IT FOR MANAGERS

A REPORT ON BHARAT SANCHAR NIGAM LIMITED(BSNL)

 CONTENT

S.NO TITLE PAGE

1 Introduction 3-4
2 Objective 5
3 Methodology 5
4 Analysis & Findings 6-8
5 Conclusion & 9-10
Recommendation
 Introduction
Bharat Sanchar Nigam Limited (BSNL) is an Indian state-
owned telecommunications. It was incorporated on 15th September
2000. It took over the business of providing of telecom services and
network management from the erstwhile Central Government
Departments of Telecom Services (DTS) and Telecom Operations
(DTO), with effect from 1st October ‘2000 on going concern basis. It is
one of the largest & leading public sector units providing comprehensive
range of telecom services in India. 
BSNL is the only service provider, making focused efforts & planned
initiatives to bridge the rural-urban digital divide in 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 the country &
operates across India except New Delhi & Mumbai. Whether it is
inaccessible areas of Siachen glacier or North-Eastern regions of the
country, BSNL serves its customers with a wide bouquet of telecom
services namely Wireline, CDMA mobile, GSM mobile, Internet,
Broadband, Carrier service, MPLS-VPN, VSAT, VoIP, IN Services,
FTTH, etc. 
BSNL is one of major service provider in its license area. The company
offers wide ranging & most transparent tariff schemes designed to suit
every customer. BSNL has 94.36 million cellular & 1.02 million WLL
customers as on 31.10.2016. 3G Facility has been given to all 2G
connections of BSNL. In basic services, BSNL is miles ahead of its
rivals, with 13.88 million wireline phone subscribers i.e. 56.96% share
of the wireline subscriber base. During the 2015-16, turnover of BSNL
is around Rs. 32,919 Crores.
Type Government owned
Industry Telecommunications
Headquarters New Delhi, India
Key People Pravin Kumar Purwar (Chairman & MD)
Services Fixed line telephone
Mobile phone
Broadband
Internet television, IPTV
Revenue ₹19,308Cr (2019)
Operating income ₹-14,000Cr (2019) Estimated
Net income ₹3,879.92Cr (2016)
Total Asset ₹70,756.75Cr (2016)
Owner Government of India
Members 114.342 million (December 2018)
No. of employees 174,216 (2018)
Website www.bsnl.co.in
 Objective
 To study the overview of BSNL
 To analyze the Market trend of Telecom companies to understand
the position of BSNL
 To analyze the customer behavior of Telecom companies to
understand the position of BSNL
 To analyze the financial statement of BSNL to understand the
current situation of company
 To suggest some Guidelines for BSNL to be in better position in
future

Methodology
The main aspect of research is to find problems because if we find the
problems in any organization, half of our job is done. In order to find
solutions of that problem I have gone through different type of study: -
 Found the secondary data from online source
 Study of market trend
 Study of customer behavior
 Study of financial statement
 Use of MS Excel for graph of data
 Analysis & Findings

Market Share in QE Dec-18 (%)

Reliance
Quadrant
com.
MTNL
Tata
BSNL 1%
0%
2%
11%
Vodafone
Idea Ltd
35%

Relience
Jio
23%

Bharti
Airtel
29%

Market share in QE Mar-19(%)

Quadran
Reliance
tcom.
MTNL
Tata
BSNL 1%1%
0% Vodafon
11% e Idea
Ltd
33%

Relience
Jio
26%

Bharti
Airtel
28%

Observation- The company has managed to reverse customer perception

over last few years which is due to competitive plan and tariffs. Its
market share has increased to 11% from 10% in December 2018 and its
target is 12% by next financial year.
Although its market share is improving year by year but Financially
things are not improving as BSNL reported a loss of ₹ 7992.85 Cr
[Previous year ₹4793.21Cr] (From Table-1). It does mean that BSNL
will continue to incur losses forever. The telecom industry feels that by
next year when consolidation stabilises, it will start making profit.

Subscriber Base(In million)

450
400
350
300
250
200
150
100
50
0
Vodafone Bharti Airtel Relience Jio BSNL Tata MTNL Reliance Quadrant
-50 Idea Ltd com.

Dec-18 Dec-19 Net Additions

Since the entry of Reliance Jio in September 2016, every telecom

operator felt the impact on their subscriber base but big players like
Airtel, Vodafone and idea cellular managed to retain their subscriber
market share but growth was muted. Many other like Reliance
communications, Aircel, Telenor, Tata Teleservice etc. either closed or
merged with bigger players.
This improvement is more because of a number of private operators
closing shop which has made subscribers to port out and BSNL is one of
the Beneficiaries.
Table 1- Financial Performance of 2017-18

S.NO PARTICULARS 2017-18 [₹ IN Crs.]

1 Income from services 1 22667.78

2 Other income 2 2402.86

3 Expenditure [excluding interest and depreciation] 3 27928.91

4 Profit before interest, depreciation and tax [EBIDTA] 4=1+2-3 (2858.27)

5 Depreciation 5 5831.58

6 Interest 6 48.31

7 Profit/(loss) before prior period adjustment 7=4-(5+6) (8738.16)

8 Prior period adjustments 8 0

9 Profit/loss before Tax 9=7+8 (8738.16)

10 Provision for deferred tax 10

Tax provision for the year (745.31)

Tax provision for the earlier years

Wealth tax

11 Net profit/loss for the year (7992.85)

Observation: - We observe from the table that During the year 2017-18,
the company incurred a loss of ₹ 7992.85Cr. While the income from
service is ₹22667.78Cr. Other income is ₹2402 Cr.

Conclusions & Recommendation

The Government owned telecom company BSNL has been incurring
losses for several years now. As it is the one of oldest company, it is
important that company to get back on track. BSNL is experiencing
losses over a period of time because of due to competition offered by
private network. If BSNL analyses what makes people to prefer private
operators over BSNL which is causing large port outs, it will be helpful
in retaining the customers. The Current government has announced
several initiatives to bring the Telco back on track. I am suggesting some
points to improve BSNL’s current state:
 The distribution strategy of BSNL needs to be change. BSNL
should give their services or products through multiple channels
and access point.
 BSNL should start service hub in every possible location. They
should be available easily starting from villages to cities rather
than concentrating only at particular shop situated at a particular
corner of town.
 Local exchanges situated in rural village areas need to be
developed for delivering quality service and products.
 BSNL should follow the golden rule of marketing “GIVE
PRIORITY TO CIRCLE IN WHICH COMPANY IS IN
PROFIT”.
 Without upgradation to latest technology nothing can sustain in
market. Similarly, BSNL needs to upgrade his services.
Deployment of 4G and 5G in GSM area and conducting test will
help upgrading to latest GSM technology.
 Improvement of data network is need of the hour and BSNL
should go with it in aggressive manner. It will help him to get
loyalty of customer.
 Installing a greater number of antennas in tower to solve network
coverage problem.
  BSNL needs to concentrate on seasonal offers.
 BSNL needs to improve its customer services in all location
because common man finds it inconvenient to make complain to
solve service-oriented problem.

Sources: -
 https://en.wikipedia.org/wiki/Bharat_Sanchar_Nigam_Limited
 https://main.trai.gov.in/release-publication/reports/performance-indicators-reports
 https://www.bsnl.co.in/opencms/bsnl/BSNL/about_us/financial_result.html