highlighted that companies can boost profits by almost

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100% by retaining just 5% more of their customers. Further, it is also very important to

understand the life time value of a customer. For example, if an average customer of BSNL pays

Rs. 500 per month and stays with the company for 20 years., his average lifetime value will be

Rs. 500x 12x 20=Rs. 1,20,000. Further, if by a positive word of mouth, he brings just one more

customer to the organization, his value to the organization doubles. Therefore, it is important for

all the employees in the organization to understand the life time value of their customers. Once

they understand it, they will treat the customer accordingly and will focus on building

relationship with the very people who keep them in business.

Reasons for customer switching

The reasons for customer switching can be identified as following:

Pricing (High price, unfair pricing, deceptive pricing)

Inconvenience (Wait for service, wait for appointment)

Core service failure (Service mistakes, Billing errors)

Service encounter failure (Uncaring, impolite, unresponsive behavior)

Response to service failure (Negative response, no response, reluctant response)

Competition (Found better service)

Ethical problem (Cheating, Unsafe)

Involuntary switching (customer moved, provider closed)

An important aspect of the above is that six out of the eight service switching factors are

controllable from a service organization’s point of view.

28

Strategies for Customer Retention

(A) Complaint Management System

Any worthwhile complaints management system has to have following basic features:

Visibility: Customer should know where to complain.

Accessibility: Customer should know how to complain. As a rule of thumb, the more formal

the system for lodging complaints, the less accessible it is to customers.

Responsiveness: Complaints need to be dealt quickly. The quicker the complaints are dealt

with, the higher the customer satisfaction.

Customer-focused approach: A service provider, who adopts customer-focused approach,

invites complaints and indicates commitment of resolving complaints by its words and actions in

all fairness.

Accountability: Someone in the organization has to take responsibility for complaint

handling.

Continuous Improvement: This is about looking at the root causes and fixing them

A good complaint management system must ensure that that complainant is kept informed, the

staff understands the complaint processes, complaints are taken seriously and employees are

empowered to deal with situations.

(B) Service Recovery Strategies

Consider the following incident regarding airlines (British Airways). “An aircraft door was left

open in a rainstorm before takeoff and a passenger near the door unfortunately got showered.

The flight attendant not only did everything that was routine- offered to have the customer’s

garments cleaned and made sure that a customer relations representative contacted the customer

29

later to demonstrate that they genuinely cared- but also made special gesture by offering the

passenger a complimentary choice of certain tax free goods.”

It is very important for service companies to have service recovery strategies which can be

applied in case of service failure. The following steps are useful in an effective service recovery

system.

Measure the costs of effective service recovery. It should include the indirect cost also, when a

customer departs unhappily. Break customer silence and listen closely for complaints.

(C) Managing Customer Waiting

Sometimes, it is not possible to match demand & capacity, and hence waiting by customers

becomes inevitable. While reducing waiting time is important for a marketer, it is equally if not

more, important to reduce the Customer’s perceived waiting time. If a customer’s perceived

waiting time is less, he will be more satisfied with the service.

Various ways of managing customer waiting are as follows:

The organization should analyze its operational processes in order to identify and remove

inefficiencies or bottlenecks, if any. In case waiting cannot be avoided, a reservation system can

be used.

Since unoccupied time feels longer than occupied time, keep customer occupied by installing

distractions that entertain and physically involve them. For example, TV sets, magazines reading

material can be provided in waiting area.

Provide ‘waiting duration information’ i.e. information about the expected length of wait and or

‘queuing information’ i.e. a customer’s position in queue with continuous update.

If unexpected delays occur, explanation should be given to the customer. This helps in reducing

uncertainty and customer irritation. The key is to impress upon the customer that he has not been

forgotten. Simple things like providing a glass of water or a cup of tea to the waiting customer

can do wonders.

30

Keep resources not serving customer out of sight. This can be done by keeping idle employees

out of view and conducting activities that do not involve customer interactions out of customer’s

sight.

Try to reduce pre-service waiting time by transferring some of the pre-service waiting to the

service encounter phase.

A smiling service person who knows his job well can be very helpful in overcoming many

negative effects of waiting. Therefore, training and incentive rewards for providing good service

should be made.

31

MCkENSY’S

There are many management approaches, which talk about managing the things and operations

in an organization one of the famous model to analyze the pattern of the management is’

The 7 S model better known as Mckensy‘s 7 S this is because the two persons who developed

this model . Tom pet us and Robert waterman have been consultant at Mckensy’s company at

that time.

They described that as an organization is not just “structure but consist of 7 features which can

be distinguished into so hard 55 and soft S. They published their 7 S model in the article of

"Structure is not organization" (1980) and their books “The Art of Japanese Management" and

“In search of Excellence: (1982).

The model is very much helpful in viewing the interrelationship of Strategy formulation and

interpretation. It focuses manager’s attention to a variety of activities that many affect of the

implementation of any Strategy. as the model originally developed as a way of thinking more

broadly about the problems of organizing effectively. It is or judge tool for the implementation of

strategies. While thinking comprehensively about a new Strategy and the problem that arise in

canopying it out. A manager must think about the ability of The Company to get anything really

accomplished as matter of moving a whole culture. Manager need not to consider all factors of

model for the successful implementation of any strategy.

The 7 S is mainly distinguished into Hard S and Soft S

The Hard elements are feasible and is to identity as they can be found in a strategy statements

corporate plans again: rational C banjoes and other documentation of the company. They

includes

Strategy

System

Structure

32

The soft Elements are basically feasible because of difficulty involved in describing them as

capabilities, values and element of corporate culture and frequently developing and changing

they include.

Style

Staff

Skills

\shared values

STRUCTRE;

Organizational strucutre means it offers more organizanal management and relationship. It gives

the perfect picture about the person who is to take what decision and to what extent, which is

aouthorised perform what all duties and who is greatere than whom.

It corrects and provides with clear data of all relationship and provides frame work within which

all duties and activities takes place and grow

33

CMD BSNL

DIRECTOROPERATIONS

DIRECTOR COMML&MKT

DIRECTOR PLANNING&NS

DIRECTOR HRD

CS&GM (legal)

SR.DDG(Vigilance)

CGMsT.circle/MD

Sr.DDG (CS)Sr.DDG (MS)Sr.DDG (NW&WS)Sr.DDG (PG)Sr.DDG (IT)Sr.DDG (NM)Sr.DDG (MIS)Sr DDG (TS)Sr. DDG (WS&I)CGM(MTCE Reg) -ETR -NTR - STR - WTRCGM (NCES)

CGM (T&D)

Sr.DDG (BBD)Sr.DDG (CMTSOM)DDG (CMTS)DDG (COMML)DDG (MKTG)DDG (REGULN)

Sr.DDG (ARC)Sr.DDG (BW)SR.DDG (ELEC)Sr.DDG (SP)Sr.DDG (SW)Sr.DDG (TX)Sr.DDG (NS)DDG (Broadband)DDG (MM)DDG (RN)DDG (TF)DDG (LTP)DDG (CTF)CGM (NETF)CGM (Project)-ETP-NTP-STP-WTPCGM (QA)CGM (RE)CGM (TS)CGM (TFs)-Jabalpur-Kolkata-Mumbai-Richhai

Sr.DDG (EST)Sr.DDG (PERS)DDG (IR)DDG (RESTR)DDG (SR)DDG (TRG)CGM, ALTICCGM,BRBRAITT

Andman & NicobarAndhra PradeshAssamBiharChattisgarhGujratHaryanaHimachal PradeshJhrakhandJammu & KashmirKarnatakaKeralaMadhaya PradeshMarashtraNorth East-INorth East-IIOrrisaPunjabRajasthanTamilnaiduUttar Pradesh(W)Uttar Pradesh (E)UttranchalWest BengalChennai TDKolkata TD

Sr.DDG (EFC)Sr.DDG (PF)Sr.DDG (FP)Sr.DDG (BBF)Sr. DDG (CA)Sr. DDG (IA)Sr. DDG (TRF)Sr. DDG (SPF)

DIRECTORFINANCE

ORGANIZATION CHARTOF BSNL

SKILLS;

34

Skill is the distinctive capabilities or competences of personal or of the organization as whole.

In other words it is what the company does the best in way of selecting capable personas and

well trained person.

In BSNL all employees are skilled and well educated, in some area there is a need of training.

STYLE;

Style basically means management behavior towards employees, customers, share holders,

suppliers, and every other person dealing with the company. A particular style adopted by the

company will have various implications over various people dealing with the organization and

thus it will have an impact over the relationship between the organization and the other party.

With the shift with style in management BSNL is Government of India owned organization is

able to improve relationship with its internal and external customers over a period of time. It try

to solve any kind of disputes arising in the management activities to a peaceful dealings.

Authority flow from the top to bottom, thus the organization structure helps to grant the authority

to the people to carry out the duties of their jobs and determinations the performance evaluation,

management directs, coordinate and the control the activities.

STRATEGIES;

Strategy is the choice of direction and action of the company adopt to achieve its objectives in

various situations. It explains the objectives of the organization and how the company achieves

them.

The company aims at customer satisfaction through high quality of service

35

The improvement in the performance is driven by a focus on cost reduction materials and

operating expenses as well as by increasing in sales volume.

SYSTEM;

System in the 7’S frame work refers to all the rules regulations and procedure both formal and

informal that compliment the organization structure.

System is an assembly of things connected or interrelated So as to form a complex unity, or

whole composed of parts in orderly arrangement according to Some scheme or, plan. This has

been defined as an organized or complex whole an assemblage combination of things or parts

farming or complex unitary whole.

A system basically a combination of parts, subsystems, each part may have various Subparts.

When a sub. System is considered as a system without reference to the system. Which it is or

Points it has the same features of a system.

STAFF;

Staffing is the process of acquiring human resources for the organization and assuming that they

have the Potential to contribute to the achievement of the organizational good.

In the Mckensys 7 s team work the term staff has a specific connotation. The term staff refers to

way organizations introduce young recruits into the mainstream of their activities. Company's

people resources and how they are trained, developed and motivated.

Presently the Dhakshina Kannda BSNL has around 1951 employees and group A 13 employees

group B 274 group C 1572 and group D 78 employees.

36

SHARED VALUES

Shared values means that the employees share the same guiding values are things that you would

strive for even they were demonstrably not profitable. Values act as an organization’s

conscience, providing in times of crisis. Identifying corporate value is also the first essential step

in defining the organization’s role in the larger community in which it functions.

In BSNL all the workers are well informed and educated about their work and also The

organization goal and principles which helps in achievement of the goals.

ACHIEVEMENTS

BSNL India’s largest telecom service provider, has broken all the past records by providing 10

lakhs cellular connections in December alone, there by adding an unprecedented number of

customers to its cellular subscriber base .BSNL has achieved the landmark of providing more

than 14 million mobile cellular connections all over the country.

In South Zone, BSNL provided more than 4.77 l akh connections. Out of this, more than 2lakh

connections were provided in the state of Kerala, 1.25 lakh connections in the state of Tamil

Nadu, and over 75 thousand connections each in state of Andhra and Karnataka.

In North Zone also,2.58 lakh connections were provided during December 200. More than 1.2

lakh connections have been provided in the state of Uttar Pradesh and approximately 1 Lakh

connections in the state of Rajasthan. Now, connections are available ‘On Demand’ in North

Zone .BSNL has 65% of market share in the state of J&K.

In the East Zone ,BSNL provided 2.68 lakh connections during December 2005.Of these, over 1

lakh connections have been provided in the state of West Bengal and 62,000 in the state of

Bihar .In the North Eastern states, BSNL has a market share of about 70%.

37

FORECASTING

BSNL PR& FUTURE ESENT

Since its corporatization in October 2000,BSNL has been actively providing connections in both

urban and rural areas and the efficiency of the company has drastically improved from the days

when one had to wait for years to get a phone connections to now when one can get a connection

in even hours. Pre-activated mobile connections are available at many places across india.BSNL

has also unveiled very cost effective broadband internet access plans(data one) targeted at homes

and small business. at present BSNL enjoys around 45% of market share of isp services

YEAR OF BROADBAND 2007 : 2007 has been declared as “year of broadband” in india

and BSNL is in the process of providing 5 million broadband connectivity by the end of

2007.BSNL upgraded the existing data one(broadband)connections for a speed of up to 2mbps

without any extra cost. this 2mbps broadband services is being provided by BSNL at a cost of

$11.7 per months

TRIPLE PLAY (TELECOMMUNICATIONS) : BSNL is planning to increase its

customer base to 108 million customers by 2010.with the frantic activity in the communication

sector in India, the target appears achievable, however due to intense competition in Indian

telecom sector in recent past BSNL growth has slow down. BSNL is pioneer of rural telephony

in India. has recently bagged 80% of us $ 580 million rural telephony project of government of

India.

GROWTH OF BSNL

The country’s second largest telecom operator, the state-owned BSNL during March registered

the highest growth in its monthly subscriber additions in the past two years. Breaking its

consistently moderate growth of over 3% each month, the state-run Telco recorded a GSM

subscriber growth rate of 5.67% during the month of March. In another boost to its telecom

growth, BSNL also saw a growth in its wire line segment, which had been registering a decline

for successive quarters.

38

BSNL’s subscriber growth had been suffering due to lack of capacity expansion, which was

choking its growth figures. BSNL added 2.5 million mobile users in March to its subscriber base,

taking its total subscriber base to over 46 million. Its market share too increased marginally to

over 16% from the almost flat 15% that it had been recording in the past months.

Proportion of Communication Services in GDP is increasing at faster rate, as it is evident from

the following Table.

From above Table it is clear that growth rate (22%) of communication services in GDP is highest

and proportion and importance of communication services is continuously increasing. It is

considered as growth engine for overall economic growth. Graph given below indicates the

exponential growth of Telecommunication infrastructure in India. As of now total telephones

(Basic + Mobile) of all operators put together has crossed 15 Corers. In the month of August-

2006 there was addition of 58 lacs of new Mobile subscriber. Such is a growth of

Telecommunication in India, even now surpassing to the growth in China.

39

In such a volatile scenario, knowing about the performance of a company becomes very

important. Financial performance is a bed rock for overall performance and future growth of any

company. Keeping this view in mind I have tried to put some relevant facts through this article.

40

Growth of Telephone Connections

14.54 17.80 21.61 26.65 32.71 38.33 41.48 42.84 46.19 50.18 48.87 43.95 43.490.34 0.88 1.20 1.88 3.58 6.54 13.30

33.69

52.22

90.14

157.96

256.20

281.94

14.88 18.68 22.81 28.5336.29

44.8754.78

76.53

98.41

140.32

206.83

300.15

325.43

0

50

100

150

200

250

300

350

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2008JUNE

Year (as on 31st March)

Con

nect

ions

(In

Mill

ions

)

WIRELINE WIRELESS TOTAL

Year

[End of

March]

Fixed

line

includin

g

WLL(F)

Mobile

(GSM+WL

L(M)

Total

Annual

Growth of

BSNL(%)

1997 14.54 0.34 14.88 -- 

1998 17.80 0.88 18.68 25.54

1999 21.61 1.20 22.81 22.11

2000 26.65 1.9 28.55 25.16

2001 32.71 3.58 36.29 27.11

2002 38.33 6.54 44.87 23.64

2003 41.48 13 54.48 21.42

2004 42.84 33.69 76.53 40.47

2005 46.19 52.22 98.41 28.59

2006 50.18 90.14 140.32 42.59

2007 48.87 157.96 206.83 47.40

2008 43.95 256.2 300.15 45.12

July-08 43.35 291.50 334.85  --

SWOT Analysis of BSNL

41

Strength :-

It has a competitive pricing policy.

BSNL provides continuous training, career advancement opportunities and a self

motivated work environment to its employees.

BSNL has a corporate culture of mutual respect and is an excellent service provider.

BSNL maintains solid partnerships with its customers.

Weaknesses :-

Although it is investing too much in R&D but its marketing skills are below average.

Although it is growing very fast but at the same time it is losing its customers as well

because the competitors are chasing close behind.

Opportunities :-

BSNL can retain its customers by improving its marketing skills.

It can establish a world-wide knowledge-broadcast system via the internet.

The group can strengthen and expedite research & development in order to deliver

products of top international standards.

Threats :-

External factors like political instability and economic instability which are affecting the

business environment.

The other threats can be the market saturation in term of business opportunities available

in the conventional telecom business.

42

CONCLUSION

India is a second largest emerging economy of world. The ambitious service users state

of the art to attain global excellence and leadership in business. Entry of BSNL In telecom sector

has brought services at affordable cost to the common man. All services of BSNL object to

provide better communication to million across India .Customer have reposed tremendous

faith in BSNL and it has enrolled over 30 lakh customer

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BIBLIOGRAPHY

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