1.1.2 Telecom Market & EB.pptx

For circulation to Trainees only 1
Enterprise Business
Market & Strategy

Aspiration Driven Transformation: ALTTC
Agenda
Telecom Business Environment
Meeting the Challenges
BSNL- Aspiration Driven
Transformation

Telecom Growth in India
• New Economic Policy (1991)
– Opening up of Telecom service sector (Mobile –
metros)
• National Telecom Policy 1994
– Telecom, key for development
– Inadequacy of public resource to meet demand
– Private sector to supplement Govt.
– Provide world class telecom service at affordable cost

• Establishment of TRAI (1997)
• New Telecom Policy (NTP 99)
– Transition from fixed license fee to revenue share
– Introduction of free competition
– Technology neutral licenses
– Tariff rebalancing
• Creation of BSNL (2000)
• Establishment of TDSAT (2000)

• Opening of national & international long distance
• Limited mobility allowed to basic services (CDMA spectrum allotted to basic
service operators) (jan 2001)
• Launching of mobile service by BSNL (2002)
• Establishment of USO fund
• Unified Access (basic & cellular) service license introduced as a first step
towards unified license regime and technology neutral era (nov 2003)
• Broadband policy (2004)
• Number portability
• MVNO (mobile virtual network operator)

TELECOM SCENARIO-future...
Fixed-mobile substitution and convergence
Advancement of access technologies
Convergence in Telecom, Media and Devices
Next wave of growth
Transformation in Operations and Technology
Voice
going wireless
Broadband
everywhere
Blurring
boundaries
Next Billion
Consumers
Telco factory
1
2
What will the killer application in India be?
India's digital
generation
3
5
6
7
Universal mobile telephony and data
Universal
mobile
4

Market Share-Sept 2009
BSNL
17%
Bharti Airtel
22%
Reliance
Telecom
17%
Vodafone
Essar
16%
Tata
Indicom
10%
Idea
9%
Aircel
5%
MTNL
2%
Others
2%
Others means Spice Telecom 0.92%, BPL 0.49%, HFCL 0.11% and Shyam 0.40%

BSNL relative performance
Operator Revenue* (in Rs. Crore)
*from web sources/V&D 2006-07 2007-08 2008-09
BSNL 39,715 38,046 35,811
Bharti Airtel 17,888 26,436 36,962
Reliance Comm 14,468 18,638 22,941
Vodafone 10,565 15,477 22,224
Tata Communications 8,857 8,297 9,963

BSNL Has been Leader

BSNL financial performance

BSNL revenue breakup
BSNL Revenue Financial Year vise in Rs Crore
Service 04-05 05-06 06-07 07-08 08-09
Landline 21853 20421 16605 12668 9173
Mobile 3792 6433 9264 10579 9828
WLL 347 481 568 618 636
Broadband 4 162 514 916 1756
Circuits 421 530 512 757 960
Receipt
from other
operators
N.A 6972 6146 5655 4304

Trends & Opportunities

Questions?
• Are all the employees motivated to deliver better results?
• Are management practices conducive to growth and challenging
competition?
• Is the Vision statement aligned to reality?
• Do all the employees know and believe in the Vision of BSNL?
• What fate is expected in next five years?
• What makes other operators grow in spite of little technology & tariff
differences with BSNL?
• Is organization structure within BSNL too bureaucratic to deliver results?

Why Transformation is required?

Answer
Change

We have to re-direct the aircraft while flying
Small window of opportunity

Change possibility

Individual Change
• Change in the job content
• Change in status
• Change in location
• Redundancy
• Change in social grouping
• Loss of earning or earning potential
• Change in conditions of employment
• Change in people’s belief, values and assertions.

Individual Resistance
Economic
Factors Fear of
Unknown
Habit Security
Resistance
Selective Information Processing

Organizational resistance
Structural Inertia
Limited Focus
Threat to established
of Change
Resource Allocation
Threat to established
Power relationship Group Inertia
Threat to expertise
Organizational
Resistance

Ways to overcome resistance
• Education and communication
• Participation and co-operation
• Facilitation and support
• Negotiation
• Manipulation
• Coercion

McKinsey 7S model for success
• Strategy: The plan devised to maintain and build competitive
advantage over the competition.
• Structure: The way the organization is structured and who reports
to whom.
• Systems: The regular and routine activities and procedures in
which the employees engage on a daily basis to get the jobs done.
• Shared values: These are the core values of the company those
are evidenced in the Corporate Culture and the general work ethics.
• Style: The style of Leadership adopted.
• Staff: The employees and their general capabilities.
• Skills: The actual skills and competencies of the employees.

ACCOUNTABILITY, TRANSPARENCY,
COMMITMENT, PURSUIT OF EXCELLENCE
and
TEAM WORK.
Our VALUES

Change - How to bring in?
Structure
(organizational)
Technology/
Systems/
Processes
People
What are the Change
Options ?

Change Methodology
• Defrost a hardened status -quo
• Establish a sense of urgency
• Create the guiding coalition
• Develop a Vision and Strategy
• Communicate the changed VISION
• Introduce new practices
• Empower a broad base of people to take action
• Generate short term wins
• Consolidate gains for producing even more changes
• Ground the changes in the Culture
• Institutionalize new approaches in the Corporate Culture

Ver3 Feb09 Change Management -ALTTC
Change experience
• Introduction of Electronic exchanges (Strowger/Crossbar scrapping)
• Computerization of TRA
• Computerization of 197
• Introduction of CDTMX (Computerized Trunk Booking Services)
• Corporatisation of DTS/DTO (DoT)
• Absorption of DoT employees
• Long stay transfer policy
• Outsourcing of various semiskilled and unskilled jobs
• Introduction of Franchisee concept
• Outsourcing of call centers (9400024365)
Future
• ERP
• Recruitment of Management Trainees/ DGM’s ---

Present Approach of BSNL
Some of the major lacunae are identified as :-
• Lack of shared Vision among employees
• Inability to see the big picture
• Too broad structure
• Lack of documented Role, Responsibilities and Accountability matrix
These are left to the individuals to define and act as per past
experience, practices and own wisdom.
• Legacy processes: The way the works get done leads to
inefficiencies and delays.

SWOT Analysis

BSNL-SWOT
Feature Strength/Weakness/Opportunity/Threat
Valuable assets-copper, fibre, buildings
etc.
Declining handset costs
More Competitors
Large Talented manpower
Low employee motivation & involvement
Declining Tariff due to competition
Growing market of mobile connections
Age profile of manpower

BSNL Vision-2007
To become the largest Telecom Service
Provider in Asia.

Mission-2007
i. To provide world class State-of-Art technology
Telecom Services on demand at competitive prices.
ii. To Provide world class Telecom Infrastructure in its
area of operation and to contribute to the growth
of the Country's Economy

Business Game
What we aspire
to be?
What we really
are now?
What is going
on around us?
Gap leading to
creative tension
What we have to
work on together?
1
3
4
2

Telling
I know... you will have
to follow it
Testing
I have an idea... but
want to test your re-
action before going
on
Co-creating
We will together
build a shared
aspiration
Top driven
change
Aspiration
driven
transformation
This is a "co-creation" effort
We will develop and execute together
Pull
Source: “Fifth Discipline Field Book”, Brian Smith

Roadmap identified
• Develop a shared aspiration for BSNL’s future.
• Articulate a well-defined strategy for the growth and profitability.
• Create a 5-year business plan outlining a range of potential
outcomes.
• Develop thorough Sales & Marketing Strategy for each of the core
businesses (Landline, Mobile, Broadband, Enterprise etc.)
• Outline key implications on Operations and Customer Service to
support various businesses. (Business Process Re-engineering)
• Define the right organizational model (Restructuring)
• Implementation of the initiatives in the form of Pilot projects

Vision-2013
• Be the leading telecom service provider in India with
global presence
Maintaining a high rate of growth to protect and increase
the market share in all segments of operations
Generating value for all Stakeholders-Business Associates,
Vendors, Shareholders & Employees
Maximizing returns on the existing assets with sustained
focus on profitability
Becoming the most trusted, preferred and admired
Telecom Brand
To explore international markets for Global presence

Vision-2013
• Create a customer focused organization with
excellence in Sales, Marketing and Customer Care
Developing a Marketing & Sales Culture that is responsive
to customer needs
Excellence in customer service- friendly, reliable, time
bound, convenient and courteous service
 Leverage the technology to provide affordable and
innovative products / services across customer
segments, including end-to-end converged services

Mission-2013
Provide a conducive work environment with
strong focus on performance
Attracting talents and keeping them motivated
Enhancing employee skills and utilizing them effectively
Encouraging & rewarding individual
and team/group performance
Establish efficient business processes
enabled by IT

Implementation
• Accelerating the growth of mobile business
– Building an extensive and strong distribution /retail footprints
– Innovation in product & pricing
– Acceleration of 3G sales to capitalize the First Mover Advantage
– Improving effectiveness of VAS
• Leading and shaping the fixed access business
– Addressing gaps in Sales & Distribution
– Innovation in product and pricing
– Building the capabilities and offerings on contents and VAS
– Improvement in service delivery and provisioning time

Implementation
Growing the Enterprise Business and becoming provider of
choice by
– Establishing Key Account Management
– Innovation in products and solutions
– Strengthening service delivery and service assurance
Expanding into new businesses
– Developing the infrastructure sharing business
– Monetise other embedded assets
Focusing on financial assurance
– Fixing billing leakages and improving collection efficiency
– Reducing operating costs

Implementation
• Improving customer service levels across different interface
points
– Improving effectiveness of Call Centres and CSC
– Building new areas such as On-line Registration, Billing etc
• Implementing operations improvement initiatives
– Increasing service levels by reducing downtime and improving
turn-around times
– Reducing operating costs wherever feasible

Implementation
• Implementing new organisation structure across the
organisation – Head Office, Circle Office and Regional Office
– Defining Roles & Responsibilities and Key Performance Indicators in
the new structure
– Enhance effectiveness of new structure by appropriate top-
management MIS and planning and budgeting
• Focusing on implementing critical HR priorities
– Recruitment at DGM, MT and JTO/JAO levels
– Capability development

Pilot Projects
• Vijay
• Udaan
• Dosti
• Kuber
• Sanchay
• Smile

Pilot Projects
 Vijay:
 Sales and Marketing of Mobile Services
 Strengthening of the Franchisee and Retail network
 Retail managers (TM’s) to monitor and coordinate with
Franchisees
 Door-delivery to the latter
 Incentive scheme and rewards
 FoS – “Feet on Street” (employed by the Franchisee)
 On-line payment by the Franchisee (to be implemented)

Pilot Projects
 Udaan
 For Land line and Broad Band
 Focus on increasing sales through own sales channel and
present DSAs
 Service Delivery and Service Assurance teams
 Sales executives
 Improve service and provisioning
 Increase conversion of new connection leads
 Develop specific price and product plans for launch in the market
 Incentive scheme

Pilot Projects
 Dosti
 For PCO promotion
 PCO relationship servicing agent
 Pilot project in Bangalore
(yet to take off)

Pilot Projects
Kuber
 Revenue realization
 Ensuring proper and prompt billing and collection
 Focus on Leased lines

Pilot Projects
Sanchay
 Monitoring and saving of Operating expenses
 Optimize the consumption of Electricity, diesel etc
 Other methods of saving

Pilot Projects
 Smile
 Customer Care
 CSC as an integrated unit
 Telecom Shoppe, Commercial and TR activities.
 Automatized payment collection Kiosk

Sum Up
• It is a strategic step to regain the lost glory
• Change in people, processes and structure has to be
accepted
• Change should be a timely process and done in a
strategic and systematic way
• Transformation should be done as a Co-creation effect.
• 100% co-operation and contribution of all is required.

Why Enterprise Business

BSNL is a leading telecom
solutions provider in India
55
0
20
40
60
Mobile
customers
Million (#)
More than 50 million
mobile1 customers
~30 million landline
customers
Largest Broadband service
provider in India
29
0
10
20
30
Million (#)
Landline
customers
1. Includes CDMA and GSM customers
Source: TRAI Reports
Landline
customers
%
70%
100%
80%
60%
40%
20%

BSNL has an unmatched pan
India and global reach
Snapshot of BSNL's MPLS network
BSNL
Network
• 300 POPs across
India
• 5 Regional POPs
at Pune, Noida,
Kolkata, Chennai,
and Bangalore
• Ability to extend
MPLS cloud to
2,700+ locations
• Global MPLS
provisioning due
to partnerships
with BT, PCCW
and C&W
• Separate Core &
Edge routers for
better
performance
• High end Cisco
routers (GSR
12000 series)
• Primary NOC at
Bangalore
• Disaster Recovery
(DR) NOC at Pune
• BSNL has ~5.5
Lakh Kms of fibre
within India

BSNL can support you across India
Our customers speak for us
"BSNL is often the only
service provider in some
areas that we need to
reach – others often
over commit on reach"
"We have found that
BSNL is able to give
us the best rates for
linking up rural areas
due to their vast
network reach"
BSNL has the best
rates and the best
rural connectivity
Source: Customer Interviews

BSNL has a wide customer base

BSNL has received many awards for
quality of service
Top telecom
company of the
year- 2008
Brand excellence
award- 2008
Certificate of
recognition for best
web portal

BSNL has extensive experience in connecting
and networking in different industry sectors
19
18
14
17
100
0
20
40
60
80
100
%
Players
MTNL Others Total
32
BSNL TCL Airtel
BSNL is the preferred primary
connectivity provider for enterprises
BSNL has a varied customer base
and experience
74
24
73
9 6 5
0
20
40
60
80
IT &
Media
Govern
ment
Manufac
turing
BFSI Others
Telecom
Sectors
Customers with links greater than 50 Leased Lines
1. From Voice & Data Enterprise Connectivity Survey (2007)
Source: Voice & Data, Customer Interviews; BCG analysis

BSNL offers a wide range of products
Fixed Line
• PSTN
• PRI
WLL
Mobile
Enterprise VoIP
CUG (Voice VPN)
Blackberry
Data cards
Centrex
Basic Voice Data Managed Services
Legacy Packet
• ATM
• Frame Relay
• X.25
High Speed Data &
Internet
• ISDN
• DSL
• VSAT
• Cable
• WiMax
Leased Line
• IPLC
• DLC
• ILL
MPLS VPN
MLLN
Conferencing
Co-Location
• Co-location
• Access Security
Managed Network &
Server
• Managed Devices
• Managed Bandwidth
• Managed Network
• Disaster Recovery
• Managed Firewall
• Managed Storage
• Network Security
Fleet Management
System
Video Surveillance

We will offer "solutions" which will
support your endeavours
Unified Communications
Stronger personnel management system
Internet start up packs
Data management and recovery
We will understand
your telecom needs
We will select
products that best
support the needs
PRIs CUG
VoIP
Conferencing
MS email
Dom
ain
name
Mana
ged
Apps
Data
Cent
er
We will develop
overall integrated
solutions
Unified communications
Internet start up packs
Data management

Some of the solutions that we
already offer
We can customise for you
PRI
Mobile
CUG
VoIP
Fax
Audio
conferencing
Video
conferencing
Home zone
Unified
Communications
Suite
1 2 3
Internet start- up
pack
Global Connectivity
pack
ILL
Domain Name
Website
Mail
Web hosting
International
Bandwidth with
bundled VoIP
Call center
solution
Remote office
operations
CUG + BB + Data
Cards

BSNL has now decided to create a
special focus on enterprise customers
• Enterprise is now a new business unit -Headed by Dir Enterprise
• This business unit aims to provide the best quality of service to BSNL's enterprise
customers
• For this purpose, each enterprise customer will have a dedicated account
manager
– Account manager will be the single point of contact for the customer
– Account manager will help the customer in getting access to relevant product
experts and service personnel within BSNL
– Account manager will help our enterprise customers in making their business
better
• We have dedicated teams to monitor the provisioning and assurance for
enterprise customers
– Teams to follow up and create weekly status update reports
– Escalation mechanisms to ensure that you get the best service

BSNL can be your partner for
enterprise solutions
Account Manager Name
Account manager contact number
Account manager email id

1.1.2 Telecom Market & EB.pptx

Recommended

Recommended

More Related Content

Similar to 1.1.2 Telecom Market & EB.pptx

Similar to 1.1.2 Telecom Market & EB.pptx (20)

More from RajeevKumarGangwar

More from RajeevKumarGangwar (17)

Recently uploaded

Recently uploaded (20)

1.1.2 Telecom Market & EB.pptx