Bharat Sanchar Nigam Limited (abbreviated BSNL) is an Indian stateowned telecommunications company headquartered in New Delhi, India.

It
was incorporated on 15 September 2000 and 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 1 October 2000 on a going concern basis.
It is the largest provider of fixed telephony, largestbroadband services
provider with more than 60% Market share, and fourth largest mobile
telephony provider in India. However, in recent years the company's
revenues and market share have plummeted into heavy losses due to
intense competition in the Indian telecommunications sector.[2][3]
BSNL is India's oldest and largest communication service provider (CSP). It
had a customer base of 117 million as of January 2014.[4] It has footprints
throughout India except for the metropolitan cities of Mumbai and New Delhi,
which are managed by Mahanagar Telephone Nigam (MTNL).

BSNL provides almost every telecom service in India. Following are the main
telecom services provided by BSNL:
Optical Infrastructure and DWDM : BSNL owns the biggest
OFC network in India. Also the DWDM network is one of the biggest in the
world. The DWDM equipments purchased in open tender at BSNL are mainly
of United Telecoms Limited
( UTL) ) make, which was declared
lowest cost in competitive bidding. Rest DWDM equipments are from Huawei.
The SDH equipments are mainly from Tejas Networks, Huawei, ZTE, ECI,
UT STAR etc.

Market Share : As of 30 November 2013, BSNL had 12.9%

marketshare in India and stands as 5th Telecom Operator in India and 67%
market share in ADSLServices.

Managed Network Services : BSNL is providing complete

Telecom Services Solution to the Enterprise Customers i.e. MPLS
Connectivity, Point to Point Leased Linesand Internet Leased Lines .

Universal Telecom Services : Fixed wireline services and

landline
in
local
loop
(WLL)
using
CDMA
Technology
called bfone and Tarang respectively. As of 30 June 2010, BSNL had 75%
marketshare of fixed lines.

Cellular Mobile Telephone Services: BSNL is major provider of

Cellular Mobile Telephone services using GSM platform under the brand
name Cellone & Excel (BSNL Mobile). As of 30 June 2010 BSNL has 13.50%
share of mobile telephony in the country.[5] It has 95.54 million customers
using BSNL mobile.[4]

WLL-CDMA Telephone Services: BSNL's WLL (Wireless in

Local Loop) service is a service giving both fixed line telephony & Mobile
telephony.

Internet: BSNL provides Internet access services through dial-up

connection (as Sancharnet through 2009 as Prepaid, NetOne[7] as Postpaid
and ADSL broadband as BSNL Broadband BSNL held 55.76% of the market
share with reported subscriber base of 9.19 million Internet subscribers with
7.79% of growth at the end of March 2010. Top 12 Dial-up Service providers,
based on the subscriber base, It Also Provides Online Games via its Games
on Demand (GOD)

Intelligent Network (IN): BSNL offers value-added services, such

as Free Phone[9] 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).

3G:BSNL offers the '3G' or the'3rd Generation' services which

includes facilities like video calling, mobile broadband, live TV, 3G Video
portal, streaming services like online full length movies and video on demand
etc.

IPTV:BSNL also offers the 'Internet Protocol Television' facility

which enables customers to watch television through internet.

FTTH:Fibre To The Home facility that offers a higher bandwidth

for data transfer. This idea was proposed on post-December 2009

Helpdesk: BSNL's Helpdesk (Helpdesk) provide help desk

support to their customers for their services.

VVoIP: BSNL, along with Sai Infosystem - an Information and

Communication Technologies (ICTs) provider - has launched Voice and
Video Over Internet Protocol (VVoIP). This will allow to make audio as well as
video calls to any landline, mobile, or IP phone anywhere in the world,
provided that the requisite video phone equipment is available at both
ends.[10]

WiMax: BSNL has introduced India's first 4th Generation HighSpeed Wireless Broadband Access Technology with the minimum speed of
256kbit/s. The focus of this service is mainly rural customer where the wired
broadband facility is not available.

BSNL Landline:BSNL Landline is a major role in inda . It number

start with prefix "2"

Administrative units

BSNL is divided into a number of administrative units termed as

telecom circles, metro districts, project circles and specialized units. It has 24
telecom circles, 2 metro districts, 6 project circles, 4 maintenance regions, 5
telecom factories, 3 training institutions and 4 specialized telecom units.

History

BSNL, then known as the Department of Telecommunications,

had been a near monopoly during the socialist period of the Indian economy.
During this period, BSNL was the only telecom service provider in the
country. MTNL was present only in Mumbai and New Delhi. During this
period BSNL operated as a typical state-run organization, inefficient, slow,
bureaucratic, and heavily unionised. As a result subscribers had to wait for as
long as five years to get a telephone connection. The corporation tasted
competition for the first time after the liberalisation of Indian economy in
1991. Faced with stiff competition from the private telecom service providers,
BSNL has subsequently tried to increase efficiencies itself. DoT veterans,
however, put the onus for the sorry state of affairs on the Government
policies, where in all state-owned service providers were required to function
as mediums for achieving egalitarian growth across all segments of the
society. The corporation (then DoT), however, failed to achieve this and India

languished among the most poorly connected countries in the world. BSNL
was born in 2000 after the corporatisation of DoT. The corporatisation of
BSNL was undertaken by an external international consulting team consisting
of a consortium of A.F.Ferguson & Co, JB Dadachanji and NM Rothschild and was probably the most complex corporatisation exercise of its kind ever
attempted anywhere because of the quantum of assets (said to be worth
USD 50 Billion in terms of breakup value) and over half a million directly and
indirectly employed staff. Satish Mehta, who led the team later confessed that
one big mistake made by the consortium was to recommend the continuation
of the state and circle based geographical units which may have killed the
synergies across regions and may have actually made the organisation less
efficient than had it been a seamless national organisation. Vinod Vaish, then
Chairman of the Telecom Commission made a very bold decision to promote
younger talent from within the organisation to take up a leadership role and
promoted the older leaders to a role in licensing rather than in managing the
operations of BSNL. The efficiency of the company has since improved,
however, the performance level is nowhere near the private players.

The corporation remains heavily unionised and is comparatively

slow in decision making and its implementation, which largely acts at the
instances of unions without bothering about outcome. Management has been
reactive to the schemes of private telecom players. Though it offers services
at lowest tariffs, the private players continue to notch up better numbers in all
areas, years after year. BSNL has been providing connections in both urban
and rural areas. Pre-activated Mobile connections are available at many
places across India. BSNL has also unveiled cost-effective broadband
internet access plans (DataOne) targeted at homes and small businesses. At
present BSNL enjoy's around 60% of market share of ISP services.

Year of Broadband 2007

2007 was declared as "Year of Broadband" in India and BSNL

announced plans for providing 5 million broadband connectivity by the end of
2007. BSNL upgraded Dataone connections for a speed of up to 2 Mbit/s
without any extra cost. This 2 Mbit/s broadband service was provided by
BSNL at a cost of just US$ 11.7 per month (as of 21 July 2008 and at a limit
of 2.5GB monthly limit with 0200-0800 hrs as no charge period). Further,
BSNL is rolling out new broadband services such as triple play. BSNL

planned 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.
BSNL is a pioneer of rural telephony in India. BSNL has recently bagged 80%
of US$ 580 m (INR 25 billion) Rural Telephony project of Government of
India.

On 20 March 2009 BSNL advertised the launch of blackcherry

services across its Telecom circles in India. The corporation has also
launched 3G services in select cities across the country. Presently, BSNL
and MTNL are the only players to provide 3G services, as the Government of
India has completed auction of 3G services for private players. BSNL shall
get 3G bandwidth at lowest bidder prices of Rs 185 billion, which includes Rs
101.86 billion for 3G and Rs 83.13 billion for BWA.

As of December 2011, many other private operators have started

rolling out their 3rd Generation (aka 3G) services alongside and are enjoying
some success in their campaigns to get market share. While BSNL still
maintains its connectivity standard and expands to many more areas
including rural areas with their 3G services. Also the network infrastructure
has been upgraded from to provide 3.6 Mbit/s to 7.2 MBits/sec. It is enjoying
a slow but somewhat steady success in gaining market share in this regard.

The introduction of MNP(Mobile Number Portability) which is an

service that lets the consumer change wireless service providers while
retaining their actual mobile number, BSNL has seen many customers opting
for this service to move away from the services to other operators. Despite
this as the Indian Wireless market grows BSNL still has a loyal base of
subscribers and many more subscribers being added to it every day. This
provides customer services for 95 million as of June 2011.

BSNL announced the discontinuation of its telegram services from

15 July 2013, after 160 years in service. It was opened to the public in
February 1855; in 2010 it was upgraded to a web-based messaging system
in 2010, through 182 telegraph offices across Indi

Challenges

During the financial year 200809 (from 1 April 2008 to 31 March

2009) BSNL has added 8.1 million new customers in various telephone
services taking its customer base to 75.9 million. BSNL's nearest

competitorBharti Airtel is standing at a customer base of 62.3 million.

However, despite impressive growth shown by BSNL in recent times, the
Fixed line customer base of BSNL is declining. In order to woo back its fixedline customers BSNL has brought down long distance calling rate under
OneIndia plan, however, the success of the scheme is not known and BSNL
faces bleak fiscal 2009-2010 as users flee.

Presently there is an intense competition in Indian Telecom sector

and various Telcos are rolling out attractive schemes and are providing good
customer services. But situation as on 2012, BSNL will be third largest
operator (Service) and No 1 access operator in the country. As per the TRAI
Report 2011-12, BSNL became the most trustworthy brand due to its loyalty
towards customers and its rule.

Access Deficit Charges (ADC, a levy being paid by the private

operators to BSNL for providing service in non-lucrative areas, especially
rural areas) has been slashed by 20% by TRAI, w.e.f. 1 April 2009.[17] The
reduction in ADC may hit the profits of BSNL.

BSNL has started 3G services in 290 cities and acquired more

than 600,000 customers. It has planned to roll out 3G services in 760 cities
across the country in 2010-11. according to users and big sources BSNL's
3G data speed is much higher than other operator and also it is competitively
cheap.

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. On
13 June 2012, BSNL employees participated called off an earlier planned
nationwide strike against discriminatory policies of BSNL management upon
promise by Management to resolve the Demands of the protesting unions.

In March 2013, BSNL was also (according to one study) a major

transit point for internet spam

Challenges

During the financial year 200809 (from 1 April 2008 to 31 March

2009) BSNL has added 8.1 million new customers in various telephone
services taking its customer base to 75.9 million. BSNL's nearest

competitorBharti Airtel is standing at a customer base of 62.3 million.

However, despite impressive growth shown by BSNL in recent times, the
Fixed line customer base of BSNL is declining. In order to woo back its fixedline customers BSNL has brought down long distance calling rate under
OneIndia plan, however, the success of the scheme is not known and BSNL
faces bleak fiscal 2009-2010 as users flee.

Presently there is an intense competition in Indian Telecom sector

and various Telcos are rolling out attractive schemes and are providing good
customer services. But situation as on 2012, BSNL will be third largest
operator (Service) and No 1 access operator in the country. As per the TRAI
Report 2011-12, BSNL became the most trustworthy brand due to its loyalty
towards customers and its rule.

Access Deficit Charges (ADC, a levy being paid by the private

operators to BSNL for providing service in non-lucrative areas, especially
rural areas) has been slashed by 20% by TRAI, w.e.f. 1 April 2009. The
reduction in ADC may hit the profits of BSNL.

BSNL has started 3G services in 290 cities and acquired more

than 600,000 customers. It has planned to roll out 3G services in 760 cities
across the country in 2010-11. according to users and big sources BSNL's
3G data speed is much higher than other operator and also it is competitively
cheap.

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. On
13 June 2012, BSNL employees participated called off an earlier planned
nationwide strike against discriminatory policies of BSNL management upon
promise by Management to resolve the Demands of the protesting unions.

In March 2013, BSNL was also (according to one study) a major

transit point for internet spam

3G coverage

BSNL paid the Indian government Rs. 101.87 billion

for 3G spectrum coverage. As of 2011, BSNL offers coverage in over 800
cities across India. BSNL launched in 2012 a 3G wireless pocket router

named Winknet Mf50. It was released in collaboration with Shyam Networks.

Winknet Mf50 enables the connection of multiple devices to the internet using
a single sim card.

Recognitions

The Brand Trust Report published by Trust Research Advisory

ranked BSNL in the 65th position of the list of Most Trusted brands.

Competitors

BSNL competes with 14 other mobile operators throughout India.

They
are Aircel, Airtel, Idea, Loop
Mobile, MTNL, MTS, Reliance
Communications, Tata
DoCoMo, Uninor, matrix,
T-24
Services, Videocon, Virgin Mobile and Vodafone.

Quality of Service[

BSNL goes by the motto "Connecting India, faster"and displays

the same at their homepage. BSNL offers seamless coverage in almost all
urban and rural areas of India.

Censorship

See also: Internet censorship in India

BSNL enforces censorship of online content as per orders of

Indian Department of Telecom.

BHARAT SANCHAR NIGAM LIMITED Company Profile

Bharat Sanchar Nigam Limited (BSNL) keeps most of India talking. The
country's largest landline company provides local-exchange access and
domestic long-distance services through a network of more than 46 million
access lines covering most of India. (It does not provide service in Delhi and
Mumbai.) Serving business and individual customers, it also offers GSM and
CDMA-based wireless communications, satellite service, telegraph, data and
Internet services, and managed network services. Cellular service CellOne
has 55 million subscribers on a mostly 2G network. BSNL is one of two statecontrolled telcos in India, along with Mahanagar Telephone Nigam
Limited (MTNL), which serves Delhi and Mumbai

Additional BHARAT SANCHAR NIGAM LIMITED Information

BHARAT SANCHAR NIGAM LIMITED Sales Preparation

BHARAT S ANCHAR NIGAM LIMITED (BSNL) KEEPS MOST OF INDIA TALKING.

THE COUNTRY'S LARGEST LANDLINE COMPANY PROVIDES LOCAL-EXCHANGE
ACCESS AND DOMESTIC LONG-DISTANCE SERVICES THROUGH A NETWORK OF
MORE THAN 46 MILLION ACCESS LINES COVERING MOST OF INDIA. (IT DOES NOT
PROVIDE SERVICE IN DELHI AND MUMBAI .) SERVING BUSINESS AND INDIVIDUAL
CUSTOMERS, IT ALSO OFFERS GSM AND CDMA-BASED WIRELESS
COMMUNICATIONS , SATELLITE SERVICE , TELEGRAPH, DATA AND INTERNET
SERVICES, AND MANAGED NETWORK SERVICES. CELLULAR SERVICE CELLONE
HAS 55 MILLION SUBSCRIBERS ON A MOSTLY 2G NETWORK. BSNL IS ONE OF
TWO STATE-CONTROLLED TELCOS IN INDIA, ALONG WITH MAHANAGAR
TELEPHONE NIGAM LIMITED (MTNL), WHICH SERVES DELHI AND MUMBAI.
Wired Telecommunications Services Report Summary
Chapters Include

Industry Overview
Quarterly Industry Update
Business Challenges
Trends and Opportunities
Call Preparation Questions
Financial Information
Industry Forecast
Website and Media Links
Glossary of Acronym

Industry Overview
Excerpt from Wired Telecommunications Services Report
Companies in this industry provide services such as local and long-distance
calling, Internet access, and TV program distribution over fixed-line
telecommunications networks. Major US companies include AT&T,
CenturyLink, Comcast, and Verizon Communications; major international

wireline carriers include BT Group (the UK), China Telecom, Nippon

Telegraph and Telephone (Japan), and Telefnica (Spain).
Competitive Landscape
Demand is driven by new services and growth in business activity. The
profitability of individual companies depends on efficient operations and
effective marketing. Large companies have economies of scale in building
and maintaining networks. Smaller companies can compete effectively in
small markets or by providing specialty services. The US industry is highly
concentrated: the 50 largest companies generate more than 90 percent of
revenue.
Products, Operations & Technology
Major services are local and long-distance calling, TV distribution, and
Internet access services. Local calling and TV program distribution each
account for about 20 percent of industry revenue; long-distance calling and
Internet access each account for about 10 percent. Other services include
network access, data transmission, private networks, installation, equipment
sales, and calling features such as caller ID and voice mail. Network access
charges are levied against other carriers, mainly long-distance and wireless
service providers, that need access to local wired phone systems.
BHARAT SANCHAR NIGAM LIMITED MARKETING CONTACTS
Bharat Sanchar Nigam Limited (BSNL) keeps most of India talking. The
country's largest landline company provides local-exchange access and
domestic long-distance services through a network of more than 46 million
access lines covering most of India. (It does not provide service in Delhi and
Mumbai.) Serving business and individual customers, it also offers GSM and
CDMA-based wireless communications, satellite service, telegraph, data and
Internet services, and managed network services. Cellular service CellOne
has 55 million subscribers on a mostly 2G network. BSNL is one of two statecontrolled telcos in India, along with Mahanagar Telephone Nigam
Limited (MTNL), which serves Delhi and Mumbai.

BHARAT SANCHAR NIGAM LIMITED Competition

Bharat Sanchar Nigam Limited (BSNL) keeps most of India talking. The
country's largest landline company provides local-exchange access and
domestic long-distance services through a network of more than 46 million
access lines covering most of India. (It does not provide service in Delhi and
Mumbai.) Serving business and individual customers, it also offers GSM and
CDMA-based wireless communications, satellite service, telegraph, data and
Internet services, and managed network services. Cellular service CellOne
has 55 million subscribers on a mostly 2G network. BSNL is one of two statecontrolled telcos in India, along with Mahanagar Telephone Nigam
Limited (MTNL), which serves Delhi and Mumbai.

TATA COMMUNICATIONS LIMITED

Bharti Airtel Limited
RELIANCE COMMUNICATIONS LIMITED
TOP COMPETITORS FOR BHARAT SANCHAR NIGAM LIMITED
Get a clear understanding of a companys competitive landscape.
BHARAT SANCHAR NIGAM LIMITED REVENUE AND FINANCIAL DATA
Bharat Sanchar Nigam Limited (BSNL) keeps most of India talking. The
country's largest landline company provides local-exchange access and
domestic long-distance services through a network of more than 46 million
access lines covering most of India. (It does not provide service in Delhi and
Mumbai.) Serving business and individual customers, it also offers GSM and

CDMA-based wireless communications, satellite service, telegraph, data and

Internet services, and managed network services. Cellular service CellOne
has 55 million subscribers on a mostly 2G network. BSNL is one of two statecontrolled telcos in India, along with Mahanagar Telephone Nigam
Limited (MTNL), which serves Delhi and Mumbai.

BHARAT SANCHAR NIGAM LTD. - STRATEGIC SWOT

ANALYSIS REVIEW
Bharat Sanchar Nigam Ltd. - Strategic SWOT Analysis Review provides a
comprehensive insight into the companys history, corporate strategy,
business structure and operations. The report contains a detailed SWOT
analysis, information on the companys key employees, key competitors and
major products and services.
This up-to-the-minute company report will help you to formulate strategies to
drive your business by enabling you to understand your partners, customers
and competitors better.
Scope:- Business description A detailed description of the companys operations
and business divisions.
- Corporate strategy Our summarization of the companys business
strategy.
- SWOT analysis A detailed analysis of the companys strengths,
weakness, opportunities and threats.
- Company history Progression of key events associated with the company.
- Major products and services A list of major products, services and brands
of the company.
- Key competitors A list of key competitors to the company.
- Key employees A list of the key executives of the company.
- Executive biographies A brief summary of the executives employment
history:-

- Key operational heads A list of personnel heading key

departments/functions.
- Important locations and subsidiaries A list of key locations and
subsidiaries of the company, including contact details.
Highlights:Bharat Sanchar Nigam Ltd. (BSNL) is a provider of telecommunications.
It is engaged in providing a broad range of telecom services including
wireline, CDMA mobile, GSM mobile, internet, broadband, carrier
service, MPLS-VPN, VSAT, VoIP services, and IN services. BSNL offers
its services to 2.5 million WLL subscribers and 2.5 million Internet
customers. The company provides Internet services through leased
line, account less internet, dial up, and DIAS modes. The company has
expertise in planning, network integration, installation and maintenance
of transmission and switching networks. It operates in India. BSNL
operates its business activities through three reportable segments
namely, Basic, Broadband and Cellular Services. BSNL is
headquartered at New Delhi, India.
Reasons to Buy:- Gain key insights into the company for academic or business research
purposes. Key elements such as SWOT analysis and corporate strategy
are incorporated in the profile to assist your academic or business
research needs.
- Identify potential customers and suppliers with this reports analysis
of the companys business structure, operations, major products and
services and business strategy.
- Understand and respond to your competitors business structure and
strategies with Our detailed SWOT analysis. In this, the companys core
strengths, weaknesses, opportunities and threats are analyzed,
providing you with an up to date objective view of the company.
- Examine potential investment and acquisition targets with this reports
detailed insight into the companys strategic, business and operational

performance.
Note: Some sections may be missing if data is unavailable for the
company. Sam Pitroda committee recommendations

RESEARCH METHODOLOGY:Since the core objective of the study is to identify and study the
process for supply chain
management with performance indicators of supply chain in cellular
industry thus the primary
focus was to gather the factors from literature which is important for
the task at hand & to ensure
that they are correlated factors in practice also. Primary data was
collected using questionnaire
cum interview methodology and was analyzed using different
techniques. In addition to that
research is focused on impact of Supply Chain Management on
Productivity and efficiency
.Further focus is on the factors for minimizing supply chain costs,
maximizing outputs and remove
various barriers for effective SCM.At last focus will be to suggest a
model of effective SCM for
cellular phone industry.
3.1 Preparation of the respondents Database
3.1.1 On line TRAI data base was referred to get the list of the existing
telecomm service

provider Top performers with presence in GSM at national level with

maximum users from
industry were selected to make the research more precise and accurate
1) Airtel (Bharti) 2) Hutch (Vodafone)
3) Reliance Comm. 4) Tata Tele
5) BSNL 6) Aircel
7) Spice 8) Idea
9) MTNL 10) BPL
11) HFCL 12) Shyam
Since the number of Organizations was available, we preferred to go
with GSM service providers
with maximum presence at National level with maximum users .
However, the following two
Organizations finally agreed to participate in the survey viz. 1) Airtel
2) Hutch ( Vodafone) 3. Research Methodology 36
3.1.2 Ancillaries (Suppliers / Partners to Cellular Industry) As one of the
major purposes of considering major Ancillaries was to consider their
linkage with
the main service provider with respect to information exchange. It was
decide to build the
stratified sample of ancillary organizations. For, this Cellular service
provider were requested to

give their 10 ancillary units. Most of them replied that they keep on
varying from location to
location. But they have highlighted the name of the same. Details of all
these were obtained from
different resources and list were prepared as follows.
1) Ericsson 2) Nokia
3) Siemens 4) Nortel
5) Corning 6) IBM
7) Nortel 8) Hinduja TMT
9) Teletech 10) Mphasis
11) Sing Tel 12) Microsoft
13) Google 14) Wimax
15) Qualcomm 16) Huawei
The detailed profile of two main service providers in GSM (Cellular
Industry) selected for research
subject is given in the following next chapter.
3.2 Questionnaire Design
The questionnaires were designed based on the study of literature and
brain storming sessions
held with management faculty and practicing mangers. Feedback of the
respondents, received
during testing of the questionnaire was also considered. The final form
of the questionnaire was

frozen after 4 iterations and was arranged in different sets. Following

variables were identified for
the purpose of this study .appendix A.1 shows the complete
questionnaires (Six Sections) as
used for the survey.
3.2.1 Factors important to the Overall Organization success
Various factors were identified and framed in the form of different
sections in questionnaire.
These factors were identified on the basis of literature and also the
brain storming with
practitioners and management faculty. These factors were divided into
different sections as per
there relevance and were kept in set of questionnaire.3. Research
Methodology 37
3.2.2 List of factors contributing to success or failure.
Various factors were identified and divided into relevant categories.
a) Section A of questionnaire (1-27 questions) was made with relevance
to have inputs from
Administration employees of the participating. companies.
b) Section B of questionnaire (28-35 questions) was focused on
performance parameters
c) Section C of questionnaire (36-41 questions) was focused on
problem area of cellular industry

d) Section D of questionnaire (42-50 questions) was focused on market

review of customers
e) Section E of questionnaire (51-56 questions) was focused on
importance of SCM
f) Section F of questionnaire (1-11 questions) was focused on inputs
from suppliers and partners.
g) Section G of questionnaire (1-32 questions) was focused to
understand the main factors for
efficient and effective SCM
3.3 Testing of Questionnaires
The questionnaires have been tested on the following criteria.
3.3.1 Reliability
Cronbachs Alpha reliability of the scale was more than 0.6 in all the
questionnaires thus
indicating the goodness of the scale measurements. Further details
have been given in section 6
3.3.2 Content Validity
i) A detail discussion was done with (top management) , guide & key
persons from Organizations
about the following features of the questionnaires

Observations & Feedback:

1) Divide question into different sections

2) Each section should be relevant to particular group of people3) Every
individual questions should be in different sections to understand the
specific
importance of SCM so Questionnaire should be divided into different
sections like for
Administration staff, for performance review, for analysis of problem
area, for importance
of SCM , for partners and suppliers etc
Appropriate changes were made in the questionnaires, wherever
applicable
ii) Ease of Response -10 respondents were test administered using the
questionnaire cum
interview method
Observations & Feedback:-

when asked verbally.

On an average 20-25
minutes were required per respondent. However, the interactions with
individual /

functional heads lasted for around 30-40 minutes. The functional heads
contacted were
for stores , Production , SAP & QA
3.3.3 Sensitivity
Likert Scales were used wherever the perceptions under investigation.
In general a 5-point scale
was adopted. Further sensitivity was ensured as valid by taking
multiple questions pertaining to
similar theme, which helped in counteracting. This care was taken while
designing mapping
scheme for the questionnaire used for data collection to the proposed
suggestions and solutions .
3.3.4 Mapping to Objectives
The questionnaires were traced to the research objectives well before
the data collection was
started to ensure the fulfillment of the objectives. Figure below exhibits
the mappings of the
objectives to the questionnaires.
3.4 Primary Data Collection
The data was collected by administering the questionnaire with the
participating respondents.
Wherever, the respondent so desired, option cards were used to fill up
their responses. Most

of them preferred to fill them on their own. Some partially structured

discussions were held
with keen respondents in various functional areas with a view to get
more insight into
the SCM practices and culture in the organization. The individual heads
related to SCM were 3. Research Methodology 39
interviewed with an objective to understand their SCM
infrastructure, organizational practices, culture, problems & plans
Mapping of Questionnaires to research Objectives:
-3.4.1 Sampling Plan
The following norms were considered for the choice of respondent in
each participating
organization.
The universe consist of top management who are board members
whose number is 26 at
present .Middle level management consist of 600 number and lower
level consist of 2000 at
present. Small vendors consist of 92 and major vendor consist of 66
numbers Following rules
were followed for selecting respondents in the organization for each
Strata.
a) For Top Management 30% of the population
b) For Middle Management 10% of the population

c) For Lower Level Management 5% of the population

d) Small Vendors consisted 35 % of the population
e) Major Vendors consisted 30 % of the population
f ) For Customers -75 considered from each organization
Thus the sample cross section comprise about top/middle/lower
executive covering various
disciplines of supply chain. The sampling technique used for present
study is stratified random
sampling technique used for administrating the questionnaire.
Research was Limited to Delhi
& NCR region. The respondent of different offices of Airtel & Hutch were
approached directly and
requested to fill in the questionnaire. In addition the questionnaire was
mailed to the some
respondent who was far off. Additionally the respondent were assured
of confidentially of there
responses.3. Research Methodology 41
Table 3.1 : Sample Distribution (Company Wise)
5555555555555555555555555
Sam Pitroda committee recommendations:BSNL is the seventh largest telecommunications company in the world
providing a
comprehensive range of telecom services in India with an equity capital
of Rs 12000/ crores ,

net assets worth Rs 88,000/ crores and a turnover of Rs 35000/

crores. Further, the
company caters to 90 million customers, has 300,000 employees,
750,000 kms of optical
fiber , a network of 40,000 towers, extensive urban ( except Mumbai and
Delhi) and
unparalleled rural coverage and many more unique assets and
capabilities that offer
significant potential for growth , revenue generation, value unlocking
and social relevance.
This wholly owned government enterprise is under severe
pressure and is making
losses for the first time due to increased competition, a declining fixed
line market,
antiquated processes and procedural bottlenecks especially related to
purchase of
equipment, bureaucratic and government dependent decision making
system, lack of
collaborative actions, large work force, regulatory changes, operational
inefficiencies and
other internal and external challenges.
At a meeting chaired by the Prime Minister to review the
functioning of BSNL in
January 2010, it was agreed to set up a committee to examine the
issues and submit
recommendations within a time period of one month. The Committee
had three meetings
and a series of major discussions with BSNL executives, Department of
Telecom (DOT)
leading
consultants,
investment
bankers,
private
sector
representatives, present and former
employees of the company and others. During its consultations, the
committee also
reviewed hundreds of emails, individually and collectively. Based on
these discussions, the

committee strongly believes at that it is possible to bring about a

turnaround at BSNL and
once again position it is the dominant player in telecom by profit
,revenue, market share,
technology, services and social relevance. However, this will require
vision, commitment and
support from the government to implement bold initiatives and hard
decisions.
The recommendations of the committee need to be viewed
against the backdrop of
the market over the last five years where the Indian Telecom Industry
has gone through a
period of intense transformation occurring the multiple dimensions
million mobile
Sim connections and increasing compared to 35 million landlines and
decreasing.
customer
Centric business requiring an organizational DNA of customer care.
y has gone from being a monopoly to hyper competition
with over ten
Operators.
technology and
introducing new business
Models.
implications in
Governance, agriculture, education, health, defense, business, energy,
infrastructure,
finance, productivity efficiency, competitiveness, public services etc.,
The Committee RECOMMENDS THE
OVERALL PERFORMANCE OF BSNL:-

FOLLOWING

TO

IMPROVE

1.0 Enhance the quality of senior executives, the management team and
the
decision making process to respond to the competitive business
environment
and the changing market realities.
1.1. Focus on selection of the best professionals from the market, at
market rates
for higher level management, with relevant experience and domain
expertise
(estimated around 3050). Internal candidates should be given equal
opportunity, without any policy of preferential treatment.
1.2. Appoint an eminent person from the private sector with strategic
vision and
the stature to interface with the external environment, as the chairman
to
focus on shareholder value. Separate the post of the Managing
Director/CEO
( From CMD), who should be a person with relevant domain expertise,
with
full P/L responsibilities and autonomy to manage day to day
operations. This
must be done immediately. Also, for efficient decision making,
empower the
MD / CEO with the ability to act as fast as the competition.
1.3. Change the board composition to seven directors, one internal
director (MD /
CEO), two government nominee NonExecutive Directors with relevant
skill
set, three external independent directors of eminence and relevance
and the
non executive chairman. CFO and COO shall be prominent invitee to
the
Board.
1.4. Allow the Ministry to interact only through board representation
and regular

board meetings and not through day to day decisionmaking interfacing

and
supervision.
1.5. Appoint a full time Chief Technology Officer (CTO), a Chief IT
Officer (CIO), a
Chief Operating Officer (COO), and a Chief Financial Officer (CFO), all of
whom should report directly to the CEO.
1.6. Appoint an advisory board for each of the business units. These
should be
appointed only by the Board.
1.7. Provide three year contracts with specific targets for all key
management
team members (estimated around 3050) with restricted stock options
and /
or related incentives to deliver increasing profits and growth.
2.0 Complete the organization restructuring process currently
underway to establish
four independent business units for Fixed access, Mobility, Enterprise
and New
businesses with due clarity and coordination to avoid duplication of
efforts and for
efficient use of resources related to network, human resource, other
facilities and
services. Empower independent business unit heads to act as fast as
the
competition
3.0. Improve organization performance and employee productivity
substantially.
3.1. Complete ITS absorption process immediately.
3.2. Induct significant young talent in technology, IT, Marketing,
Customer
Services, Sales etc.,
3.3. Retire or transfer around 100K employees through best possible
processes
like VRS.

3.4. Institute a performance driven culture to create a meritocratic

organization.
4.0. Change procurement processes and procedures substantially to
respond to rapidly
changing technology and industry needs with necessary transparency
timeliness and
accountability using tools such as EProcurement, vendor rating, rate
running
contracts, schedules etc., to reduce reasonable delays and to avoid
legal conflicts.
However, to gain cost advantage and obviate technology risks, BSNL
should focus on
minimizing the capital expenditure by proactively seeking and adopting
service legal
agreement (SLA) bound shared solutions, for active and passive
infrastructure needs.
Simultaneously, to remain competitive in cost and quality delivery
BSNL should adopt
a managed service model for many of its operations e.g., Operations
relating to
network, IT, Call Centers etc.
To ensure this carry out special
consultations on a
priority basis with the Chief Vigilance Commissioner, keeping in mind
the special
circumstances of a highly competitive Telecom Sector Government
Company.
5.0. Enhance business operations by building special expertise in
marketing, sales,
distribution, customer service, billing, revenue assurance, quality
assurance, service
provisioning, network management, network planning, fault
management etc.
Simultaneously, manage cost aggressively.
Take urgently, special
initiatives to

enhance the quality of service by empowering employee at all levels to

focus on
customer orientation and customer satisfaction.
Improvement in
customer
satisfaction index to be part of the annual plan and performance matrix.
6.0. Disinvest 30% in stages at the appropriate time, say after
fundamental changes have
been made to enhance enterprise value, through Indian strategic
investor and at
Initial Public Officering (IPO) to return 10% to the Government and use
20% got
employee VRS, expansion and operation. Further disinvestment could
be considered
after a detailed performance review in three years time.
7.0.Explore new markets and applications related to Enterprise,
Government, Defense,
Education, Health, Agriculture, Energy, Judiciary, New green field cities,
Transportation,
Security, Safety, Police, Disaster Management, Fiber to home
(FTTH) etc. Create viable
business models in these areas by collaborating with relevant expert
organizations to
make joint offerings.
4..4
8.0. Provide 30 million new high speed broadband connections in the
next 3 years with
relevant and useful applications and content in local languages and
significantly
improve quality of service and consider offering service level guarantee
to win trust.
9.0. Invest in building a financially remunerative next generation end to
end national IP
Network of the future to handle ever increasing internet and data traffic.
10.0 Unbundle local loop for public and private companies to launch
new services on non

executive basis with care to prevent cannibalization.

11.0. Exploit BSNLs unique positioning of infra led biggest food print in
rural India by
creating additional revenue streams for rural infrastructure and
capabilities.
11.1. Proactively offer sharing of active and passive infrastructure to
other
operators to generate attractive returns and ensure non
cannibalization of
BSNL customers by seeking compliance with appropriate
conditions. Shared
services may include intra circle roaming, renting of capacities on
active and
passive infrastructure etc.
11.2. Enhance and expedite rural communication facilities, services and
applications by connecting 2,50,000 panchayats and integrating various
government flagship programmes targeted at rural development
through
NREGA, Rural Health Mission, Food Distribution, PDS, etc. to augment
the
inclusive growth agenda of the Government.
12.0. Implement immediately end to end IT systems and solutions (ERP,
CRM etc.) for all
key business processes in all business units with a focus on Finance,
Billing, Human
Resource, Customer Service, Network Management, Sales, Marketing,
Project
Management, Training etc.
13.0. Create a separate subsidiary company for tower related
infrastructure to aggressively
market to other public and private sector customers and unlock
whole/substantial
potential value through strategic stake sale, M&A or separate IPO.
Explore

possibilities of monetizing other such sub systems e.g., interconnect

operations.
14.0. Create a separate subsidiary to hold undeveloped land bank and
other real estate
assets (estimated to be over 2.5 Million square meters of vacant land in
seven key
cities) and a large number of unutilized staff quarters, etc. Monetise the
value of this
subsidiary by collaborating with a reputed and experienced real estate
related
company in transparent manner.
15.0. Establish a BSNL venture fund to invest and / or acquire small
appropriate technology
companies with strategic values to encourage local innovation, local
manufacturing and
new business opportunities.
5..5
Please note that there are substantial details available on each of the
above
recommendations for further follow up.
It is suggested that these recommendations be implemented urgently in
a mission mode
with a dedicated team of three leading executives (MD/CEO, COO, CFO)
with a detailed
roadmap on each and every item specific time table, dedicated financial
and human
resources and measurable milestones to return BSNL to profitability,
growth and a
leadership position in the global telecom market.
The committee would be happy to guide the implementation process.
Sam Pitroda

Deepak Parekh

Advisor to the Prime Minister

Secretary

P J Thomas

Chairman HDFC Ltd.,

Information Infrastructure and

Telecommunications
Innovations
Chairman,Telecom Commission

Dept. of
and