7/28/2019 OST Report 1 - Melvin

1/32

CHRIST UNIVERSITY ,BANGALORE

STUDY AND ANAYSIS OF BSNL ORGANISATION

Report

Melvin Roy. V

8/31/2012

1221123- MBA J

7/28/2019 OST Report 1 - Melvin

2/32

1

CONTENT

i. Introduction

ii. Vision ,Mission & Objectives

iii. Profile of the Product

iv. Organisation Design and Structure

v Accounting Policies

vi Growth Plans

vii. Financial Highlights

viii. Human Resource Development

ix. Swot Analysis

x. System Followed For Purchase Of Materials

xi. Training Measures At BSNL

xii . Acknowledgement

xiii. References

7/28/2019 OST Report 1 - Melvin

3/32

2

STUDY AND ANAYSIS OF BSNL ORGANISATION

i.INTRODUCTION

In the present study the Bharat Sanchar Nigam Limited (BSNL) is chosen and its

structural and organization aspects have been analysed. This study has been carried out at

BSNL regional office at Tiruchirappalli, Tamil Nadu for about a month. It is one of the

largest and leading public sector units providing comprehensive range of telecom services in

India.

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

bridge the rural-urban digital divide in ICT sector. In fact there is no telecom operator in the

country to beat its reach with its wide network giving services in every nook and corner of

the country and operates across India except New Delhi and Mumbai(serviced by Mahanagar

Telephone Nigam Ltd) . Whether it is inaccessible areas of Siachen glacier or North-Eastern

regions of the country, BSNL serves its customers with a wide bouquet of telecom services

namely Wireline, CDMA mobile, GSM mobile, Internet, Broadband, Carrier service, MPLS-

VPN, VSAT, VoIP, IN Services, FTTH, etc. BSNL is number one of India in all services in

its license area. The company has vast experience in planning, installation, network

integration and maintenance of switching and transmission networks

In the present work an attempt is made to give a comprehensive report on the

structure of the organization ,policies ,services ,and the performance of the company .

HISTORY OF THE ORGANISATION

The foundation of Telecom Network in India was laid by the British sometime in19th century. The history of BSNL is linked with the beginning of Telecom in India. In 19thcentury and for almost entire 20th century, the Telecom in India was operated as aGovernment of India wing. Earlier it was part of erstwhile Post & Telegraph Department(P&T).

In 1975 the Department of Telecom (DoT) was separated from P&T. DoT wasresponsible for running of Telecom services in entire country until 1985 when MahanagarTelephone Nigam Limited (MTNL) was carved out of DoT to run the telecom services ofDelhi and Mumbai.

It is a well known fact that BSNL was carved out of Department of Telecom toprovide level playing field to private telecoms. Subsequently in 1990s the telecom

7/28/2019 OST Report 1 - Melvin

4/32

3

sector was opened up by the Government for Private Investment, therefore it becamenecessary to separate the Government's policy wing from Operations wing.

The Government of India corporatized the operations wing of DoT on October 01,2000 and named it as Bharat Sanchar Nigam Limited (BSNL).BSNL operates as a public

sector.It took over the business of providing of telecom services and network

management from the erstwhile Central Government Departments of Telecom Services

(DTS) and Telecom Operations (DTO), with effect from 1st October2000 on going concern

basis.

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 winning customer's confidence. Today, it has about 43.74 million line basic

telephone capacity, 8.83 million WLL capacity, 72.60 million GSM capacity, 37,885 fixed

exchanges, 68,162 GSM BTSs, 12,071 CDMA Towers, 197 Satellite Stations, 6,86,644RKm. of OFC, 50,430 RKm. of microwave network connecting 623 districts, 7330

cities/towns and 5.8 lakhs villages .

The company offers wide ranging and most transparent tariff schemes

designed to suit every customer. BSNL has 90.09 million cellular and 5.06 million WLL

customers as on 31.07.2011.3G Facility has been given to all 2G connections of BSNL. In

basic services, BSNL is miles ahead of its rivals, with 24.58 million wireline

phone subscribers i.e. 71.93% share of the wireline subscriber base.

BSNL has set up a world class multi-gigabit, multi-protocolconvergent IP infrastructure that provides convergent services like voice, data and video

through the same Backbone and Broadband Access Network. At present there are 8.09

million broadband customers.

BSNL has a world class ISO 9000 certified Telecom Training Institute. Turnover of BSNL is

around Rs.29,700Crores during the2010-11.

7/28/2019 OST Report 1 - Melvin

5/32

4

ii. VISION:

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

Create a customer focused organization with excellence in customer care, sales andmarketing.

Leverage technology to provide affordable and innovative telecom. Services/products

across customer segments.

MISSION:

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

Generating value for all stakeholders - employees, shareholders, 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

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

service

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

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

7/28/2019 OST Report 1 - Melvin

6/32

5

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

OBJECTIVES:

To be the Leading Telecom Services provider by achieving higher rate of growth so

as to become a profitable enterprise.

To provide quality and reliable fixed telecom service to our customer and thereby

increase customers confidence.

To provide customer friendly mobile telephone service of high quality and play a

leading role as GSM operator in its area of operation.

STRATEGY FOR:

Rightsizing the manpower Providing greater customer satisfaction.

CONTRIBUTE TOWARDS:

Broadband customers base of 20 Mn in India by the end of 2011-12 as

per broadband policy 2004.

Providing telephone connections in villages as per Government policy.

To leverage the existing infrastructure of BSNL for facilitating implementation of

other government programmes and initiatives particularly in the rural areas.

7/28/2019 OST Report 1 - Melvin

7/32

6

iii.PROFILE OF THE PRODUCT(S)/SERVICE

The following products and services have been introduced by BSNL.

PRODUCTS OF BSNL

1. BSNL LANDLINE2. BSNL MOBILE

POSTPAID

PREPAID

UNIFIED MESSAGING

GPRS/WAP/MMS

DEMOs TARIFF

3. BSNL WLL4. INTERNET SERVICES

NETWORK BROADBOARD WI-FI CO-LOCATION SERVICE

BSNL WEB HOSTING DAIL UP INTERNET SMS & BULK SMS

5. BSNL BROADBAND6. BSNL MANAGED NETWORK SERVICES7. BSNL MPLS-VPN8. ISDN9. LEASED LINE10. INTELLIGENT NETWORK

FREE PHONE SERVICE

PREMIUM RATE SERVICE

INDIA TELEPHONE CARD

VIRTUAL PRIVATE NETWORK(VPN)

VOICE VPN

7/28/2019 OST Report 1 - Melvin

8/32

7

UNIVERSAL NUMBER

UNIVERSAL PERSONAL NUMBER

TELE VOTING

11. VIDEO CONFERENCING12. AUDIO CONFERENCING13. TELEX/ TELEGRAPH

EPABX

FREE EPABX

CENTREX

14. HVNET15. INMARSAT16. TRANSPONDER

Services of BSNL

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

one solitary name lies embedded at the pinnacle - BSNL. A company that has gone

past the number games and the quest to attain the position of a leader. It is working

round the clock to take India into the future by providing world class telecom services

for people of India. BSNL is India's no. 1 Telecom Service provider andmost 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 us to step into tomorrow.

7/28/2019 OST Report 1 - Melvin

9/32

8

SERVICES OFFERED BY THE BSNL

Basic Telephone Services:-

The Plain old, Countrywide telephone Service through 32,000 electronic

exchanges. Digitalized Public Switched Telephone Network (PSTN) with a host of

Phone Plus value additions.

BSNL launched Data One broadband service in January 2005 which shall be

extended to 198 cities very shortly. The service is being provided on existing copper

infrastructure on ADSL2 technology.The minimum speed offered to the

customer is 256 Kbps at Rs. 250/- per month only. Subsequently, other services such

as VPN, Multicasting, Video Conferencing, Video-on-Demand, Broadcast

application etc. will be added.

Internet :-

Keeping the global network of Networks networked, the countrywide Internet

Services of BSNL under the brand name includes Internet dial up/ Leased line access,

CLI based access (no account is required) and DIAS service, for web browsing and E-

mail applications. You can use your dialup sancharnet account from any place in India

using the same access no '172233' , the facility which no other ISP has. BSNL has

customer base of more than 1.7 million for sanchar netservice.

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.

http://www.bsnl.co.in/service/telephone.htmhttp://www.bsnl.co.in/service/internet.htmhttp://www.bsnl.co.in/service/isdn.htmhttp://www.bsnl.co.in/service/isdn.htmhttp://www.bsnl.co.in/service/isdn.htmhttp://www.bsnl.co.in/service/internet.htmhttp://www.bsnl.co.in/service/telephone.htm

7/28/2019 OST Report 1 - Melvin

10/32

9

Intelligent Network:-

Intelligent Network Service (In Service) offers value-added services, such as:

Free Phone Service (FPH)

India Telephone Card (Prepaid card)

Account Card Calling (ACC)

Virtual Private Network (VPN)

Tele-voting

Premium Rae Service (PRM)

Universal Access Number (UAN) and more.

I-Net:- Indias x.25 based packet Switched Public Data Network is operational in 104

cities of the country. It offers x.25 x.28 leased, x.28 Dial up (PSTN) Connection and

frame relay services.

Leased Lines & Datacom:-

BSNL provides leased lines for voice and data communication for various

application on point to point basis. It offers a choice of high, medium and low speed

leased data circuits as well as dial-up lines. Bandwidth is available on demand in

most cities. Managed Leased Line Network (MLLN) offers flexibility of providing

circuits with speeds of nx64 kbps upto 2mbps, useful for Internet leased lines and

International Principle Leased Circuits (IPLCs).

http://www.bsnl.co.in/service/inteligent_network.htmhttp://www.bsnl.co.in/service/inteligent_network.htmhttp://www.bsnl.co.in/service/inet.htmhttp://www.bsnl.co.in/service/inet.htmhttp://www.bsnl.co.in/service/leased.htmhttp://www.bsnl.co.in/service/leased.htmhttp://www.bsnl.co.in/service/mlln.htmhttp://www.bsnl.co.in/service/mlln.htmhttp://www.bsnl.co.in/service/leased.htmhttp://www.bsnl.co.in/service/inet.htmhttp://www.bsnl.co.in/service/inteligent_network.htm

7/28/2019 OST Report 1 - Melvin

11/32

10

Cellular Mobile Service :-

Postpaid and Prepaid

BSNLs GSM cellular mobile service Cellone has a customer base of over 5.2 million.

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

Message Service (SMS) both national and international, unified messaging service

(send and receive e-mails) etc. You can use BSNL Mobile in over 160 countries

worldwide and in 270 cellular networks and over 1000 cities/towns across India. It has

got coverage in all National and State Highways and train routes. BSNL Mobile offers

all India Roaming facility to both pre-paid and post-paid customers (including

Mumbai & Delhi).

Wireless in Local Loop:-

This is a communication system that connects customers to the Public Switched

Telephone Network (PSTN) using radio frequency signals as a substitute for

conventional wires for all or part of the connection between the subscribers and the

telephone exchange.

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

network.

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

in urban areas.

Connecting the remote and scattered rural areas.

Limited mobility without any air-time charge.

http://www.bsnl.co.in/service/mobile.htmhttp://www.bsnl.co.in/service/mobile.htmhttp://www.bsnl.co.in/service/wll.htmhttp://www.bsnl.co.in/service/wll.htmhttp://www.bsnl.co.in/service/mobile.htm

7/28/2019 OST Report 1 - Melvin

12/32

11

iv .ORGANISATION DESIGN AND STRUCTURE

PGMT

GENERAL MANAGER

DGM F DGM CFA1 DGM(A&HR) DGM CFA2 DGM CM

CAO CAO AGM DE JE JE JEAGM AGM JE

AO

JAO

SDE

JTO

SDE

JTO

7/28/2019 OST Report 1 - Melvin

13/32

12

PGMT PRINCIPLE GENERAL MANAGER TELECOM

DGM F DEPUTY GENERAL MANAGER FINANCE

DGM CFA1 CONSUMER FIXED ASSETS 1

DGM (A&HR) DEPUTY GENERAL MANAGER ADMIN ANDHUMAN RESOURCE

DGM CFA2 CONSUMER FIXED ASSETS 2

DGM CM CONSUMPER MOBILITY

CAO CHIEF ACCOUNT OFFICER

AO ACCOUNT OFFICER

JAO JUNIOR ACCOUNT OFFICER

JTO JUNIOR TELECOM OFFICER

DE DIVISIONAL ENGINEER

SDE SUB DIVISIONAL ENGINEER

7/28/2019 OST Report 1 - Melvin

14/32

13

V. ACCOUNTING POLICIES

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements of Bharat Sanchar Nigam Limited (the Company or BSNL) are

prepared under the historical cost convention adopting the accrual method of accounting in

accordance with Indian Generally Accepted Accounting Principles and in accordance with

the provisions of the Companies Act, 1956 and it requires the management to make estimates

& assumptions and actual may differ from these which are recognized in the period it is

ascertained.

2. REVENUE RECOGNITION

Income from services is accounted for on accrual basis and in conformity with AccountingStandard9 . Accordingly,

a) Revenue for all services is recognized when earned and are realizable at the time of billing.

Un-billed revenues from the billing date to the end of the year are recorded as accrued

revenue during the period in which the services are provided. Provision is made in respect of

bills considered to be disputed (by the management), debts outstanding for more than two

years and for debts due for less than 2 years, to the extent considered necessary by the

management.

b) Installation Charges recovered from subscribers at the time of new telephone connectionsare recognized as income in the first year of the billing.

c) In terms of the arrangement between Department of Telecommunications (DoT) and the

Company, the charges for telecommunication services and other infrastructural services

provided by BSNL to DoT are neither being billed nor provided for.

d) Sale proceeds of scrap arising from maintenance and project works are taken into

miscellaneous income in the year of sale.

e) Income from SIMs, recharge coupons of Mobile, Prepaid Calling Cards, and Prepaid

internet connection cards are treated as income of the year in which the payment is receivedsince the extent of use of these cards within the financial year could not be ascertained.

f) Wherever there is uncertainty in realization of income, such as liquidated damages, claims

on Government Departments & local authorities etc., these are recognized on collection basis.

g) The claims receivable on account of provision of infrastructure, operation and maintenance

of Village Public Telephones (VPTs) & Rural Household Connections (RDELs) etc. and

operational sustainability of rural wireline network from U.S.O. fund are accounted for as

other operating income.

7/28/2019 OST Report 1 - Melvin

15/32

14

h) The interest on surplus fund which are placed generally in fixed deposits with banks is

recognized on accrual basis.

i) Other income by way of interest on loans to employees, security deposit with Government

Departments and local authorities, being not material, are accounted for on collection basis.

3. FIXED ASSETS

3.1 Fixed assets are carried at cost less depreciation. Cost includes directly related

establishment and other expenses including employee remuneration and benefits, directly

identifiable to the construction or creation of the assets.

3.2 Expenditure on replacement of assets, equipment, instruments and rehabilitation works iscapitalized if, in the opinion of the management, it results in enhancement of revenue

generating capacity.

3.3 Assets are capitalized to the extent completion certificates have been obtained, wherever

applicable.

3.4 The cost of stores and materials at the time of issue to a project, is debited to CWIP.

3.5 Apparatus and plants principally consisting of telephone exchanges, transmission

equipment and air conditioning plants etc. are capitalized as and when an exchange is

commissioned and put to use.

3.6 Cables are capitalized as and when ready for connection to the main system.

3.7 Intangible assets are stated at cost of acquiring the same less accumulated depreciation /

amortization.

4. DEPRECIATION / AMORTIZATION

Depreciation is provided based on the Written Down Value method at the rates prescribed in

Schedule XIV to the Companies Act, 1956 except for Subscriber Installation. The SubscriberInstallation is depreciated over the useful life of 5 years on Written Down Value method.

Assets costing up to Rs. 5,000 are depreciated fully in the year of purchase. Similarly,

partition works and paintings costing up to Rs. 2,00,000 are depreciated fully in the year of

construction/ acquisition.

The depreciation on machinery & tools used both for project and maintenance work is

charged to profit and loss account instead of capitalization.

All telephone exchange buildings, administrative offices and captive consumption assembling

premises/workshops are considered as normal building and not as factory building.

Accordingly depreciation is charged uniformly.

7/28/2019 OST Report 1 - Melvin

16/32

15

Intangible assets such as Entry License Fee, One Time Spectrum Fee for Telecom Service

operations are amortized over the license period (i.e. 20 years) and standalone computer

software applications are amortized over the license period subject to maximum of 10 years

as per straight line method.

5. IMPAIRMENT OF ASSETS

Assets, which are impaired by disuse or obsolescence, are segregated from the concerned

assets category and shown as Decommissioned Assets and provision made for the loss, if

any, due to the difference between their net carrying cost and the net realizable value.

6. INVESTMENTS

Long-term investments are carried at cost, after providing for any diminution in value, if such

diminution is of a permanent nature.

7. INVENTORIES

Inventories are valued at cost or net realizable value as the case may be - cost ascertained

generally on weighted average method; obsolete/non moving inventories are valued at net

realizable value.

8 FOREIGN CURRENCY TRANSACTIONS

(i) Transactions in foreign currency are recorded at the exchange rate prevailing on the date

of the transaction i.e. on the date of payment or the billing as the case may be.

(ii) All Foreign Currency Liabilities and monetary assets are stated at the exchange rate

prevailing as at the date of Balance Sheet and the difference taken to Profit and Loss

Accounts as Exchange Fluctuation Loss or Gain.

9. EXTRAORDINARY ITEMS

Extra-ordinary items of income and expenditure, as covered by AS5, are disclosed

separately.

10. EMPLOYEES BENEFITS

10.1 SHORT TERM EMPLOYEE BENEFITS:

Short Term employee benefits are recognized in the period during which the services have

been rendered.

7/28/2019 OST Report 1 - Melvin

17/32

16

10.2 LONG TERM EMPLOYEE BENEFITS:

10.2.1 DEFINED CONTRIBUTION PLAN:

a) Pension Contribution (including gratuity)

The employees of DoT who have opted for absorption / absorbed in the company, and the

employees on deemed deputation from Government are eligible for pension, which is a

defined contribution plan. The company makes monthly contribution (including liability on

account of gratuity) at the applicable rates as per Government Pension Rules, 1972 and FR &

SR, to the Government who administers the same.

b) Employees Provident Fund

All directly recruited employees of the company are entitled to receive benefits under the

Provident Fund. Both employees and employer make monthly contribution to the plan at a

predetermined rate of employees basic salary and dearness allowance. These contributions to

Provident fund are administered by the Provident Fund Commissioner. Employers

Contributions to Provident Fund are expensed in the Profit and Loss Account.

c) Contribution for Leave Salary

For employees on deemed deputation from Government, Leave salary contribution is

provided and such leave salary contribution takes care of leave encashment also.

10.2.2 DEFINED BENEFIT PLANS:

a) Leave Encashment:

The liability on account of unavailed leave in respect of absorbed employees and directly recruited

employees at the year end is provided for based on actuarial valuation.

b) Gratuity

The company provides for gratuity, a defined benefit plan (the Gratuity Plan) covering all

directly recruited eligible employees. In accordance with the payment of Gratuity Act, 1972,

the Gratuity Plan provides a lump sum payment to vested employees on retirement, deaths,

incapacitation or termination of employment. Liabilities with regard to the Gratuity Plan aredetermined by actuarial valuation on balance sheet date and are expensed in the profit and

loss account

c) Other benefits including post employment medical care

Medical reimbursements and other personal claim bills of existing / retired employees are

accounted for on actual basis in respect of bills received till the cut off period in the accounts

at the concerned primary units as per the prescribed limits.

7/28/2019 OST Report 1 - Melvin

18/32

17

11. MANUFACTURING EXPENSES

Expenses incurred at Factory units are allocated to the cost of the manufactured products.

12. PRIOR PERIOD ITEMS

Items of income/expenditure exceeding Rs. 5 lakh are only considered for being treated as

'prior period items'.

13. TAXES ON INCOME

Taxes on Income for the current period are determined on the basis of taxable income and tax

credits computed in accordance with the provisions of the Income Tax Act, 1961.

In accordance with the AS-22, Deferred Tax Liability is recognized on the timing differencesbetween accounting income and the taxable income for the period taking into consideration

the contents of Accounting Standard Interpretations 3 and quantified using the tax rates in

force or substantively enacted as on the Balance Sheet date.

Deferred Tax Assets are recognized and carried forward to the extent there is a virtual

certainty that such deferred tax assets can be realized.

14. PROVISIONS

Provisions are recognized when the Company has a present obligation as a result of past

events; it is more likely than not that an outflow of resources will be required to settle the

obligation; and the amount has been reliably estimated.

15. CONTINGENT LIABILITIES

Liabilities, though contingent, are provided for if there are reasonable chances of maturing

such liabilities as per management. Other contingent liabilities, barring frivolous claims, not

acknowledged as debts, are disclosed by way of notes.

16. EARNING PER SHARE

Earning Per Share ("EPS") comprises the Net Profit after tax (excluding extraordinary

income net of tax). The number of shares used in computing Basic & Diluted EPS is the

weighted average number of shares outstanding during the year.

17. SEGMENT REPORTING

The primary segment consists of cellular and other than cellular services provided. The

manufacturing activities have not been treated as a separate segment since such activities are

essentially carried on as support service to other segments mainly for Captive Consumption.

The following specific accounting policies have been followed for segment reporting:

7/28/2019 OST Report 1 - Melvin

19/32

18

Segment Revenue includes service income and other income directly identifiable

with/allocable to the segment.

Income/expense, which relates to the Company, as a whole and not allocable to

individual business segment is included in Un-allocable Corporate Income/expense

respectively. Expenses that are directly identifiable with/allocable to segments are considered for

determining Segment Results.

Segment Assets and Liabilities include those directly identifiable with the respective

segments. Un-allocable corporate assets and liabilities represent the assets and

liabilities that relate to the Company as a whole and not allocable to any segment.

VI. GROWTH PLAN

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 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.

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 toattract 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.

7/28/2019 OST Report 1 - Melvin

20/32

19

IMPORTANT PROJECTS UNDER IMPLEMENTATION

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

five years.

Wi-Max:

1000 Base Station rural Wimax project for 12000 CSCs covering all Telecom Circles

except A&N, J&K, Kerala & Kolkata Telecom District.

6863 Base Station rural Phase-II Wimax project for 56000 CSCs covering all

Telecom circles except Kerala & A&N.

CDR based Customer Care & Convergent Billing system.

Enterprise Resource Planning (ERP) system country wide.

Replacement of life expired exchanges by Class 5 NGN

Introduction of Fixed Mobile Convergence to add value to Fixed Network.

INTERNATIONAL LONG DISTANCE

Undersea Cable: BSNL is participating/member of the following submarine cable systems:

Bharat Lanka Cable System: Connecting to Sri Lanka and to reach in the Pacific directionfrom 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 venture with MTNL to lay Millennium Cable Systemin two directions as follows:-

Millennium Cable Sub-System East (MCSS-E) connecting the East Coast of India toSouth East Asia (Malaysia and Singapore) with optional branches to Port Blair (GreatAndaman Island), Bangladesh, Myanmar, Indonesia and Thailand.

Millennium Cable Sub-System West (MCSS-W): connecting the West Coast of Indiato the Middle East (United Arab Emirates) and Djibouti with optional branches toPakistan, 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 turnover of the

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

March 2014.

7/28/2019 OST Report 1 - Melvin

21/32

20

VII. FINANCIAL HIGHLIGHTS OF THE ORGANISATION DURING

THE LAST THREE YEARS

REVENUE

Revenue earned by BSNL during last five years

7/28/2019 OST Report 1 - Melvin

22/32

21

CAPITAL INVESTMENT

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

CUMULATIVE CAPITAL OUTLAY

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

31.03.2009.

7/28/2019 OST Report 1 - Melvin

23/32

22

BSNLS FINANCIAL RESULT FOR THE YEAR 2010-11

Item 2010-11(Rs in crores)

2009-10(Rs in crores)

Income

Revenue on services&other

operating income

27044.71 27913.44

Other income 2642.91 4131.97

Total income 29687.62 32045.41

Expenditure

Employees remuneration 13790.95 13455.04

License fee and spectrum fee 1971.72 875.55

Administrative, operating

and other expenditure

10123.68 10199.05

Financial expenses 389.86 351.61

Depreciation 9725.43 9196.79

Total expenditure 36001.64 34078.04

Profit before prior period

items

--6314.02 --2032.63

Prior period items --264.79 --164.85

Profit before taxation --6578.81 --2197.48

Current tax 0 0

Deferred Tax 20.46 145.01

Fringe Benefit Tax 0 0

Wealth Tax 0.98 1.16

Profit for the year after

taxation

--6384.26 --1822.65

Thus BSNL posted a net loss of Rs 6384.26 crores in 2010-11, whereas in 2009-10 it is

1822.65 crores.

ts

Assets

7/28/2019 OST Report 1 - Melvin

24/32

23

ASSETS

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

VIII.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 who 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, 43zonal 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.

7/28/2019 OST Report 1 - Melvin

25/32

24

ganization

STAFF

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

indicated below:

IX.SWOT ANALYSIS:-

STRENGTHS: -

1. Pan-India reach

2. Experienced telecom service provider

3. Total telecom service provider

4. Huge Resources (financial & technical pool)

7/28/2019 OST Report 1 - Melvin

26/32

25

5. Huge customer base

6. Most trusted telecom brand

7. Transparency in billing

8. Easy deployment of new services

9. Copper in last mile can be used for easy broadband deployment

10. Huge Optical Fibre network and associated bandwidth

WEAKNESSES: -

11. Non-optimization of network capabilities

12. Poor marketing strategy

13. Bureaucratic organizational set up

14. Inflexibility in mindset (DOT period legacies)

15. Limited number of value added services

16. Poor franchisee network

17. Legacy of poor service image

18. Huge and aged manpower

19. Procedural delays

7/28/2019 OST Report 1 - Melvin

27/32

26

20. Lack of strategic alliances

21. Problems associated with incumbency like outdated technologies,

unproductive rural assets, social obligations, political interference,

22. Poor IT penetration within organization

23. Poor knowledge Management

OPPORTUNITIES:-

24. Tremendous market growing at 20 lac customers per month

25. Untapped broadband services

26. Untouched international market

27. Can capitalize on public sector image to grab governments ICT initiatives

28. ITEB service markets

29. Diversification of business to turn-key projects

30. Leveraging the brand image to source funds

31. Almost un-invaded VSAT market

32. Fuller utilization of slack resources

33. Can make a kill through deep penetration and low cost advantage

34. Broaden market expected from convergence of broadcasting, telecom and

entertainment industry.

7/28/2019 OST Report 1 - Melvin

28/32

27

THREATS :-

35. Competition from private operators

36. Keeping pace with fast technological changes

37. Market maturity in basic telephone segment

38. Manpower churning

39. Multinational eyeing Indian telecom market

40. Private operators demand for sharing last mile

41. Decreasing per line revenues due to competitive pricing

42. Private operators demand to do away with ADC can seriously effect revenues

43. Populist policies ofgovernment like OneIndia rates

X.SYSTEM FOLLOWED FOR PURCHASE OF MATERIALS:

BSNLs aim is to procure the material of the specified quality, at the mostcompetitive rates, in a fair, just and transparent manner. Procurement is an importantactivity in BSNL as about 50% of its budget is used for procurement of materials.

The procurement of materials in BSNL is done by inviting tenders and alsothrough PSUs against their reservation quota.The procurement is done in two levels. viz.

1. BSNL Corporate office2. Telecom circle H/Q

7/28/2019 OST Report 1 - Melvin

29/32

28

Apart from this, SSA and other field units under the telecom circle do the procurementof goods/materials at local level.

The procurement of materials in BSNL Corporate Office is done for high valuecritical equipment such as large size switching equipment, transmission equipment,PIJF U/G Cables, WLL equipment & terminals, new technology equipment etc.Previously government policies were followed in procurement of materials but withthe formation of BSNL as a corporate entity in a Liberalized Telecom Market whereBSNL has to compete with a large number of competitors, it is imperative for BSNLto serve in the competitive environment. In addition to open tendering, the followingmethodologies are adopted. For such a scenario, it is essential not only to see the costof materials being procured but also the time required for its procurement as well assuccessful implementation so as to make its presence felt among various competitors.Thus, not only the cost and time factor is required to be taken into consideration but atthe same time the cost of opportunity lost due to long gestation period of procurementand implementation is also to be taken into consideration. For such a scenario, theManagement Committee / BSNL Board may decide the methodology to be adoptedfor such procurement taking into consideration cost, time as well as businessopportunities as situation warrants.

Negotiations Route:In a situation where the requirement is of an immediate nature and it is necessary toensure continued supplies from the existing vendors, the BSNL managementcommittee may decide to place repeat orders upto 100% of the quantities contained inthe running contract and at a rate negotiated with the existing vendors considering the

prevailing market conditions.

Limited tender Route:

There are certain specific provisions for calling the limited tender that has to beexercised in specific circumstances as already provided. In some cases the equipmentis sophisticated and requires thorough technical screening, testing and prototypeapproval by the Telecom Engineering Centre/Quality Assurance to ensure that theseequipment are of sufficient quality level to be used in public Telecom Network. Insuch cases an open tender may result in the participation of unknown bidders in opentenders, whose capability in making such equipment is yet to be established.

Single Tender:Single tender system may be adopted in case of articles which are specifically

certified as of proprietary nature by the intending department when it is to knowledge of theprocuring agency that only a particular firm the manufactures of the stores in demands.

Expression of Interest (EOI) Route:In situations where BSNL proposes to induct new technology/equipment/new service

and the specifications of the new technology/equipment/new service are not firmed up, BSNL

may invite Expression of Interest (EOI) from the available vendors of thattechnology/equipment/new service.

7/28/2019 OST Report 1 - Melvin

30/32

29

Stages involved in Tender process:

a) NOTICE INVITING TENDER (NIT): indicating bid documents and terms andconditions.

b) OPENING OF BIDS BY PURCHASERc) Evaluation of tender by a committee consisting of members from Technical

,commercial and finance wings.d) AWARD OF CONTRACT

Local Purchase Procedure:

The various options available for local purchases are

a) Purchase without quotation

b) Purchase with quotationsc) Purchase through limited or open tenderd) Purchase through DGS&De) Purchase through Civil or Electrical Wingsf) Purchase through supplier approved by BSNL Corporate

Office

XI.TRAINING MEASURES AT BSNL:

To Meet the technological challenges, employees are trained for technology

Up-Gradation, Modernization, Computerization etc In Bsnl'S Training Centers

Spread Across Country.

To apex training centers of BSNL I.E. Advance Level Telecom Training Center(ALTTC) at Ghaziabad and Bharat Ratna Bhimrao Telecom Training Center

7/28/2019 OST Report 1 - Melvin

31/32

30

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.

Different curriculum run in these centers to impart technology based training,

Training for attitudinal change, Basic educational and Skill Development

Program etc.

Advance Level Telecom Training Center offers training in various aspects such asStress management and Drugless therapy, emotional literacy, mentoring, lateral thinking,leadership, ethics in management, motivation, conflict, behavioral improvement,communication, confusion management, perception management, trainers skill development.

Conclusion: A comprehensive report has been presented covering various salient features

pertaining to the organization BSNL. It has been found that it incorporates all the necessary

components effectively that very much helpful in managing the activities of the organization.

XII.ACKNOWLEDGEMENT:

I sincerely thank General manager ,BSNL , Tiruchirappalli, for giving me permission to carry

out this work at BSNL, Trichy.

I whole heartedly thank Mr. O. ANBALAGAN,SDE(PRO), BSNL, Trichy, for his

encouragement and guidance in carrying out this work successfully.I record my gratitude to Prof. Ram Mohan, coordinator ,Christ University, Bangalore for his

suggestions and encouragement in carrying out this work .

XIII REFERENCES:

1. BSNL Information-

2. (http://www.bsnl.co.in:9080/opencms/bsnl/BSNL/index.html),

(www.cellone.in)

3. History and Other Information-

http://www.bsnl.co.in:9080/opencms/bsnl/BSNL/index.htmlhttp://www.bsnl.co.in:9080/opencms/bsnl/BSNL/index.htmlhttp://www.bsnl.co.in:9080/opencms/bsnl/BSNL/index.htmlhttp://c/Users/melvin/Desktop/Christ%20University/Christ%20University%20OST/www.cellone.inhttp://c/Users/melvin/Desktop/Christ%20University/Christ%20University%20OST/www.cellone.inhttp://c/Users/melvin/Desktop/Christ%20University/Christ%20University%20OST/www.cellone.inhttp://c/Users/melvin/Desktop/Christ%20University/Christ%20University%20OST/www.cellone.inhttp://www.bsnl.co.in:9080/opencms/bsnl/BSNL/index.html

7/28/2019 OST Report 1 - Melvin

32/32

http://en.wikipedia.org/wiki/Bharat_Sanchar_Nigam_Limited.

4. Accounting Policy-

http://mp.bsnl.co.in/course_material/e2e3/finance/PPT/Chapter09.Accounting%20

Policies%20(AS%20&%20Ratios).pdf.

http://en.wikipedia.org/wiki/Bharat_Sanchar_Nigam_Limitedhttp://en.wikipedia.org/wiki/Bharat_Sanchar_Nigam_Limitedhttp://mp.bsnl.co.in/course_material/e2e3/finance/PPT/Chapter09.Accounting%20Policies%20(AS%20&%20Ratios).pdfhttp://mp.bsnl.co.in/course_material/e2e3/finance/PPT/Chapter09.Accounting%20Policies%20(AS%20&%20Ratios).pdfhttp://mp.bsnl.co.in/course_material/e2e3/finance/PPT/Chapter09.Accounting%20Policies%20(AS%20&%20Ratios).pdfhttp://mp.bsnl.co.in/course_material/e2e3/finance/PPT/Chapter09.Accounting%20Policies%20(AS%20&%20Ratios).pdfhttp://mp.bsnl.co.in/course_material/e2e3/finance/PPT/Chapter09.Accounting%20Policies%20(AS%20&%20Ratios).pdfhttp://en.wikipedia.org/wiki/Bharat_Sanchar_Nigam_Limited