BY

G.SRI VENKAT SAI RAJ

EEE
CONTENTS
•Introduction

•Difference between PSE and

PSU

•History of BSNL

•Various stages

•WIMAX for BSNL

•Past few years market

•Verdict
INTRODUCTION

 PUBLIC ENTERPRISE is a company ‘owned

by government’ and ‘managed by
government’.

 Themain reason for these are for balanced

economic development and social welfare.
DIFFERENCE BETWEEN PSE & PSU

Public Sector Enterprises

They are fully owned by government.
100% share capital is by government itself.

Public sector Undertaking

Either of central or state or sometimes both,
hold more than 51% of share capital and
rest is from private firm.
HISTORY OF BSNL

 The foundation for Telecom network in India

was laid by British in 19th century.

 TheTelecom in India was operated by

DEPARTMENT OF
TELECOMMUNICATIONS(DoT).

 First
DoT was part of Post and Telegraph
department .
THE TELECOM TREE

Indian
Telecom

DoT
P&T

MTNL BSNL
INCEPTION OF BSNL
 In1990s the telecom sector was opened up
by the government for private Investments.

 Bharath Sanchar Nigam limited was formed

on 1st october,2000. It was operated
through out India except Delhi & Mumbai.
BIRTH OF PEERS

 As the government paved path of direct

private investments there emerged many
other companies later on.

 Bharti Airtel was started on 7th of July

1995,by Sunil Bharti Mital who hold 64% of
share and rest was under Singapore
Telecom limited.
THE CASH COW PERIOD

 Under the Union minister ‘Ram Vilas

Paswan’ BSNL started its operation.
 By the year 2004 it has become 2nd largest
telecom firm after Airtel.
 In 2005 it added more subscribers than
airtel.
 By mid 2006 it was within striking distance
of top slot
PROFITS OF EARLY DAYS
Profit in Crs
4500

4000

3500

3000

2500

2000 profit in Crs

1500

1000

500

0
FY 2002-03 FY 2003-04 FY 2004-05 FY 2005-06
HOW BSNL BECAME A PATIENT
 In 2004 Mr. Dayanidi Maran took oath as
union Telecom minister, under him BSNL
was doing good for 1 ½ year and about to
take top position.
 In 2006 he saw the company in huge profits
and misutilized his power as telecom
minister.
 He redirected about 350 lines to his brother,
Kalanidi Maran.
 which caused huge loss~1500Cr
CONT…

 It was root cause for decline of profits to

1200Cr in FY2006-07.
 Later Maran resigned the post and CBI filed
FIR on him and GM of BSNL.
 It was the first time BSNL came into NEWS
for a internal scam.
WIMAX TECHNOLOGY FOR BSNL

 BSNL proposed to introduce WIMAX

technology in year 2006.
 It was the first company to have the idea of
WIMAX services in telecom sector, however it
was denied by new minister A.Raja.
 After several efforts the company
announced for tenders by the end of 2007.
VENTILATOR SITUATION
 The price coated was too high and later it
was reduced by involvement of Maran, Nokia
were out of contract.
 And DoT cancelled the project in a
mysterious way later.
 By this time private companies the wireless
technology and gone past BSNL to defeat it.
 They provided 3G and broadband were
BSNL was lagging.
LOOSING THE MARKET SHARE

 Again BSNL called for tenders in 2009 with

some special conditions, but none was on to
its final way.
 13 tenders were called during 2007-10.

 In 2010 2G spectrum scam was busted out

& it was revealed that Spectrum reserved for
WIMAX was also sold for lesser price to star
communications ,a friend of A.Raja
MARKET SHARE OVER PAST FEW YEARS
market share
40
35
30
25
20
market share
15
10
5
0
2007 2009 2011 2017 2018
VERDICT
 Initially
due to the companies delay in
introduction of 3G and wireless services
majority of the market was captured by
Airtel.
 In mid 2007-08 company’s involvement in
several scams and allegations it lost
reputation.
 At present the company still suffers to
introduce the 4G, and meanwhile JIO, has
already taken the top slot.