News Bsnl Society Strategies Together With Swot Analysis
Company Overview:
Bharat Sanchar Nigam Ltd (BSNL) was established inward Oct 2000 when the Department of Telecommunications incorporated its network operations exterior of Delhi too Mumbai. Influenza A virus subtype H5N1 state-owned operator, BSNL has a mobile network serving to a greater extent than than 72.70mn (as of June 2010), making it India's 4th largest GSM operator. The fellowship also served 26.94mn fixed-line subscribers at the halt of June 2010. BSNL is also India's largest ISP, amongst 9.67mn meshing subscribers, representing 57.84% of the total. The state-owned fellowship operates inward 21 of India's 23 regional circles, but does non provide services inward New Delhi or Mumbai, where sis fellowship MTNL operates.
Recent Financial Result
For the financial yr ended March 31 2010, BSNL reported full revenues of INR320.454bn, downward yesteryear 10.5% from INR358.119bn inward FY2008/09. Meanwhile, employees' remuneration too benefits rose to INR134.550bn inward March 2010 from INR113.632bn, which negated the decrease inward licence too spectrum fee. Total expenditure brutal yesteryear 0.8% y-o-y to INR340.780bn inward FY2009/10. As a result, BSNL posted its start meshing loss, which came inward at INR18.227bn, a pregnant driblet from the INR5.749bn inward the previous year. However, the operator's meshing profits get got been trending downwards inward the yesteryear few years.
BSNL's revenue of INR358.119bn inward FY2008/2009 was downward close 5.9% from the previous year's INR380.47bn. However, full expenditure increased yesteryear 2.2%, largely due to employees' remuneration too benefits, to arrive at INR343.542bn, to convey the operator's meshing turn a profit to INR57.485, a reject from the INR300.939 inward the previous year.
In lodge to maintain its competitiveness, BSNL has suggested it volition pace upward its investment programme inward 2008-2009 to US$4.7bn, upward from US$3.5bn inward 2007-2008. The Indian authorities has already pledged US$15.0bn of investment over the adjacent 3 years.
An Indian government-formed commission suggested inward March 2010 that BSNL sell 30% of its portion majuscule inward a phased manner. The authorities formed the three-member commission to review the performance of BSNL too to recommend measures to ameliorate its performance. The commission recommended that proceeds from the sale of 20% of the fellowship should last used for the employee voluntary retirement programme, expansion too operations. It was also recommended to render the remaining 10% to the government. However, authorities said inward September 2010 that the populace listing would alone happen if the operator manages to ameliorate its financial performance.
Corporate Ownership
BSNL is currently owned yesteryear the Indian state. In August 2008, it was reported that progress had been made amongst plans to privatise BSNL. BSNL's finance manager was reported every bit suggesting that a 5% to 10% stake volition last sold, inward a bargain that would value the fellowship at close US$100bn. However, inward July 2009, it was reported that BSNL was considering the selection of a stake sale to a soul unusual fellowship rather than proceed amongst its long-mooted plans for an IPO. It is understood that the motility is beingness examined next resistance to IPO plans from employee unions. While the operator's board cleared plans to divest a 10% belongings through an IPO 2009, BSNL has non indicated what grade of shareholding it mightiness offering a unusual investor. In Feb 2011, the Department of Telecommunications revived a innovation to merge BSNL too its sis fellowship Mahanagar Telephone Nigam (MTNL).
Mobile Services
BSNL has laid a target of 60mn novel additions to its mobile subscriber base of operations yesteryear the halt of 2010 too according to the latest figures, the operator has exceeded its target due to impressive growth momentum inward the country. Such an expansion required a network roll-out exercise, amongst the operator volition proceed to expression to extend its arrive at farther into rural India.
In March 2008, BSNL placed a US$200mn lodge amongst Motorola too Nortel Networks for an additional 5mn GSM lines inward southern India. Another tender for 25mn additional GSM lines inward the same business office of Republic of Republic of India is beingness prepared.
To maintain upward amongst Reliance too Vodafone inward terms of marketplace share, too rest comfortably ahead of Tata Teleservices too IDEA Cellular, inward mid-2008 BSNL invited bids for a contract valued at US$6.5bn for the provide of 93mn additional lines inward a bid to increment its capacity. It expected to have bids from the likes of Ericsson, Nokia Siemens, Motorola, Nortel Networks, Alcatel-Lucent, Huawei Technologies too ZTE. In March 2010, BSNL announced its determination to cancel the controversial tender for the provide of equipment for 93mn novel GSM lines. The operator said that continuous delays too disputes get got forced it to cancel the tender. The determination came later a panel, led yesteryear Sam Pitroda, reportedly suggested abandoning the master copy tender. Further to this, BSNL inward September 2010, has called on the Indian subsidiaries of Chinese telecoms equipment vendors ZTE Corporation too Huawei Technologies to submit their bids for a tender to provide equipment for 5.5mn GSM lines. The operator intends to deploy 3.37mn lines inward the northward of the province too a farther 2.13mn lines inward the due east of India. BSNL invited bids later the Indian authorities provided clearances on safety issues too allowed telecoms operators to procure equipment from Chinese vendors.
In what was something of a surprising move, BSNL announced inward Nov 2007 that it had applied for a nationwide CDMA licence (fewer than 30% of India's mobile customers role CDMA technology). BSNL does already role CDMA technology, but alone for express mobility services. BSNL made this motility but every bit 1 of its principal competitors, Reliance, decided to extend its ain GSM footprint. The determination to launch a CDMA licence follows the government's motility to allow all telecoms operators to role alternative platforms.
BSNL plans to invest heavily inward extending its CDMA network infrastructure across 500 towns yesteryear constructing 7,000 novel base of operations transceiver stations. The expansion of BSNL's CDMA network volition run into it arrive at 500 novel towns every bit business office of a US$100mn investment programme. It sees its extended CDMA network every bit a 'fall dorsum option' to comprehend areas that lack GSM coverage.
BSNL launched its novel postpaid tariff inward Dec 2009, enabling its customers to last able to brand calls inward Republic of Republic of India at uniform tariffs irrespective of whether they are inward their domicile circle or are roaming exterior it.
BSNL announced it volition expand its 3G services yesteryear 120 to a greater extent than cities from the existing 640 cities. The operator targets to increment its subscriber base of operations to 2.5mn inward March 2011, upward from the existing 1.8mn inward Nov 2010.
Internet Services
An increasingly pregnant business office of BSNL's concern strategy centres on the operator's meshing services. BSNL launched triple-play services inward early on 2007, offering voice, video too meshing inward Pune too Chennai initially, too and then Kolkata too Bangalore. BSNL's focus on its broadband offering, it hopes, volition offset falling fixed-line vocalisation revenues (and, indeed, a faltering mobile service). In Jan 2009, BSNL announced a major thrust for the deployment of its IPTV service portfolio. The fellowship plans to launch services inward 93 cities inward 2009. Kuldeep Goyal, chair too managing manager of BSNL, said that his fellowship is looking at IPTV every bit a 'major value addition' that tin give the axe last offered to the operator's fixed-line subscribers. BSNL is looking to get got a subscriber base of operations of close 2mn yesteryear the halt of its adjacent financial yr (March 2010).
Meanwhile, BSNL is looking to offering 2 WiMAX tenders amongst an aggregate value of US$1bn; the tender volition last divide betwixt rural Republic of Republic of India (funded yesteryear USOF) too an urban network (funded yesteryear BSNL). The projection featured a innovation to offering broadband connections through its WiMAX network inward 40,000 schools yesteryear 2008 (latest available data). Soma Networks volition deploy BSNL's WiMAX network across Gujarat, Maharashtra, Goa too Andhra Pradesh, amongst the network laid to provide broadband information too vocalisation services to an surface area reaching to a greater extent than than 200mn people.
Five companies approached BSNL inward Dec 2009 to provide its WiMAX service on a franchisee basis. The companies -- Adishwar India, Ampouls, Teracom, E-mall Infotech too Tech Solutions -- had a minimum turnover of INR1bn (US$21.5mn) inward the final 2 financial years, which qualifies them for the tender, according to bidding rules.
BSNL unveiled a novel VDSL-based broadband service inward Feb 2010 that provides the fastest speeds inward the country. The service launched yesteryear the operator volition enable subscribers to bask broadband connexion amongst the highest download speed of upward to 24Mbps at a monthly tariff of INR9,999 (US$216.4). In addition, a slower speed connexion offering upward to 16Mbps volition last available at a monthly cost of INR4,999 (US$108.19).
Furthermore, the operator plans to whorl out its gigabit-capable passive optical network (GPON) inward the Vijayawada district of the province of Andhra Pradesh inward India, reports The Hindu. The network volition enable the operator to innovate high-speed broadband services offering speeds of upward to 8Mbps. BSNL also stated that it has procured the necessary equipment for launching a gigabit ethernet passive optical network (GEPON) inward rural regions of the district. The operator plans to launch its GEPON services yesteryear the halt of March 2010.
Strategies
One of BSNL's stated objectives is to perish the largest telecoms service provider inward Asia. As a state-owned operator, BSNL seeks to facilitate R&D action inward India. It also aims to contribute to the government's national innovation target of 500mn mobile subscribers yesteryear 2010, every bit good every bit the achievement of 20mn broadband customers yesteryear 2010 (as per the Broadband Policy 2004). Other BSNL goals that are connected to authorities policy include the provision of telephone connectivity inward villages too the implementation of triple-play services.
In lodge to accomplish this, at a fourth dimension when its profits are inward reject due to competitively priced tariffs, the operator is increasingly looking towards infrastructure sharing. BSNL has the payoff of having a rigid rural infrastructure compared to soul operators too hopes to generate revenue from sharing both passive too active networks. It has signed an understanding amongst Aircel inward Oct 2009 too amongst Sistema Shyam TeleServices inward Nov 2009.
In improver to its network evolution plans inside India, BSNL is actively looking to expand internationally, inward a strategy that could consequence inward operator acquisitions inward Africa too the Middle East. Although no specific countries get got been mentioned, it is rumoured that possible targets may include Egypt, Rwanda, Malawi, Turkey too Iran. BSNL is also business office of a consortium of 7 companies, Europe Republic of Republic of India Gateway (EIG), which volition invest some US$50mn inward an undersea cable link inward the Atlantic. Together amongst boyfriend state-run operator, MTNL, BSNL is also involved inward a separate articulation venture, Millennium Telecom, which volition lay 2 farther undersea cable links to the due east too west.
SWOT Analysis
Strengths
• Integrated telecoms operator offering fixed-line (local too DLD/ ILD), fixed-wireless, mobile too broadband services
• Leading local fixed operator, amongst to a greater extent than than 65% marketplace portion too close 78mn mobile subscribers (September 2010) inward a fast-growing market. India's 4th largest GSM operator
Weaknesses
• For the financial yr ended March 2010, BSNL reported a meshing loss of INR18.227bn, a pregnant alter of the meshing profits of INR5.749bn too INR30.094bn inward the FY2008/09 too FY2007/08.
• Mobile operations hampered yesteryear a comparative lack of investment inward GSM network
Opportunities
• Tender for 8mn DSLs volition consequence inward broadband growth for the operator every bit it seeks to confirm its marketplace leadership
In early on 2009, BSNL announced plans for pregnant investments inward IPTV
• The offering of triple-play services could revive fortunes inward mobile marketplace at the expense of Vodafone
• Potential of mobile marketplace peculiarly inside 3G; BSNL targets 15mn 3G subscribers inside 3 years
• Privatisation of BSNL would probable Pb to increased levels of investment inward the company
Threats
• Local wireless marketplace increasingly competitive, amongst Vodafone Essar having but over a 22mn subscriber Pb over BSNL
• Cellular service also coming nether increased pressure level from Reliance, which is looking to extend its GSM network inward improver to its successful CDMA-based network
• Next stage of growth to come upward from rural India. Obstacles to rapid growth include lack of electricity, expensive network roll-out too lower income subscribers