In the era of Globalization, Liberalization and Privatization the challenges faced

by the Public Sector Telecom Operators in India is unique. The challenges are
multi faceted related to Marketing, Finance, Human Resources Management etc.
The Profits are under severe pressure. The Telecom Industry has contributed to
the all-round growth of the Economy and there is no gainsaying the contribution
of the Public Sector role. BSNL in the Telecom industry is inevitable as
coexistence of both private and public is the spirit of Indian Political Economy.
Hence, the continued viability of BSNL is of strategic concern for the government
and industry.

Company Profile
The Company took over the business of providing telecom services and network
management throughout the country except the metro cities of Delhi and
Mumbai from Department of Telecom Services and Telecom Operations w.e.f.
01.10.2000 pursuant to an MoU signed between the BSNL and Government of
India. BSNL is a Government Company under the Sec. 617 of the Companies Act,
1956. The entire share capitalboth equity and preferenceis held by the
Government of India. Being GoI holding 100% equity share capital, BSNL is an
unlisted company. Its Paid up value of Equity share capital is Rs.5,000 crores and
Rs. 7,500 crores preference share capital. The vision of the BSNL is to become
the largest telecom service provider in South East Asia. Its Mission 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 countrys
economy.
Bharat Sanchar Nigam Ltd. (BSNL) formed in October, 2000, is the World's 7th
largest Telecommunications Company and Indias largest public sector unit
providing a comprehensive range of telecom services in India: Wireline, CDMA,
GSM, Internet, Broadband, Carrier service, MPLS-VPN, VSAT, VoIP services, IN
Services etc.
Currently BSNL is the Numero Uno operator of India in all services in its license
area. BSNL is the only service provider making focused efforts and planned
initiatives to bridge the Rural-Urban Digital Divide.
As on March 31, 2010 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, 2010 stood at INR 401.8b (US$
9.09 b) 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 net worth of
US$ 14.32 billion.
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. Preactivated 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 enjoy's 47% of market
share of ISP services.

Vision.

To become the largest Telecom Service provider in South East Asia.

Mission.

To provide world class state-of-the-art technology, Telecom Services on

demand at affordable price.

To provide world class Telecom infrastructure to develop the countrys

economy.

Objectives.

To be a lead telecom service provider.

Build customer confidence through quality and reliable service.

Provide band width on demand.

To meet all emerging communication needs of individual and small

enterprise and corporate houses.

Contribute towards :

1. National plan target of 250 million subscriber base for the country by
December 2007 in mobile sector.
2. Broad band customer base of 20 million in the country by 2010 as per
broad band policy 2004.
3. Telephone in all villages.
4. Implementation of triple play as regular commercial proposition

Performance Highlights during Financial Year 2013-14

During the year under review, the Company incurred a loss of Rs.
7,019.76 Crore [Loss in Previous Year Rs. 7,884.44 Crore]. While the income
from services is Rs. 26,153.26 Crore [Previous Year Rs. 25,654.81 Crore],
other income was Rs. 1,843.09 Crore [Previous Year Rs. 1,473.08 Crore] There
was an increase of 1.94% in income from services in comparison to
previous year, the other income increased by 25.12%. There was an increase of
3.20% in the total income in comparison with previous year.

PROFILE OF THE COMPANYS BUSINESS

1. BASIC AND LIMITED MOBILE TELEPHONE SERVICES

BSNL is the leading service provider in the country in the Basic Telephone
Services. As of now more than 35 million Direct Exchange Lines & more than
2.2.Million telephones in the Limited Mobile telephone Services are existing.
BSNL has provides a number of attractive tariff packages & Plans which shall
further strengthen its subscriber base.

2. CELLULAR MOBILE TELEPHONE SERVICES

BSNLs GSM Technology based Cellular Mobile Network has reached a long way,
covering more than 6400 towns, with a subscriber base of over 1.54 crore as on
31st Jan. 2009 out of which 1.16 Crore cellular telephones are in the prepaid
segment.

3. INTERNET SERVICES
BSNL offers Dialup Internet services to the customers by Post-paid service with
the brand name Net one, and pre-paid service with the brand name
Sancharnet. The post-paid service is a CLI based access service, currently
operational in 100 cities. Sancharnet is available on local call basis throughout
India to ISDN and PSTN subscribers. The Internet Dhaba scheme of the Company
aims to further promote Internet usage in rural and semi urban areas.

To keep pace with the latest and varied value added services to its customers,
BSNL uses IP/MPLS based core to offer world class IP VPN services. MPLS based
VPNs is a very useful service for Corporate, as it reduces the cost involved as
well as the complexity in setting up VPNs for customers networking. As on
31.03.2005, your Companys total Internet customer base was 17, 98,089 and
total Internet Dhabas were 4143. A total of 708594 dial up Internet connections
have been given during 2007-2008, against a target of 7 lakhs. BSNL plans to
give 1215980 more dial up connections during the year 2008-09. As on
31.1.2009, there were 2367404 internet subscribers working in BSNL net work.

4. Intelligent Network
Intelligent Network Services is a service that incorporates several value added
facilities, thoroughly designed to save time and money, and enhance
productivity. At present, your company offers Free Phone (FPH), Premium Rate
Service (PRM), India Telephone Card (ITC), Account Card Calling (ACC), Virtual
Private Network (VPN), Universal Access Number (UAN) and Tele voting IN
services. With the commissioning of five numbers of new technology IN Platforms
(Four General purpose and One Mass Calling) at Kolkata, Bangalore, Ahmadabad
and Hyderabad, the India Telephone Card facility and new value added services

are being provided throughout the country. Activation of these new IN platforms
had increased the sale of ITC Cards taking the figure to Rs.265 crores in 2007-08
alone.

5. BROADBAND SERVICES
BSNL has launched its Broadband Services under the brand NAME DATA One on
14/1/2005. This offers services like High Speed Internet Access with speed
ranging from 256 Kbps to 8 Mbps. Other services like streaming video, Video on
Demand, Bandwidth on demand etc., have also been planned. As on 31.12.2005,
there were more than 356000 broad band connection provided by the BSNL.
There are plans to give 2 million and 3 million connections in 2008 and 2009
respectively.

COMPUTERISATION AND IT
Implementation of CDR Project
The CDR project implementation was completed in April, 2012. This takes care of
customer care, billing and post billing operations for landline and broadband
customers across the country. This has resulted is advantages like faster
implementation of telecom tariff across the country, corporate monitoring of
billing, revenue and customer care including faults. From the customers point of
view, this gives an advantage of uniform customer experience across SSAs,
Internet based portal payments, combined bill of landline and broadband
services, uniform standard bill format across the country, customer friendly tariff
packages like fair usage policy etc.
Implementation of ERP
On successful completion of the proof of concept phase of the ERP Project
till October 2013 ERP was implemented in the telecom factory (Mumbai),
Training Centre (ALTTC, Ghaziabad), a project circle (Western Telecom Project),
a Maintenance Region (Southern Telecom Region), two Territorial Circles
(Karnataka and Maharashtra) and the Corporate Office having resolved the post
implementation issues your Directors have decided to complete the roll out
phase in all the remaining units during this financial year. Implementation of ERP
across the Organization will enable profit centre accounting (lines of business
wise), cost control of inventory across units, efficient asset management,
centralized data base of all the employees, centralized (circle wise) pay roll
processing, centralized operations leading to standard optimal procedures
and having
centralized IT systems leading to transparency, visibility of information and data
accuracy.

Challenges

During Financial Year 2009-2010 (From April 01, 2009 to March 31,2010 ) BSNL
has added 9.6 million new customers in various telephone services taking its
customer base 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 recent 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 OneIndia plan, however, the success of the scheme is not known.
However, BSNL faces bleak fiscal 2009-2010 as users flee, which has been
accepted by the CMD BSNL.
Presently there is an intense competition in Indian 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 semiilletrate or illeterate is the main reason for the poor customer service. Further,
the Top management of BSNL is still working in BSNL on deputation 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.