BSNL

Connecting India

1
 BHARAT INSTITUTE OF TECHNOLOGY
MEERUT

STUDENT DECLARATION

I, MUKESH KUMAR, hereby declare that the research report entitled

“ANALYSIS OF DECLINING TRENDS OF B.S.N.L. AND IT’S

FORECASTING” is an original work done by me and has not been

submitted to any College / Institute / University in any form or manner prior

to this.

MUKESH KUMAR

Date: M.B.A III Sem.

Roll No. - 0727170040

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 BSNL

Connecting India

3
 ACKNOWLEDGEMENT
In writing this report entitled “Analysis of Declining Trends of Bharat

Sanchar Nigam Limited & its forecasting”. I have greatly benefited by my

visits to the company where I got the opportunity of studying financial

statements and also the practical working of the finance department.

I am very grateful to my respected Mr. PANKAJ KUMAR,(S.D.E, C-Dot).

For providing me proper guidance, valuable suggestions and constructive

criticism throughout the study and preparation of this project report.

I am very grateful to my respected Mr. D.K. Maheshwari, (H.O.D.,

Management, Bharat Institute of Technology, Meerut). For providing me

proper guidance, valuable suggestions and constructive criticism throughout

the study and preparation of this project report.

My sincere and deepest thanks to the staff at Mrs. Mitushi Jain (Faculty,

Management) for providing me support..

Last but not least, I express my gratitude to my family and friends for

providing me with all the support during the study.

MUKESH KUMAR

4
 CONTENTS
• Preface

• Company profile

o Board of directors

o Customer care

o Mobile services

• Research methodology

o Objective of the study

o Research design

o Data collection

• During financial year

• Accounting policies

• Data analysis

• Findings

• Limitations

• Conclusion

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• Recommendations

• Suggestions

• Questionnaire

• Bibliography

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 BSNL

Connecting India

7
 PREFACE
As a part of course to my M.B.A programme, I was required to undergo

research report in any orgranization, for partial fulfillment of my degree

and also to give me exposure to practical management and to get

familiar with the various activities taking place in the organization.

I got an opportunity to do my research report in the reputed “Bharat

Sanchar Nigam Limited” Rampur, where I was allowed to work on my

project titled “Analysis of declining trends of B.S.N.L. and it’s

Forecasting.

The objective of this study was to have a critical look into the process

of financial analysis. Analysis the declining trends is statement of

change in the market position. Ratio analysis is a very important tool of

trends analysis. It is the systematic use of ratio, to interpret the

declining the consumer so that the strength and weakness of the

company as well as its historical performance and current financial

condition can be determined.

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 BSNL

Connecting India

9
 COMPANY PROFILE

On June 1, 2004 the Department of Telecom Operations, Government of

India became a corporation and was christened Bharat Sanchar Nigam

Limited (BSNL). Today, BSNL is the No. 1 Telecommunications Company

and the largest Public Sector Undertaking of India with authorized share

capital of $ 3600 million and networth of $ 13.85 billion. It has a network of

over 45 million lines covering 5000 towns with over 35 million telephone

connections.

With latest digital switching technology like OCB,EWSD,AXE-

10,FETEX,NEC etc. and widespread transmission network including SDH

system upto 2.5 gbps, DWDM system upto 80 gbps,web

telephony,DIAS,VPN,Broadband and more than 400,000 data customers ,

BSNL continues to serve this great nation .

Its responsibilities include improvement of the already impeccable quality of

telecom services, expansion of telecom network, introduction of newtelecom

services in all villages and instilling confidence among its customers.

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BSNL has managed to shoulder these responsibilities remarkably and deftly.

Today with over 45 million line capacity, 99.9% of its exchanges digital,

nation wide Network management & surveillance system (NMSS) to control

telecom traffic and over 4,00,000 route kms of OFC network, Bharat Sanchar

Nigam Ltd is a name to reckon with in the world of connectivity. Along with

its vast customer base, BSNL's financial and asset bases too are vast and

strong. Consider the figures, as they speak volumes on BSNL’s standing:

The telephone infrastructure alone is worth about Rs. 1,00,000 crore (US $

21.2 billion)

Add to which, BSNL's nationwide coverage and reach, comprehensive range

of telecom services and a penchant for excellence; and you have the
ingredients for restructuring India for a bright future.

BSNL Registered Office Sanchar Bhavan, 20,

Ashoka Road, New Delhi-

110001
BSNL Corporate Office Statesman House,

B-148, Barakhamba Road

New Delhi-110001

VISION

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To become the largest telecom Service Provider in Asia.

MISSION

To provide world class State-of-art technology telecom services to its

customers on demand at competitive prices.

To Provide world class telecom infrastructure in its area of operation and to

contribute to the growth of the country's economy.

OBJECTIVES

• To be the Lead Telecom Services Provider.

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

there by increase customer's confidence.

• To provide mobile telephone service of high quality and become no. 1

GSM operator in its area of operation.

• To provide point of interconnection to other service provider as per their

requirement promptly.

• To facilitate R & D activity in the country.

• Contribute towards:

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 i. National Plan Target of 500 million subscriber base for

India by 2010.

ii. Broadband customers base of 20 million in India by 2010

as per Broadband Policy 2004.

iii. Providing telephone connection in villages as per

government policy.

iv. Implementation of Triple play as a regular commercial

proposition.

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 BSNL

Connecting India

14
 BOARD OF DIRECTOR
Board of Directors Corporate structure of BSNL Board consists of CMD &

Five full time Directors Human Resource Development (HRD), Planning &

New Services, Operations, Finance and Commercial & Marketing, who

manages the entire gamut of BSNL operations. There are five other Directors

in the full Board of BSNL..

Shri VP Sinha is having more than 34 years experience in telecommunication

field covering all areas In telecommunication sector namely switching,

microwave, UHF Co-axial, overhead carrier system, symmetrical cable

system and optical fiber system in planning design, networking and

maintenance of telecommunication networks, He was elected Chairman of

Asia Pacific Telecommunity (APT) Study Groups for study cycle 2000-2002

and was deputed abroad as an expert on transmission system for planning and

imparting training to DPR, Korea for eight weeks (Sept. 1990 to Oct. 1990).

He was again deputed to Thailand as an expert of APT in October 1995 for

more than a month; Shri Sinha was elected Executive Director & Chairman of

15
APSCC (Asia Pacific Satellite Communication Council) Seoul for the Study

Group 2003-04 study cycle.

Shri VP Sinha got training in Planning & Development of Rural

Communication under UNDP as a fellow in erstwhile Telecom Australia,

General Administration, Radio, Switching, and Electronic Exchanges. E-10 B

Basic.Computer, Satellite, Coaxial Cable, Carrier, Local Area Network,

Microwave, Advanced Microwave. PCM, Optical Fiber, Satellite

Communications, Microprocessors. Common Channel Signalling, Mobile

Communication, Operation Research and PERT chart, Development

Administration, etc. He was associated with drafting/formulation of New

Telecom Policy-1999 and Perspective Plan 2000-2010,

Shri Sinha has enough international exposure having visited a large number of

countries representing India and attended Conferences, Exhibitions and also

made presentations at international forums of lTU,APT,etc.

Due to high degree of experience acquired in various types of communication

equipment in switching as well as transmission in the country, he was

assigned with the responsibility of research and development of Satellite,

Communication Experimental Project (STEP) for about two years in ] 976-77

16
while he was working in the Satellite Cell of erstwhile Telecom Research

Centre, Department of Telecom, After the experiment was successfully

conducted, a detailed specification for INSAT Series of Satellite was drawn

for INSAT1-A to l-E.

Director (Planning & New Services)-Shri V.P.Sinha

Shri VP Sinha is also looking after the charge of Director (Planning & New

Services).

Director (Finance)- Shri S.D. Saxena

Shri S.D.Saxena has taken over as Director (Finance) in BSNL on

03.04.2002. Shri Saxena holds an excellent academic record. He is M.Sc.

(Physics) and MBA (Financial Management).Winner of many awards and

medals, he was awarded Chancellor’s Gold Medal for being the most

outstanding student in the Agra University in the year 1967. Prior to joining

the Government of India through the IAS, etc. examination of 1972 he was a

lecturer in Physics at the University of Rajasthan at Jaipur and taught for six

years. During this period he was associated with various organizations

including Tata Institute of Fundamental Research(TIFR) and Atomic

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Energy.Among the notable assignments of Shri S.D. Saxena, special mention

can be made of C-DOT where he was involved in setting up of C-DOT with

Shri Sam Pitroda and Padmshri G.B. Meemamsi. He was also Director (F) in

the E-10 B Project for induction of Electronic Switching System in Indian

Telecom Network.

He was IFA of Mahanagar Telephone Nigam Ltd. for 7 years and was

actively involved in the GDR Issue, rated as one of the best GDRs brought

out by an Indian Corporate including private companies. He was a member of

Rakesh Mohan Infrastructure Committee which made significant

recommendations for the growth and development of Indian infrastructure

sector. Shri Saxena has been an acting Member of the Study Group III under

the aegis of International Telecommunication Union. He was the Chairman of

the Special Rapporteur Group of Study Group III for telecommunication

statistics which made significant contributions for the presentation of telecom

statistics on a Global scale.

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Director (HRD)- Shri S.K. Jain:

Shri S.K. Jain has taken over as Director (HRD) in BSNL on 29th October,

2003. Mr. Jain is an Electrical Engineer from Rourkee University, Rourkee

with honors in Electrical. He joined the Department of Telecommunications,

Government of India in November, 1967 through Indian Telecommunications

Services Group 'A' Service .

He is having a vast experience of 36 years in the field of telecommunications

covering all area in communications, namely, switching, microwave, Optical

Fibre System in planning design, networking and maintenance of

telecommunications networks. He was on deputation to TCIL for five years

where he handled the project for installation, commissioning and maintenance

of Electronic PABX's in the country and abroad.

Before joining as Director (HRD), Mr. Jain held the charge of Senior Deputy

Director General (MS) and Senior Deputy Director General (Switching

Planning) in BSNL Corporate Office. He also worked as Chief General

Manager, Eastern Telecom Region, Kolkata.

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He was also in-charge of Transmission Planning in the Department of

Telecommunications (DoT) for the whole country for three years during

1993-96 where he was associated with finalization of plans of STM rings and

other networks in the country. He was a member of the Tender Evaluation

Committee for examining the bids received from Cellular Mobile and Basic

Services invited bv DoT during the year 1995.

Director(Commercial & Marketing)- Shri N.K.Mangla

Shri Narendra Kumar Mangla is an Electrical Engineer from Punjab

Engineering College, Chandigarh and joined the Department of

Telecommunications, Government of India in November, 1967 through ITS

Group 'A' service. He received specialization training in transmission

technology and worked for first twelve years in the maintenance of radio

relay and coaxial cable systems. Shri Mangla has worked as General Manager

(Operations) Gujarat Telecom Circle, Deputy Director General (Material

Management) DOT(Hq.), Deputy Director General (Regulations) DOT(Hq.),

and Chief General Manager, Haryana Telecom Circle. Shri Mangla has also

served in Emirates Telecom Corporation (U.A.E.) from 1980 to 1985 on

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Government of India deputation.

Before joining as Director (Commercial & Marketing) BSNL Board, Shri

Mangla held the charge of Senior Deputy Director General, Telecom

Engineering Centre from December 2000 to October 2003. Telecom

Engineering Centre is an apex Organisation under Department of Telecom,

Government of India, entrusted with the task of standardisation, engineering,

evaluation and approval of products, services and networks. It also provides

technical advice and support to the Telecom Commission and telecom service

providers in India and on various technology-related activities and subjects.

Shri Mangla also looked after the charge of Executive Director, Centre for

Development of Telematics in addition to his duties as Senior Deputy

Director General, Telecom Engineering Centre from December, 2001 to

October, 2003.

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 BSNL

Connecting India

22
 CUSTOMER CARE

Several Steps have been taken at BSNL to augment the quality of

customer care to international standards.

• Pagers being given to outdoor staff in a phased manner for speedy

rectification of faults.

• Majority of the local network is built up on jelly filled and OFC.

• Internal Distribution Points (DPs) being provided in the customer

premises to eliminate the faults arising out of overhead wires.

• Extensive use of digital loop carrier (DLC)/Wireless in Local Loop

(WLL) system for improving reliability of external plant.

• Remote Line Units (RLUs). Remote subscriber Units (RSUs) being

provided extensively to reduce the long lengths of copper cables.

• Establishing call centers across the nation to provide single window

solutions and convenience to customers.

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• Countrywide Network Management & Surveillance System

(NMSS) to ensure uninterrupted and efficient flow of telecom

traffic.

• Application Form for new telephone connection made free of

charge.

• Procedure for restoration of telephones disconnected due to non-

payment simplified and powers delegated to Secondary Switching

Area (SSA) heads.

• Payment of telephone bills being received on Saturday and Sunday

through cheques in CTO/DTO.

• More than one PCO permitted at the same premises.

• Various application forms and procedures being simplified for new

telephone connections, shifting and third party transfer.

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Details of the Customer Service Centers working in Telecom Circles

Number of Customer Service

Sl. No. Unit
Centers

1 Andaman & Nicobar 4

2 Andhra Pradesh 347
3 Assam 59
4 Bihar 106
5 Chhattisgarh 101
6 Gujarat 229
7 Haryana 67
8 Himachal Pradesh 41
9 Jammu & Kashmir 14
10 Jharkhand 41
11 Karnataka 276
12 Kerala 125
13 Madhya Pradesh 257
14 Maharashtra 424
15 North east-I 3
16 North east-II 2
17 Orissa 74
18 Punjab 113
19 Rajasthan 253
20 Tamil Nadu 157
21 Uttaranchal 43
22 U.P.(East) 215
23 U.P.(West) 90
24 West Bengal 104
25 Calcutta 80
26 Chennai 28

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Total 3253

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DIAS TARIFF

Tariff for Direct Internet Access Services (DIAS)

DIAS is presently available in 42 cities across India.

Tariff for the DIAS will be as detailed below:

Plan-I Plan-II Plan-III

Rs.
Activation Charges (non refundable) Rs.3000/- Rs.3000/-
2000/-
Security Deposit Nil Nil Nil
Monthly Rental Per user Rs.850/- Rs.1800/- Rs. 5500/-
Free Usages per month 0.5 GB 1.5 GB Unlimited
Additional Usages charges/100 Mb or part per
Rs.120/- Rs.100/- N.A
month thereof

• The DIAS services shall be offered to the PSTN subscribers of BSNL,

on the same copper pair as is being used for their DELs at present.

• In case of disconnection of BSNL PSTN connection this DIAS

connection is also to be surrendered. In case of disconnection of

telephone for non-payment etc., DIAS facility should also be

disconnected.

• This tariff includes internet usage charges. The subscriber need not pay

any additional amount for

27
 (i) PSTN Dialup Access for internet

(ii) Port charges for Internet Leased Line.

• This tariff is for connection of subscribers to Internet nodes of BSNL.

• Wherever it is not technically feasible to measure the usage, the present

tariff will remain applicable. However, whenever it will be technically

possible to apply usages based tariff, subscribers of DIAS should be

intimated well in time by giving time period of one month for

switchover from existing tariff to the tariff based on usage as above.

This tariff will be reviewed after six months.

(BSNL Circular No. 106-4/2002-Comml dated 19.2.2003)

FORECASTING Of BHARAT SANCHAR NIGAM.

a) Target of gross DELs, WLL, Cellular Mobile to be provided.

28
 b) Target of gross switching equipment, WLL, Cellular Mobile
equipment to be installed.
c) Target of village public Telephones to be provided.
d) Requirement of transmission media, Power Plants,
Batteries and Terminal Equipment.
e) Requirement under “New Programmes/Services”.
f) Special up-gradation requirements, specially where
electronic exchanges or digital transmission systems are
planned.
g) Maintenance Requirements.
h) Spares.
I) And some others.

1.0 Broadband connectivity:

Keeping in view the present status, Broadband connectivity is defined at
present as

“An ‘always-on’ data connection that is able to support

interactive services including Internet access and has the
capability of the minimum download speed of 256 kilo bits

29
 per second (kbps) to an individual subscriber from the Point
Of Presence (POP) of the service provider intending to
provide Broadband service where multiple such individual
Broadband connections are aggregated and the subscriber
is able to access these interactive services including the
Internet through this POP. The interactive services will
exclude any services for which a separate licence is
specifically required, for example, real-time voice
transmission, except to the extent that it is presently
permitted under ISP licence with Internet Telephony.”

2.0 The estimated growth for Broadband and Internet subscribers in the
country envisaged through various technologies is as follows:

Year Ending Internet Subscribers Broadband Subscribers

2005 6 million 3 million
2007 18 million 9 million
2010 40 million 20 million

3.0 Technology Options for Broadband Services

The Broadband Policy Framework visualises creation of infrastructure
through various access technologies which can contribute to growth and can
mutually coexist. Spread of infrastructure is a must for healthy competition and
therefore it would be the endeavour of the Government that the telecommunication
infrastructure growth in the country is not compromised in any manner.

30
3.1 Various access technologies, inter-alia, are:

(a) Optical Fibre Technologies

The fibre optics technology can provide nearly unlimited bandwidth potential
and is steadily replacing copper network specially in intra-city backbone
networks. This is being deployed in commercial buildings and complexes
and some metros / big cities having high-density potential broadband
subscribers. Hybrid Fibre Coaxial (HFC), Fibre to the Curb (FTTC) and
Fibre to the Home (FTTH) networks make use of fibre cabling into the last
mile. The fibre based models are future proof as they are able to provide
huge amounts of bandwidth in the last mile as well as provide a true IP and
converged network that can deliver high quality voice, data and video.

There are more than 4.5 lakh route kms. of optical fibre laid by BSNL /
MTNL and more than 1 lakh route kms laid by private operators. The
spread of the networks of private service providers have to play an
important role in bringing the fibre to homes as well as the rural areas and
they are expected to focus on it.

With the increase in commercial availability of fibre technologies, the cost of

fibre rollout is approaching the cost of other wired networks. Spread of
optical fibre networks shall be emphasised keeping in view the long-
term perspective.

(b) Digital Subscriber Lines(DSL) on copper loop :

DSL has proved to be an important technology for provisioning of
Broadband services through the copper loop. The owners of copper loop

31
have to be given a high priority because their role is critical as key drivers in
the Broadband service market using DSL.

Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam

Limited (MTNL) as well as other access providers are expected to
aggressively use their copper loop infrastructure for providing Broadband
services through this technology.

Recognising that last mile copper loop is not a ‘bottleneck facility’ for
broadband services, access providers shall be free to enter into
mutually agreed commercial arrangements for utilization of available
copper loop for expansion of broadband services. The owner of local
loop shall be free to decide the areas in which investment is to be made to
upgrade the infrastructure for Broadband services. The information
regarding the areas in which Broadband services are being offered by a
service provider shall be available in the public domain.

Further, use of brand-name being treated as a part of the value shall

be permitted in such commercial arrangements.

There are more than 40 million copper loops in the country available with
BSNL and MTNL out of which 14 million loops are in rural areas. Copper
cable network of these operators is a combination of old and new cable
and this makes provisioning of Broadband on all the available copper loop
technically unfit . Therefore, around 25-30% of the remaining 26 million
loops, i.e. approximately 7 million loops can be leveraged for broadband
service by BSNL and MTNL taking into account the condition / life of copper
cable and demand potential.

32
Management of BSNL and MTNL has decided to provide 1.5 million
connections by the end of 2005. The corporate / work plan of these
PSUs have been drawn up for this purpose. Thereafter, annual plan for
expansion of Broadband services by BSNL and MTNL will be determined in
consultation with them. A quarterly review of their performance by the
Government in the Department of Telecommunications (DoT) shall be
undertaken to evaluate the achievement and redefine the future roadmap, if
necessary.

It is hoped that other access service providers would also provide

broadband connections using their copper in a targeted manner. A
constructive review of their performance shall also be undertaken.

(c) Cable TV Network

It is noted that cable TV connection as last mile infrastructure reaches more
people than even the telephone copper infrastructure and can be leveraged
in providing cable operators a new business model while giving a stimulus
to Broadband penetration. Therefore, Cable TV network can be used as
franchisee network of the service provider for provisioning Broadband
services. However, all responsibilities for ensuring compliance of
terms & conditions of the licence shall vest with the Licensee. The
terms of franchise agreement between Licensee and his franchisee
shall be settled mutually by negotiation between the two parties
involved.

33
Wi-Fi

Wi-Fi Services have been introduced for providing high speed internet access

at convenient public locations hereunder called as Hot Spots. Installation of

Hot Spots is already under process at various cities/ locations.

Hot Spot Type-A is applicable for public utility services like Airports,

Railway Stations, Universities and their campus etc initially for a period of 90

days from the date of its launch.

Hot Spot Type-B is applicable for personal type of services like Hotels,

private owned institutes/ Colleges/ libraries/ Universities and their campuses

etc. Prepaid schemes for Hot Spot B owners on commission basis is also

available.

34
TARIFF FOR HOT SPOT TYPE - A

a. Pre paid services :

Minutes Usage
Coupon Service Coupon
of usage Validity charges/per
value in Tax in Sale
(in (in days) minute in
Rs. Rs. Price
minutes) Rs.
100 12.24 112 100 15 1.00
250 30.60 281 275 30 0.91
500 61.20 561 600 45 0.83
1000 122.40 1122 1500 90 0.67

b. Post paid servcies :

Monthly Time based usage

Type of Plan
Charges(Rs.) charges
Applicable to Nil Rs. 0.50 per minute

Netone customers (Rs. 30 per hour)

only subject to minimum

of Rs. 10 will be

35
 charged for one time

login (per session)

Unlimited Plan Rs. 1500 Unlimited

TARIFF FOR HOT SPOT TYPE - B

The Hot Spot B owners have to purchase prepaid coupons in bulk at

discounted price and the cards would be retailed to end customers for use at

Hot Spot owner's premises at a predefined sale price as given below :

*Coupon Validity
Usage duration Commission
Denomination(Rs.) hours
60 30 min 24 30%
90 60 min 24 32.5%
150 120 min 24 35%
400 24 hours 72 40%

* Service Tax + Education cess as applicable will be extra.

(a) Rental for wireless access point : Rs. 200 per month per port.

(b) Usage charges : Rs. 1.50 per minute per session.

List of cities where DIAS is available:

1. Karnataka Bangalore, Mangalore,

36
 Mysore, Hubli
2. Maharashtra Pune, Nasic
3. Gujarat Ahmedabad,

Mehsana,Vadodara,

Valsad, Surat, Rajkot

4. Punjab Amritsar
5. Calcutta Calcutta

Telephones
6. West Bengal Siliguri, Darjiling,
7. Madhya Pradesh Bhopal, Gwalior, Indore
8. Kerala Ernakulam, Calicut,

Kollam, Trichur,

Trivendrum
9. Tamil Nadu Coimbatore
10. Chhattisgarh Raipur, Durg
11. Haryana Gurgaon & Faridabad,

Ambala
12. Andhra Pradesh Hyderabad
13. Rajasthan Jaipur
14. Assam Guwahati

37
 15. Uttar Pradesh(E) Lucknow
16. Jharkand Jamshedpur
17. NE-I Shillong
18. Orissa Bhubaneshwar & Rourkela
19. Uttar Pradesh Noida

(W)
21. Bihar Patna
22. Chennai Chennai

Telephones
23. Andman & Port Blair

Nicobar

Pre-paid Service of CellOne

Excel is the Pre paid service of the CellOne Cellular Service of BSNL. It

offers you a host of value added services and unmatched features not found in

any other Cellular service. All India roaming facility is also available on

Excel service.

38
Initial activation charges for Excel is only Rs. 200/- and free talk value of Rs.

50/- is given to all subscribers.

Excel Pre paid cards are available in the denominations of Rs. 70,150, 300,

Rs. 500, Rs. 1000 and Rs. 2000 validity period of which are 7,15, 30, 45, 60

and 90 days respectively.

Moreover, on any later date if you want to convert your Excel pre-paid

scheme to post paid scheme it can be done without paying any additional

activation charge. The unutilized balance amount in such cases will be carried

forward as opening credit in the post-paid scheme.(this conversion facility is

subject to technical feasibility).

A host of value added services are also available at very economical charges:

Voice Mail Service

Short Message Service (SMS)

All India Roaming

Call Forwarding(within same Service Area)

Call Conferencing

39
 Call Waiting and Call holding facility

Wireless Application Protocol(WAP): Surf WAP enabled websites on

Internet using this service.

Unified Messaging Services: Integrate your Mobile phone with the Internet

and access your e-mails, faxes, voice mail etc on your mobile phone. To avail

this service you can got to www.bsnlums.com.

40
ISDN

ISDN Has emerged as a powerful tool worldwide for provisioning of different

services like voice, data and image transmission over the telephone line

through the telephone network. ISDN is being viewed as the logical extension

of the digitalization of telecommunication network and most developed

countries are in different stages of implementing ISDN.

An ISDN subscriber can establish two simultaneous independent calls (except

when the terminal equipment is such that it occupies two 'B' channels for one

call itself like in video conferencing etc.) on existing pair of wires of the

telephone line (Basic rate ISDN) where as only one call is possible at present

on the analog line /telephone connection. The two simultaneous calls in ISDN

can be of any type like speech, data, image etc. The call setup time for a call

between two ISDN subscribers is very short, of the order of 1 to 2 seconds.

ISDN also supports a whole new set of additional facilities, called

Supplementary Services.

41
 CONNECTIVITY

The ISDN subscriber will have full connectivity, nationally, to other

analog telephone subscribers. At present ISDN services are available to

and from India for the following countries:

o Australia
o Austria Belgium
o Canada
o Denmark
o France
o Germany
o Ireland
o Italy
o Israel
o Japan
o Malaysia
o Netherland
o Norway
o Phillipines
o Singapore
o Switzerland
o Thailand
o U.A.E
o United Kingdom
o U.S.A
Services Offered By ISDN

42
Normal Telephone & Fax (G3)

Digital Telephone -with a facility to identify the calling subscriber number

and other facilities.G4 Fax

Data Transmission at 64 Kbps with ISDN controller card

Video Conferencing at 128 Kbps

Video Conferencing at 384 Kbps (Possible with 3 ISDN lines)

ATM (Asynchronous Transfer Mode) or PVC (Permanent

Virtual Circuit)

List of ISDN stations of BSNL in India

Variety of supplementary Services supported by ISDN.

o Calling Line Identification Presentation(CLIP)

o Calling Line Identification Restriction(CLIR)

o Multiple Subscriber Number(MSN)

o Terminal Portability(TP)

o Call Hold(CH)

o Call Waiting(CW)

43
 o User to User Signaling (UUSI)

Types of Accesses

There are two types of "accesses" (connections) for ISDN.

o Basic Rate Access(BRA): 2B+D 2 Channels of 64 Kbps for

Speech And Data. 1 Channel of 16 Kbps for Signalling

Primary Rate Access (PRA): 30 B+D 30 Channels of 64 Kbps for speech

and data. 1 Channel of 64 Kbps for signalling.

44
 BSNL

Connecting India

45
 MOBILE SERVICES

Details of the plans for countrywide coverage of the bsnl mobile

Services.

S.No. LICENSED Cities Cities Total Lines Lines Total

SERVICE AREA in in cities to in in Lines

Phase- Phase be PHASE PHASE

I -II covere - I - II

(durin (after d

g 2002) phase-

I)
1. ANDMAN& 1 0 1 1500 2500 4000

NICOBAR
2. ANDHRAPRADESH 84 1 85 160000 235600 413600
3. ASSAM 9 14 23 11000 32300 43300
4. BIHAR(inl. 47 2 49 65000 110000 175000

Jharkhand)
5. GUJRAT 72 2 74 175000 284750 459750
6. HARYANA 40 0 40 43000 68050 11050
7. HIMACHALPRADES 17 3 20 12000 22000 34000

46
 H
8. JAMMU& KASHMIR 4 10 14 12000 29200 41200
9. KARNATKA 19 7 26 115000 185150 300150
10. KERLA 100 0 100 125000 199830 324830
11. MADHYAPRADESH 46 23 69 43500 92350 135850

(inl. Chattisgarh)
12. MAHARASHTRA 123 1 124 190000 305300 495300
13. NORTHEAST 6 43 49 3000 20000 23000
14. ORISSA 20 18 38 37000 77000 114000
15. PUNJAB 51 11 62 90000 143500 233500
16. RAJASTHAN 32 8 40 50000 87650 137650
17. TAMILNADU 68 0 68 130000 204900 334900
18. U.P.(W)inl. 33 0 33 100000 160000 260000

Uttarakhand
19. U.P.(E) 47 24 71 74000 143100 217100
20. WESTBENGAL 31 4 35 40500 70000 110500
TOTAL 850 171 1021 147750 249118 396868

0 0 0

47
Sancharnet-Types of Access

BSNL provides the following types of connections to access Internet to

customer. To get any of these connections, please contact BSNL Telecom

Office or Customer Care Center in your city:

PSTN dial up access

BSNL internet service offers flexible options of access plans for PSTN dial-

up in various slabs of 25,50,100, 200, 500 and 1,000 hours. With Sancharnet

dialup account you get all india roaming advantage which is not available

with any other ISP because you can access sancharnet internet by dialing

'172233' from any city in India.

The following plans are available:

ISDN dial up access

Enjoy blazing fast Internet surfing and download speeds in 64 and 128 Kbps

ISDN dial up connections. The uniform all India access no. for ISDN

access is '172225'.

64 and 128 Kbps-Limited access with 4MB email space

48
Plans available in slabs of 25,50,100,200, 500 and 1000 hrs.

one e-mail ID and one user ID per account(two in corporate account)

Simultaneous logins per user ID shall be 2.

4 Mb E-mail space

1 MB web space

Tariff>>

64 and 128 Kbps-Limited access with 10MB email space

Plans available in slabs of 500 and 1000 hrs.

one e-mail ID and one user ID per account(two in corporate account)

Simultaneous logins per user ID shall be 2.

10 MB e-mail space

1 MB webspace

Tariff>>

64 and 128 Kbps-Unlimited access with 10MB email space

No limit of hours

One User ID and one e-mail ID per package.

Simultaneous logins restricted to one.

Access restricted from two specified telephone numbers(CLIP restriction).

49
10 MB e-mail space

1 MB webspace

Tariff>>

64 and 128 Kbps-Unlimited access with FIXED IP & 10MB email space
No limit of hours

One User ID and one e-mail ID per package.

Simultaneous logins restricted to one.

Access restricted from two specified telephone numbers(CLIP restriction)

Fixed IP address assigned on access (customer has to apply for IP address

separately)

10 MB e-mail space

1 MB webspace

Wireless in Local Loop (WLL) Mobile & Fixed Telephone Connections:

Tarang WLL-M is a communication system that connects customers to the

The PSTN network using radio frequency signals instead of conventional

copper wires, for the full or part connection between the subscriber and the

exchange This comes with superior voice quality and high speed data

50
capabilities. CDMA is popular with more than 100 million subscribers

worldwide, and the number keeps on increasing exponentially.

Terminal Types:

(a) Fixed Wireless Terminal (FWT)

(b) Hand Held Terminal.

• Service using FWT

In this case, there is a small box fitted with a small antenna at the subscribers

premises and a normal telephone instrument is connected to the box. There

is no wire connection as in conventional telephone.

• Service using Hand Held Terminal (WLL-M service)

In this case, subscriber can carry a small handset of CDMA technology. There

is no antenna or any other equipment at subscribers premises.

• Why Choose BSNL'S TARANG CDMA Mobile

BSNL's WLL Tarang service is the most reliable and affordable service

giving you the best of both fixed line telephony & Mobile telephony. It

51
 offers host of value added services at virtually no cost to our esteemed

subscribers. Customer may get the handset by paying premium approx. Rs.

20/- per month only for the comprehensive policy taken for the cost of

handset.

SERVICES

Tarang WLL-M offers you a host of value-added services:

Voice-mail service: 24 hour personal call answering service

Call waiting: allows you to receive an incoming call while already

engaged in one call

Call hold: allows you to put a current call on hold and make a second

call

Call divert: allows you to divert calls within your SDCA

3-way call conferencing: allows a conference between 3 persons

from your mobile handset

CLIP (Caller Line Identification Presentation): enables you to view

the number of the calling person when you receive a call

CLIR (Call Line Identification Restriction): enables you to block

52
presentation of your own number on a called person's phone

Internet be accessed from WLL-FWT line

Dynamic STD/ISD locking.

Data / Fax transmission (upto 14.4.kbps).

Morning alarm / Hotline

53
 BSNL

Connecting India

54
 RESEARCH METHODOLOGY
An Introduction

Meaning of research

Research in common parlance refers to a search for knowledge. One can also
define research as a scientific and systematic search for pertinent information
as a specific topic. In fact, research is an are of scientific investigation. The
Advanced Learner’s Dictionary of Current English lays down the meaning of
research as “a careful investigation or inquiry specially through search for
new facts in any branch of knowledge.” Redman and Mory define research as
a “systematized effort to gain new knowledge.” Some people consider
research as movement, a movement from the known to the unknown. It is
actually a voyage of discovery. We all possess the vital instinct of
inquisitiveness makes us probe and attain full and fuller understanding of the
unknown. This inquisitiveness is the mother of all knowledge and the method,
which man employs for obtaining the knowledge of whatever the unknown,
can be termed as research.

55
Research is an academic activity and as such the term should be used in a
technical sense. According to Clifford Woody research comprises defining
and redefining problems, formulating hypothesis or suggested solutions;
collecting, organizing and evaluating data; making deductions and reaching
conclusions; and at last carefully testing the conclusions to determine whether
they fit the formulating hypothesis. D. Slesinger and M Stephenson in the
encyclopedia of Social Sciences define research as “ the manipulation of
things, concepts or symbols for the purpose of generalizing to extend, correct
or verify knowledge, whether that knowledge aids in construction of theory or
in the practice of an art” Research is , thus, an original contribution to the
existing stock of knowledge making for its advancement. It is pursuit of truth
with the help of study, observation , comparison and experiment. In short, the
search for knowledge through objective and systematic method of finding
solution to a problem is research. The systematic approach concerning
generalization and the formulation of a theory is also research. As such the
term’ research refers to the systematic method consisting of enunciating the
facts and reaching certain conclusions either in the from of solutions(s)
towards the concerned problem or in certain generalizations for some
theoretical formulation.

Defining the research problem:

56
A researcher must find the problem and formulate it so that it becomes
susceptible to research. Like a medical doctor, a researcher must examine all
the symptoms (observed by him) concerning a problem before he can
diagnose correctly.

And therefore, I have also defined the research problem i.e. to study
Declining the consumer trends and it’s forecasting.

Research methodology:
After defining the research problem the foremost step will be
planning for the further investigation. Preparing the blue print to undertake
the research called research design. In other words,

“A research design is the arrangement of condition for collection and analysis

of data in a manner that aims to combine relevance to the research purpose
with economy in procedure".
Under this chapter methodological step has been adopted in the study of
consumer trends, behaviour, preferences and level of satisfaction in Airtel
communication Ltd. The research procedures followed are described as
under:

Research Objectives:

57
 • To study the declining trends of BSNL in telecommunication
sector.
• To study the level of customer declining in BSNL.
To study customer purchase decision behaviour and factor
influence the decision process.
• To study competitive marketing strategies adopted by BSNL.
• To understand the needs of different consumer segments.

• To study consumer preferences. .

Research Approach
The research approach for the purpose was secondary research to collect
the information on the subject.

Research Instrument
I used direct observation, customer data & survey as research instrument.
Research Design
In this project use exploratory research design and for data collection
fill-up the questionnaires from the customer of mobile, survey of the market
and some information collect by interview of the users of the cellular at
Meerut

58
SAMPLING:

I used Random Sampling because from a finite population refer to that

method of sample selection which gives each of possible sample
of combination an equal probability of being picked up and
each item in the entire population to have an equal chance of
being included in the sample.

Sample Design:

A sample design is a definite plan for obtaining a sample from a given

population.

Sample design may as well lay down the number of items to be included

in the sample is the size of the sample,

i) Type of Universe

The first step in developing any sample design is to clearly define the

set of objects, technically called the universe to be studied. The

universe is infinite as the number of customer is unlimited.

ii) Sampling Unit:

The study to be taken on the suppliers and consumer of mobile connection.

59
(iii) Size of the samples

As the universe is infinite so the number of consumers will be limited. Hence

sample size is of 50 consumers belong to various levels of society.

STEPS IN SAMPLING

Define the Universe

Select the sample frame

Specify the sampling units

Select the sample design / methods

Determine the sample size

60
Specify the sampling plan

Select the sample

61
Area of Research
Rampur region
Sources of Data:
Research Data
Data is the key activity of marketing research. The design of the
data collecting method is backbone of research design.
Data constitute the foundation of statistical analysis and
interpretation. Hence the first step in statistical work is to obtain data.
Data can be obtained from two important sources, namely:
1. Primary Data
2. Secondary Data
Primary Data:
Primary data are gathered for the specific purpose or for a
specific research project, consist of original information for the fulfilment of
project objective.
When the data are required for the particular study can be found neither in the
internal record of the enterprises nor in published sources. In some cases it
may become necessary to collect original data.

Primary data can be collected in four ways:-

1. Observation
2. Focus

62
 3. Survey
4. Experiment
Secondary data:

Secondary data are the data, which already exists somewhere.

Secondary data provide starting point for research and after that the advantage
of low cost and ready availability. Secondary data can be divided into two
types:
1. Internal data
2. External data
When researcher uses the data that has already been collected by
other data are called secondary data. Secondary data can be obtained from
journals i.e. internal sources report, government publication and books,
professional bodies etc.

Internal data are reports and memos generated within an

organisation to facilitate its operations. External data are those specially
produce for outside consumption.

Sources from which I have taken the secondary data are as under:
1. Direct observation
2. BSNL website

63
3. Books for marketing management
4. Surveys and customer data & report
5. KNOPs

64
65
 BSNL

Connecting India

DURING FINANCIAL YEAR

BSNL Delays $6.5 Billion GSM Network Tender

In a move which probably wont surprise industry watchers, India's
Bharat Sanchar Nigam Ltd (BSNL) has decided to delay the date for
opening its monster US$6.5 billion tender for GSM infrastructure kit. The
bids were due to be opened on July 16 - but will now not be opened until
August 30th. BSNL has a track record of delaying, amending and
renegotiating its GSM network tenders - but this time put the blame
firmly at the flood of interest in the tender.

A senior company official said, “We got no less than 21,000 queries
from the vendors after the draft tender was put on the BSNL Web site.
We need time to address their clarifications. Therefore, the 93-million
line tender, which was supposed to be opened on July 16, will now open
on August 30.”

66
The US$6.5 billion price tag is based on a US$70 cost per GSM line - and
the tender is for a total of 93 million GSM lines. The highly convoluted
13 million GSM lines tender last year was won by Ericsson who won the
bid with an offer at US$90 per line. The government, which owns BSNL
has however capped the network expenditure for this financial year at
US$4.7 billion - of which at least US$500 million has already been
allocated to a CDMA contract.

The original tender document stated that only companies with a

turnover exceeding US$2 billion for the past two years and deployments
of at least 20 million GSM lines - excluding any prior sales to BSNL -
could participate in the contract bid. This did however still permit
China's ZTE and Huawei to tender for the contract, both of whom had
been refused permission to bid in earlier contracts.

While the contract is for 93 million GSM lines, no one bidder will be able
to win more than 50 million lines - and will be committed to offering
replacement parts and maintenance for at least seven years. The tender
document splits the allocation into four sections - three of 25 million
lines for the North, West and

South - with 18 million lines for the East. Of the total, some 21 million
lines must be provisioned for 3G services as well as GSM - which is
technically not an issue, but it would push up the costs for the suppliers.

A controversial clause which had required suppliers to be profitable has

been removed as it would have excluded the likes of Motorola and
Alcatel Lucent. Another clause was added though - requiring the bidders
to have the ability to design/manufacture their own Radio Access
Network kit - and not outsource that to 3rd party suppliers.

To fight growing competition, BSNL is looking to add at least 100 million

GSM mobile subscribers by 2010. According to figures from the Mobile
World database, the operator ended the first half of this year with some
37.36 million GSM subscribers - along with around 176,000 CDMA users.

Posted to the site on 22nd July 2008

67
 Finance

Bharat Sanchar Nigam Limited, the largest Public Sector

68
Undertaking of the Nation, is certainly on a financial ground
that's sound.

The Company has a net worth of Rs. 84,948 crores (US$ 19.49
billion), authorised equity capital of Rs. 10,000 crores (US $
2.29 billion), Paid up Equity Share Capital of Rs. 5,000 crores
(US $ 1.15 billion) and Revenues is Rs. 39,715 crores (US $ 9.11
billion) in 2006-07.

(Note: INR 1 = USD 0.022941 as on 31-03-2007)

Staff

Distribution of Group-wise staff strength of DoT and BSNL (numbers) as on 31st March 2007 is
indicated below:

69
* Including 3783 nos. Industrial Workers

70
REVENUE EARNED BY BHARAT
SANCHAR NIGAM LIMITED
LAST 5TH YEAR

71
Gross Investment in Fixed Assets

The BSNL is making substancial investment year to year for its network expension
and mordenisation. During the current financial year BSNL has made the gross
investment of Rs. 8153 crore ( US $ 1.87 billion) in Fixed Assets. These investments
have been financed by the internal accruals.

72
Cumulative Capital Outlay BSNL has Gross
Fixed Assets of over Rs. 118649 Crores (US $
27.21 billion) as on 31.03.2007.

73
 BSNL

Connecting India

74
 ACCOUNTING POLICIES

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements of Bharat Sanchar Nigam Limited (the “Company”
or “BSNL”) are prepared under the historical cost convention adopting the
accrual method of accounting inaccordance with Indian Generally Accepted
Accounting Principles and in accordance with the provisions of the
Companies Act, 1956 (the “Act”).

2. REVENUE RECOGNITION
Income from services is accounted for on accrual basis and in conformity
with Accounting Standard– 9 of ICAI. Accordingly,

a) Revenue for all services is recognized when earned and are realizable at the
time of billing. Unbilled revenues from the billing date to the end of the year
are recorded as accrued revenueduring the period in which the services are
provided. Provision is made in respect of billsconsidered to be disputed (by
the management), debts outstanding for more than two years andfor debts due
for less than 2 years, to the extent considered necessary by the management.

75
b) Installation Charges recovered from subscribers at the time of new
telephone connections arerecognized as income in the first year of the billing.

c) In terms of the arrangement between Department of Telecommunications

(“DoT”)/ MahanagarTelephone Nigam Limited (“MTNL”) and the Company,
reciprocal services are not being billed
or provided for.

d) Sale proceeds of scrap arising from maintenance and project works, are
taken into miscellaneous income in the year of sale.

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

and Prepaid internetconnection cards are treated as income of the year in
which the payment is received since theextent of use of these cards within the
financial year could not be ascertained.

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

damages, claims onGovernment Departments & local authorities etc., these
are recognized on collection basis.

g) The claims on account of reimbursement for provision of infrastructure,

operation andmaintenance of VPTs and Rural Household connections
receivable from U.S.O. fund areaccounted for as revenue on account of the

76
fact that the claim for infrastructure cannot becredited to the concerned asset
account since the claim amount could not be segregated assetwise.

h) Other income by way of interest on loans to employees, security deposit

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

3. FIXED ASSETS
3.1 Fixed assets are carried at cost less depreciation. Cost includes directly
related establishment andother expenses including employee remuneration
and benefits, directly identifiable to theconstruction or creation of the assets.

3.2 Expenditure on replacement of assets, equipments, instruments and

rehabilitation works iscapitalized if, in the opinion of the management, it
results in enhancement of revenue generating capacity.

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

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

77
BHARAT SANCHAR NIGAM LIMITED
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2007.
Year ende d Year ende d
31st March 2007 31st March 2006
(Rs. in Lakh) (Rs. in Lakh )
INCOME
Income from Services N 3,461,621 3,613,893
Other Income O 509,890 403,765
3,971,511 4,017,658

EXPENDITURE
Employees' Remuneration and Benefits P 730,897 742,063
Licence fee and Spectrum fee (Refer Note 13.1 on Schedule U) 331,169 352,305
Administrative, Operating and Other Expenses Q 1,091,628 1,049,689
Financial Expenses R 77,941 108,980
Depreciation D 914,931 937,669
3,146,566 3,190,706
Profit be fore Prior period items 824,945 826,952
Prior period items (Net) S -9,564 -40,549

Profit be fore Extraordinary items 815,381 786,403

Extraordinary items (Refer Note 13.4 on Schedule U) - 58,296

Profit be fore taxation 815,381 844,699

Current T ax 96,229 80,130
MAT Cr edit -19,470 -
Deferred Tax -45,795 -134,002
Fringe Benefit Tax 3,700 4,100
Wealth T ax 130 501

Profit for the year after taxation 780,587 893,970

Appropriation :
Interim Dividends on Equity Share Capital 50,000 37,500
Proposed Dividends:
- On Equity Share Capital - 12,500
- On Preference Share Capital 67,500 67,500
Tax on Dividends 18,484 16,479
Transfer to General Reserve 156,117 178,794
Surplus carried to Balance Sheet 488,486 581,197
780,587 893,970

Earnings Per Share (In Rs.)

Basic/Diluted earnings per equity share 14.03 15.28
(Refer Note 18 on Schedule U)

Accounting Policies T
Notes to Accounts U
The Schedules referred to above form an integral part of the Profit and Loss Account.
For and on behalf of Bharat Sanchar Nigam Limite d
As per our report of even date
For Thakur, Vaidyanath Aiyar & Co.

Charte red Accountants

A.K.Sinha
(Chairman and Managing Dire ctor)
M.P.T hakur
Partne r
M. No: 52473 S.D.Saxena
Dire ctor (Finance)
P.K.Purwar
Deputy Dire ctor General (Corporate Accounts)

Place : New Delhi H.C.Pant

Date : Company Se cre tary and General Manager (Legal)

78
BHARAT SANCHAR NIGAM LIMITED
BALANCE SHEET AS AT 31ST MARCH 2007. As at As at
schedule 31st March 2007 31st March 2006
(Rs. in Lakh) (Rs. in Lakh)

SOURCES OF FUNDS

Shareholder's Funds
Capital A 1,250,000 1,250,000
Reserves and Surplus B 7,444,802 6,825,651

Loan Funds
Unsecured Loans C 554,366 728,393
Deferred Tax Liability-Net (Refer Note 19.1 on Schedule U) 124,605 170,400
Total 9,373,773 8,974,444

APPLICATIONS OF FUNDS

Fixed Assets D
Gross Block 11,864,901 11,169,203
Less: Depreciation 6,071,511 5,150,354
Net Block 5,793,390 6,018,849
Capital Work-in-Progress E 256,860 382,048
Decommissioned Assets F 6,444 7,346
6,056,694 6,408,243

Investments G 20,000 20,000

Current Assets, Loans and Advances
Inventories H 242,847 279,524
Sundry Debtors I 622,986 630,205
Cash and Bank Balances J 3,745,296 3,057,948
Other Current Asset - Accrued interest 114,148 63,627
Loans and Advances K 649,511 582,501
5,374,788 4,613,805
Less : Current Liabilities and Provisions
Current Liabilities L 1,667,919 1,652,585
Provisions M 514,858 507,858
2,182,777 2,160,443

Net Current Assets 3,192,011 2,453,362

Inter/Intra Circle Remittance (Refer Note 14 on Schedule U) 105,068 92,839

Total 9,373,773 8,974,444

Accounting Policies T

Notes to Accounts U

The Schedules referred to above form an integral part of the Balance Sheet.
As per our report of even date For and on behalf of Bharat Sanchar Nigam Limited

79
For Thakur, Vaidyanath Aiyar & Co.

Chartered Accountants
A.K.Sinha
(Chairman and Managing
Director)

M.P.Thakur
Partner
M. No: 52473 S.D.Saxena
( Director (Finance)

P.K.Purwar
Deputy Director General
(Corporate Accounts)

Place : New Delhi H.C.Pant

Date : Company Secretary and General

Manager (Legal)

80
 AUDITORS’ REPORT

TO THE MEMBERS OF BHARAT SANCHAR NIGAM LIMITED

A. We have audited the attached Balance Sheet of Bharat Sanchar Nigam

Limited as at 31stMarch 2007 and the related Profit and Loss Account and Cash
Flow Statement for the yearended on that date annexed thereto.These financial
statements are the responsibility of the company's management. Irresponsibility is
to express an opinion on these financial statements based on our audit.

Bharat Sanchar Nigam Limited

The financial implication in respect of the paragraphs relating to Bharat Sanchar
Nigam Limited (BSNL), which could be quantified, is Rs 1429.24 crore as per
details given below:

(Rs in crore)
Revenue and Expenditure paragraphs
Infrastructure sharing charges 107.15
Other revenue observations 49.00
Infructuous/idle investment 827.19
Avoidable expenditure / payment 438.70
Other losses 7.20
Total 1429.23

B. We conducted our audit in accordance with the auditing standards generally

accepted in India. Those Standards require that we plan and perform the audit to
obtain reasonableassurance about whether the financial statements are free of
material misstatement. An auditincludes examining, on a test basis, evidence
supporting the amounts and disclosures in thefinancial statements. An audit also

81
includes assessing the accounting principles used andsignificant estimates made
by management, as well as evaluating the overall financialstatement presentation.
We believe that our audit provides a reasonable basis of our opinion.Our report
has taken into consideration the audited accounts and Branch auditorsreports of48
units (circles, districts, regions, training institutions, stores, factories) appointed by
theComptroller and Auditor - General of India and noted by the Board of Directors
of the company.

C. As required by the Companies (Auditor’s Report) Order, 2003 issued by the Central
Government of India in terms of sub-section (4A) of section 227 of ‘The
Companies Act,
1956 of India (the ‘Act’) and on the basis of such checks as we considered
appropriate andaccording to the information and explanations given to us and
reports of other auditors, we set out in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of thesaid Order.Further to our comments in the
Annexure referred to in paragraph ‘C’ above:

D. Attention is invited to the facts stated in the following paragraph:

1. Assets taken over from Department of Telecommunications (D.O.T) and

D.O.T balances

a) As referred to in Note no. 2 on Schedule U, the process of taking over the

assets andliabilities from Department of Telecommunications (D.O.T) is still in
progress and thefact that the value of net assets identified subsequent to
01.10.2000 has been adjusted to Capital Reserves.

b) As referred to in note no. 5.3 of Schedule – U, the title to the various immovable
properties taken over from D.O.T. are yet to be transferred in the name of the
Company.

c) As referred to in note no. 5.1 of Schedule – U, the fact that the method of
valuation
adopted for assets taken over is also the basis for treating them as original cost for
the purpose of providing depreciation.

82
2. Fixed Assets and Capital Work-in-Progress

a) As stated at Note no. 1 on Schedule – D, land purchased/ acquired on

leasehold/
freehold in certain cases through various authorities, title deeds are yet to be
executed.

b) As stated in Note no. 2 on Schedule – D, amortization has been made only in

respect
of leasehold land which have been identified as leasehold.

c) As referred to in note 5.2 on Schedule - U, about the expiry/ non renewal of

lease
period of the leasehold lands on which buildings have been constructed and the
fact
that no provision has been made for the ‘surrender value/ written value of the
building’
in the hope of ultimate renewal of the leases.

d) As referred to in note 5.4 on Schedule - U, the fact that some excess

depreciation
could have been provided on the analogue exchanges which had been impaired
and
provided for and the fact that no adjustment has been made to write back such
excess
depreciation.

e) As referred to in Note No. 5.5 on Schedule – U, certain assets still shown under
‘Capital-work-in-progress’ though completed and put to use, has not been
capitalized
and depreciation provided on them.

f) As referred to in Note No. 5.7 on Schedule – U, there are differences in CWIP

betweensubsidiary ledger and financial ledger as such the consequential effect of
the same on the CWIP has not been considered.

83
3. Depreciation
As referred to in Accounting Policy 4 in ‘Schedule T’, depreciation on factory
buildings & administrative buildings have been provided at the rate applicable to
the
normal buildings.

4. Current Assets, Loans and Advances and Current Liabilities

a) As referred to in Note No. 7.1 & 8.2 of Schedule – U, the fact that no adjustment
has
been made for the difference of Rs. 30,022 lacs between the General Ledger and
Subsidiary Ledger of Sundry Debtors and the difference between similar sets of
accounts in respect of loans and advances and other current assets (amount
unascertained) pending reconciliation.

b) As referred to in Note 10.1 on Schedule U, Bank Reconciliation Statements

have not
been prepared in a few units of certain circles in respect of some bank accounts.

c) As stated in Note No. 10.2 & 10.3 of Schedule – U, Cheques and TTs deposited
with
the Bank for Rs. 13532 lacs but not credited by the banks and unlinked debit &
credit
items appearing in Bank Reconciliation for Rs. 1,274 lacs and Rs. 7,180 lacs,
respectively are still in the process of reconciliation and hence, no adjustment
have
been made in the accounts.

d) The balances due to and due from DOT, DOP, M.T.N.L., C-DOT and other
government
departments / companies on current account are subject to confirmation,
reconciliation and consequential adjustments.

5. Frauds
Frauds have been reported in 7 circles amounting to Rs. 635.08 lacs of which Rs.
6.67
Lacs neither the amount has been recovered nor provision has been made in the

84
Accounts.

6. Inter/ Intra Circle Remittance Account

As stated in Note No. 14 on Schedule U, about the differences between subsidiary
Records and corresponding control accounts the possible cumulative effect of
Reconciliation of inter/intra circle remittances on the income, expenditure, assets
and liabilities could not be ascertained.

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 “DATA ANALYSIS”

(1) Do you have own mobile connection?

A. Yes
B. No.

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Having Mobile

Not having
mobile

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The data shows that the total sample size of 50 people taken for
research out of which 86% of persons keep mobile with them.
Sample size - 50

Having mobile Respondent

Yes 43
No 7

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 (2) Which kind of phone you would like use?

Land line
Mobile
WLL

The data shows that the total sample size of 50 people taken for
research out of which 50% of persons like to use land line phone and 30%
person like to use mobile and rest 20% person like to use WLL.
Sample size - 50

CONNECTION Respondent
LANDLINE 25
MOBILE 15
WLL 10

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(3) Which age group you belong to?
(a) 15-20
(b) 20-25
(c) 25-35
(d) 35- above

15-20
20-25
25-35
35-above

The analysis shows that 14% people from 15- 20 age group, 8% persons from
20-25 age group, 36% persons from 25-35 age group, and 42% of people
from 35-above age group keep mobile with them.

Sample size - 50
Age Respondent
15-20 7
20-25 4
25-35 18
35-above 21
(4) What occupation do you have?
(a) Business

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 (b) Professional
(c) Government Employee
(d) Student

25

20

15
Occupation
10

0
a b c d

The data shows that 50 persons are from, 23 persons are professionals, 16 persons are Private and 5 persons are found retirement 6
person are government employee to consume mobiles.

Sample size - 50
Occupation Respondent
Professional 23
Private 16
Retirement 5
Government 6

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(5) Which connection would you prefer?

(a) BSNL
(b) Airtel
(c) Escotel or Idea
(d) Reliance

40
35
30
25
20 preferences
15
10
5
0
BSNL ESCOTEL RELIANCE AIRTEL

When the preferences for mobile phone connections were asked, results drawn that 35% of
persons prefer to take Airtel because they don’t believe in BSNL’s cause have not good
coverage and network, 30% of people opt Reliance services because of its cheaper rate and
flexible schemes, then BSNL is only 10% but there is very high recommendation for its
better connectivity.
Sample size: 50
Phone Connections Respondent
BSNL 10
Escotel / IDEA 15
AIRTEL 30
RELIANCE 35

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(6) You would like to take prepaid connection or Post paid

connection?

a. Prepaid
b. Post paid

post
paid
pre paid 40%
60%

The research study shows that almost people from the selected segment give
priority to Post Paid connection, because of the flexibility and attractive plans
for this market segment.

Sample size: 50
Connection Respondent
Pre paid 30
Post paid 20

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7. How would you rating BSNL over all?
a. Very good

b. Average

c. Not good

10%

Very Good
Average
30%
60% Not Good

The above chart show that 30% buyer’s response is very good and 50% buyer’s response is
average and 20% buyer’s response is not good.

Sample size – 50
Rating Respondents
Very good 10
Average 15
Not good 60

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 “FINDINGS”

The data shows that the total sample size of 50 people taken randomly
for the research, 43 people out of then taken mobile with them. This segment
compromise of professions, businessperson, service man & students.

About awareness of Telecom Company in Rampur the data collected

shows that 60% of the people knows about all the telephone companies dealing in
Rampur market, 30% of person knows only few companies, 5% of person knows
only one company, 5% are not knowing any other company.

In the market BSNL have not good value cause the consumer don’t get BSNL
connection, because BSNL has good coverage area, But connectivity and customer
case service has not good.

When the preferences for mobile phone connections were asked,

results drawn that 35% of persons prefer to take AIRTEL because they believe in
AIRTEL better coverage & cheaper rates after AIRTEL, 20% of people of
Reliance services because of its cheaper rate and flexible schemes, then awareness
of BSNL is only 10% but there is very high recommendation for its better
connectivity. Airtel is rich in attractive schemes and plans for business persons and
persons related to corporate world.

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 LIMITATIONS
While working on this project I have to face some difficulties while
conducting the survey. People were not interested in giving there actual
information about their family income and airtime, as they were extremely
scared about the income tax some people have difficult to take them in
confidence so that they can give correct information.
Some of the limitation are:

Not at home
Refusal to co-operate
Respondent bias.

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“CONCLUSION”
Liberalization of the telecommunications market has entered a new phase:
competition already exists (albeit in limited form) in some markets, such as the
long-distance market and the market for Internet access via the STN. Other
segments, such as the local loop (essentially the high-speed Internet access
market), are being opened up. At this stage, it is no longer simply a question of
opening up particular markets, but rather, consolidating the play of competition in
those markets that have been opened as well as developing competitive new
services. This explains the importance of high-speed access technologies for the
future of the sector.

To face up to these challenges, regulatory activity is changing. It is

constantly adapting to market trends and to economic situations, which are often
difficult. Among its priorities it now counts new economic and social concerns as

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the information society develops: national coverage is a major issue and BSNL
intends to play its part to protect the interests of all consumers.

To this backdrop, a new regulatory organisation is emerging. It must supply

regulatory activity with new tools to encourage lasting competition in the
telecommunications sector. It must also contribute to the development of a more
consistent UP west market that is better able to face up to the challenges of the
information society within the context of globalization.

After thorough analysis and interpretation of result obtained I studied

overall consumer trends declining in BSNL. How people react to its services and
schemes. How company attract its customer by adopting effective strategies. In the
last the conclusion is drawn through this research that being the biggest and oldest
network of mobile telecommunication in Uttar Pradesh West, having good quality
of service, taking along a big part of people aware about BSNL, it is subsisting
hard. For BSNL connection most of customers are professional and business
segment.

“Good service is the way to retain clients”

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 RECOMMENDATION

The company should go ahead with aggressive marketing. They should

light competition on -

1. Awareness level,
2. Product differentiation
3. Customer retention
4. Pricing strategy.

Thus, The recommendations fir these are as follows:

1. AWARENESS
(a) The company should sponsor local programs.
(b) The company should arrange briefing sessions at prominent clubs
such as LIONS CLUB and ROTARY CLUBS etc.
(c) The company should organize awareness quizzes through
Newspapers, Magazines & announce suitable rewards accordingly.
(d) The company should distribute, leaflets of BSNL of Western U.P.

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2. PRODUCT DIFFERENTIATION
(a) In order to build upon the theme of “BSNL” the company
should try to position itself as a “trustworthy and everlasting
partner” [WE DO WHAT WE SAYS (Offering prompt,
better, quality services at the most affordable prices).

(b) The company should highlight its strengths vis-a-vis

competition.

3. CUSTOMEIR RETENTION
The company should develop personal /intimate relations with the
subscribers:

(a) Wishing birthdays

(b) Offering subsidized airtime on festivals.
(c) Giving free lasses to high air time user for the events
Sponsored by the company.

(d) Offering life insurance policy to the subscribers at nominal

Prices.

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 SUGGESTION

1. Company should provide special offer from time to time.

2. They should be provided every latest information

3. After sale service should be better

4. The company should offer installment facilities on handset.

5. Activation fees should be reduced

6. Credit facilities should be given

7. There should be no billing problem.

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FEED BACK FORM

Q.1 Do you have mobile Phone Connection.

(a) Yes _____ (b) No _____

Q.2 Do you know, how many telecoms Co’s is present in Rampur .

(a) Yes _____ (b) No _____

Q.3 Name any 2 Telecom companies.

(1) (2)

Q.4 If you have to purchase mobile phone connection, which Co. you will prefer
and why.

Ans.

Q.5 You will take Post- paid or Pre-paid.

(a) Post-Paid _____ (b) Pre-Paid _____

Q.6 Can you suggest a friend who intends to buy mobile.

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(a) Yes ____ (b) No _____

YOUR NAME AND ADDRESS

__________________________
__________________________
______________

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 QUESTIONNAIRE
Q-1: Which kind of phone you would like use?

a. Landline b. Mobile (GSM) c. WLL

Q-2: Which connection would you prefer?

a. Airtel b. Idea c. BSNL d. Reliance

Q-3: Which kind of connection you prefer?

a. Prepaid b. Postpaid

Q-4: Do you own mobile connection?

a. Yes b. No

Q-5: If yes, name the company and your plan (Post or Prepaid)

Q-6: Please rank (In 1 to 10) according to your experience that factor that
influence your purchase decision. (You can give same rank to more
than 1 factor)

a. Connectivity
b. Easy accessibility
c. More talk time
d. Pulse rate
e. CDMA/GSM
f. Added feature like new rings tones
g. Rooming feature
h. Brand ambassador
i. Network area
j. Reduce the cost of Sim.

Q-7: How would you rating Airtel over all?

a. Very good b. Average c. Not good

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Q-8:- Name: _________________________________________________
Q-9: Address: _______________________________________________
Q-10: Phone No:_____________________________________________
Q-11: E-Mail________________________________________________
Q-12: Gender Male Female
Q-13: Marital status Married Single
Q-14: Date of birth: DD/MM/YY
Q-15: Age:
a. Below 20
b. 20-30
c. 31-40
d. 41-55
e. 56-65
f. 66 to above
Q-16: Education:
a. School b. Graduate c. Postgraduate
Q-17: Occupation:
a. Government b. Private c. Retirement d. Professional
Q-18: Household income:
a. Below - 15,000
b. 15,000 – 20,000
c. 20,000 – 25,000
d. 25,000 – 30,000
e. 30,000 – above

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 BIBLIOGRAPHY

Websites & Search Engine:

www.bsnl.com
www.bhartiteleventures.com
www.researchandmarket.com
www.info-shop.com
www.smartmobs.com
www.yahoosearch.com

• BSNL reports

Books & magazine on mobile communication

Marketing Management by Philip Kotler

Research Methodology by C.R. Kothari

The Economics Times

The times of India
Business today
Business word
The economist
Competition wizard

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