TABLE OF CONTENTS
• Mission and vision
• Case study
• Bharat Sanchar Nigam Limited (abbreviated BSNL)
is a state owned telecommunications company
headquartered in New Delhi ,india. BSNL is one of
the largest Indian cellular service providers, with
over 90 million subscribers as of July 2011, and the
largest land line telephone provider in India.
However, in recent years the company's revenue
and market share plunged into heavy losses due to
intense competition in Indian telecommunications
• BSNL is India's oldest and largest
communication service provider (CSP). It had
a customer base of 90 million as of June
2008. It has footprints throughout India
except for the metropolitan cities
of Mumbai and New Delhi, which are
managed by Mahanagar Telephone
Nigam(MTNL). As of June 30, 2010, BSNL had
a customer base of 27.45 million wireline and
72.69 million wireless subscribers.
• BSNL then known as the Department of
Telecommunications had been a near monopoly during
the socialist period of the Indian economy. During this
period, BSNL was the only telecom service provider in
the country. MTNL was present only in Mumbai and
New Delhi. During this period BSNL operated as a
typical state-run organization, inefficient, slow,
bureaucratic, and heavily unionised. As a result
subscribers had to wait for as long as five years to get a
telephone connection. The corporation tasted
competition for the first time after the liberalisation of
Indian economy in 1991.
• Faced with stiff competition from the private telecom
service providers, BSNL has subsequently tried to increase
efficiencies itself. DoT veterans, however, put the onus for
the sorry state of affairs on the Government policies, where
in all state-owned service providers were required to
function as mediums for achieving egalitarian growth
across all segments of the society. The corporation (then
DoT), however, failed to achieve this and India languished
among the most poorly connected countries in the world.
BSNL was born in 2000 after the corporatisation of DoT. The
efficiency of the company has since improved, however, the
performance level is nowhere near the private players.
• The corporation remains heavily unionised and is
comparatively slow in decision making and its
implementation, which largely acts at the instances of
unions without bothering about outcome. Management
has been reactive to the schemes of private telecom
players. Though it offers services at lowest tariffs, the
private players continue to notch up better numbers in
all areas, years after year. BSNL has been providing
connections in both urban and rural areas. Pre-activated
Mobile connections are available at many places across
India. BSNL has also unveiled cost-effective broadband
internet access plans (DataOne) targeted at homes and
small businesses. At present BSNL enjoy's around 60% of
market share of ISP services.
• Year of Broadband 2007
• 2007 was declared as "Year of Broadband" in India and
BSNL announced plans for providing 5 million broadband
connectivity by the end of 2007. BSNL upgraded Dataone
connections for a speed of up to 2 Mbit/s without any extra
cost. This 2 Mbit/s broadband service was provided by
BSNL at a cost of just US$ 11.7 per month (as of 21 July
2008 and at a limit of 2.5GB monthly limit with 0200-0800
hrs as no charge period). Further, BSNL is rolling out new
broadband services such as triple play. BSNL planned to
increase its customer base to 108 million customers by
2010. With the frantic activity in the communication sector
in India, the target appears achievable.
• BSNL is a pioneer of rural telephony in India. BSNL has
recently bagged 80% of US$ 580 m (INR 2,500 crores)
Rural Telephony project of Government of India.
• On 20 March 2009 BSNL advertised the launch
of BlackBerry services across its Telecom circles in
India. The corporation has also launched 3G services in
select cities across the country. Presently, BSNL and
MTNL are the only players to provide 3G services, as
the Government of India has completed auction of 3G
services for private players. BSNL shall get 3G
bandwidth at lowest bidder prices of Rs 18,500 crore,
which includes Rs 10,186 crore for 3G and Rs
8313crore for BWA.[
Mission And Vision
To become the largest telecom Service Provider in Asia.
To provide world class State-of-art technology telecom services to
its customers on demand at competitive prices.
To Provide world class telecom infrastructure in its area of
operation and to contribute to the growth of the country's
To be a Lead Telecom Services Provider.
To provide quality and reliable fixed telecom service to our customer and
there by increase customer's confidence.
To provide mobile telephone service of high quality and become no. 1 GSM
operator in its area of operation.
To provide point of interconnection to other service provider as per their
National Plan Target of 500 million subscriber base for the country by
Broadband customers base of 20 million in the country by 2010 as per
Broadband Policy 2004.
• BSNL provides almost every telecom service in India. Following are
the main telecom services provided by BSNL:
• Universal Telecom Services : Fixed wireline services and landline in
local loop (WLL) using CDMA Technology
called bfone and Tarang respectively. As of June 30, 2010, BSNL had
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
• BSNL Broadband
• Internet: BSNL provides Internet access services through dial-up
connection (as Sancharnet through 2009)as Prepaid, (NetOne) as
Postpaid and ADSL broadband (BSNL Broadband). BSNL held 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 March
2010.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 offers value-added services, such as
Free Phone Service (FPH), India Telephone Card (Prepaid card),
Account Card Calling (ACC), Virtual Private Network (VPN), Tele-
voting, Premium Rae Service (PRM), Universal Access Number (UAN).
• 3G:BSNL offers the '3G' or the'3rd Generation' services which
includes facilities like video calling,mobile broadband, 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:Fibre 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.
• WiMax: BSNL has introduced India's first 4th Generation High-
Speed Wireless Broadband Access Technology with the minimum
speed of 256kbps. The focus of this service is mainly rural customer
where the wired broadband facility is not available.
• During the financial year 2008-2009 (from April 1, 2008 to March 31,
2009) BSNL has added 8.1 million new customers in various
telephone services taking its customer base to 75.9 million. BSNL's
nearest competitor Bharti Airtel is standing at a customer base of
62.3 million. However, despite impressive growth shown by BSNL in
recent times, the Fixed line customer base of BSNL is declining. In
order to woo back its fixed-line customers BSNL has brought down
long distance calling rate under OneIndia plan, however, the success
of the scheme is not known. However, BSNL faces bleak fiscal 2009-
2010 as users flee
• Presently there is an intense competition in Indian Telecom sector
and various Telcos are rolling out attractive schemes and are
providing good customer services.
• Access Deficit Charges (ADC, a levy being paid by the private
operators to BSNL for provide service in non-lucrative areas
especially rural areas) has been slashed by 20% by TRAI, w.e.f. April
1, 2009. The reduction in ADC may hit the bottomlines of BSNL.
• BSNL has started 3G services in 290 cities and acquired
more than 6 Lakh customers. It has planned to roll out
3G services in 760 cities across the country in 2010-11.
• Broadband services : The shift in demand from voice to
data has revolutionized the very nature of the network.
BSNL is poised to cash on this opportunity and has
planned for extensive expansion of the Broadband
services. The Broadband customer base of 3.56 Million
customer in March'2009 is planned to be increased to
16.00 million by March 2014. Now bsnl is the under
top five telecom service provider company in India.
when compared to other telecom companies the quality
of employees are not satisfactory.customer
oriented,management skills are also poor,the influenece
of unions in the organisation will also affect the future of
• A senior BSNL executive said the company is looking to
have around 13 modules of what is called enterprise
resource planning or ERP software. Besides finance,
supply and HR functions, the software will be used to
deal with materials and real estate management,
ensure quality, derive business intelligence, and help
operationalize an enterprise portal.
• “The ERP project is expected to get over by December
2009,” said the executive, who did not wish to be
named because the plan to buy the software is not
• The company’s “IT cell is already working on ERP
implementation for entire BSNL and an RFP (short for
request for proposal) is under preparation,” according to
a BSNL circular, dated 15 October. The note has set
October as the deadline for floating the ERP tender.
• Government sector enterprises such as the ministry of
finance, Oil and Natural Gas Corp. Ltd, BSNL and Indian
Railways will spend nearly $3 billion or Rs11,850 crore
this year on buying new software, hardware and
services, according to research firm Frost & Sullivan.
Such mega-sized plans help make the spending in the
country on software and hardware wares the fastest
growing in the world.
• The railways plans to float a $1 billion tender for its ERP
project, which will have an expected user base of more
than 1.6 million.
• Companies such as Oracle Corp. and SAP AG, two of the
biggest business software vendors in the world, will be
bidding for BSNL’s ERP project once a tender is floated, said a
person familiar with the development, who did not want
either himself or his employer to be identified.
• Bharti Airtel and Idea Cellular Ltd run Oracle’s software for
integrating work around HR, finance and material
management. An Oracle India Pvt. Ltd spokesperson said she
could not immediately comment on the BSNL project.
• A tech expert said BSNL would likely prefer to implement a
ready-to-go ERP software rather than build up the
application from scratch despite having a 500-member-
strong IT team located at Pune.
• “Building an ERP could take few years depending on how
much time is consumed in understanding the needs,” said
Rajdeep Sahrawat, vice-president of trade body National
Association of Software and Service Companies or Nasscom.
“It makes sense for them to look at packaged solution from
Oracle or SAP.”
B U Y E R C A S E S T U D Y
B u y e r C o n v e r s a t i o n s :
H o w B S N L P a r t n e r e d
w i t h H C L A x o n t o D r i v e
S A P - E n a b l e d B u s i n e s s
T r a n s f o r m a t i o n
• Incorporated in October 2000, Bharat Sanchar
Nigam Ltd. (BSNL) is amongst the top 10 telecom
operators in the world. The company provides
a wide range of telecom services in India
across fixed-line, code division multiple access
(CDMA) mobile,GSM mobile, Internet,
broadband, carrier service, multiprotocol label
switching (MPLS)–VPN, very small aperture
terminal (VSAT), VoIP services, and international
• In an increasingly competitive market, the ability
to respond to competitive moves and market
change in a quick and efficient manner is crucial
for maintaining a competitive position in the
market. Organizations that have legacy
processes and tools have found it difficult to
adapt to changing market dynamics and have
been witness to significant reduction in market
share and impact on the brand value they bring
to their customers.
• BSNL as an organization has rich history and
significant assets (approximately US$37 billion),
yet its inability to adapt to evolving market
dynamics led to the once incumbent telecom
operator's lost of significant market share and
profitability. Layered by government control
mechanisms and a high cost-structure the
company has struggled to compete effectively in
the India market. This study looks at
how BSNL engaged with HCL AXON to undertake
its business transformation project
for enterprise resource planning (ERP) adoption
and the benefits it expects to realize