SUMMER TRAINING REPORT ON Topic:

DECLARATION

This is my original work. This project work has been conducted for partial fulfillment of the degree of POST GRADUATE DIPLOMA IN MANAGEMENT in college Indian Institute of Planning and Management which is completed with the help of Managing staff of Bharat Sanchar Nigam Limited(BSNL), Agra

Shalini Gupta PGDM ROLL NO.

ACKNOWLEDGEMENT

Words often fail to express inner feelings of gratitude and indebtedness to ones benefactors, but then it is the only readily available medium through which the undersigned can express his sincere thanks to all those who are associated with her work in one way of the other. I feel it my profound privilege to express my most sincere gratitude and indebtedness to my project guide NAME who was instrumental in providing my direction, constant encouragement and co-operation in my attempt to take this project to its logical conclusion. I am extremely thankful to the numerous BSNL Executives and Managerial Staff who provided vital information about the functioning of their respective departments thus helping me to gain an overall idea about the working of organization. I am highly thankful for the support & guidance of each of them. I also express my gratitude to NAME for providing me the opportunity to undergo this training and to work on my project. I also express my thanks to all the members of HRD for their help & cooperation. Last but not the least, I would like to thank my parents & all my fellow trainees that have always provided me support in every walk of life.

SECTOR OVERVIEW: SECTOR DETAILS ON WHICH THE COMPANY IS OPERATING SECTOR DETAILS: The Communication sector is amongst the fastest growing in the country. It work in all major markets around the world. Communication technologys products and solutions are accepted globally. The first year of the new millennium has been a year of turbulence, tragedy, terrorism and slow-down in the world economy. The Indian Communication industry has weathered this storm well. It is indeed creditable that the industry and services in India has reasonably continued its robust growth in the year 2003-04 This sector has emerged as one of the fastest growing sectors in the economy History of communication in India a major reorganisation of the department took place in April, 1925. The accounts of the Indian Posts and Telegraphs were reconstituted to examine the true fiscal profile of the department. The attempt was to find out the extent to which the department was imposing a burden on the taxpayers or bringing in revenue to the Exchequer, how far each of the four constituent branches of the department, the postal, telegraph, telephone and wireless were contributing towards this result. It was further examined whether the rates charged from the public for the various services were inadequate or excessive.The Posts and Telegraphs, like all public and private undertakings, was a victim of the universal financial and economic depression which crashed on the world in 1930. During 1931, numerous economy measures had to be introduced according to the advice of the Posts and Telegraphs Sub-Committee to the Retrenchment Committee presided over by Sir Cowasjee Jehangir Jr. Naturally, the adoption of the various measures of retrenchment could not but have an adverse effect on the

emoluments and interests of the personnel of the Department. From the beginning, P&T set up was run on welfare lines. Profit was not the motto. The annual report of the department for 1931 said "It is the accepted policy of the Government that the department should be so administered that there should be neither any substantial profit nor any substantial loss on its working under normal conditions. As has already been indicated, the achievement of this ideal has not proved possible owing mainly to the exceptional economic and trade conditions of recent years. One of the main contributory causes was the revision and improvement of pay of the great bulk of the employees of the department in recent years. This was undertaken with the approval of and indeed under pressure by the Legislative Assembly. While the department is commonly spoken of as a 'commercial' one and though as far as possible it is guided by the commercial considerations in the regulation of its business, it must be realised that in many directions it is debarred from observing strict business principles. Many of the purposes which it is required to serve are unremunerative and notably, in matters relating to the employment and control of staff, the department is bound by a large volume of statutory and other rules, doubtless necessary for the regulation of a public service, but which in the aggregate involve many restrictions of a kind unknown to private commercial concerns. After the implementation of the Federal Financial Integration Scheme of 1st April, 1950, the administration of the entire network of telegraph and telephone systems of the nation, including those that previously existing in the former princely states became a major adventure. In 1950 the number of Telephone Exchanges absorbed from princely states was 196. These systems which were working with different degrees of efficiency could fit into the general telecommunication network. The installed capacity of these 196 exchanges was 13,362 lines with 11,296 working connections.

Other Companies/ Competitors: Fixed line operators

Bharat Sanchar Nigam Limited (BSNL) Mahanagar Telephone Nigam Limited (MTNL) Airtel Reliance Tata Teleservices Ping Mobile - only in Punjab region MTS India - in Rajasthan circle only

Mobile operators

Bharat Sanchar Nigam Limited (BSNL)- Cellone/BSNL Mobile (GSM) & CDMA

Mahanagar Telephone Nigam Limited (MTNL) - Dolphin (GSM) and Garuda (CDMA)

Airtel Vodafone Essar Reliance Tata Indicom Tata Docomo Aircel Idea Loop Mobile Png Mobile - CDMA Mobile service from HFCL, operates only in Punjab Virgin Mobile India (MVNO)

MTS India - (previously Shyam Telelink) offers CDMA service under SistemaShyam joint venture.

Tata DoCoMo - GSM services from Tata Teleservices Ltd. with partnership with Japan's NTT DoCoMo.

Uninor - Telenor and Unitech Group's Joint Venture. S Tel - Batelco has stakes in it. T24 or Talk24 - a Future Group -Tata DoCoMo joint venture. MVNO - kind of royalty program of retail chain of Future Group

Videocon Mobile Service - a joint venture between Videocon and HFCL Cheers Mobile Service - Etisalat DB Private Ltd.

In India, only Reliance and Tata Teleservices (thus, Virgin Mobile too) offers dual mode operations, i.e. CDMA & GSM services. Now HFCL & Videocon as per brand sharing agreement they have dual mode operation in Punjab. Though T24 and Virgin Mobile India are often termed as MVNO, these are actually services of TTSL. TTSL sells their services using these brand names. So neither Virgin Mobile India nor T24 is a true MVNO. 3G Operators MTNL is the first operator to roll out 3G services, later BSNL, another stateowned telecom operators also started 3G services. MTNL has wide 3G coverage over two metros Delhi and Mumbai. BSNL has 3G coverage in all circles except Mumbai & Delhi. Currently BSNL has 3G coverage in more than 800 cities of India, and offers free roaming in Delhi and Mumbai using MTNL's network. India completed 3G airwave(GSM) auction for private operators and allocated 3G airwaves in September, 2010 to the winners. Aircel, Airtel, Idea Cellular, Reliance

(GSM), S Tel, Tata Teleservices (Tata Docomo) and Vodafone won licenses for 3G services. No operator won pan India 3G license. Tata Docomo rolled out 3G services in November 2010, becoming the first private operator to roll out 3G services. Reliance Communications also rolled out 3G services in December 2010 in Delhi,Kolkata, Mumbai and Chandigarh. In Q1 of 2011 Airtel, Aircel, Idea and Vodafone rolled out their 3G services in India. S Tel did not roll out 3G services till date. At the first phase of 3G in India, data prices are sky-high, mostly beyond the reach of masses except PSUs like BSNL & MTNL have affordable tariffs.

Market Share

The total revenue in the telecom service sector was 86,720 crore (US$19.3 billion) in 2005-06 as against 71,674 crore (US$16 billion) in 2004-2005, registering a growth of 21%.estimted revenue of FY'2011 is Rs.835 crore (US$ 19 Bn Approx).The total investment in the telecom services sector reached 200,660 crore (US$44.7 billion) in 2005-06, up from 178,831 crore (US$39.9 billion) in the previous fiscal. Telecommunication is the lifeline of the rapidly growing Information Technology industry. Internet subscriber base has risen to more than a 100 million in 2010. Out of this 11.47 million were broadband connections. More than a billion people use the Internet globally. Under the Bharat Nirman Program, the Government of India will ensure that 66,822 revenue villages in the country, which have not yet been provided with a Village Public Telephone (VPT), will be connected. However doubts have been raised about what it would mean for the poor in the country.

It is difficult to ascertain fully the employment potential of the telecom sector but the enormity of the opportunities can be gauged from the fact that there were 3.7 million Public Call Offices in December 2005 up from 2.3 million in December 2004. The Total Revenue of indian Telecom Services company is likely to exceed Rs 200000 Cr ( US$ 44 Bn approx) for FY 11-12 based on FY 10-11 nos and latest quarterly results. These are consolidated nos inlcuding foreign operation of Bharti Airtel. The major contributions to this revenue are as follows: Bharti Airtel 65,060 Reliance Comm 31,468 Idea Cellular 16,936 Tata Comm 11,931 MTNL 4,380 BSNL 32,045 Voda 18,376 TataTeleservice 9,200 Aircel 7,968

OPPORTUNITIES:

The telecom industry of India has registered manifold growth in the recent years. Personalized telecom access is essential necessity of life for increasing number of the people. The sector offers unlimited prospects when we consider future growth. Both Public Players and Private Players are enhancing their technologies and taking the telecom industry to a much higher growth state. Not only service providers but also handset manufacturers are contributing significantly to the industry and economy of India.

6.

COMPANY DETAILS: OVERVIEW OF THE COMPANY

BHARAT SANCHAR NIGAM LIMITED (BSNL)

An Introduction:-

Bharat Sanchar Nigam Ltd. formed in October, 2000, is World's 7th largest Telecommunications Company providing comprehensive range of telecom services in India: Wire line, CDMA mobile, GSM Mobile, Internet, Broadband, Carrier service, MPLS-VPN, VSAT, VoIP services, IN Services etc. Presently it is one of the largest & leading public sector units in India.

BSNL has installed Quality Telecom Network in the country and now focusing on improving it, expanding the network, introducing new telecom services with ICT applications in villages and wining customer's confidence. Today, it has about 47.3 million line basic telephone capacity, 4 million WLL capacity, 48.11 Million GSM Capacity, more than 37382 fixed exchanges, 44966 BTS, 3140 Node B ( 3G BTS), 287 Satellite Stations, 480196 km of OFC Cable, 63730 km of Microwave Network connecting 602 Districts, 7330 cities/towns and 5.5 Lacs villages.

BSNL is the only service provider, making focused efforts and planned initiatives to bridge the Rural-Urban Digital Divide ICT sector. In fact there is no telecom operator in the country to beat its reach with its wide network giving services in every nook & corner of country and operates across India except Delhi & Mumbai. Whether it is inaccessible areas of Siachen glacier and North-eastern region of the

country. BSNL serves its customers with its wide bouquet of telecom services.

OBLIGATIONS 1. Towards customers and dealers To provide prompt, courteous and efficient service and quality of products/services at fair and reasonable services. 2. Towards employees Develop their capability and advancement through appropriate training and career planning Expeditious redressed of grievances Fair dealings with recognized representatives of employees in pursuance of healthy trade union practices and sound personnel policies

CORPORATE SOCIAL RESPONSIBILITIES BSNL is committed to provide quality Telecom Services at affordable price to the citizens of the remotest part of the Country. BSNL is making all effort to ensure that the main objectives of the new Telecom Policy 1999 (salient points indicated below) are achieved: Access to telecommunications is of utmost importance for achievement of the country's social and economic goals. Availability of affordable and effective

communications for the citizens is at the core of the vision and goal of the new Telecom policy 1999. Strive to provide a balance between the provision of universal service to all uncovered areas, including the rural areas, and the provision of high-level services capable of meeting the needs of the country's economy encourage development of telecommunication facilities in remote, hilly and tribal areas of the country; Transform in a time bound manner, the telecommunications sector to a greater competitive environment in both urban and rural areas providing equal opportunities and level playing field for all players.

EMPLOYEES WELFARE ACTIVITIES Commitment towards the principles of corporate social responsibilities is inbuilt within the corporate philosophy of BSNL. A very wide range of welfare programmes, with a focus on the employees welfare is continuously implemented by the Staff Welfare Board of the Company.

ASSISTANCE DURING NATURAL CALAMITIES BSNL always remains awake of its responsibility as a corporate citizen. When the destructive Tsunami waves struck the Indian shores, BSNL Company swung into action immediately for providing relief to those affected in the coastal areas. Communication networks at the Coastal areas of Tamil Nadu, Kerala and the Andaman and Nicobar Islands worst hit in the Tsunami - were promptly restored

within the shortest possible time. BSNL along with the employees contributed an amount of Rs. 2,207 lakhs to the Prime Ministers Relief Fund. Telephone Services were restored in record time in the flood-hit areas of Gujarat and Maharashtra. BSNL Services:-

When it comes connecting the four corners of the country , and much beyond , one solitary name lies embedded at the pinnacle- BSNL. A company that has gone past the number games and the quest to attain the position of the leader. It is working round the clock to take India in to the future by providing excellent telecom services for people of India. Driven by the very best of telecom technology from global leaders, it connects each inch of India to the infinite corners of the globe, to enable you to step in to tomorrow. The telecom services have been recognized the world over as an important tool for socio-economic development for a nation and hence telecom infrastructure is treated a crucial factor to realize the socio-economic objectives in India. Accordingly the Department of Telecom has been formulating developmental policies for the accelerated growth of the telecommunication services in various cities. The department is also responsible for frequency management in the field of radio connection in close coordination with the international bodies.

BSNL provides almost every telecom service in India. Following are the main telecom services provided by BSNL:

Universal Telecom Services: Fixed wireline services & landline in Local loop (WLL) using CDMA Technology called bfone and Tarang respectively. As of June 30, 2010, BSNL has 75% marketshare of fixed lines.

BSNL Mobile

Prepaid Mobile

Cellular Mobile Telephone Services: BSNL is major provider of Cellular Mobile Telephone services using GSM platform under the brand name Cellone & Excel (BSNL Mobile). As of June 30, 2010 BSNL has 13.50% share of mobile telephony in the country.

WLL-CDMA Telephone Services: BSNL's WLL (Wireless in Local Loop) service is a service giving both fixed line telephony & Mobile telephony.

BSNL Broadband

Internet: BSNL provides internet services through dial-up connection (Sancharnet) as Prepaid, (NetOne) as Postpaid and ADSL broadband (BSNL Broadband). BSNL holds 55.76% of the market share with reported subscriber base of 9.19 million Internet subscribers with 7.79% of growth at the end of Mar-10.[citation needed] Top 12 Dial-up Service providers, based on the subscriber base, It Also Provides OnlineGames Via Its Games on Demand(GOD)

Intelligent Network (IN): BSNL provides IN services offers value-added services, such as Free Phone Service (FPH), India Telephone Card (Prepaid card), Account Card Calling (ACC), Virtual Private Network (VPN), Televoting, Premium Rae Service (PRM), Universal Access Number (UAN) and more.

3G:BSNL offers the '3G' or the'3rd Generation' services which includes facilities like video calling, live TV, 3G Video portal, streaming services like online full length movies and video on demand etc.

IPTV: BSNL also offers the 'Internet Protocol Television' facility which enables watch television through internet.

FTTH: Fiber To The Home facility that offers a higher bandwidth for data transfer. This idea was proposed on post-December 2009.

Helpdesk: BSNL's Helpdesk (Helpdesk) provide help desk support to their customers for their services.

VVoIP: BSNL, along with Sai Infosystem - an Information and Communication Technologies (ICTs) provider - has launched Voice and Video Over Internet Protocol (VVoIP). This will allow to make audio as well as video calls to any landline, mobile, or IP phone anywhere in the world, provided that the requisite video phone equipment is available at both ends.

PROCEDURES FOLLOWED IN THE DECISION-MAKING PROCESS, INCLUDING CHANNELS OF SUPERVISION AND ACCOUNTABILITY

BOARD OF DIRECTORS

CHAIRMAN AND MANAGING DIRECTOR FUNCTIONAL DIRECTORS

EXECUTIVES

Overall management of the Company is vested with the Board of Directors of the Company. The Board of Directors is the highest decision making body within the Company. As per the provisions of the Companies Act, 1956 certain matters require the approval of the shareholders of the Company in General Meeting. The Board of Directors is accountable to the shareholders of the Company, which

is the ultimate authority of a Company. Bharat Sanchar Nigam Limited being a Public Sector Enterprise (PSE), the Board of Directors of the Company is also accountable to Government of India. The day-to-day management of the Company is entrusted with the Chairman cum Managing Director and the Functional Directors and Executives of the Company. For this purpose, the Board of Directors has delegated powers to the Chairman and Managing Director, Functional Directors, and the Executives of the Company through Delegation of Financial and Administrative Powers. The Board of Directors has also delegated few of its specific powers to a committee, known as Management Committee comprising of CMD and Functional Directors. Functional Directors and executives exercise their decision-making powers as per this delegation of powers. The Chairman cum Managing Director, Functional Directors and other Executives are accountable to Board of Directors for proper discharge of their duties & responsibilities. The powers, which are not delegated are exercised by the Board of Directors subject to the restrictions and provisions of the Companies Act, 1956 and the Articles of Association of the Company.