The under taken study of Bharat Sanchar Nigam Limited (BSNL) is a Public Sector Enterprise of the Govt. of India. The study aims to propose revival/restructuring of the company. The findings of the study will additionally suggest the necessary changes that need to be made for revival/ restructuring of BSNL.

1. TITLE
S u b t i t l e
D a t e
INNOVATION
PSU- Bharat Sanchar Nigam Limited

2. Executive Summary
The under taken study of Bharat Sanchar Nigam Limited (BSNL) is a Public Sector Enterprise of the Govt. of India.
The study aims to propose revival/restructuring of the company. The findings of the study will additionally suggest the
necessary changes that need to be made for revival/ restructuring of BSNL.
As a part of the study, we have contacted and interacted with various officials of BSNL.
The specific questions addressed in this report are:
• What is the role of BSNL in the sector
• What are the reasons for financial losses in BSNL
• What are some of the salient challenges necessary to be addressed for revival/ restructuring of BSNL
• What steps to be taken for revival/ restructuring of BSNL and how will the restructuring be financed
We have gone through the problems and challenges before BSNL that have let it from being a company with a cash
surplus of ₹37,000 cr. in 2005 to a loss of ₹14,000 cr. in 2019. We have done the SWOT analysis for the company in
the report with stakeholder mapping to understand some of the salient issues that need to be addressed by both GOI
and the BSNL to enable its revival/restructuring.

3. Problems before BSNL
• . The main reason for price war in India
was the predatory pricing by Jio.
• The cash-rich Reliance industries, started
giving mobile services free of cost leading
to closure of 10 private operators.
BSNL 3
1) Price War Among Companies

4. 2) Employee strength
BSNL 4
• Number of staff is 1.7+ lacs,
hence the employee expense is very high

5. • For the reasons best known to Government, BSNL has
not been allowed to bid for 4G spectrum. Now when all
other companies are working on providing 5G services,
BSNL is still having 3G services.
• Although in some areas, the 3G services provided by
BSNL are comparable or better than the 4G provided
by other operators, still it is a highly adverse issue in
the eye of average user.
BSNL 5
3) BSNL not allowed 4G spectrum

6. Background of BSNL
Type State owned organization
Industry Telecommunications
Founded 15 September 2000, 19 years ago
Headquarters New Delhi, India
Owner Government of India
Number of employees 174,216 (2018)
Division BSNL Mobile, BSNL broadband
Unique Value Proposition Wide Market Coverage and Market Reach
Genesis:-

7. Customer Segments
Logo here 7
• telecom services with ICT applications in villages &
winning customer's confidence
• planned initiatives to bridge the rural-urban digital
divide in ICT sector
• wide network giving services in every nook & corner of
the country & operates across India
• inaccessible areas of Siachen glacier or North-Eastern
regions of the country

8. Current Product/Services
Cellular Mobile
Telephone
Services
Universal
Telecom
Services
WLL-CDMA
Telephone
Services
Internet
Intelligent
Network Broadband IPTV
FTTH VoIP MPLS-VPN

9. Current Innovation Initiative
1) Bharat Fibre
• IPTV having different type of contents like
HDTV and future coming 3D TV and range of
voice telephony
• fix access platform to deliver the high speed
broadband from 256 Kbps to 100 Mbps
2) Asset Monetisation

10. Research Work

11. Stakeholder Mapping

12. STRENGTH
• Pan India huge real estate infrastructure of
building Huge Optical-Fibre network
• Highly qualified work-force
• Alliances with Leading companies for
hardware & software requirements.
• Vast Experience: The Company has in
house experience in planning, installation,
network integration & maintenance of
switching & transmission networks. Its
competitors on the other hand, depend
completely on outsourcing the functions.
WEAKNESS
• Purchase material through transparent
bidding which takes long time
• Slow decision making process due to
bureaucratic/Govt. type setup
• Unproductive rural assets: Outdated
technologies, low ROI from rural assets
• Political Interference
• Poor marketing
SWOT Analysis

13. OPPORTUNITY
• MNP (mobile number portability) has
resulted in increase in customers as they
are realising the transparent working of
BSNL.
• Hiring out of unutilized infrastructure to other
telecoms.
• Customer retention through a combination of
loyalty schemes, better Tariff, service
standards will result into higher revenues.
• Huge real estate can be monetized to
generate funds for investing in technology.
• Lowest debt among all operators
THREATS
• Government Controlling All major decisions. Most
of the decisions taken by Govt. and TRAI favour
private telecoms against BSNL.
• Government is still not allowing 4G spectrum to
BSNL without which it cannot survive the
competition.
• Price war in the home market and technologically
advanced private players have resulted in
declined margins.
• Low brand loyalty: Customers change operators
at the slightest inconvenience or cheaper plans.
SWOT….Cont.

14. Business Model
BSNL operates on B2B and B2C model
For large customers such as government offices, banks, corporates etc., it provides direct
services to customer and these services are handled by a separate business vertical called
‘Enterprise Business’.
For retail customers, BSNL operates on B2B model by engaging franchisees/ business
partners who further provide the services to customers on revenue sharing basis.

15. Interviews - Employers
Mr. Girish Kumar
Sub-Divisional Engineer
Mr. Manish Kumar
General Manager (Corporate Restructuring)
Mr. Pawan Kuma Aggarwal
General Manager (Mobile Planning)
Mr. Bhagwat Rastogi
Deputy General Manager
Mr. Vikas Kumar Gupta
General Manager (HR & Administration)

16. Organization Process Service
Huge no. of staff hence high
employee expense
Working culture of government
institution
Landline Maintenance cost is
more than landline revenue
Govt./Bureaucratic setup Could not invest in right
technology at the right time
and kept lagging
Unproductive rural assets
No aggressive marketing Provides 3G
Social Obligation
Classification of Problem