COMPANY PROFILE

Bharat Sanchar Nigam Limited (BSNL ) is India’s largest communication service

Provider (CSP ) . Previously known as DOT (Department Of
Telecommunication) when it was under Federal Government Control, it became a
corporation in 2000. Bharat Sanchar Nigam Ltd. formed in October, 2000, 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. Presently it is one of the largest & leading public sector units in
India. BSNL has footprints in entire India except for the Metropolitan cities of
Mumbai and New Delhi which are managed by MTNL, and commands over 40
million Landlines and 123 million Mobile subscribers.

BSNL, is a public sector communications company. It is the India's largest

telecommunication company with 25.14% market share as on December 31,
2007. 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 planning an IPO with in
6 months to offload 10 % to public.
 BSNL is numero uno operator of India in all services in its license area.
The company offers vide ranging & most transparent tariff schemes designed to
suite every customer.
BSNL cellular service, Cell One, has 55,140,282 2G cellular customers
and 88,493 3G customers as on 30.11.2009. In basic services, BSNL is miles ahead
of its rivals, with 35.1 million Basic Phone subscribers i.e. 85 per cent share of
the subscriber base and 92 percent share in revenue terms.

BSNL has more than 2.5 million WLL subscribers and 2.5 million
Internet Customers who access Internet through various modes viz. Dial-up,
Leased Line, DIAS, and Account Less Internet (CLI). BSNL has been adjudged as
the NUMBER ONE ISP in the country.
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 46 million line basic telephone capacity, 8 million WLL capacity, 52
Million GSM Capacity, more than 38302 fixed exchanges, 46565 BTS, 3895
Node B ( 3G BTS), 287 Satellite Stations, 614755 Rkm of OFC Cable, 50430
Rkm of Microwave Network connecting 602 Districts, 7330 cities/towns and
5.6 Lakhs villages.

BSNL is the only service provider, making focused efforts and planned
initiatives to bridge the Rural-Urban Digital Divide ICT sector. In fact there is no
telecom operator in the country to beat its reach with its wide network giving
services in every nook & corner of country and operates across India except Delhi
& Mumbai. Whether it is inaccessible areas of Siachen glacier and North-eastern
region of the country. BSNL serves its customers with its wide bouquet of telecom
services
BSNL 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 Data One broadband customers.
The company has vast experience in Planning, Installation, network
integration and Maintenance of Switching & Transmission Networks and also has a
world class ISO 9000 certified Telecom Training Institute.

Scaling new heights of success, the present turnover of BSNL is more

than Rs.351, 820 million (US $ 8 billion) with net profit to the tune of Rs.99,
390 million (US $ 2.26 billion) for last financial year. The infrastructure asset on
telephone alone is worth about Rs.630, 000 million (US $ 14.37 billion).

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.

History of BSNL

Like the ocean that is made of tiny drops, the P&T had slow and uneasy
start. The Post and Telegraph Department for instance, occupied a small corner of
Public Works Department. A regular separate Department was opened around
1854 when Telegraph Facilities were thrown open to the public.

The Telegraph Department during 1854-57 comprised a Superintendent of

Telegraph with three Dy. Superintendent at Bombay, Madras and Pegu in Barma
and Inspectors at Indor , Agra, Kanpur and Banaras. Dr. O’ Shaughenessy was
the 1st. Superintendent of electric Telegraph in India & later became the 1st.
Director General of Indian Telegraph Department

Till 31st. December.1984 the Postal, Telegraph and Telephone services

were managed by Posts & Telegraph Department. In Jan. 1985 two separate
Departments for Post and Telecommunication was created. I.e. Department Of Post
& Department Of Telecommunication. Initially Account of Both the Departments
were maintained by Accountant General Of P&T, later Telecommunication
Account were separated from Post.

The Department Of Telecommunication ( DOT ) was constituted under the

Secretary Telecommunication as Chairman and Member Finance, Member
Operation, Member Development, member Personnel and Member Technology as
a members of commission.

In the year 1986 , the Department of Telecommunication is re-organized

into, Telecommunication circles with the Secondary Switching Areas as basic units
. This was implemented in Phased manner. Bombay and Delhi Telephones were
separated to create the new entity called Mahanagar Telephone Nigam Limited
(MTNL)

On 1st.October 2000, The Government of India corporatised the Operating

wing of DOT, with new name as. Bharat Sanchar Nigam Limited (BSNL) with
operating services in overall country, as a Public Sector Unit. Under Liberalization-
Privatization-Globalization Policy. The BSNL is the India’s largest public sector
telecom company, & 7th world’s largest telecommunication company, providing
comprehensive range of telecom services in India. Wire line, CDMA Mobile, GSM
Mobile, internet, Broadband, carrier service, MPLS_VPN, VSAT, etc. Within a
span of seven years it becomes one of the largest public sector companies in India.
BSNL Provides the state of art telecom services from common subscribers to
corporate companies all over the India. In Rural & Urban area, the BSNL is facing
cutthroat competition from private telecom operators in all wire-line, wireless and
data services.
BSNL Present and Future.

Since its corportisation in October 2000, BSNL has been actively providing
connections in both Urban & Rural areas and the efficiency of company has
drastically improved from the days when one had to wait for years to get a phone
connection 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 plan (Data one) targeted at
homes and small industries/ business. BSNL plans to add newly 20 million
subscribers annually for the next three years, and long term target of 123 million
lines by 2010. With the frantic activity in the communication sector in India the
number will be easily achievable. Today BSNL is the Largest Public Sector
undertaking of India, with latest Digital Switching Technology like OCB, EWSD,
AXE-10, FETEX, NEC etc and widespread Transmission Network including SDH
system up to 2.5 Gbit/s, DWDM system up to 80 Gbit/s , Web Telephony, DIAS,
VPN, Broadband , MPLS etc. and more than 4 Lakhs Data customers.
The BSNL has quality Telecom Network in the Country and now focusing
on improving it, expanding the Network by introducing new services under the
Data Communication. BSNL is the only one service Provider, making focused
efforts and planned initiatives to bridge the Rural-Urban Sector of the Country.

BSNL is numero uno operator of India in all services in its license area. The
company offers vide ranging & most transparent tariffs schemes designed to suit
every customer. The company has long term experience in Planning, Installation
and maintenance of Switching & Transmission Network, also Company has World
Class ISO 9000 certified Telecom Training Institute. The BSNL has Gross Fixed
Assets of over Rs. 1, 11,692 crores as on 31-03-2007 and total Staff 3, 10,506
including Gr.D to TOP Level Management

The BSNL, have 4, million capacity of WLL, 20.1 million GSM capacity,
more than 37382 fixed exchanges, 18000 BTS, 287 Satellite Stations, 480196 Rkm
of OFC Cable, 63730 Rkm 0f Microwave Network connecting 602 Districts, 7330
cities/towns and 5.5 Lakhs villages in India

BSNL company has a modern infrastructure due to terrific competition. Now BSNL
has to compete with Airtel, Reliance Infocom, TATA, Bharti and other Private
Operators. BSNL has introduced various new technologies like Value Added Services,
Broadband, MLLN, Internet, Centrex, ISDN etc. For achieving goal BSNL has to
maintain and develop its landlines services, mobile services and value added services
regularly.
Human Resources Development

With a corporate philosophy that considers

Human Resource as the most prized assets of the organization, it's natural for BSNL to
continually hone employee skills, enhance their knowledge and their expertise and
their aspirations to fruition. Even as BSNL goes about conducting its business
activities, it lays emphasis on constant enhancement of knowledge and skills through
regular training programmes.

• Bharat Sanchar Nigam Limited has a vast reservoir of highly skilled and
experienced work force of about 3, 57,000 personnel.
• We believe that our staff, which is one of the best trained manpower in the
telecom sector, is our biggest asset.
• We believe that our future depends on our staff that provide services to our
valued customers and stay in touch with them.
• To meet the technological challenges, employees are trained for technology
up-gradation, modernization, computerization etc in BSNL's training Centers
spread across Country. These centers are properly equipped with the requisite
infrastructure facilities such as Lecture rooms, modern audio-visual aids,
libraries, hostels etc.
• To apex training centers of BSNL i.e. Advance level Telecom Training Center
(ALTTC) at Ghaziabad and Bharat Ratna Bhimrao Telecom Training Center at
Jabalpur are comparable to any world class Telecom Training Center.
Moreover, 43 zonal training centers and a National Academy of Telecom
Finance and Management have been running for several years now.
• Different curriculum run in these centers to impart technology based training,
training for attitudinal change, basic educational and skill development
program etc.
Finance

Bharat Sanchar Nigam Limited, the largest Public

Sector Undertaking of the Nation, is certainly on a financial ground that's sound.

The Company has a net worth of Rs. 88,634 crores (US$ 17.40 billion), authorized
equity capital of Rs. 10,000 crores (US $ 1.96 billion), Paid up Equity Share Capital
of Rs. 5,000 crores (US $ 0.98 billion) and Revenues is Rs. 35,812 crores (US $ 7.03
billion) in 2008-09. (Note: 1 US $ = 50.9500 INR as on 31-03-2009)

Company Asset

Bharat Sanchar Nigam

Limited has got net fixed assets valuing more than Rs. 54,321 Crores (US $ 10.67
billion), which are in the form of Land, Buildings Cables, Apparatus & Plants etc. as
on 31.03.2009.
Social commit

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;

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;
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.

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

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.

Wi-Max services are also being provided through a Franchisee agent with M/s SOMA
in three states of Gujrat, 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

Fibre 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.
Products and Services of BSNL
 BSNL is high- tech customer oriented company with emphasis on to provide

world class telecomm services on demand using state-of-art technology to the

customers at affordable price.The products and services offered by BSNL are as

follows.

Bfone Telephone.

Cell One Mobile Service.

Tarang WLL service.

Broadband

Leased Line.

ISDN

Sancharnet Internet

Telex Telegraph

MPLS VPN

Features:

Video conferencing

No capital cost

IP-VPN webhosting, IP telephony

CUG facility within Landline

Mobile Services
 India's fastest growing cellular service, along with postpaid
and prepaid services brings cellular telephony to the masses, through innovative
technology and strategic pricing.

This ambitious service uses state-of-the-art GSM technology to attain global

excellence and leadership in business. Our entry into this sector has brought GSM
cellular service at an affordable cost to the common man. All serving a single
objective, to provide better communication to millions across India.

Customers have reposed tremendous faith in BSNL and it has enrolled over 30 Lakhs
Cellular customers within ten months of launch of Cellular service, an unprecedented
mark in Indian Cellular Market.

Why should you choose BSNL Mobile?

• For the first time in the country, all major towns and cities are covered through
our network
• All major national and state highways are covered
• National and International SMS facility
• International roaming available for more than 300 networks across the world.
See list>>
• The facility of one number roaming across the country
• Appropriate and reasonable tariff packages to suit every pocket
• Absolute transparency in billing. See your BSNL Mobile (postpaid) bills
online no matter whatever place you belong to>>
• All regular features of cellular telephony, such as SMS as well as advanced
features like MMS are available.
• 24 Hour helpline all across the country.
• The only Mobile service available through out the country including Jammu
and Kashmir and North Eastern states like Arunachal Pradesh, Nagaland, and
Mizoram etc.

BSNL Service Plus:

Cell One provides a number of Value Added Services. These services helps
BSNL serve you better & enhance the ease & quality of communication thus bringing
global connectivity at your doorstep.
• Voice Mail Service
• Value Added Services SIM Based service SMS based Services
• Short Message Service (SMS)
• Group Messaging
• National & International roaming
• Call forwarding
• Corporate Virtual Private Network
• Call conferencing
• Friend and Family Talk
• Call waiting and Call holding facility
• Unified Messaging Services: This provides Voice mail, FAX, e-mail, text to
voice services on your mobile phone. So stay in touch with your nears and
dears by means you like the most.
• Wireless Application Protocol (WAP): Surf WAP enabled websites on
Internet using this service.

Mobile Services

(As on 28.2.2010)

• Total number of 2G connections - 59945215

• Total number of 3G connections - 973378

• District Headquarters covered - 618(All covered)

• Total number of villages covered - 362117

• Total number of Town/cities
covered
• National Highway covered (Km) -
• State Highway covered (Km)
• Railway route covered (Km)
Importance of Topic
- 24769
56705 (OUT OF 62373)
- 85772(OUT OF 130007)
- 43950(OUT OF 53522)

Why do we research on marketing and how did it evolve?

This is the question that arises after having understood that what marketing
research comprise. To answer this we have to go back to the stage of industrial
revolution when goods are mass produced and the firm operated in seller market.
 As the sales grew, a record of the same was required to be maintained region wise
and product wise. An analysis would also be performed on the same and the
demand projection made.

Today, the role of PLACE or PHYSICAL

DISTRIBUTION in marketing mix has changed significantly. It has become more
dynamic functioning today’s highly competitive marketing environment. As
modern marketing concept revolves around the customer satisfaction, every
marketing mix variable has to contribute more in achieving this objective

Today Physical distribution is not restricted to merely

making goods/services available to the customer, but it plays a vital role and it
largely contributes in achieving both objective, i.e. customer satisfaction and cost
reduction.

Reasons for selection of this topic.

Now days PHISICAL DISTRIBUTION is a very powerful

element in the marketing mix. Distribution involves making goods/ services
available to the consumers. The channel of distribution makes possible the
effective flow of a product/service to the consumer.

This study was made with the retailers to know the products
available in the markets and their market size. This study yields the following:

• To study about the channels of distribution and relationship maintained by

the company executive.
• To identify the present position of BSNL s in the LATUR market.
• To identify the opportunities for the BSNL Sim card and Vouchers and
also the threat faced by BSNL Sim card and Vouchers from the
competitors.
• To know the Distribution of BSNL Sim card and Vouchers in Latur city.
• To know the potential of Sim card and Vouchers market in Latur.

Importance of this topic to the company

As we discussed above PLACE or PHISICAL DISTRIBUTION

important for every product. BSNL is the most preferred company of India.
 The most important task was to get the right product to the right
person at the right place with also right price. Besides, it was also required to go back
and ask the Consumer whether he was getting optimum satisfaction and thus
continues to make changes in the marketing mix; so that the consumer remained loyal
to the product forever. This entire task required a new breed of professional, combing
the expertise of the satisfaction and the marketer, thus resulting in the emergence of
the marketing researcher
.
Customers are valuable since it is the income stream for the
Organization , provides repeat business and it is cheaper to retain the customers.
The organization must find the right customer, learn what they want and sell it to
them, and services all their needs in order to survive in the competitive area.
Need arises to solve the problem centrally , the enterprise information and the
customers information must be integrated into a single whole . New kind of customer
behavioral information must be captured and processed, customers and employees
must share a common knowledge base

For providing best services to customers one should remembers that-

• A customer is the most important person in any business.

• A customer is not dependent upon us . we are dependent upon him.

• A customer is a person who comes to us with his need and his wants . it is our
job to fill them.

• A customer deserves the most courteous attention we can give him. He is the
lifeblood of this and every business . He pays your Salary. Without him we
would have to close our doors Don’t ever forget it.

Observation

• In spite of laying down of detailed guidelines in the Franchisee

policy there was a general feeling that there was serious lacuna in its
implementation.

• Despite provisions for customer services by franchisee, nothing

substantial was achieved on this front.

• Despite passage of 2 years franchisees are yet to be appointed in many

demarcated areas.

• By and large franchisees have only worked in the area of per-paid SIM
Cards and recharge coupons.

• As a result there were many complaints/representations from VIPs

and franchisees which mainly relate to overlapping of jurisdiction of
Franchisees, favoritism to certain franchisees and black marketing of
SIM cards, recharge coupons etc.

• In the light of these observations it is concluded that the Franchisee

Policy has not met its objective fully. The following three main reasons were
observed for the policy not meeting its objective fully:

 Lack of adequate manpower for monitoring, supporting and

execution of the policy;

 Viability of franchisees working solely for BSNL without

any other regular source of revenue; and

 The business process reengineering has not been done. The

systems and structures required within the organization to facilitate smooth
working of the scheme needs to be strengthened.

Objectives of Sales and Distribution

• To serve the customers in 2 hours or less. Progressively it should be

on real time basis.
• The ultimate objective is to serve the customer up to their satisfaction
in real time basis and delight them.

Need of Sales And Distribution Policy

• To meet the objective, a comprehensive sales and distribution strategy for

BSNL needs to be adopted giving emphasis on marketing, sales, including
after sales customer care. Hence Sales and Distribution Policy 2006 has
been drafted which is in super cession of existing Franchisee Policy.

• In addition to the franchisees all other channels like PCO’s, Post

Offices, use of other retail network chains and separate Business Associates
for selling high end products, as well as Direct Selling Agents for the other
routine products and to serve the customer at their premises needs to be
developed in parallel.

• This will not only help in developing sound sales and distribution
system, but will also avoid monopolistic situation by any of the groups.

• In this competitive era the most challenging areas for BSNL are

 Marketing of all services of the company and brand building;

And

 Sales and after sales Customer Care not only to retain the existing
customer base but to acquire larger market share by adding more
number of subscribers.

Research Methodology

The first step towards any research is to identify the problem &
look it objectively. One problem to be decided, the step for the research should

be finalized as follows.

• Method to be used for collecting required information.

• Interpretation of the data to get the required result through an analysis.

• Provide the necessary recommendation & suggestions.

Types of research

There are various type of research, which a Researcher can apply in

order to achieve one’s desired objective. Therefore, to achieve the objectives of my

research I have used Applied research.

Data Collection Method

1. Primary Data

2. Secondary Data

1) Primary Data

Primary data are those data which are collected for the first time . I

have chosen the Questionnaires method & observation method.

2) Secondary Data

Information regarding Existing Sales and Distribution Policy from BSNL

intranet web Site

• www.bsnl.co.in

• www.intranet.bsnl.co.in

• www.sancharsoft.co.in

Sampling

Sample is the small group taken under consideration from the total group.

Calculation of sample size based on random sampling technique for the project.

• Area of survey – Latur City(East and West)

(Ambejogai Road ,Ganjgolai ,Gandhi Chwok ,Barshi

Road)

• Sample units - Retailer & Wholesaler

• Sampling techque - Random Sampling

Total sample size - 60

Flow Of Distribution Channel

DSA
BSNL WHOLESALER (DIRECT SALE
AGENT

CUSTOMER RETAILER

Zero Level Of Distribution

BSNL

ZERO LEVEL/

DIRECT

MARKETING

CUSTOMER
Three Level Of Distribution

BSNL

WHOLESALER

DSA
(DISTRICT SALE AGENT)

RETAILER

CUSTOMER
Findings

• Poor communication between wholesaler & retailer.

• There is a horizontal conflict among whole saler ,DSA & Retailer. Which

retailer is selling sim card for Rs.10 at the same time DSA is selling card free

of cost. So retailer doesn’t take any interest to sale the BSNL sim cards.

• Old retailers are facing the internal competition because of the increase in

the point in their local area.

• I observed some problem faces consumer such as Consumer complaint

about activation of BSNL sim cards takes 1day or 2 day for activation but

competitors sim cards activate within 2 hours.

• I observed some problem faces consumer such as Consumer complaint

about Reacharge not immediately done but competitors within few second and

receive message.

• In some area of the Latur city there is no regular supply of the sim cards

and Recharge coupons

• Due to Long Procedure famous Mobile Shopee don’t Sale BSNL Sim

cards.

• In some area of city sales representative doesn’t visit to retailer.

SUGGESSIONS

• To catch the additional market they should set up their direct sale counter at

event places like collage festival, consumer expo

• Till now no one has adopted marketing strategy of online selling of sim

card. BSNL should explore this possibility where customer can apply for new

connection of sim card .

•
BSNL
ZERO LEVEL/

DIRECT MARKETING

CUSTOMER

• To overcome the lesser margin of retailer BSNL should eliminate the DSA

from marketing channel. IT might help to attract the retailer to sell the more

and more BSNL product.

• There is still wide scope for improvement in distribution process

• There should be two way communication. (wholesaler to retailer , &

retailer to wholesaler )

• To improve the communication of wholesaler , retailer they should arrange

meetings between them.