Industry Profile of Bsnl

INDUSTRY PROFILE The telecom industry is one of the fastest growing industries in India. India has nearly 200 million telephone lines making it the third largest network in the world after China and USA. With a growth rate of 45%, Indian telecom industry has the highest growth rate in the world. History of Indian Telecommunications started in 1851 when the first operational land lines were laid by the government near Calcutta (seat of British power). Telephone services were introduced in India in 1881. In 1883 telephone services were merged with the postal system. Indian Radio Telegraph Company (IRT) was formed in 1923. After independence in 1947, all the foreign telecommunication companies were nationalized to form the Posts, Telephone and Telegraph (PTT), a monopoly run by the government's Ministry of Communications. Telecom sector was considered as a strategic service and the government considered it best to bring under state's control. The first wind of reforms in telecommunications sector began to flow in 1980s when the private sector was allowed in telecommunications equipment manufacturing. In 1985, Department of Telecommunications (DOT) was established. It was an exclusive provider of domestic and long- distance service that would be its own regulator (separate from the postal system). In 1986, two wholly government-owned companies were created: the Videsh Sanchar Nigam Limited (VSNL) for international telecommunications and Mahanagar Telephone Nigam Limited (MTNL) for service in metropolitan areas. In 1990s, telecommunications sector benefited from the general opening up of the economy. Also, examples of telecom revolution in many other countries, which resulted in better quality of service and lower tariffs, led Indian policy makers to initiate a change process finally resulting in opening up of telecom services sector for the private sector. National Telecom Policy (NTP) 1994 was the first attempt to give a comprehensive roadmap for the Indian telecommunications sector. In 1997, Telecom Regulatory Authority of India (TRAI) was created. TRAI was formed to act as a regulator to facilitate the growth of the telecom sector. New National Telecom Policy was adopted in 1999 and cellular services were also launched in the same year. Telecommunication sector in India can be divided into two segments: Fixed Service Provider (FSPs), and Cellular Services. Fixed line services consist of basic services, national or domestic long distance and international long distance services. The state operators (BSNL and MTNL), account for almost 90 per cent of revenues from basic services. Private sector services are presently available in selective urban areas, and collectively account for less than 5 per cent of subscriptions. However, private services focus on the business/corporate sector, and offer reliable, high- end services, such as leased lines, ISDN, closed user group and videoconferencing. Cellular services can be further divided into two categories: Global System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA). The GSM sector is dominated by Airtel, Vodafone-Hutch, and Idea Cellular, while the CDMA sector is dominated by Reliance and Tata Indicom. Opening up of international and domestic long distance telephony Services are the major growth drivers for cellular industry. Cellular operators get substantial revenue from these services, and compensate them for reduction in tariffs on airtime, which along with rental was the main source of revenue. The reduction in tariffs for airtime, national long distance, international long distance, and handset prices has driven demand. AN ORGANISATIONAL PROFILE OF BSNL BSNL adopt latest digital switching technology like OCB, EWSD, AXE-10, FETEX, NEC, etc and widespread transmission network including SDH system up to 80 gbps web telephony, DIAS, VPN Broad brand and more than 400000 data customers, BSNL continues to serve this great nation. The responsibilities include improvement of the already impeccable quality of telecom services, expansion of telecom network, introduction of new telecom services in all villages and instilling confidence among its customers. BSNL has managed to shoulder these responsibilities remarkably and daftly. Today with over 45 million line capacity, 99. 9% exchange digital, nation wide Network management & surveillance system (NMSS) to control telecom traffic and over 400000 route kms of OFC network, Bharat Sanchar Nigam Ltd is a name to reckon with in the world of connectivity. Along with its vest customer base, BSNL’s standing. The telecom infrastructure alone is worth about Rs. 100000 crore. Turnover of Rs. 31400 crore. BSNL’s nation wide coverage and reach comprehensive range of telecom service and a penchant for excellence; and you have the ingredients for restructuring India for a bright future. Today BSNL is most trusted Telecom Brand of India. EVOLUTION OF BHARAT SANCHAR NIGAM LIMITED (BSNL) In India, the Posts and Telegraph Department originated in 1851 as a small part of the Public Works Department. Dr. William Shaughnessy pioneered telegraph and telephone in India. A regular separate department was opened around 1854 when telegraph facilities were thrown open to the public. The major milestones of the organization are as shown below. BSNL Corporate Organizational Structure {draw:frame} Vision, Mission & Objectives of BSNL VISION: To become the largest telecom Service Provider in Asia. MISSION : 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 economy. OBJECTIVES : To be a Lead Telecom Services Provider. To provide mobile telephone service of high quality and become no. 1 GSM operator in its area of operation. Contribute towards: National Plan Target of 500 million subscriber base for the country by December Broadband customers base of 20 million in the country by 2010 as per Broadband Policy 2004. Providing telephone connection in villages as per government policy. Implementation of Triple play as a regular commercial proposition.