Main Reasons For Failure Of Bsnl Telephone

Company:

What's ailing BSNL?

 The key reason for BSNL's downward spiral is intense competition with

private players like Reliance Jio and Bharti Airtel. Revenues in 2017-18,
stood at Rs27,818 crore, down 14% from the previous year. Losses, too,
widened from Rs4,500 crore in 2016-17 to Rs7,992 crore in 2017-18.

 “Low tariffs due to fierce competition in the mobile segment, high staff cost
and absence of 4G services (except in few places) in the data-centric telecom
market are the main reasons for losses of BSNL,” Prasad said.

 New Delhi: Public sector carrier Bharat Sanchar Nigam Limited (BSNL) is
expected to post losses of over Rs 14,000 crore for the financial year 2018-
19, while its revenue is slated to be around Rs 19,308 crore.

Salary expenditure is set to be a massive 75% of the firm's total revenue at

Rs 14,488 crore, telecom and IT minister Ravi Shankar Prasad said in a
 written reply to the Lok Sabha Wednesday.

 The public sector firm's provisional loss was Rs 4,859 crore in 2015-16, Rs
4,793 crore in 2016-17, Rs 7,993 crore in 2017-18 and is estimated to
balloon to Rs 14,202 crore in 2018-19.

If it is treated fully as a commercial organisation then it should have been
granted autonomy and it should have been treated at par with other private
operators like timely GSM license / 4G rollout.
 Also it has all the weaknesses of a Government Department like attitude of
the staff, not adapting to new technologies etc.

Financial
Figure of Loss (In INR)
Year

2015-16 4,859 Cr.

2016-17 4,793 Cr.

2017-18 7,993 Cr.

2018-19 14,202 Cr.

BSNL Marketing Mix (4Ps) Strategy

BSNL Product Strategy:

The product strategy and mix in BSNL marketing strategy can be explained as
follows:
BSNL is one of the leading telecom companies in India, having a strong backing
on the Government of India. BSNL provides a variety of telecom and internet
facilities to its users. Some of the product offerings in its marketing mix are
Landline (BSNL landline, BSNL PCO, telephone facilities, NGN based value
added services wings, PRI/BRI/Dial up internet, IN services), Mobile (GSM-
Prepaid Tariff, Postpaid Tariff, value added services, Prepaid and postpaid data,
international roaming, device building partners, blackberry services, Wi-Max,
CDMA mobile, CDMA fixed, CDMA data card), Broadband (Landline broadband,
dial up internet, mobile broadband(3G), fiber broadband (FTTH), Wi-Fi, Wi-Max
broadband, CDMA broadband (EVDO). For the voice call, video call and internet
facility that too from the broadband network access, BSNL has set up a world class
infrastructure which is currently serving more than 20 million customers who are
using all types of landline and broadband services made available to them. BSNL
is currently focusing in improving its internet service by increasing its range and
providing a bigger bandwidth to its users. This will help BSNL in maintaining the
loyalty of customers with its premium services. BSNL product strategy mainly
aims to keep up with the touch of the growing hardware technology which is
continuously coming up with innovation so as to sustain and satisfy the needs of its
users BSNL needs to keep improvising its services.

Place

‘Place’ signifies where you choose to distribute or allow access to your product or

service. It could refer to anything from a warehouse or a high-street store to an e-
commerce shop or cloud-based platform.
BSNL Price/Pricing Strategy:
BSNL pricing is done on the customer based competitive pricing as a part of its
marketing mix.
It provides the calling service at a very cheap rate in comparison with its users and
the other services depends on the installation charges. BSNL service price also
varies with usage of customers. It provides specific discount or special offers to the
users whose usage is very high in comparison to others. BSNL also comes up
services like lifetime cards which help them be connected with the user and keep
generating revenue

BSNL Place & Distribution Strategy:

Following is the distribution strategy of BSNL:
BSNL is one of the oldest telecom of our country which has established its
network in all the parts of our country and is continuously upgrading its IP
infrastructure in order to reach out more remote areas of our country and connect it
with the urban areas. IT has divided the whole country with its 24 circles which
help to keep in check the smooth functioning of the services. To come up with the
solutions for customer problems BSNL has its call centers in each and every city
along with its circle.
For the improvement of its network BSNL has also established alliances with few
networks and IT companies.

BSNL Promotion & Advertising Strategy:

The promotional and advertising strategy in the BSNL marketing strategy is as
follows:
BSNL use various channels like TV, print, online, hoardings etc for advertising.
With having lots of loyal customers, BSNL do promotion in a very limited way.
But recently with increase in so many competitors in telecom industry it has started
promotion by coming up with new logo, catchy slogans like connecting India, new
and different brand names for different services provided by BSNL. It has also
started a few promos on different social media sites with the growing digital era. It
promotes its new services, schemes and discount offers both through traditional
offers by banners at different retail stores, newspaper etc. and on social media
sites.
Since this is a service marketing brand, here are the other three Ps to make it the
7Ps marketing mix of BSNL.

People:
As it is a service sector so people have a very big role to play but for BSNL it turns
out to be a weak link as other than an assured job there are no rewards and
recognition for the workforce which is not motivating people to work at their
maximum ability. Also in terms of people BSNL lacks the new young and
energetic workforce to a certain extent due to which the monopoly attitude which
BSNL used to have is not changing even with such a high level of competition in
market.

Process:
Generally physical processes needs to be very easy and accessible from any region
wherever services are available but BSNL even lacks in this process as many a
times coming up with solution is provided after a long delay by going through
different officials. Hence the current procedure is not sufficient for quick delivery
that is hurting the loyal customers.

Physical Evidence:
BSNL has a strong presence which also shows its physical presence. The physical
evidences are like Sim card, recharge vouchers, mobile phones, landlines which
are all available with the front end force on all the mini stores opened by telecom
operators. As this seems to be B2C service, BSNL is also aiming to come up with
B2B service in order to provide these physical products on a large scale. Hence this
completes the BSNL marketing mix.

About BSNL:
Bharat Sanchar Nigam Limited (BSNL) is one of the largest telecom service in
India which provides wide quality network in almost all the parts of India. BSNL
which was established in 2000 is offering various services of landline phones,
wireless mobile and internet facility with its quality telecom network in country.
BSNL is currently focusing in improvement of its telecom network in order to
reach out wider audience especially in rural areas which are still not connected
 with the urban areas. Major competitors of BSNL are Airtel, Vodafone, Idea,
Reliance Jio etc. Among these competitors BSNL stands out as it is the only
service provider who is looking forward or putting up efforts to bridge up the gap
between rural-urban areas with the help of telecom and internet facility

Key initiatives

 In October 2008, BSNL tied up with BT to access the latter's global MPLS network and managed service
expertise, including network integration, managed security, managed data centre, hosted contact centre and
remote infrastructure management.
 BSNL signed a memorandum of understanding with Cable & Wireless (C&W) for sharing of networks and
other telecom infrastructure. Under the agreement, C&W will offer support to BSNL for network expansion, while
the Indian operator will allow C&W to leverage its extensive infrastructure in the country.
 Under a network-sharing deal, BSNL has allowed Swan Telecom to use its network. Swan will be charged
Re 0.52 per minute for outgoing calls. The rates will be revised every six months.
 BSNL has selected China-based Haier Mobile to provide CDMA handsets for a bundled scheme which will
be launched by the end of 2008.
 In September 2008, BSNL extended telecom connectivity to the remote Gnathang village in east Sikkim. It
has provided a village pubic telephone and public call offices in the village and is planning to extend mobile
connectivity by March 2009.
 BSNL has tied up with Tata Communications to roll out the on demand hosted contact service for its
enterprise customers.