MARKETING OF BSNL SERVICES BY JOJI JOHN KUNDUKULAM THRISSUR PUBLISHED BY POULOS P.A. THRISSUR

ACKNOWLEDGEMENT
This project report and my joining to this Management
Programme itself, are the result of the expectation, motivation,
togetherness, affection and helpfulness of all my counsellors,
friends, colleagues well wishers and family. All of them have
always been with me in all my efforts to complete my project
work. I express my sincere and hearty gratitude to all of them. I
am specially grateful to Dr. C.K. Chacko, my project guide, who
has always been with me in my efforts for the successful
completion of this project with his direction and timely
intervention. I am also grateful to Dr. K. Bhavani, Former co-
ordinator, Mr. A.K. Ravikrishnan,co-ordinator , Dr. G. Sasikumar,
Asst. Coordinator and Asst.Co-ordinator, IGNOU, Thrissur Study
centre for their valuable advice and guidance throughout the course
of the Management Programme.
I wish to place on the record my profound feelings of
gratitude to Dr.Thomas philip, PGM, BSNL,THRISSUR for his
ceaseless efforts in helping me to collect as much information as
possible even in the midst of his busy daily affairs.
The sense of that uneclipsed and unreserved gratitude is once
again arising in my mind for all those colleagues, friends and
teachers whose graceful and affectionate touch of motivation
pushed me forward in all my crisis, either in person or in absentia.
JOJI JOHN KUNDUKULAM
Place: Thrissur
Date:CERTIFICATE OF ORIGINALITY
This is to certify that the project titled is an original work of
the student and is being submitted in partial fulfillment for the
award of the Master’s Degree in Business Administration of Indira
Gandhi National Open University. This report has not been
submitted earlier to this University or to any other University/
Institution for the fulfillment of the requirement of a course of
study.
Dr. ChackoJoji John Kundukulam
Project Guide
Place:Place:
Date:Date:CONTENTS
Certificate of Originality
Approved Project Proposal Proforma
Synopsis
Acknowledgement
List of Tables
List of Charts
1.Chapter 1 – Introduction
2.Chapter 2 – Research Methodology
A.Statement of the Problem
B.Objective of the study
C.Research Design
D.Data collection
E.Data Analysis
F.Expected contribution from the study
G.Limitations of the study
H.Directions for future research
3.Chapter 3 – Data Analysis and Interpretation
4.Findings & Suggestions
A.Findings
B.Suggestions
Bibliography
Appendix: Questionnaire1. TITLE OF THE PROJECT
The title of the project is “MARKETING PLAN FOR NEW
SERVICES IN TELECOM SECTOR AND ITS EFFECTIVE-
NESS-A STUDY OF BSNL”.
2. INTRODUCTION
Marketing is an art of performing various activities so as to
attract new customers as well as retaining the existing customers.
Marketing plan or strategy is defined as the application of various
techniques adopted for establishing a lucrative marketing feedback
– rendering a unique strategy plays a crucial role in maintaining
marketing stability. There is a remarkable difference between
marketing products and services. The latter requires more
interactive marketing strategies. Marketing strategies are formulated
through three dimensions namely as a culture, as a strategy, as a
tactics. As a culture, it develops firms overall value prepositions.
As a strategy, it gives emphasis at market segmentation and
positioning. As a tactics, customer relationship as well as various
functional levels of managers are given importance. In globalising
economy,marketing of services have become more strategic than
marketing of products.
Services have increasingly assumed an important role in the
economic development of many countries. Services are becominga critical source of wealth in many ways to the economies.
Economies experienced increase in employment with the growth
in service sector. Transportation, Education, Communication,
Banking, Health care, Hospitality, Entertainment, Information
Technology, Electricity and a host of services have been a part of
every individuals.
A different marketing approach is necessary for service
marketing because services differ from goods in many respects.
Services may be defined as intangible activities performed by
persons or machines or both for the purpose of creating value
perceptions among consumers. Services have basically six
characteristics that greatly affect the design of marketing programs.
They are intangibility,inseparability, perishability, customer
participation, and no ownership. These characteristics distinguish
services marketing from goods marketing approach.
The marketing challenges over and above the scope of goods
marketing needs to be addressed by the service firms with a
different strategic approach. This does not mean that traditional
marketing philosophies, methods and techniques are irrelevant to
the service sector. In fact,the fundamentals of marketing are the
same to both the sectors, what is required is to develop an adaptable
mechanism to a different environment, keeping in view the servicecharacteristics. Thus service marketing is nothing, but application
of traditional marketing philosophies to the service sector with
changes required wherever. Given the growing significance of
telecommunication as one of the largest service sector, a case study
of same is to be taken.
The study is initiated in order to streamline the marketing
strategies of existing service infrastructure prevalent in telecom
sector through a new perspective. ‘BHARATH SANCHAR
NIGAM LIMITED’ is one of the largest public sector in INDIA
which provides various telecom services in India and its service
area spreads all over India. Moreover, a large number of new
services are also catered by this telecom giant after the
DOT(Department Of Telecommunication) became BSNL. The
various new services are
1.Broad Band services —— internet access in broad band
region . The salient features include the speed is very high (ranges
between 256 Kbps to 2Mbps),4 to 32 multiples of ordinary internet
speed; simultaneous use of internet access and telephone etc.).
2.Mobile services, especially GPRS and MMS facilities,
Location based services in addition to the existing facilities such
as calling, SMS,call forwarding,voice mail box etc. provided for
postpaid as well as prepaid subscribers.3.ITC(Indian Telephone Cards) – for calling anywhere in the
world even without the help of telephones which have no ISD
facilities.
4.IN platform(Intelligent Network platform): With the help
of this network,we can create virtual private networks,toll free
numbers etc.
5.WLL phones (fixed as well as Tarang),video conferencing,
internet telephony etc.
Bharat Sanchar Nigam Limited has always been an
organization making aggressive moves in marketing strategies,
selling business developments and marketing share. Identifying
what legacy has to be left and what is to be achieved, it has a
marketing vision based on overall mission and vision of
organization. Mission of BSNL is to provide world class state- of
-art technology telecom services on demand at affordable price
and to provide world class telecom infrastructure to develop
country’s economy. The vision of BSNL is to become the largest
telecom service provider in south east Asia by diversifying in to
all spheres of communication services with more value added
operations.
BSNL creates a dynamic environment and takes to revise
and review the steps never losing the focus being its ultimateobjective to satisfy the customers and even a step ahead delighting
the customers, for they are offered something beyond their
expectations from the service or the product and they are getting
more value of the money they are departing with.
Quite strategically its marketing will focus greater attention
on how to deliver customer satisfaction and organization will begin
to structure it self around customer segments and not product
lines. The process of marketing is broad and includes all of the
following
•Discovering what product,service or idea customers want
•Producing a product with the appropriate features and quality
•Pricing the product correctly.
•Promoting the product, spreading the word about why
customers should buy it.
•Selling and delivering the product in to the hands of the
customer.
Brand Equity of BSNL services can be built with good equity
of quality of services at the affordable price. Continuous innovation
in product and delivery of services with the appropriate pricing is
the key strategy for developing the trust in customer so that he
keeps his loyalty with BSNL. Ultimately it is the quality,customer
care and timely availability apart from price which will matter.BSNL is the most trusted telecom brand in the past years
and has been accoladed for Best corporate social responsibility.
To leverage these distinctions, these achievements need to be
highlighted through public relation exercise like press meet and it
will help marketing image.
RATIONALE BEHIND THE STUDY
Marketing of services in telecom sector has become more
competitive and strategic at present. To ensure the overall
effectiveness of the telecom sector,especially in providing new
services, customer relationship as well as various functional levels
of the firm are needed to be given emphasis. As far as the marketing
plan of BSNL is concerned,the factors like awareness of the staff
and subscribers about the new services,its flaws and inadequacies
and its present practical utility should be examined. As it requires
much of the customer participation, a study in all these respects
became necessary.
4.OBJECTIVES OF THE STUDY
1.To examine the implementation of strategic pattern of BSNL.
2.To identify the flaws and inadequacies of the existing
marketing strategies of BSNL for the new services.3.To examine the overall awareness regarding the new services
of BSNL among the people and to suggest suitable measures.
5.RESEARCH METHODOLOGY
Since the study includes surveys and fact- finding enquiries
of different kinds, it is descriptive research. The major purpose is
description of the state of affairs as it exists at present.
a.DATA FOR THE STUDY
A)PRIMARY DATA
The collection of primary data for the study will be taken
from
1) The direct interview method of collecting data which
involves presentation of oral-verbal stimuli and reply in terms of
oral-verbal responses from the administration,staffs and subscribers.
Geographical area is confined to a secondary switching area (SSA)
viz. Trichur SSA and sample size is taken as 100.
2) Collection of data through questionnaires. The sample
size is taken as 500 which is only 0.01% of SSA(Trichur SSA)
and 1/100000 of whole organization viz. BSNL.
3) Telephonic interview which is more flexible in comparison
and sample size is limited to be 100.
B)SECONDARY DATA
The main source of secondary data is manuals,journals,periodicals published by the corporation as well as trade
unions,executive unions etc of BSNL. The second source is the
corporate websites such as www.bsnl.co.in, www.sancharnet.in
and intranet such as www.bsnl.in, www.ssanet.inetc.The circle
wise data is obtained from circle cites for example,
www.keralatelecom.com for kerala circle. The customer base,the
business volume,profit etc.of circles as well as corporate is obtained
from these websites.
b)SAMPLING AND INSTRUMENTS TO BE USED
Sampling or its objective criteria was exercised with the
proximity or interaction with the administration, staffs and
subscribers. Successful implementation of interaction with the
subscribers would require detailed working of inter connection
and pricing issues and quick and effective resolution of
inconveniences , administration and staffs also have crucial role
to play especially if it becomes necessary to enhance or amend
the frame work. The study was accomplished through
questionnaire,direct interview and telephonic interview ensuring
strategic developments, implementation and feedback respectively.
8.EXPECTED CONTRIBUTION FROM THE STUDY
The study is intended to evaluate the customers
attitude,responses and perception regarding new marketingstrategies in telecom sector, hence to implement efficient measures
to attract more customers attention.
9 .LIMITATIONS S OF THE STUDY
However, this study is not free from demerits. As the relevant
survey sample is formulated from within a relatively confined
geographical region,a wide range of feedback by virtue of different
cultures, mores and customs of the customers is subjected to be
limited in this study.
The collection of primary data is to be seriously affected,
since the technical terms such as GPRS ,MMS etc may be ignorant
to the respondents. As it is a much time consuming exercise,the
study is subjected to time constraints.
10.TIME SCHEDULE
Following is the time scheduled for the project:-
Collection of data:30 days
Classification of data:15 days
Analysis and interpretation of data:20 days
First printing:10 days
Proof reading, modification and final
project prepration:15 days
Total:90 daysThe Telecommunication History
The telephone was invented by Alexander Graham Bell in
1876. From the moment Alexander Graham Bell yelled those
famous words, “Come here Mr. Watson, I want to see You!”, the
business of providing telephone service was off and running. Soon
after that fateful day of March 10, 1876, Bell and Watson were
demonstrating the instrument.
In July of 1877, the Bell Telephone Company was formed
by Gardiner Hubbard. The Charles Williams shop made the first
telephones under the direction of Watson, who in effect was the
Research and Development Department of the company. Alexander
Graham Bell opted out of the day to day managing off the
company and travel to England, staying for over a year. By the
end of 1877 there were three thousand telephones in service.
The New Century 1901 – 1940
The turn of the century was a tough time for the Bell
companies. Rapid expansion led to poor service and the public
was becoming more apathetic with the big monopoly. As service
expanded across the country, the company also had a Dilemma in
that technology could not keep up with the incredible growth.
The independent companies were at the heels of the Bell
Companies and something had to change. And it did.At the turn of the century, recognizing the many public and
competitive concerns, the Bell System executives looked to
Theodore N. Vail to lead them once more…… and he turned
them down flat. Vail didn’t feel it was a good time to come back,
so the Bell company brought in Frederick Fish, who although
put in a tremendous effort, was exhausted by 1907 and retired.
The company again turned to Vail. This time around Vail
was over 60,his wife and son had passed away, and he felta real
need to get back to the job of heading the Bell System. Vail
immediately set to work creating his “universal service” theme,
hoping to bring a telephone to everyone in the United States. He
also consolidated research and development efforts into one plant
at Western Electric. This was in effect, the beginning of Bell
Laboratories.
INTERNATIONAL TELECOMMUNICATION SCENARIO
The worldwide telecommunication markets are set for extra
ordinary growth, doubling from $123 billion in 2004 to $282
billion by 2010. Communication represents opportunity for
expansion of economies. The internet based communication
system are vastly improving the efficiency of the supply chain for
the largest 5000 companies worldwide.The combination of voice,video, and data on a network makes people more efficient.More
information can be communicated not in real time, but is available,
as people need it. Messaging systems play a significant role in
passing information asynchronously, just in time.
Under developed countries use communications to achieve
trading and exchanging of goods. As people have portable
communication devices, they want more things and can make an
economy emerge where there was none before. A Siemens
representative tells about putting a refrigerator size switch in a
rural South African village and coming back ten years later to
find a thriving village with shops and civilisation. When people
where coming and going to the city of johannesburg, they would
carry goods in both direcctions creating demand for more items.
Trade went in both directions from the village to the city and
from the city to the village.
The uncertainity in Telecommunication has been resolved.
Digital, IP, Ethernet will replace all other protocols. The
convergence of networks is to IP, the internet, Ethernet. It works
seamlessly, it is reliable, it is resilient, it is fast. Now the issue is
how fast there TDM networks will be replaced with the new
technology.
Wireless is everything. 3G base stations promise to coexistwith WIMAX 802.16 base stations in metro environments.
Worldwide telecommunications and communications
equipment market forecasts, shipment in dollars analysis indicate
strong growth in very large exsiting markets. Markets at $197.6
billion in 2005 are anticipated to reach $446.9 billion by 2010.
TELECOM GROWTH IN EMERGING MARKETS
The Telecom sector achieve a great booming in every
countries, developing as well as developed countries. The figures
of Mobile teledensity under developing countries especially in
Asian countries are given below.
Millions of Mobile Growth rate
Mobile Subs.teledensity
Pakistan 34.5 20.8 2 78.00%
Bangladesh 11.67.9 211.00%
India1089.9 202.00%
China 426.4 32.5 158.00%
The developed countries also had high growth rate in telecom
services, especially in new services, but the growth is slow while
compared to developing countries because the tele-density is 100%
in these countries. It means every people in the developed countrieshave telephone. The figures of Mobile teledensity under developed
couuntries are given below.
Millions of Mobile Growth rate
Mobile Subs.teledensity
USA28010012.00%
UK34017.00%
JAPAN28694.50%92.00%
AUSTRALIA28 32.5158.00%
Indian Telecom Growth
Fitch rating has said that it expects India’s telecom sector to
sustain robust growth across market segments, Under pinned by
still-low teledensity, a strengthening economy and rising foreign
interest. While consolidation is an ongoing theme, competition is
expected to intensify given the aggressive expansion plans of
certain regional players, some backed by their new foreign partners.
Fitch also underscores that the expected continuance of hefty
capital investment in an environment of intensifying competition
is likely to preclude material credit improvements for most
operators over the next term.
The key growth area in the Indian telecom sector is the cellular
space, where monthly net subscriber additions have been
snowballing over the last 12 to 18 months. Mobile net additionssurged to 14.2 million in the fourth quarter of fiscal year ended
March 2006 from 5.2 million in Q1FY06. The trend has continued
into FY07, with over 5 million net new mobile subscribers per
month by July 2007.
There is also moderate incremental demand for local access
services, although growth is expected to come from CDMA-based
fixed wireless services rather than traditional wire line, based on
current growth momentum, Fitch considers the government’s target
of 250 million telecom subscribers by end of 2007 is achievable.
The sector has benefited from a progressive regulatory regime,
which is arguably the most dynamic in the region, with several
landmark decisions in recent years helping to dissipate regulatory
uncertainty. In segments where competition is currently limited,
Fitch notes that the regulator remains focused on lowering barriers
to entry and enabling sustainable competition. This was reflected
in the recent easing in national and international long distance
licensing conditions as well as the imposition of ceiling tariffs on
domestic and international leased circuits.
Fitch notes the aggressive business plans of some smaller
regional telecom companies (“telcos”), but maintains a cautious
view of their plans given the entrenched positions and significant
lead advantage of the existing national (and near-national) players.Although further rationalization appears inevitable, the next
phase of consolidation may be delayed until cellular growth
moderates. Over the medium term, Fitch anticipates the emergence
of six operators of scale, namely Bharat Sanchar Nigam
Limited(“BSNL”), Bharti Airtel, Reliance Communications,
Hutchison Essar, Idea Cellular and Tata Teleservices.
Fitch says that sustained high growth has demanded heavy
network investments over the last two to three years, resulting in
most Indian telcos generating negative free cash-flows (“FCF”)
over this period. The industry has now vaulted into a second
capital spending cycle of unprecedented proportions, with
aggregate industry capital expenditure expected to approximately
double over outlays in FY06. Consequently Fitch expects a general
increase in negative FCF levels over the next year or so.
Fitch says key credit drivers over the next 12 to 18 months
include effective management of increasing competitive pressures
(as evidenced by growth and margin expansion/stability) and
judicious capital management as operators ramp up capital
spending. Fitch notes that there is also scope for event risk given
ongoing consolidation, with negative pressure likely to arise should
operators undertake large debt-funded acquisitions.Telecom Growth in India: Strong and Steady
In India, the development in the area of telecommunications
has hit a rapid tempo. From breaking down of monopolies
bringing in reforms and the entry of private players and various
cellular services besides the landline the telecom journey in India
has been a profound leapfrog.
Recently, phone connections in India have crossed the 100
million mark, which means over nine in 100 Indians have a phone.
Adding on to that cheerful note, telecom companies are anticipating
the number will nearly treble in the next two years.
According to a survey, by 2006, the cellular networks are
expected to cover 3,50,000 (out of 6,07,000) villages, covering
450 million people.
Indian telecom growth story gets noticed
• Far away from the policy and regulatory turmoil in India, the
country is increasingly finding mention as a leading
telecommunications market in the world.
• According to statistics released here by the United Nations
body, the International Telecommunications Union (ITU), the
developing world now accounts for 500 million or 46 percent of
all mobile users in the world.
• Within this, the Indian cellular telephony market currently isshowing a high growth rate that is second only the dominant
player, China. While China leads by adding close to 5 million
cellular phones every month, India comes next with close to 1.9
million cell phone additions and is followed by Russia at 1.6
million new additions. Africa is also recording huge growth.
• For India, the overall increase in phones both fixed and mobile
now means that every one in two persons has access to some sort
of phone service.
• The Indian growth story getting mentioned repeatedly here at
the ITU Telecom World 2003, the quadrennial event that show
cases the best of the global telecommunications industry.
• The ongoing show is quite smaller than the one in 1999, a
reflection of the slowdown that has plagued the telecom industry.
• As per the statistics, around 2.5billion phone lines have been
installed all over the world. Of this, more than 1.5 billion phone
lines were added over the last four years. That is more lines in
four years than what was done in the previous 100 Years.
• Fixed line networks grew by 7.5 percent per year worldwide
(total 1.2billion), while cellular phone networks grew by 28.3
percent per year (total 1.33 billion).
• Internet usage grew by 24.5 percent per year, taking the total
of estimated Internet users to 665 million.BHARAT SANCHAR NIGAM LIMITED
Bharat Sanchar Nigam Limited formed in October 2000, is
World’s 7th largest telecommunication company providing
comprehensive range of telecom services in India: Wireline,
CDMA mobile, GSM Mobile, Internet, Broadband, Carrier
service, MPLS – VPN, VSAT, VoIP services, IN services etc.
Within a span of five years it has become one of the largest public
sector unit in India.
BSNL has installed Quality Telecom network in the country
and now focusing on improving it, expanding the network,
introducing new telecom services with ICT applications in villages
and winning customer’s confidence. Today, it has about 47.3
million linebasic telephone capacity, 4 million WLL capacity, 20.1
Million GSM capacity more than 37382 fixed exchanges, 18000
BYS, 287 Satellite stations, 480196 Rkm of OFC cable, 63730
Rkm of Microwave Network connecting 602 districts, 7330 cities/
towns and 5.5 lakhs villages.
BSNL is the only service provider, making focused efforts
and planned initiatives to bridge the Rural-Urabn 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 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, Cellone, has more than 17.8 million cellular customers,
garnering 24 percent of all mobile users as its subscribers. That
means that almost every fourth mobile user in the country has a
BSNL connection. In basic services, BSNL is miles ahead of its
rivals with 35.1 million Basic phone subscribers i.e 85 percent
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, Account Less Internet (CLI).
BSNL has been adjudged as the NUMBER ONE ISP in the
country.
BSNL has set up a world class multi-gigabit, multi-protocol
convergent IP infrastructure that provides convergent services like
voice, data and video through the same Backbone and Broadband
Access Network. At present there are 0.6 million Dataone
broadband customers.The company has vast experience inPlanning, Installation, network integration and Maintenance of
Switching & Transmission Networks and also has a world class
ISO 9000 certified Telecom TrainingInstitute.
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).
BSNL plans to expand its customer base from present 47
millions lines to 125 millions lines by December 2007 and
infrastructure investment plan to the tune of Rs. 733 crores (US $
16.67 million) in the next three years.
TypeCommunication Service Provider
Availability Country wide except Delhi & Mumbai
Owner The Government of India
Key peopleS D Saxena (CFO) A.K. Sinha (CEO)
Founded 19th Century, incorporated 2000
Websitewww.bsnl.in (http://www.bsnl.in/)
Bharat Sanchar Nigam Limited (known as BSNL) is apublic
sector communications company in India. Its headquarters are at
Statesman House, Barakhamba Road, New Delhi. It has a status
of Mini Ratna – a status assigned to reputed Public Sectorcompanies in India.
BSNL is India’s oldest and largest Communication Service
Provider (CSP). Currently BSNL has a customer base of 64.8
million (Basic & Mobile telephony). It has footprints throughout
Indiaexcept for the metropolitan cities of Mumbai and New Delhi
which are managed by MTNL. As on March 31,2007 BSNL
commanded a customer base of 33.7 million Wireline, 3.6 million
CDMA-WLL and 27.5 million GSM Mobile subscribers. BSNL’s
earnings for the financial year ending March 31, 2006 stood at
INR 401.8b (US$9.09b ) with net profit of INR 89.4b (US$
2.02 billion). Today, BSNL is India’s largest Telco and one of the
largest Public Sector Undertaking of the country with authorized
share capital of US$ 3.95 billion (INR 17,500 crores) and
networth of US$ 14.32billion.
HISTORY
The foundation of Telecom Network in India was laid by
the British sometimes in 19th century. The history of BSNL is
linked with the beginning of Telecom in India. In 19th century
and for almost entire 20th century, the Telecom in India was
operated as a Government of India wing. Earlier it was part of
erstwhile Post & Telegraph Department (P&T). In 1975 theDepartment of Telecom (DOT) was separated from P&T. DOT
was responsible for running of Telecom services in entire country
until 1985 when Mahanagar Telephone Nigam Limited (MTNL)
was carved out of DOT to run the telecom services of Delhi and
Mumbai. It is a well known fact that BSNL was carved out of
Department of Telecom to provide level playing field to private
telecoms. Subsequently in 1990s the telecom sector was opened
up by the Government for Private investment, therefore it became
necessary to separate the Government’s policy wing from
Operations wing. The Government of India corporatised the
operations wing of DOT on October 01, 2000 and named it as
Bharat Sanchar Nigam Limited (BSNL). BSNL operates as a
public sector.
MAIN SERVICES BEING PROVIDED BY BSNL
BSNL provides almost every telecom service, however following
are the main Telecom Services being provided by BSNL in India:-
1 . Universal Telecom Services:
Fixed wireline services & Wireless in Local Loop (WLL)
using CDMA technology called bfone and Tarang respectively.
BSNL is dominant operator in fixed line. As on March 31, 2007
(end of financial year) BSNL had 76% share of fixed and WLLphones.
2. Cellular Mobile Telephone Services:
BSNL is major provider of Cellular Mobile Telephone
services using GSM platform under brandname Cellone. Prepaid
Cellular services of BSNL are know as Excel. As on March 31,
2007 BSNL had 17% share of mobile telephony in the country.
3 . I nternet:
BSNL is providing internet as dial-up connection
(Sancharnet) and ADSL broadband Dataone. BSNL has around
50% marketshare in broadband in India. BSNL has planned
aggressive rollout in broadband for current financial year.
4. Intelligent Network (IN):
BSNL is providing IN services like televoting, toll free
calling, premium calling etc.
BSNL: PRESENT & FUTURE
Since its corporatisation in October 2000, BSNL has been
actively providing connections in both Urban and Rural areas
and the efficiency of the company has drastically improved from
the days when one had to wait for years to get a phone 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 Plans (Dataone) targeted at homes and small businesses. At
present BSNL enjoys 47% of market share of ISP services. Indian
Communications Minister Thiru Dayanidhi Maran has declared
year 2007 as “Year of Broadband” in India and BSNL is gearing
up to provide 5 million Broadband connectivity by the end of
2007. BSNL has upgraded existing Dataone (Broadband)
connections for a speed of upto 2 Mbps without any extra cost.
This 2Mb/s broadband service is sbeing provided by BSNL at a
cost of just US$ 5.5 per month. Further, BSNL is planning to
upgrade its broadband services to Triple play (telecommunications)
in 2007.
BSNL has been asked to add 108 million customers by 2010
by Indian Communications Minister Thiru Dayanidhi Maran. With
the frantic activity in the communication sector in India, the target
appears achievable, however due to intense c Competition in Indian
Telecom sector in recent past BSNL’s growth has slowed down.
BSNL is pioneer of Rural Telephony in India. BSNL has
recently bagged 80% of US $580 m (INR 2,500 crores) Rural
Telephony project of Government of India.CHALLENGES
During Financial year 2006-2007 (From April 01, 2006 to
March 31, 2007) BSNL has added 9.6 million new customers in
various telephone services taking its customer based to 64.8
million. BSNL’s nearest competitor Bharti Airtel is standing at a
customer base of 39 million. However, despite impressive growth
shown by BSNL in cecent times, the Fixed line customer base of
BSNL is declining. In order to woo back its fixed line customers
BSNL has brought down long distance calling rate under One
India plan, however, the success of the scheme is not known.
However, BSNL faces bleak fiscal 2006-2007 as users fee, which
has been accepted by the CMD BSNL. Presently there is an intense
competition in India Telecom sector and various Telcos are rolling
out attractive schemes and are providing good customer services.
However, BSNL being legacy operator and its conversion from a
Government Department, earns lot of criticism for its poor
customer service. Although in recent past there have been
tremendous improvement in working of BSNL but still it is much
below the Industry’s expectations. A large aging (average age 49
years (appx) workforce (300,000 strong), which is mostly semi-
illiterate is the main reason for the poor customer service. Further,
the top management of BSNL is still working in BSNL ondepuation basis holding Government employee status thus having
little commitment to the organisation. Although in coming years
the retirement profile of the workforce is very fast and around
25% of existing workforce will retire by 2010, however, still the
workforce will be quite large by the industry standards. Quality
of the workforce will also remain an issue.
Access Deficit charges (ADC, a levy being paid by the private
operators to BSNL for provide service in non-lucarative areas
especially rural areas) has been slashed by 37% by TRAI, wef
April 01, 2007. The reduction in ADC may hit the bottomlines
of BSNL.
NEW SERVICES OFERED BY BSNL
In addition to the ordinary services such as landline services,
internet services, a lot of new services. The details of these services
are given below
MANAGED LEASED LINE NETWORK (MLLN)
Leased Line Service with flexible access bandwidth
The MLLN is a Managed Leased Line Network system
which is proposed to provide leased line connectivity. With the
state-of-the-art technology equipment, MLLN is designed mainly
for having effective control and monitor on the leased line so thatthe down time is very much minimised and the circuit efficiency
is increased thus achieving more customer satisfaction. This mainly
deals with data circuits ranging from 64 Kbps to 2048 Kbps.
In MLLN network conventional PCM primary MUX and
subscriber Modems are replaced by versatile MUX and network
terminating units respectively. MLLN mainly consists of Digital
Cross Connect (DXC), versatile MUX (V MUX), Network
Terminating Units (NTU) and Network Management System
(NMS). DXC’s and VMUX’s are inter connected via optical fibre
links with alternate routing facility in case of any route failure.
VMUX is in turn connected to NTU’s placed at customer premises
through 2 wire copper pair. At the top of it NMS is suitably placed
at the Central location for effective control & monitor. NTUs are
fully managed from NMS. They are programmable for different
data speeds ranging from 64 Kbps (n x64 Kbps: nx 1 to 32)
depending upon the customer demand, thus having bandwidth
control without changing Modem at his premises. NTUs operate
on 230 V AC.
Features of MLLN
• Control, Manage the leased line network
• Bandwidth management as per the customer demand
• Pro-active maintenance, without waiting for customer to booka complaint.
• Self Diagnostic/software loops to check E1 connectivity to DXC,
VMUX/software loops for checking copper pair at NTU point
for immediately identifying the faulty section for trouble shooting.
• Alternate routing in case of any route failure.
• Generation of the Periodic performance reports for self analysis/
customer.
Advantages to customers:
• Bandwidth management as per customer requirement (64 Kbps
and nx 64 Kbps upto 2049 Kbps).
• Saving the cost of modems. NTU is provided by BSNL without
any charges.
• Proactive maintenace
• Time dependent bandwidth
WHAT IS MLLN?
MLLN is a Managed Leased Line Network System, which
propvides leased line connectivity using the State of the Art
Technology. It is designed mainly to have effective control over
the leased line and monitor it so that down time is very much
minimized and the circuit efficiency is increased thus contributing
to greater customer satisfaction. This mainly caters to data circuitsranging from 64 Kbps to multiples of 64 Kbps upto 2049 Kbps.
In the system, instead of MODEM, NTU (Network Termination
Unit) is used at customer premises.
WHAT IS NTU?
NTU (Network Termination Unit) is nothing but a Model
which is installed at the customers premises for point to point
connection using the existing telephone copper cables for leased
lines data transfer with data speed ranging from 64 Kbps upto
2048 Kbps.
WHAT ARE THE ADVANTAGES OF MLLN?
The advantages of the MLLN are as follows:
1. Customers need not buy pairs of modems for their Data Circuit.
BSNL will supply NTU in the place of Modem and maintain it.
2. MLLN facilitates ‘round the clock performance monitoring’ of
the circuit.
3. On demand, bandwidth can be increased from 64 Kbps to
multiples of 64 Kbps upto 2048 Kbps.
4. Less lead time for new curcuit provisioning and upgradation
for higher bandwidth.
5. Protection against the failure of the circuit by alternate routing.6. Long drive on single pair of copper cable.
7. Centralised monitoring of the performance of Data circuits by
an effective Net work Management System.
8. End – to-end monitoring for faults and failures by remote
operator terminal upto Modem point.
9. Proactive maintenance without waiting for customer to book a
complaint.
WHAT ARE THE BENEFITS TO THE EXISTING
CUSTOMERS?
The existing customers are benefited by the following
features.
1. Bandwidth management as per customer requirement (64 Kbps
and N X 64 Kbps upto 2048 Kbps where N 1,2,3, ..... etc upto
32).
2. For any additional bandwidth requirement the existing customer
need not purchase any new modem. BSNL will provide NTU for
this additional Bandwidth requirement. Customer has to pay only
Rs.10,000/- per NTU towards interest free refundable deposit.
No rental charges will be levied for the NTU.
3. Proactive maintenance.
4. ‘Time dependent bandwidth’ will be readily available.5. Most stable quality of service.
6. Right from modem upto the other end modem the circuits are
monitored continuously and hence any malfunctioning will be
detected and corrective action will be taken without the need for
booking a complaint.
WHAT IS ‘TIME DEPENDENT’ BANDWIDTH?
At present only the fixed Data service of 64 Kbps or 2048
Kbps is made available. However the customer can have Time
Dependent Bandwidth from MLLN system from 64 Kbps and
upto 2048 Kbps by upgradation. For example – In case a customer
having low capacity, say 512 Kbps, requires a 1 MB (1024 Kbps)
bandwidth for a short period, he can upgrade it. However, he
cannot reduce his requirement to less than the minimum he has
hired (e.g 512 Kbps) cannot be downgraded to 128 Kbps for any
period in the day).
DATAONE: - Broadband services
Internet access in broadband region. The data transfer speed is
very high. 10 times faster than that of ordinary dial up connection.
Benefits of customers:
1. Speed is very high.
2. Simultaneous use of telephone and internet.3. Smooth data transfer.
4. Use of unbundles copper cable laid down earlier stages which
are idle now.
CUG - CLOSED USER GROUP
A Closed User Group is a supplementary service offered by
network operation for creation of logical groups of users within
the operators network.
The CUG sipplementary service enables users to form groups
to and from is restricted. A specific user may be a member of one
or more closed uder group specific Closed User Group can
communicate among themselves but not, outside the group.
The CUG supplementary service is applicable to all
telecommunication.
CLOSED USER GROUP SERVICE IN A MOBILE
COMMUNICATION SYSTEM
A method and apparatus for providing closed user group
service in a packet includes at least one network and at least one
group including a plurality of closed user group access conditions
for at least one subscriber are determined the access conditions
include at least one of the following conditions, right — parties
outside the group, and right to communicatewith at least onememory without communicating with all members of the group.
The access conditions packets are being sent to/from the subscriber.
The packets are transferred conditions allow the transmission.
A closed user group (CUG) selection facility is a specific
encoding element presented in a call request or an incoming call.
A CUG selection facility in a – the source data terminal equipment
(DTE) (e.g mobile handset unit) to identify which it is placing
the call. A CUG selection facility in an incoming call allow DTE
to identify the CUG to which both DTEs belong.
CUG for mobile on (Cellone) postpaid services for Corporate
users – other built in facility are also available.
The development of technologies, reduction in the cost of
providing telecom escalation of competition in the market have
all resulted in telecom service various innovative tariff schemes in
the market.
It has come to the notice of the authority that the tariff under
some tariff scheme nomenclature of Closed User Group (CUG),
Virtual Private Network (VPN) features to provide free/
concessional calls to CUG/VPN members when the group. This
feature appears to infringe upon the principle of non-discrimination
repeatedly been enunciated by the Authority.
There is also a view that, tariff concessions applicable toCUG/VPN subscriber cannot be extended to subscribers of another
network by virtue of the definition. The concern of the authority
is whether such tariff plans, would amount to principle of non
discrimination emphasised by the authority. Considering the such
as CUG/VPN have been found to satisfy legitimate interests of
various past. It was felt necessary to issue a consultation paper to
elicit the view of stakeholders.
Written comments are invited on this consultation paper latest
by 5th March issues mentioned below:
a) Whether differential tariff for calls within the network should
continue to discriminatory?
b) Whether CUG and VPN tariff schemes should be disallowed
as it involve charges and thus, amounts to discrimination?
c) Whether certain terms and conditions are to be prescribed by
the Authority these schemes are not misused?
If so, what would be the appropriate criteria to define aforesaid
conditions? For more details please visit TRAI’s website at
www.trai.gov.in
Remarks on closed user group::
• Regulatory bodies namely Reserve Bank of India (RBI) and
Securities & Exchange Bureau of India (SEBI) can connect to
any of these CUGs without extra charge switch traffic amongnetworks and furnish undertaking to this effect. In — the
undertaking by them, interconnection fee shall be charged from
the
• Provided that ultimate consumer of the product or service shall
not be a user group and also that the network will be used purely
for legitimate — purposes of the group where resale of
telecommunication service – involved in respect of companies
against 5, 6 and 7 above, the definition MRTP Act 1969 will be
taken.
• In case of dedicated/captive networks for the use of closed user
groups shall be owned and operated by the licensee within the
scope of license of the government. Third party ownership and
provision of service is not permitted.
• The character of the closed user group has to be maintained
through – validity of the permission granted.
• If a single party leased line network is given a leased line
connectivity at sister concern of the network hirer (any organisation
which comes under such network is not be treated as closed user
group network for the — or otherwise.
• The wholesale tracers/agents of their interconnected companies
may also connected with the CUG network of the main hirer on
the basis that the wholesale traders/agents of the inter connectedcompanies will be charged extra for each such circuit connected
to the CUG network of the main – commissioning of such circuits.
• Private leased line networks were allowed to be connected with
inet/HVI party leased line network is not be treated as a Cug
network by virtual connection. There shall be no restriction on
the type of persons accessing line network through inet/RABMN
provided the network hirer is – services from his network to any
of such persons.
WHAT IS CENTREX?
Centrex is a set of specialized business solutions (primarily,
but not exclusively, for voice service) where the equipment
providing the call control and service logic functions is owned
and operated by the service provider and hence is located on the
service provider’s premises. Since Centrex frees the customer from
the costs and responsibilities of major equipment ownership.
Centrex can be thought of as an outsourcing solution. Call control
and service logic refer collectively to the functions needed to
process a telephone call and offer telephone features. The following
are examples of call control and service logic functions:
• recognizing that a party has gone off hook and that dial tone
should be provided.• Interpreting the dialed digits to determine where the call is to
terminated
• determining whether the called party is available, busy, or has
call forwarding, and then applying the appropriate treatment(e.g
ringing the phone, applying busy signal, applying a call waiting
tone, delivering the call to voicemail, or forwarding the call to
another party)
• recognizing when the called party answers the phoneand when
either party subsequently hangs up, and recordidng the appropriate
information for billing.
In traditional Centrex service (i.e analog Centrex and ISDN
Centrex), call control and service logic reside in a class 5 switch
located in the Central Office. The Class 5 switch is also
responsibility for transporting and switching the electrical signals
that carry the caller’s speech or other information (e.g faxes).
Traditional Centrex wervice has a number of benefits that are
discussed elsewhere on this site.
PACKET + CENTREX = IP CENTREX
In IP telephony, voice conversations can be digitized and
packetized for transmission across the network. IP Centrex refers
to a number of IP telephony solutions where Centrex service isoffered to a customer who transmits its voice calls to the network
as packetized streams across a broadband access facility. IP Centrex
builds on the traditional benefits of Centrex by combining them
with the benefits of IP telephony. One of these IP telephonybenefits
is increased utilization of access capacity. In IP Centrex, a single
broadband access facility is used to carry the packetized voice
streams for many simultaneous calls. When calls are not active,
more bandwidth is available for high speed data sessions over the
LAN, like internet access. This is a much more efficient use of
capacity than traditional Centrex. In analog centrex, one pair of
copper wires is need to serve each analog telephone station,
regardless of whether the phone has an active call; one of the
phone is not engaged in a call, the bandwidth capacity of those
wires is unused. An ISDN BRI can support two simultaneous
calls (i e 128 Kbps), but similar to analog lines, an idle BRI’s
bandwidth capacity cannot be used to increase the corporate
LAN’s interconnection speed.
USE OF CENTREX
Centrex is a PBX-like service providing switching at the
central office instead of at the customers premises. Typically, the
telephone company owns and manages all the communicationsequipment and software necessary to implement the Centrex
service and then sells various services to the customer.
No switching equipment resides on the customer premises
as the service is supplied and managed directly from the phone
company’s exchange site, with lines being delivered to the premises
either as individual lines over traditional copper pairs, or delivering
many lines multiplexed to the premises over fibre optic or copper
links, eliminating the need to bring many individual pairs from
the exchange to the premises. In effect, Centrex provides an
emulation of a hardware PBX, by using special software
programming the central office, which can be customized to meet
a particular customer’s needs. As with a PBX, stations inside the
group can call each other with 3, 4 or 5 digits, depending on how
large the group, instead of an entire telephone number.
Centrex obviates separate exchange lines delivered to a site
for use with a 1A2 Key system or similar, or PBX. Instead,
telephone extensions, called Centrex lines, are delivered directly
from the local exchange to the user. Some customers, however,
still like to use a key telephone system for a small office within
the large corporate Centrex. Unlike with a conventional PBX, it
is a simple matter to have extensions at different locations while
allowing them to function as if they were within the same building.Never IP PBX systems alsos allow phones at any location with a
WAN or Internet connection to act as a local extension. Facilities
such as Direct Inward Dialing (DID), where individual extensions
are offered a direct and unique telephone number for incoming
calls, are standard features in a Centrex environment. Stations may
also be part of a hunt group, allowing for automatic distributing
of incoming calls to two or more extensions.
With the high price of Long distance service, many large
companies had their own network of private lines crossing the
country or to distant countries. Managing these networks of ‘Tie
Lines’ and connecting users to them was also an important part of
Centrex.
BIRTH OF CENTREX
Centrex was invented in the middle 1960s by the Engineering
Department of New York Telephone to replace the PBX
switchboards of large customers. It was a feature package of the
5XB crossbar system. Much equipment had to be redesigned,
including incoming trunks and mrkers. The redesigned equipment
was so expensive that usually a separate 5XB switch was used
just for Centrex customers, while POTS customers were wired to
an unmodified exchange.
The PBX had the important feature that someone whoreceived a call in error could jiggle the switchhook, causing a
light to flash to recall the operator to connected the caller to the
desired extension. This feature was implemented in Centrex with
a timing circuit to detect a hook flash and set up a three way
connection among outside party, inside party and operator. The
operator or “attendant” had a large and complex console, replacing
the old, larger and ever more complex switchboard and giving
additional control of a connection. Its buttons and lights needed
approximately fifty pairs of wires. Incoming calls arrived on an
Attendant Trunk which, for customers with more than one console,
waited for one to become idle and then connected to it, initially
via step by step switches arranged as a Trunk Finder and Position
Finder. Customers who preferred the old cord switchboards could
use an adapted “608” board. In either case the console
communicated with the incoming trunk with coded plus and
minus 130 volt DC signals on Tip, Ring or both wires.
Bell labs took over Centrex development in the late 1960s.
The NYTel version was designated Centrex, I, and the Bell Labs
revision Centrex II with aditional features. The unreliable Step
switches were replaced by a Centrex Position Link Circuit
(CXPL), a small, dedicated two stage crossbar network. In the
early 970s Centrex III arrived, a complete redesign bring moreversatility to the old 5XB system. The Centrex product line was
also extended down-market, with Centrex Small Business for
customers having mere dozens of lines and no attendant console.
Meanwhile Stored Program Control came to live up to its
promise of versatility, and Centrex customers were among the
first in the middle 1970s to be removed from 5XB to 1ESS switch.
Complex logic and storage was cheaper in a central computer
than an individual trunk circuits, hence outgoing calls could be
transferred as easily as incoming. Other manufacturers produced
similar services, usually calling them something else due to
trademark considerations. Northern Electric, later Nortel, called
their version IBN or Integrated Business Network and enhanced
the service with their proprietary P-phone sets in the 1980s.
TYPES OF CENTREX SERVICE
The Centrex customer is not restricted to using the features
available to POTS (Plain Old Telephone Service) customers, but
can choose from a wide variety of special services and features. In
fact, telecommunications companies generally offer numerous
types of Centrex Service, including “Packaged Centrex”, “Centrex
Data”, and “Customized Centrex”.PACKAGED CENTREX
Packaged Centrex customers could be offered a fixed set of
features in package “A”, a different set of features in package “B”,
and so on. These packages can be offered at a relatively low cost
as little or no customization is permitted, minimizing the
operationbal costs of programming and maintaining the services
for the telephone company.
CENTREX DATA
Centrex Data services can provide relatively low speed (56
and 64 kbit/s) data services utilizing the circuit switched telephone
network. Although they are now overshadowed by the internet
and other data networks. Centrex Data services can offer very
flexible and wide reaching network configurations since
connections can be made almost anywhere within the reach of the
telephone network.
CUSTOMIZED CENTREX
Customized Centrex is the most flexible (and most expensive)
Centrex service as it offers a highly customizable set of options
that require specialized programming and troubleshooting skills
to maintain. A typical Customized Centrex setup will allow 4digit dialing between “locals” (perhaps even if they are located in
different parts of the city), customized routing through the
telephone network (such as Least Cost Routing or time of day
routing), and customized codes for invoking features.
MULTIPROTOCOL LABEL SWITCHING:
( for  the  remaining part of the  project    , please contact   the  no. 9447746585  on  mobile)
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