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BSNL- Bharat Sanchar


Nigam Limited

Bharat Sanchar Nigam Limited is an Indian government-owned company with a history dating
back to British India. The British built the groundwork for India's communication network in the
nineteenth century. In 1850, the first telegraph connection was erected between Calcutta and
Diamond Harbour during British rule. After 1851 the British East India Company started using
the telegraph. These lines were installed across the country until 1854. The telegraph service
was initially made available to the general public in 1854, and the first telegram was carried
from Mumbai to Pune. Britishers passed Indian Telegraph Act in 1885. The founding of the
Department of Telecom followed the separation of the Post and Telegraph Department in the
1980s.

BSNL vision statement


o Be the leading telecom service provider in India.
o Be a customer focused organisation with excellence in customer care and marketing
o Leverage technology to provide affordable and innovative telecom services/products
across customer segments. 

BSNL mission statement


o Becoming the most trusted, preferred and admired telecom brand
o Providing reliable telecom services that are value for money 
o Generating value for all stakeholders – employees, shareholders, vendors & business
associates
o Excellence in customer service -friendly, reliable, time bound, convenient and courteous
service
o Offering differentiated products/services tailored to different service segments
o Developing a marketing culture that is responsive to customer needs
o Maximising return on existing assets with sustained focus on profitability
BSNL: The Story of Riches to Rags 
BSNL who once ruled the Indian Telecom sector has become a sick PSU. But what led to the
downfall of one of the Navratnas of the country. In early 2000s BSNL was the 2nd largest
Telecom service provider after Airtel. It was reaping huge profits from the newly launched
wireless telecommunication. Several factors led to the downfall of BSNL which accumulated
over time and became a disaster for BSNL.

Strategy of BSNL 

 Rightsizing the manpower


 Providing greater customer satisfaction
 Shared values:

The values and beliefs of the company ultimately, they guide employees towards ‘valued’
behaviour. One of the main values of BSNL is to address the problems or a grievance that has
happened to its customers. The shared value of an organization refers customer satisfaction,
implementing of automated machines and the most important one that is to be achieved.

BSNL Product Strategy: Diversification of Services

BSNL offers varieties of services and it has diversified its Marketing mix. Some of the services
which it offers are: 

1. CDMA mobile 
2. Landline Service 
3. GSM Mobile 
4. GPRS 
5. Carrier Services 
6. Broadband 
7. VSAT 
8. VoIP Services 

Other recent collaborations by BSNL:

 BSNL and YuppTV collaboration for subscription-based service


 BSNL and Ciena sign an MoU to prepare themselves for 5G technology in India
 BSNL and Eros now partnered to offer unlimited movies and digital originals
 BSNL partners with Call2Action Communication India to launch mobile advertising
platforms.
BSNL and its collaborations

BSNL is trying to improve its internet service by expanding its coverage area and offering users
with more bandwidth and date speed Through providing premium services, BSNL would be able
to maintain customer loyalty. In order to sustain and satisfy the needs of its customers, BSNL's
product strategy principally aims to keep up with the pace of changing hardware technology,
which is continually releasing new innovations.

BSNL Promotion & Advertising Strategy


BSNL advertises through a variety of mediums, including television, print, the internet, and
billboards. BSNL does extremely limited promotion because it has a large number of devoted
consumers. However, with the rise of so many competitors in the telecom market, it has begun
to promote itself by developing a new logo, snappy slogans such as "Connecting India," and
new and distinct brand identities for the many services supplied by BSNL. With the expanding
digital era, it has also initiated a few promotions on various social media platforms. It advertises
its new services, programmes, and discounts through traditional means such as banners in
various retail stores, newspapers, and social media sites, as well as through traditional means
such as banners in various retail stores, newspapers, and social media sites.

BSNL Price/Pricing Strategy


BSNL has now started to enter in competitive pricing strategy with its rivals. It offers a very
low-cost calling service in compared to its consumers, and the other services are dependent on
the installation fees. Customers' consumption affects the price of BSNL services. It gives users
who utilise the service a lot more than others a special discount or special offer. BSNL also
offers services such as lifetime cards, which allow them to stay in touch with their customers
and generate income.
VALIDITY  DATA JIO AIRTEL VODAFONE BSNL
(Days) IDEA

28 1GB/day 265 265 153

28 1.5GB/day 239 299 299 187 (2GB/day)

28 2GB/day 299 359 359 197

56 1.5GB/day 479 579 479 297

56 2GB/day 533 549 549 397 for 60days

84 1.5GB/day 666 719 719 485 for 90days

84 2GB/day 719 839 839 499 for 90days

365 24GB 159 1799 1799 1499


9

365 2GB/day 287 2999 2899 2399 (3GB/day) for


9 (1.5GB/Day) 425 days

Profits Stats of BSNL

Growth Rate Trend 


BSNL was flourishing in its initial years but started to fumble after 2009.It was due to various
wrong strategies and corruption by the the officials of BSNL and Telecom Ministry. 
Reason of the downfall 

In 2006 BSNL proposed to introduce WIMEX, relatively newer technology but it was declined by
the erstwhile Telecom Ministry. It put BSNL on the backfoot as it’s rivals were freely adopting
the newer equipment and technology. Corruption by the officials and Ministers further
deteriorated the situation of BSNL and due to which its profits tanked below. 

According to BSNL, the company has been dealing with an ageing workforce that is finding it
difficult to keep up with evolving and trending technologies. As a result, the PMO has proposed
that by the financial year 2019-2020, the age of superannuation be lowered while sufficient
facilities are provided. According to a BSNL employee, lowering the age of superannuation
might save the company around Rs. 3000 crore in the long run. The 'incipient ill' PSU
designation must be removed by BSNL

Problematic Strategies by BSNL

No Updated Service

BSNL, although being one of the country's top service providers, is still using 3G in 2022 and
has yet to be assigned a 4G spectrum. SUC (Spectrum Usage Charges) and licence fees are the
main sources of revenue for the government from the telecom sector. Because private telecom
companies profit more from 4G spectrum, they can contribute to increasing income growth.
BSNL, on the other hand, is struggling to contribute with only 3G and 2G available. When most
telecom service providers are focusing on 5G, the government plans to support BSNL with new
4G spectrum that will be available in 2019.

Lack of Professionalism
Both BBNL and BSNL have been requested to demonstrate the delay in the second slot of the
BharatNet project, which has already over the deadline. Only around half of the network
distribution has been completed. Over the years, such delays have become common, as has a
lack of cooperation..

Part of Most PSU Losses

Consequence of the wrong Policies

BSNL lost market share from 21% to 15% in 2010

BSNL Present Scenario 

BSNL currently occupies 10% of the market share which has gained significant amount of
market share in recent times after a rough patch. This is due to the low pricing plans launched
by BSNL.

BSNL has 70% market share in landline connections. With it new pricing strategy. It has gained
subscribers in previous 4-5 years.

BSNL Market share in recent years.


It has shown significant gain in terms of market share in recent years.
BSNL Market Share in comparison other players in Telecom
SWOT Analysis

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