CASE STUDYPRESENTED BY: Vinayak Nandikal & Group

• ‘Poster Child’ of India’s Economic Liberalization

• Teething troubles faced in the initial stages

• New telecom policy of 1999

• Introduction of CPP

• The entry of third operator (MTNL & BSNL )

Telecom Journey: Moving in Top Gear

MARKET SHARE

• World’s 7th largest & India’s No.1 Telecommunication company

• 47.3 million line basic telephone capacity, 4 million WLL capacity, 20.1 Million GSM Capacity, 287 Satellite Stations, 7330 cities/towns and 5.5 Lakh villages

• The present turnover of BSNL is more than Rs.351,820 million (US $ 8 billion) with net profit to the tune of Rs.99,390 million (US $ 2.26 billion) for last financial year.

Bharat Sanchar Nigam Limited(BSNL)

Picture slide

• Bullet 1• Bullet 2

BSNL Objectives• To provide each & every village with a

telephone

• To encourage development of telecommunication facilities in remote, hilly, tribal areas of the country

• To make available affordable & effective communications for the citizens

• To expand broadband, leased lines, cellular , WLL services with the state of the art technology

BSNL is an Integrated telecom service provider which provides all types of telecom services.

Wire Line ServicesCDMA WLL Limited Mobility ServicesNational Long Distance Services International Long Distance ServicesBroadband & Internet Services In Services viz. Prepaid calling card etc.

New InitiativesWiMAX: Tender Invited for 1000 BTS at Rural

Block HQs covering 25000 village

communities centres IPTV

Launched in Three Cities viz. Bangalore, Pune & Kolkata

Agreement signed with Franchisees for another 50 Cities

VOIP EOI under Issue

Expansion of 13.5 m GSM lines.

Expansion of 3m Broadband.

Expansion of 2 m WLL (CDMA) lines

Introduction of 200K IP Transit Switch.

Addition of 1206 K TDM TAX

Addition of 200 IDRs Satellite System for Inaccessible Stations.

Developmental Plans (2008-09)

Selecting the Right person : A Sales person

• Should be… Honest/trustworthy Friendly/Pleasing Interesting Good listener Polite Flexible Knowledgeable Empathizing

• Should not be…Arrogant/rude Indifferent Sarcastic/superior Impatient Aggressive Defensive Negative Lazy

He should know:

Market Positioning StrategyMarket analysis

• SizeEstimated to be around $8.1 billion and

estimated to reach $18 billion by the financial year 2010

• Composition Fixed, Cellular, Internet Service Provider (ISP),

National Long Distance (NLD), International Long Distance (ILD)

• TrendsData and Value Added Services

Market Positioning StrategyInternal Analysis

• Resources• Its own service network, which is the largest

• Reputation• Currently the No. 1 telecommunications company • PSU

• Values• To increase the reach of its services to a

maximum number of Indians

Market Positioning StrategyCompetitor Analysis

• Range of Services• Pricing StrategyPositioning• BSNL

• Low-cost service provider for common man• Hutch

• Niche player mainly operating in urban and semi-urban market with focus on quality service

• Reliance Infocomm• Competing on Value-Added services such as R-World.

 

Position map

High Tariffs

Low Tariffs

Wide Network CoverageNarrow Network Coverage

BSNL

RelianceAirtel

IdeaVodafone

1. Market skimming strategy

2. Market Penetration strategy

Pricing Strategies

The Pricing Tripod ModelPricing

Strategies

costCompetition

Value to customer

Revenue GenerationPrepaid cards

Postpaid cards

Fixed rentals and call cards

Internet access charges

Extra charges for value –added services

“Quality in a product or service is not what the supplier puts in. It is what the customer gets out and is willing to pay for.” -  

Peter F. Drucker

WHAT IS QUALITY ?

Example Bullet Point SlideSERVQUAL MODEL

PERCEIVED SERVICE QUALITY

Grönroos's Service Quality Model

VALUE NETWORK

FUTURE BLUEPRINT

Future Scenario

Issues of concern

RECOMMENDATIONS• CUSTOMER CARE

• HIGH SPEED INTERNET INFRA

• DISINVESTMENT