market research on bsnl broadband

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SUMMER INTERNSHIP PROJECT REPORT

ON

MARKET RESEARCH ON BSNL BROADBAND

At

BSNL, Hyderabad

Presented to

Indian Business Academy, Bangalore

On 06thJune, 2007

in the partial fulfillment of the requirement for the

Post Graduate Diploma in Business Management

By

Mohammed Mustafa


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FPB 0608/028

This is to certify that Mr. Mohammed Mustafa that he is a bonafide student of Indian Business

Academy, Bangalore and he is presently pursuing his Post Graduate Diploma in

Business Management.

He has submitted his project report titled, Market Research on BSNL Broadband in partial

fulfillment of the requirement for the Summer Internship Project during Post Graduate

Diploma in Business Management.

To the best of my knowledge this report has not been previously submitted as part of

any other degree or diploma of any other business school or university.

Mr. Manish Jain,

INDIAN BUSINESS ACADEMY

Lakshmipura, Thataguni Post

Kanakpura Main Road,

Bangalore 560 062

INDIA

Tel: +91-80-28435931/32/33/34

Fax: +91-80-28435935

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Dr. Subhash Sharma,




Bangalore 560 062INDIA

Tel: +91-80-28435931/32/33/34

Fax: +91-80-28435935

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Prof. S Ramesh,




Bangalore 560 062INDIA

Tel: +91-80-28435931/32/33/34

Fax: +91-80-28435935

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Student Declaration

I, Mr.Mohammed Mustafa, the undersigned, a student of Indian Business Academy,

Bangalore,declare that this project report titled Market Research on BSNL Broadband

submitted in partial fulfillment of the requirement for the summer internship

project during the Post Graduate Diploma in Business Management, a prestigious Post

Graduate Diploma awarded by Indian Business Academy, Bangalore.

This is my original work and has not been previously submitted as a part of any

another degree or diploma of any another Business school or University.

The findings and conclusions of this report are based on my personal study and

experience, during the tenure of my summer internship.

Mr.Mohammed Mustafa, BCom, PGDBM 2006-08.




Bangalore 560 062

INDIA

Tel: +91-80-28435931/32/33/34

Fax: +91-80-28435935

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ACKNOWLEDGEMENT

I would prefer to avail the opportunity in expressing my sincere gratitude to those persons

for their cooperation, encouragement and guidance extended to me in my endeavor to

undertake the responsibility of completing the assignment.

It was indeed a privilege extended to me by Mr.Surendra Babu (DGM),

BSNL, Hyderabad to work on this project during my internship and my thanks to Mr. Mohd

Mahdi Mahedvi (PA to DGM), BSNL, Hyderabad who guided me through the project.

I extend my gratitude to Mr. Manish Jain, Director and Mr. S Ramesh (Mentor),

Indian Business Academy. I am thankful to Indian Business Academy giving me the

platform to gain practical exposure apart from the regular curriculum and to experience

the corporate culture.

I would like to thank all the officials of the Marketing Unit of BSNL, Hyderabad for their

valuable cooperation.

I feel myself fortunate to get support and inspiration from my parents, without which thisreport would not be possible.

Mohammed Mustafa

PGDBM (2006-08)

Indian Business Academy,

Bangalore

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TABLE OF CONTENT

Executive Summary 2

Introduction 4

Industry Profile 5

Company Profile 9

BSNL Services 16

Market Research 24

Research Methodology 25

Analysis and Interpretation 26

SWOT Analysis for BSNL 28

Findings and Suggestions 29

Market Study 30

Research Methodology 31

Analysis and Interpretation 32

Findings and Suggestions 35

Conclusion 36

Exhibits 37

List of Abbreviations 40

References 41

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EXECUTIVE SUMMARY

Bharat Sanchar Nigam Limited (known as BSNL) is a public sector communications

company in India. BSNL has been at the forefront of technology and has revolutionized

telecommunications with its high class products and services.

In Indian scenario, there are many leading ISPs like VSNL, Bharti, Sify, STPI, Primus

etc, who have been extending their services to various industries. Especially their

service to IT sector, various MNCs has been so remarkable.

This report focuses on the competitiveness of leading ISPs in Andhra Pradesh. The report also

covers a SWOT on BSNLs Broadband services.

The report gives a background of the industry, with details on the evolution of the

industry and how policies have changed over the years.

Along with this, it focuses on the current market situation of the ISPs so as to treat the

organization in a long run. It emphasizes on some marketing concept in order to grab the

market and to become the market leader of this particular area within a certain period of time.

BSNL provides almost every telecom service, however following are the main Telecom

Services being provided by BSNL in India:-

1. Universal Telecom Sevices : Fixed wireline services & Wireless in Local loop (WLL)

using CDMA Technology called bfone and Tarang

2. Cellular Mobile Telephone Services: BSNL is major provider of Cellular Mobile

Telephone services using GSM platform, called Cell One and BSNL's GSM Cellular

services are know as Excel Power (Prepaid).

3. Internet: BSNL is providing internet as dial-up connection (Sancharnet) and ADSL-

Broadband (Dataone).

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Internet infrastructure

The internet infrastructure of BSNL lays its emphasis on the telecom Backbone that has

been established since the past many years. BSNL started providing internet facilities

through VSAT, DSL and finally now leased lines.

4. Intelligent Netwok (IN): BSNL is providing IN services like tele-voting, toll free

calling, premium calling etc.

The study reveals that almost all of the customers are highly satisfied with BSNLs

services, and there by it proves that it is one of the largest corporate in India with a

happy customer base.

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INTRODUCTION

Science fiction does not remain fiction for long. And certainly not on the Internet.

Vinton Cerf.

Life has changed a lot since mankind took the information highway. It has intrudedevery sphere of life and made it much simpler and easier. It has evolved as a powerful

medium and best source of information that has shrunk the globe into a small village.

The result of emergence of internet being, on one hand people based at various

locations are connected round the clock and on the other hand information based

industries have been growing at a much better pace.

The full credit for the success story of Internet accessibility goes to the so-called

Internet service providers, who have made it possible by developing a wonderful

infrastructure to activate the World Wide Web.

In Indian scenario, there are many leading ISPs like VSNL, Bharti, Sify, STPI, and

Primus etc, who have been extending their services to various industries. Especially

their service to IT industry has been so remarkable, to say that these two industries are

made for each other to share mutual benefit because of their extensive

interdependency factor.

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INDUSTRY PROFILE

There are several forces at work in every sector and every industry of an economy. The

dynamic nature of every industry keeps the pulses of the companies operating in each sector

racing. This research of Industry Analysis report looks at all those forces at work that could

potentially change the fortunes of a company. Be it a company that wants to enter a new

market segment or a company that wishes to strategically position its products, this report is an

invaluable tool for all. The report analyses the performance and strategies of the leading

players in the industry, assesses the future movement of the industry and identifies the gaps

that could be potentially exploited.

The Internet can be a powerful democratizing force, offering greater economic, political and

social participation to communities that have traditionally been undeserved and helping

developing nations meet pressing needs. But unless we take concrete action to ensure that

everyone has a chance to share in the benefits of the Digital Age, information technology could

just as easily become another resource that is denied to the people who need it most.

Importance of Internet

The Internet is an "enabling technology." When its introduction is sensitive to local values and

committed to local capacity-building, it offers important opportunities to:

Open dialogue. Low cost networking facilitatesknowledge sharing, awareness of alternative perspectives, more open exchange

Improve governance. Raising efficiency, transparency,

participatory systems

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Improve social and human rights conditions. Expands

access to better quality education, healthcare, disaster relief capacity and other services

Reduce poverty. Opens new opportunities for bypassed

groups (women, the poor, rural populations, children)

Introduce economic opportunities. E-commerce, ICT-

sector development, etc.

Improve environmental management. GIS, food

security early warning systems

Support indigenous knowledge. Communities document

their knowledge

Diversification of broadband access technologies, high-speed Internet access

and deregulation of the local loop has opened up this part of the network to

competition which has previously being monopolized by the incumbent. The last mile

is the most lucrative part of the network, as the owner of this part effectively owns the

customer. It is crucial for new entrants as well as incumbents to understand the

potential of alternative access technologies for delivering high-bandwidth services to

residential and business end-users.

Broadband access technologies are enablers for the real growth opportunity of

broadband applications, content and services. However, without the killer broadband

application, what can the service providers offer to entice the end-user to want to

upgrade to broadband band? How will businesses use broadband? Data monitors

Fixed-Line and Wireless Broadband Access in Europe report investigates the cost and

implementation of broadband technologies and services opportunities for new and

existing operators and which access technologies the equipment vendors should be

focusing on and why.

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With the promise of high returns on investment, large sums of capital flowed

to a number of broadband access equipment manufacturers. These pioneering firms

have subsequently brought forth, and in some cases continue to produce, numerous

innovations that span a wide gambit of cutting-edge, broadband (BB) technologies.

With continuous innovation, it was hoped that these new technologies with their

impressive capabilities and lower price points would seriously challenge the

established BB Technologies of ISDN and copper and fiber-optic-based, high capacity

transport.

Faced with tough choices about broadband access equipment production and

network deployments in the current period of tight financial restraints. It is the only

report currently available that provides an up-to-date, sober and economic-based

assessment of the demand for broadband access worldwide and the major regions of

the world today.

The advent of the third-generation systems is likely to further push the

broadband market and the availability of high quality international bandwidth are

expected to further drive the Indian broadband market. This projection is subject to the

Government of India providing a strong regulatory environment and resolving right of

way and other issues.

The Internet users in India, which was expected to exhibit a cumulative

average growth rate (CAGR) of 53.1 per cent over the next four years, would emerge

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as one of the fastest growing Internet markets in Asia-Pacific. The international

bandwidth demand for India was expected to grow exponentially. Broad bands

growth would be determined by government policy initiatives and how quickly the

private sector adapts itself to changing scenarios".

Around the world, there were around 200 million broadband subscribers at

the start of 2006. Broadband users enjoy a range of service speeds from 256 kbit/s up

to 100 Mbit/s. The number of subscribers is growing rapidly, with a 47% per cent

increase during 2005. Digital subscriber line (DSL) is currently the most commonly

deployed platform, followed by cable modems, Ethernet local area networks (LAN),

fixed-wireless access, wireless LANs (WLAN), satellite and other technologies. The

vast majority of todays users are in the developed world. But even among member

countries of the Organization for Economic Co-operation and Development (OECD),

there are large disparities, not only in service availability but also in terms of quality

of access and price per Mbit/s. But in developing countries, as broadband becomes

cheaper and wireless technologies evolve, broadband adoption can help countries to

leapfrog traditional telephony technologies.

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COMPANY PROFILE

Bharat Sanchar Nigam Ltd. formed in October, 2000, is World's 7th largest

Telecommunications Company providing comprehensive range of telecom services in India:

Wireline, CDMA mobile, GSM Mobile, Internet, Broadband, Carrier service, MPLS-VPN,

VSAT, VoIP services, IN Services etc. Within a span of five years it has become one of the

largest public sector unit in India.

BSNL has installed Quality Telecom Network in the country and now focusing on improving

it, expanding the network, introducing new telecom services with ICT applications in villages

and wining customer's confidence. Today, it has about 47.3 million line basic telephone

capacity, 4 million WLL capacity, 20.1 Million GSM Capacity, more than 37382 fixed

exchanges, 18000 BTS, 287 Satellite Stations, 480196 Rkm of OFC Cable, 63730 Rkm of

Microwave Network connecting 602 Districts, 7330 cities/towns and 5.5 Lakhs villages.

BSNL is the only service provider, making focused efforts and planned initiatives to bridge

the Rural-Urban Digital Divide ICT sector. In fact there is no telecom operator in the country

to beat its reach with its wide network giving services in every nook & corner of country and

operates across India except Delhi & Mumbai. Whether it is inaccessible areas of Siachen

glacier and North-eastern region of the country. BSNL serves its customers with its wide

bouquet of telecom services.

BSNL is numero uno operator of India in all services in its license area. The company offers

vide ranging & most transparent tariff schemes designed to suite every customer.

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BSNL cellular service, CellOne, has more than 17.8 million cellular customers, garnering 24

percent of all mobile users as its subscribers. That means that almost every fourth mobile

user in the country has a BSNL connection. In basic services, BSNL is miles ahead of its

rivals, with 35.1 million Basic Phone subscribers i.e. 85 per cent share of the subscriber base

and 92 percent share in revenue terms.

BSNL has more than 2.5 million WLL subscribers and 2.5 million Internet Customers who

access Internet through various modes viz. Dial-up, Leased Line, DIAS, Account Less

Internet(CLI). BSNL has been adjudged as the NUMBER ONE ISP in the country.

BSNL has set up a world class multi-gigabit, multi-protocol convergent IP infrastructure that

provides convergent services like voice, data and video through the same Backbone and

Broadband Access Network. At present there are 0.6 million DataOne broadband customers.

The company has vast experience in Planning, Installation, network integration and

Maintenance of Switching & Transmission Networks and also has a world class ISO 9000

certified Telecom Training Institute.

Scaling new heights of success, 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. The infrastructure asset on telephone alone is worth about Rs.630,000

million (US $ 14.37 billion).

BSNL plans to expand its customer base from present 47 millions lines to 125 million lines

by December 2007 and infrastructure investment plan to the tune of Rs. 733 crores (US$

16.67 million) in the next three years.

The turnover, nationwide coverage, reach, comprehensive range of telecom services and the

desire to excel has made BSNL the No. 1 Telecom Company of India.

VISION

By 2010 BSNL will be the most admired brand in India:

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Loved by more customers

Targeted by top talent

Benchmarked by more business

MISSION

To meet the mobile communication needs of our customers through:

Error- free service delivery

Innovative products and services

Cost efficiency

Unified Messaging Solutions

BUSINESS STRATEGY

BSNL strategic objective is

To capitalize on the growth opportunities that the Company believes are available in

the Indian telecommunications market and consolidate its position to be the leading

integrated telecommunications services provider in key markets in India, with a focus

on providing mobile services.

The Company has developed the following strategies to achieve its strategic objective:

Focus on maximizing revenues and margins.

Capture maximum telecommunications revenue potential with minimum

geographical coverage.

Offer multiple telecommunications services to provide customers with a

"onestop

shop" solution.

Position itself to tap data transmission opportunities and offer advanced mobile

data services.

Focus on satisfying and retaining customers by ensuring high level of customer

satisfaction.

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Leverage strengths of its strategic and financial partners.

Emphasize on human resource development to achieve operational

efficiencies.

BSNL Units

BSNL is divided into a number of administrative units, termed as telecom circles, metro

districts, project circles and specialized units, as mentioned below:-

Telecom Circles:

Telecom Circles & Metro districts are responsible for providing service to the customers.

There are 24 Telecom Circles and 2 Metro districts.

1. Andaman & Nicobar Telecom Circle

2. Andhra Pradesh Telecom Circle

3. Assam Telecom Circle

4. Bihar Telecom Circle

5. Chhatisgarh Telecom Circle

6. Gujarat Telecom Circle

7. Haryana Telecom Circle

8. Himachal Pradesh Telecom Circle

9. Jammu & Kashmir Telecom Circle

10. Jharkhand Telecom Circle

11. Karnataka Telecom Circle

12. Kerala Telecom Circle

13. Madhya Pradesh Telecom Circle14. Maharashtra Telecom Circle

15. North East-I Telecom Circle

16. North East-II Telecom Circle

17. Orissa Telecom Circle

18. Punjab Telecom Circle

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19. Rajasthan Telecom Circle

20. Tamil Nadu Telecom Circle

21. Uttar Pradesh (East) Telecom Circle

22. Uttar Pradesh (West) Telecom Circle

23. Uttranchal Telecom Circle

24. West Bengal Telecom Circle

Metro Districts

1. Kolkata Telecom District

2. Chennai Telecom District

Project Circles

1. Eastern Telecom Project Circle

2. Western Telecom Project Circle

3. Northern Telecom Project Circle4. Southern Telecom Project Circle

5. IT Project Circle, Pune

Maintenance Regions

1. Eastern Telecom Maintenance Region

2. Western Telecom Maintenance Region

3. Northern Telecom Maintenance Region4. Southern Telecom Maintenance Region

Specialized Telecom Units

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1. Data Networks

2. National Centre For Electronic Switching

3. Technical & Development Circle

4. Quality Assurance

Manufacturing Units

1. Telecom Factory, Mumbai

2. Telecom Factory, Jabalpur

3. Telecom Factory, Richhai

4. Telecom Factory, Kolkata

Training Institutions

1. Advanced Level Telecom Training Centre(ALTTC)

2. Bharat Ratna Bhim Rao Ambedkar Institute Of Telecom Training

3. National Academy of Telecom Finance and Management

Other Units

1. Telecom Stores

2. Telecom Electrical Wing

3. Telecom Civil Wing

BSNLs Objectives

BSNL has undertaken this project with the following objectives:

To utilize to the maximum BSNLs existing infrastructure

Large scale deployed Fibers in Access & Core network

Deployed DLC Systems on Fiber

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To increase the footprint across the Country to provide Access Country Wide

To provide Value Added Services (Video, Broadband Data in addition to Voice) to

accelerate development and growth.

BSNL has envisioned that the Broadband services rolled as part of the ambitious NIB-IIproject will be

Used for high speed Internet connectivity and shall be the primary source of Internet

bandwidth

Used for connecting broadband customers to the MPLS VPN through the BRAS.

Used for connecting dial VPN customers to the MPLS VPN through the Narrowband

RAS.

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BSNL SERVICES

When it comes to connecting the four corners of the nation, and much beyond, one solitary

name lies embedded at the pinnacle - BSNL. A company that has gone past the number games

and the quest to attain the position of a leader . It is working round the clock to take India into

the future by providing world class telecom services for people of India. BSNL is India's no. 1

Telecom Service provider and most trusted Telecom brand of the Nation.

Driven by the very best of telecom technology from chosen global leaders, it connects each

inch of the nation to the infinite corners of the globe, to enable you to step into tomorrow.

Here is an overview of the World Class services offered by the BSNL:

Basic Telephone Services

The Plain old, Countrywide telephone Service through 32,000 electronic exchanges.

Digitalized Public Switched Telephone Network (PSTN) with a host of Phone Plus valueadditions.

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BSNL launched DataOne broadband service in January 2005 which shall be extended to 198cities very shortly. The service is being provided on existing copper infrastructure on ADSL2

technology. The minimum speed offered to the customer is 256 Kbps at Rs. 250/- per month

only. Subsequently, other services such as VPN, Multicasting, Video Conferencing, Video-

on-Demand, Broadcast application etc will be added.

Digital Subscriber Line (DSL)

DSL technology is a modem technology that uses existing twisted pair telephone lines to

transport high bandwidth data, such as multimedia and video, to service subscribers. The

term xDSL covers a number of similar yet competing forms of DSL technologies, including

ADSL, SDSL, HDSL, HDSL-2, and VDSL. xDSL is drawing significant attention from

implementers and service providers to deliver high bandwidth data rates to dispersed

locations with relatively small changes to the existing telco infrastructure.

xDSL services are dedicated, point to point, public network access over twisted pair copper

wire on the local loop (last mile) between a network service providers (NSP) central office

and the customer site, or on local loops created wither intrabuilding or intracampus.

Currently, most DSL deployments are ADSL, mainly delivered to residential customers.

Asymmetric Digital Subscriber Line (ADSL)

ADSL technology is asymmetric. It allows more bandwidth downstream - from an NSPs

central office to the customer site than upstream from the subscriber to the central office.

This asymmetry, combined with always on access (which eliminates call setup), makes

ADSL ideal for Internet/intranet surfing, video on demand, and remote LAN access. Users of

these applications typically download much more information then they send.

ADSL transmits more than 6 Mbps to a subscriber and as much as 640 kbps more in both

directions. Such rates expand existing access capacity by a factor of 50 or more without new

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cabling. ADSL can literally transform the public information network from one limited to

voice, text and low resolution graphics to a powerful, ubiquitous system cable of bringing

multimedia, including full motion video, to every home this century.

SERVER

1.5 to 9 Mbps

16 to 640 Kbps

ADSL connection

ADSL will play a crucial role over the next decade or more as telephone companies enter

new markets for delivering information in video and multimedia formats. New broadband

cabling will take decades to reach all prospective subscribers. Success of these new services

depends on reaching as many subscribers as possible during the first few years. By bringing

movies, television, video catalogs, remote CD-ROMs, corporate LANs, and the Internet into

homes and small businesses, ADSL will make these markets viable and profitable for

telephone companies and application suppliers alike.

ADSL Capabilities

An ADSL circuit connects an ADSL modem on each end of a twisted pair telephone line,

creating three information channels: a high speed downstream channel, a medium speed

ADSL ADSL

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Core

Networ

k

Internet


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duplex channel, and a basic telephone service channel. The basic telephone service channel is

split off from the digital modem by filters, thus guaranteeing uninterrupted basic telephone

service, even if ADSL fails. The high speed channel ranges from 1.5 to 9 Mbps, and duplex

rates range from 16 to 640 Kbps. Each channel can be submultiplexed to form multiple lower

rate channels.

ADSL modem provides data rates consistent with North American T1 1.544 Mbps and

European E1 2.048 Mbps digital hierarchies and can be purchased with various speed ranges

and capabilities. The minimum configuration provides 1.5 or 2.0 Mbps downstream and 16

Kbps duplex channel; others provide rates of 6.1 Mbps and 64 Kbps for duplex. Products

with downstream rates up to 8 Mbps and duplex rates up to 640 kbps are available today.

ADSL modems accommodate Asynchronous Transfer Mode (ATM) transport with variable

rates and compensation for ATM overhead, as well as IP protocols.

Downstream data rates depend on a number of factors, including the length of the copper

line, its wire gauge, the presence of bridged taps, and cross coupled interference. Line

attenuation increases with line length and frequency, and decreases as wire diameter

increases. Ignoring bridged taps, ADSL performs as shown below in the table.

Data Rate

(Mbps)

Wire Gauge

(AWG)

Distance

(feet)

Wire Size (mm) Distance

(Km)

1.5 or 2 24 18,000 0.5 5.5

1.5 or 2 26 15,000 0.4 4.6

6.1 24 12,000 0.5 3.7

6.1 26 9,000 0.4 2.7

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Although the measure varies from telco to telco, these capabilities can cover up to 95 percent

of a loop plant, depending on the desired data rate. Customer beyond these distances can be

reached with fiber based digital loop carrier (DLC) systems. As these DLC systems

become commercially available, telephone companies can offer virtually ubiquitous access in

a relatively short time.

Many applications envisioned for ADSL involve digital compressed video. As a real time

signal, digital video cannot use link or network level error control procedures commonly

found in data communications systems. Therefore, ADSL modems incorporate forward error

correction that dramatically reduces errors caused by impulse noise. Error correction on a

symbol by symbol basis also reduces errors caused by continuous noise coupled into a line.

ADSL Technology

ADSL depends on advanced digital signal processing and creative algorithms to squeeze so

much information through twisted pair telephone lines. In addition, many advances have

been requires in transformers, analog filters, and analog/digital (A/D) converters. Long

telephone lines may attenuate signals in at MHz (the outer edge of the band used by ADSL)

by as much as 90dB, forcing analog sections of ADSL modems to work very hard to realize

large dynamic ranges, separate channels, and maintain low noise figures. On the outside,

ADSL looks simple transparent synchronous data pipes at various data rates over ordinary

telephone lines. The inside, where all the transistors work, is a miracle of modern technology.

Additional ADSL Technologies

SDSL (Symmetric Digital Subscriber Line)

HDSL (High Speed Digital Subscriber Line)

HDSL 2

VDSL (Very High Data Rate Digital Subscriber Line)

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Internet

Keeping the global network of Networks networked, the countrywide Internet Services of

BSNL under the brand name includes Internet dial up/ Leased line access, CLI

based access (no account is required) and DIAS service, for web browsing and E-mail

applications. You can use your dialup sancharnet account from any place in India using the

same access no '172233' , the facility which no other ISP has. BSNL has customer base of

more than 1.7 million for sancharnet service.

BSNL also offers Web hosting and co-location services at very cheap rates.

ISDN

Integrated Service Digital Network Service of BSNL utilizes a unique digital network

providing high speed and high quality voice, data and image transfer over the same line. It

can also facilitate both desktop video and high quality video conferencing.

Intelligent Network

Intelligent Network Service (In Service) offers value-added services, such as:

Free Phone Service (FPH)

India Telephone Card (Prepaid card)

Account Card Calling (ACC)

Virtual Private Network (VPN)

Tele-voting

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Premium Rate Service (PRM)

Universal Access Number (UAN) and more

I-Net

India s x.25 based packet Switched Public Data Network is operational in 104 cities of the

country. It offers x.25 x.28 leased, x.28 Dial up (PSTN) Connection) and frame relay services.

Leased Lines & Datacom

BSNL provides leased lines for voice and data communication for various application on point

to point basis. It offers a choice of high, medium and low speed leased data circuits as well as

dial-up lines. Bandwidth is available on demand in most cities. Managed Leased Line

Network (MLLN) offers flexibility of providing circuits with speeds of nx64 kbps upto 2mbps,

useful for Internet leased lines and International Principle Leased Circuits (IPLCs).

Cellular Mobile Service

Countrywide Cellular Service Pre-paid Card

BSNLs GSM cellular mobile service Cellone has a customer base of over 5.2 million. CellOne

provides all the services like MMS, GPRS, Voice Mail, E-mail, Short Message Service (SMS)

both national and international, unified messaging service (send and receive e-mails) etc. You

can use CellOne in over 160 countries worldwide and in 270 cellular networks and over 1000

cities/towns across India. It has got coverage in all National and State Highways and train

routes. CellOne offers all India Roaming facility to both pre-paid and post-paid customers

(including Mumbai & Delhi).

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Wireless in Local Loop

This is a communication system that connects customers to the Public Switched Telephone

Network (PSTN) using radio frequency signals as a substitute for conventional wires for all or

part of the connection between the subscribers and the telephone exchange.

Countrywide WLL is being offered in areas that are non-feasible for the normal

network.

Helping relieve congestion of connections in the normal cable/wire based

network in urban areas.

Connecting the remote and scattered rural areas.

Limited mobility without any air-time charge

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MARKET RESEARCH

OBJECTIVES OF THE STUDY

Primary Objective:

To Study the scope of BSNL broadband in Hyderabad.

Secondary Objective:

To study the Internet infrastructure of BSNL.

SCOPE

The scope of the report is to understand the Internet market scenario and the mode of

connectivity in Various sectors in Hyderabad at this point of time by

covering the leading ISPs, their respective roles in terms of their service offer and their

market share.

LIMITATIONS

Time constraints

Busy schedule of System Administrators.

Confidentiality factor.

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RESEARCH METHODOLOGY

Research Design:

Since the purpose of the research is well known and clear descriptive research design

has been chosen. Descriptive research design is used when the characteristics of

certain group or association of certain variable are to be determined. This research

primarily forces on the competitiveness of ISPs which involves various factors with

numerous characteristics .In order to study the characteristics and variables a cross

sectional analysis was conducted by field survey method where in a questionnaire was

made to be filled by the respondents.

Source of Data:

Primary Data Source

Telephonic interview

Face-to-face interview

Secondary Data Source

Journals

Magazines

Questionnaire:

The questionnaire comprises both close-ended and open-ended questions.

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ANALYSIS AND INTERPRETATION

India is rapidly transforming itself from a broadband deficient country to a broadband surplus

country. Broadband is slated to be the next big thing after the mobile boom. Companies such as

BSNL, Bharti and Reliance are also moving into the broadband space with applications in

various fields such as tele-medicine, tele-education, scientific research, tele-agriculture etc.The project was to identify the potential customers of BSNL DataOne Broadband in

Hyderabad. The data collected by surveying various colleges, MNCs and Internet Caf owners

forms the basis for the analysis.

Total no of samples taken 50

Colleges 15

MNCs 20

Internet Cafs 15

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Usage of BSNL Broadba

52%

26%

22%

MNC's

Colleges

Internet Caf'

Due to boom in the IT sector the usage of BSNL DataOne broadband was maximum in MNCs

with a majority percentile of 52%, followed by various colleges (mostly engineering colleges)

with 26% and lastly the Internet Cafs with 22%.

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SWOT ANALYSIS FOR BSNL

STRENGTH

Own End-to-End Infrastructure

Range of Products / Services

Presence throughout India

Brand Equity

Lowest prices

WEAKNESS

Offers, Schemes

Growth of Bharti

Presence of Sify, Reliance

Other Small Players

OPPURTUNITIES

Escalating trend of IT Industry

Increased usage of Broadband

Internet

Huge market to be explored

Growth of Small Scale Industries.

THREATS

New Entrants like Reliance, Tata etc

Drastic Price reductions by

competitors.

Asianet Broadband Providers.

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FINDING & SUGGESTIONS

FINDINGS

The Internet market has huge potential due to the IT boom.

The Internet market in the state is broadly classified on the basis of media as

DSL / Cable and LL /RF.

The market leaders for the media are as follows,

DSL - BSNL

Cable - BSNL

LL/RF - BSNL, Bharti

The analysis on market share and competitiveness has revealed that there is

significant difference in the competitiveness among the ISPs.

BSNL leads the market followed by Bharti.

Brand equity of BSNL is reasonably good to get an advantage over its

competitors in internet market.

SUGGESTIONS

ISPs can focus on other growing Educational Institutions and Manufacturing

industries, which are not tapped completely.

BSNL can be more competitive in price to gain more market share.

More customer friendly pricing.

Lower and attractive introductive pricing.

Exploration of other major segments in the state like- Tourism, Exports etc.

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MARKET STUDY

OBJECTIVES

Primary Objective

To identify the market share of BSNL DataOne Broadband.

Secondary Objectives

To find out the competitors to BSNL

To find out the customer interpretation about the BSNL DataOne services

SCOPE

The scope of the study is to identifying the Market share of BSNL DataOne broadband in

Hyderabad.

By conducting a survey one can understand the direct and indirect factors influencing

the market potential that is available for BSNL.

LIMITATIONS

Time constraints

Busy schedule of managers.

Confidentiality factor

Limited information resources

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RESEARCH METHODOLOGY

Methodology Adopted

Data collection

Tele-calling

Idea sharing by role play

Type of the Research followed

Exploratory Research

Collecting secondary data

Internal sources- circulars and publishing of companies

Yellow pages and websites

Commercial Data

Newspapers and magazines

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ANALYSIS AND INTERPRETATION

India is rapidly transforming itself from a broadband deficient country to a broadband surpluscountry. Broadband is slated to be the next big thing after the mobile boom. Companies such as

BSNL, Bharti and Reliance are also moving into the broadband space with applications in

various fields such as tele-medicine, tele-education, scientific research and tele-agriculture.

The project was to identify the various competitors of BSNL, and customer interpretation of

BSNL broadband Dataone. The data collected is as follows

Major competitors on BSNL:

Bharti

Sify

Reliance

Market share of ISPs

Market Share of ISP's

45%

23%

16%

16%

BSNL

Bharti

Sify

Others

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The sample size that was taken for the calculation of market share of ISPs for home and

official use is 150.

From the above pie chart it is clearly visible that the market for ISPs was dominated byBSNL with a market share of about 45%, followed by Bharti with 23%, Sify 16% and

others amounting to 16%.

Customer interpretation of BSNL broadband Dataone

Sample Size 150

12

78

41

19

0

10

20

30

40

50

60

70

80

90

1

Customer Interpretation

Very Good

Good

Average

Bad

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To know the customer interpretation about BSNL DataOne services, research was

conducted from only those who were having BSNL connection.

For this the sample size taken was 150.

Findings suggest that those customers who were satisfied and considered BSNL services to

be excellent amounted to 12 out of the total population, and those who considered BSNL

DataOne to be good amounted to 78. Similarly, 41 of the total population considers BSNL

DataOne services to be average and 19 of them considered it to be bad.

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FINDINGS & SUGGESTIONS

FINDINGS

1. During the course of the project it was found that BSNL DataOne, as mode of

ISP is widely known.

2. Factors influencing the customers while considering BSNL DataOne for their

connectivity are,

Cost

Speed of Data transmission

Location

Supporting services offered

Minimum time required for installing the connection

Reputation of the service provider

SUGGESTIONS

1. Following activities can ideally be done to improve the market

awareness of BSNL DataOne

Wide spread campaigning through brochures, fax, e-mail

Various offers

Contact Programmes

Seminars

2. Area of focus must be wide spread to other untapped sectors.

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CONCLUSION

Retaining a customer is a challenging task but BSNL has high number of, satisfied and highly

satisfied customers that proves the quality of service provided by BSNL. Being Indias premier

Telecom Conglomerate BSNL has already positioned itself in a commanding place in the

mindset of the customers. Developing and implementing an appropriate strategy for

maintaining this advantage is essential for BSNL to grow and be the market leader. Armed

with a strong, trusted and happy customer base, ISPs like BSNL DataOne can really seize the

opportunity with the help of their resources.

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EXHIBITS

QUESTIONNAIRE

Name of the Organization:

Postal Address:

Telephone No(s):

Head Office:

No of Branches in India:

No of Branches Abroad:

Name of the Systems Manager/ Systems Administrator:

No of PCs used in the Organisation:

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Marketing Research Questionnaire

Name:

Age:

Occupation:

Monthly Income:

Address:

1. Which Internet Broadband service do you use as of now?

BSNL (DataOne) Bharti (Airtel)

Sify Others

2. Which Internet Broadband service you have used earlier?

BSNL (DataOne) Bharti (Airtel)

Sify Others

3. Why did you choose the current Internet service provider?

High Speed Good performance

Low Cost Low maintenance

4. Who influenced you to choose this Service provider?

5. Are you aware of BSNL DataOne Broadband?

Yes No

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LIST OF ABBREVIATIONS

ISP: Internet Service Provider

DSL: Digital Subscriber Line

SWOT: Strengths, Weaknesses, Opportunities, and Threats

SDSL: Symmetric Digital Subscriber Line

HDSL: High Speed Digital Subscriber Line

VDSL: Very High Data Rate Digital Subscriber Line

ADSL: Asymmetric Digital Subscriber Line

LAN: Local Area NetworksATM: Asynchronous Transfer Mode

IN: Intelligent Network

FPH: Free Phone Service

VPN: Virtual Private Network

PRM: Premium Rate Service

UAN: Universal Access Number

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REFERENCES

Bibliography:

Marketing Mangement, Philip Kotler

Marketing Research, Dr. Rajendra Nargundkar

Research Methodology, C.R.Kothari.

Marketing Research, Aaker, Kumar, Day.

Marketing Research, G.C. Beri.

Research methods in business, D.D.Sharma.

Webliography:

www.google.co.in

http://en.wikipedia.org/wiki/BSNL#History

www.bsnl.co.inwww.ap.bsnl.co.in

www.bsnl-broadband.com
http://www.google.co.in/http://en.wikipedia.org/wiki/BSNL#Historyhttp://www.bsnl.co.in/http://www.ap.bsnl.co.in/http://www.bsnl-broadband.com/http://www.google.co.in/http://en.wikipedia.org/wiki/BSNL#Historyhttp://www.bsnl.co.in/http://www.ap.bsnl.co.in/http://www.bsnl-broadband.com/

market research on bsnl broadband

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