Project Kuber and

Enterprise Structure
 Agenda

 Introduction to Project Kuber

 Key Activities
 Customer type and classification
 Collection strategies
 Monitoring and review

For internal circulation of BSNL only 2

PROJECT KUBER - REVENUE
ASSURANCE
Objective of Project:
The overall objective of project Kuber is to ensure that the
revenue earned by BSNL is properly billed to customers and
collected from them.
The focus specifically is on two areas:

 Collection of bad debt, with focus on amount less than 2

years old.
 Identification & Billing of leased Circuits that the currently not
getting billed.

For internal circulation of BSNL only

 Key activities

• Collection of Bad debt

• Segmentation of bad debt by age and account size. The following
segment are used:
• Age :90-180 Days, 180-360 Days, 360+ days
• Account Size: Low, Middle, Large, Very Large
• Appointment of Collection agencies for bad debt that are in the `middle’
bucket.

• Follow up by BSNL team on accounts that are in the `Large’ and `Very
large’ buckets
• Leased Circuits Billing: Process defined for identifying unbilled circuits

For internal circulation of BSNL only

Collection strategy developed on the basis of
customer type & age of outstanding

Customer segment Typical Products Age of outstanding Collection methodology

1 Retail Basic Services, • 3 - 6 months • Outsource to collection agencies,

(Small and medium CMTS post-paid • 6 - 12 months prioritizing on size
ticket size • 12 – 24 or 36 • Appoint different agencies based
accounts) month on areas and age of outstanding
• In-house team for continuous
monitoring of performance

Enterprise Basic Services, • 3 – 36 months • Create in-house team for follow

(Large ticket size CMTS post-paid, up on accounts
2
accounts) Telephone & data • Prioritize follow up based on size
circuits and age
• Weekly monitoring of progress

• Create in-house team for follow

Govt. & Defense Basic Services, • All outstanding
Telephone & Data up on accounts
greater than 3
circuits • Weekly monitoring of progress
months

For internal circulation of BSNL only

 Small & Medium Ticket Size
1
1 Identification of outstanding accounts and segmentation

– Identify outstanding accounts for Basic, CMTS and Data Circuits, b/w 3 months and 3
years old

– Segment accounts on the following dimensions

• Age: 3-6 months, 6-12 months, 12-24 months, 24-36 months
• Size of outstanding: 0-1000 Rs, 1000 – 20000 Rs, >20000 Rs
• Geography: Areas within SSAs
• Customer type: Private, Govt. & Defense

– Account size should be determined after clubbing all outstanding bills for a particular
customer

– Age should correspond to the age of the latest outstanding bill

For internal circulation of BSNL only

 Small & Medium Ticket Size

1
B Selection of collection agencies and allocation of outstanding accounts (I)

•Identify collection agencies in the SSA that are either

– Debt Recovery Agents of other Telecom Service providers
– Debt Recovery Agents of reputed Public Sector Banks/ Financial Institutions
• Assess identified agencies on following parameters:
• Experience of working with other telecom operators
• Manpower
• Financial strength
• Ability to scale up manpower and infrastructure for BSNL requirements
• Geographic area where they have strong presence
• Interest in working with BSNL

– Based on this assessment finalize the set of 'Competent Agencies'

– Typically, there should be one agency identified for every 2000 outstanding accounts

For internal circulation of BSNL only

 Small & Medium Ticket Size
1 Selection of collection agencies and allocation of
B outstanding accounts (II)

– Take the accounts that are between 0 and 20000 Rs., for private customers only
– Divide these accounts to form portfolios as follows:

• Divide the accounts into 3 buckets

– Bucket 1 (B1): 3 months – 6 months
– Bucket 2 (B2): 6 months – 12 months
– Bucket 3 (B3): 12 months - 24 or 36 months
• Choice of 24 or 36 months is left to the SSAs. It should be based on the no. of competent agenciesavailable

– Each SSA should be divided into at least 3 areas; Divide the outstanding by Area within
the SSA to get the following portfolios (assuming there are 3 areas in the SSA – A1, A2,
A3)

– Portfolio 1: B1, A1; Portfolio 2: B1, A2; Portfolio 3: B1, A3

– Portfolio 4: B2, A1; Portfolio 5: B2, A2; Portfolio 6: B2, A3
– Portfolio 7: B3, A1; Portfolio 8: B3, A2; Portfolio 9: B3, A3
• In case an SSA has 4 areas, then there will be 12 portfolios and so on

For internal circulation of BSNL only

 Small & Medium Ticket Size
Selection of collection agencies and allocation of
outstanding accounts (III)
– Allocate portfolios to the 'Competent Agencies' based on area of operation, capacity etc.
– Each portfolio of outstanding should be allocated to a minimum of 2 and
maximum of 3 agencies
– Also while allocating, it should be ensured that each agency gets at least
one portfolio in each time bucket
– Invite competent agencies to bid for portfolios allocated to them
– Bids contain the commission percentage that the agency will charge on the
collections done by them
– Each portfolio of accounts will have between 2 and 3 agencies bidding for
them.
– Once the bids are opened, the following process should be carried out:
• For each portfolio of accounts, the agency with the lowest bid should be
selected.
• If the agency with the lowest bid is unable to take on the contract, then the
agency with the second lowest bid should be invited to take over the contract
at the L1 rate; In case no agency agrees at L1 rate, then re-bidding should
be done
– While finalizing the allocation the following points should be kept in mind
• No agency is allocated more than 2000 accounts for the whole SSA.
• No agency gets consecutive time buckets
• Any deviation from these rules should be made only if no competent
agencies can be identified.

For internal circulation of BSNL only

 Small & Medium Ticket Size

1 Selection of collection agencies and allocation

of outstanding accounts (IV)
– Every month, there will be new outstanding cases generated that exceed more that 3
months in age
– Such cases should also be passed onto agencies that have been allocated
the 3-6 month bucket
– Therefore, agencies working on the B1 bucket (3-6 months) will get more
accounts added on every month

– This should be done for 3 months at a stretch; During this time the number of accounts
in Bucket 1 will keep on increasing

– After 3 months, the accounts should be shifted to the next bucket

– Accounts will be moved from 3-6 months bucket to 6-12 months bucket at the
end of every quarter; Similarly they will mover from 6-12 month bucket to the
next bucket
For internal circulation of BSNL only
 Small & Medium Ticket Size

1 Selection of collection agencies and allocation of

B outstanding accounts (V)

Collection Slab (as %of

Additional incentives
portfolio allocated)

Upto 20%
-

20.01% to 30% 3%

30.01% to 40% 5%

Above 40% 7%

– Additional incentives can be provided for achieving specific targets as follows:

– The collection should be done in a period of 1 month from date of receiving list to be eligible for incentive
• This additional incentive shall apply to the entire amount collected by the agency
• This scheme is to be measured on a monthly basis, taking into account the starting portfolioand the amount
collected in that month.

For internal circulation of BSNL only

 Small & Medium Ticket Size

1
Creation of internal teams and systems

– Dedicated team of people required to support, manage and drive the external
agencies

– Collection agencies to provide daily reports (hard and soft copy) on the collections
done by them

– BSNL to provide collection agencies information on accounts that have been paid up

– Information should be provided on daily basis

– Mechanisms in place to ensure that agencies follow proper code of conduct

For internal circulation of BSNL only

 Pilot Experience Small & Medium Ticket Size
Internal team created for managing and driving
1
collection agencies
C

Roles

• Manage overall collection program

IFA of Pune SSA • Sort out issues around policy/
appointment etc.

• Manage overall database

• Collectand consolidate daily reports
• Agency Manager
Database manager
– Drive collection agencies towards
targets
– Undertake field visits

Query handlers • Query handler

Agency Manager (1) – Answer queries in real time
(1 per area)
• Drive and manage field staff
• Manage tele-calling team
• Field visits and tele-calling activities

Team Leader Team Leader

Field Staff Tele-calling team

BSNL
For internal circulation of BSNL only CollectionAgency
 Small & Medium Ticket Size
Mechanisms put in place to ensure that agencies follow
1
proper code of conduct in dealing with customers
C

– Code of conduct created for the collection agencies in line with TRAI guidelines
1
– Sample audit should be carried out on the customers contacted by the agencies

– Ensure that the collection agencies are operating as per code of conduct

2
– Helpline to be created for customers to contact BSNL in case of any complaint

– Also list of collection agencies put up on the BSNL website

3
– Any serious complaint against the agency that is substantiated should lead to

– Immediate cancellation of the contract

– Forfeiture of the security deposit of Rs. 20000
4
– Blacklisting of agency for any future contract with BSNL

– The agency and the agents should be issues with authorization letter and ID card from BSNL

– Collection agencies can collect payments only through cheques

5
– Agents to give BSNL receipts to customers on collection of payments

For internal circulation of BSNL only

 Small & Medium Ticket Size

1
D
Monitoring and review

– Weekly review to be conducted with the collection agencies

– Track %age of amount collected (from the total account passed onto them)
– The amount collected should include the following
– Cheque payment collected by agencies
– Payments made by customers directly at counters
– Non performing agencies should be given a warning
– Continuous non performance should result in removal of the agency
– A new agency should be appointed for the accounts that were held by the agency
that was removed

– The agencies should provide detailed feedback on the status of theaccounts

passed onto them
 Pilot Experience Small & Medium Ticket Size

1
Detailed feedback provided by agencies on all accounts
Plan developed for recovery based on feedback from
D
agencies

Feedback from agencies %age by Value Plan for recovery

Customer shifted 40% Random audit to verify

Prioritize on size and settle

Dispute 5% disputes

Prioritize on size and issue legal

Not Ready to Pay 8% notices

Follow up once, issue legal

Follow Up required 20% notice after that

Promise to Pay 15% Follow up regularly

Amount already collected 7% -NA-

Customers to be contacted 5% Contact customer

Total 100%
 Constitution of the team required at the SSA
level for collection of all outstanding

Required # of people Full Time / Part

S.No. Position Designation required Time Role

Manage all private recoveryagencies

Conduct weekly reviews
Drive agencies towards targets Collect

DGM / CAO asper and consolidate daily reports from

availability agencies
1 Agency Manager 1 per SSA Full Time

Database Manager
(to deal withbilling Manage database of outstanding

2 packages) CAO / AO 1 per SSA Full Time accounts

Answer queries raised by agencies in

3 Query Handlers SS/TOA 1 per Area Full Time real time

Follow up on large value and

Enterprise / Govt. govt./defense accounts

4 accounts manager CAO/AO 1 per Area Part Time Repotweekly to IFA on progress

For internal circulation of BSNL only

Team structure for national roll out of collections initiative of
Project Kuber

Corporate Office Circle Office SSA

Project Sponsor
Project Champion SSA Head
(Collection)
• ED Finance • CGM Circle • PGM / GM

Project Champion
Circle Head - Collections
(Collections)
• GM (Finance), CFA • GM (Finance)

Project Manager - Project Manager Circle - Project Manager SSA -

Collections Collections Collections
• DGM / CAO • DGM • IFA

Collections Team Collections Team Collections Team

• 3 JAOs • 1-2 AO/JAO • 6-7 people

(4-5 people) (~75 people) (~2000 people)

Project Manager to manage PM (Circle) to manage exercise PM (SSA) to drive initiative at

complete PMO for the initiative for the SSAs in their circles the ground level
Thank you