Market Potential of BSNL Broadband Services in Pune

Name: Darshan Shah
Class: M. B. A.
Section: Marketing
Roll No. : BO534
Company: Bharat Sanchar Nigam Limited
(BSNL)
Project Title: Market Analysis Of BSNL S
Broadband Services (DataOne) In Pune

2
A
PROJECT REPORT
ON
MARKET POTENTIAL OF BSNL BROADBAND SERVICES IN
PUNE
FOR
BHARAT SANCHAR NIGAM LIMITED (BSNL)
IN PARTIAL FULFILLMENT OF
MASTERS IN BUSINESS ADMINISTRTATION (M.B.A.)
UNIVERSITY OF PUNE
BY
DARSHAN SHAH
M.B.A.
(2005 2007)
GUIDED BY
MR. SOUMITRA MANDAL (BSNL)
PROF. SMITA SOVANI (VIM)
VISHWAKARMA INSTITUTE OF MANAGEMENT, PUNE 48

3
CERTIFICATE
TO WHOM SO EVER IT MAY CONCERN
This is to certify that DARSHAN SHAH is a bonafide student of VISHWAKARMA
INSTITUTE OF MANAGEMENT. He has successfully carried out his summer
project titled MARKET POTENTIAL OF BSNL S BROADBAND SERVICES
(DATAONE) IN PUNE at BHARAT SANCHAR NIGAM LIMITED (BSNL),
PUNE in the partial fulfillment of Master of Business Administration course of
University of Pune. (2005 - 2007)
He has worked under our guidance and direction. His work is found to be good and
complete in all respect. During the period we found him hardworking, sincere and
loyal. We wish him all the best for future.
DR. SHARAD L. JOSHI PROF. SMITA
SOVANI
(DIRECTOR) (PROJECT GUIDE)

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ACKNOWLEDGEMENT
Any accomplished work is not possible without the help of others and this work is not
different. Many people helped me to complete my training and prepare its training
report successfully. I am thankful to all of them.
First of all I am very grateful and thankful to Bharat Sanchar Nigam Limited
(BSNL) who allowed me to undergo training in their company.
I am very thankful to my project guide Mr. Soumitra Mandal (DE Marketing)
under whose guidance I completed my project successfully and without whose help it
would have been very difficult for me to complete the project. I would like to extend
my heartful gratitude to Mr. Khachane (DE Sales) whose cooperation and
contribution was truly unparallel. Further more I would like to acknowledge the
efforts made by all the people at BSNL, Pune to complete this project successfully.
I also take the opportunity to thank our Director Dr. S. L. Joshi for his valuable
advice, suggestions and guidance. This project would have never been possible
without the guidance and timely help of my project guide Prof. Mrs. Smita Sovani
(Staff in-charge) for which I would be indebted to her. I would also like to thank all
faculty members of Vishwakarma Institute of Management for their advice and
guidance.
I would also like to thank all the respondents who gave some of their valuable time
to me.
Finally I would like to thank my family members and my friends for their valuable
inputs.

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CONTENTS
ACKNOWLEDGEMENT I
1. EXECUTIVE SUMMARY 1
1.1. Executive Summary 2
1.2. Limitation 3
2. INTRODUCTION 4
2.1. Introduction 5
3. STUDY 6
3.1. Purpose For Study 7
3.2. BSNL Broadband Services 8
4. OBJECTIVES 10
4.1. Objectives 11
4.2. Scopes And Limitations 12
5. COMPANY PROFILE 13
5.1. Journey Of Telecom From PWD To BSNL 14
5.2. About BSNL 17
5.3. Vision, Mission And Objective 19
5.4. Services Provided By BSNL 20
5.5. Addresses 21
5.6. Organization Chart Of BSNL 22
5.7. Financial Status Of BSNL 23
6. INDIA AND BROADBAND 25
6.1. India And Broadband 26

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7. BROADBAND POLICY 2004 28
7.1. Broadband Policy 2004 29
7.2. Broadband Connectivity 29
7.3. Estimated Growth Of Broadband 30
7.4. Technical Options For Broadband Services 30
7.5. Other Issues 30
8. BSNL AND INTERNET 32
8.1. PSTN Dial Up Access 33
8.2. ISDN Dial Up Access 33
8.3. Leased Line Access 33
8.4. Direct Internet Access 33
8.5. Account Free Dial Up Access Based On CLI 33
8.6. Broadband Connection 34
8.7. Wi Fi 34
8.8. Sancharnet Card 34
9. DATAONE (BSNL S BROADBAND SERVICE) 35
9.1. DataOne Introduction 36
9.2. Key Objectives 36
9.3. Technical Capabilities 37
9.4. Advantages Of MPLS Over Other Technologies 37
9.5. Services Available Through Broadband 37
9.6. Requirements For Using DataOne 38
9.7. Launch Of DataOne 38
9.8. BSNL Provide PCs 38
9.9. DataOne Tariffs 39
10. COMPETITORS ANALYSIS 44
10.1. Tariffs Of DataOne 45
10.2. Tariffs Of BSNL s Competitors 45
11. RESEARCH METHODOLOGY 51
11.1. Research Methodology 52

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11.2. Data Collection Method 52
11.3. Research Instrument 53
11.4. Sampling 53
11.5. Data Evaluation 54
12. DATA ANALYSIS 55
12.1. Data Analysis Introduction 56
12.2. Division Of Internet Users 57
12.3. Awareness Of People About Broadband 58
12.4. Preferences While Choosing Broadband Connection 59
12.5. Division Of Broadband Users 61
12.6. Division Of Internet Users Of BSNL 62
12.7. Increase In Number Of BSNL Internet Users 63
12.8. Familiarity To DataOne 64
12.9. Reasons For Choosing BSNL 65
12.10. Conversion To DataOne 67
12.11. Division Of DataOne Customers 68
12.12. Use Of DataOne 69
12.13. Customers Thoughts About DataOne Tariffs 70
12.14. Problems Faced By DataOne Customers 71
12.15. Billing Problem Faced By DataOne Customers 72
12.16. Satisfaction On Action Taken Against Incorrect Bills 73
12.17. Ranking Different Parameters Of DataOne 74
12.18. Ranking Customers Services Of BSNL 76
12.19. Ranking Broadband Services Of BSNL 77
12.20. Satisfaction Level Of DataOne Customers 78
13. NEW OPPORTUNITIES AND PROBLEMS 79
13.1. New Opportunities In The Market 80
13.2. Problems Related To This Services 80
14. OBSERVATIONS, FINDINGS AND LIMITATIONS 82
14.1. Observations And Findings 83
14.2. Limitations 84

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15. CONCLUSIONS AND SUGGESTIONS 85
15.1. Conclusions 86
15.2. Suggestions 88
16. REFERENCES AND ABBREVIATIONS 90
16.1. References 91
16.2. Abbreviations 92
17. ANNEXURE 93
17.1. Questionnaire For Potential Customers 94
17.2. Questionnaire For DataOne Customers 96

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1.1 EXECUTIVE SUMMARY
This project was carried out at Bharat Sanchar Nigam Limited (BSNL), Pune. The
project title is Market Potential of BSNL Broadband Services in Pune. The duration of
the project was two months from 1st
june 2006 to 31st
july 2006. My project work
was to find out what people think about the BSNL as a brand and its broadband
services.
Even though India is known all over the world today as an Information and
Communication Technology powerhouse, within the country Internet has played a
relatively minor role. BSNL India s No. 1 Telecom Company launched DataOne on
14th January 2005. Though limited to domestic consumers, the BSNL has already
managed to install 32,000 connections of its broadband service DataOne in Pune
within eighteen months. The basic package itself has a speed of 256 Kbps and costs
just Rs. 250. Having a strong 1,02,200 Internet potential customer base BSNL can
easily overtake the market from other service providers in the Pune Market.
The basic objective of the project was to study the Market Potential of BSNL
Broadband Service in Pune. The study included to find overall image of BSNL as a
brand, peoples view about its broadband services, suggestions and innovations wanted
by people. Just in eighteen months BSNL has done what took others to do in years. As
a market leader and very strong and loyal customers base, BSNL will not find any
difficulty to extend its service in the market. It has already become a market leader in
a year and a half.
Research methodology adopted for the collection of primary data was a structured
questionnaire followed by a personal interview. The secondary data sources were
BSNL reference books, BSNL archives, customers details and BSNL Pune Intranet.
After carrying out the extensive study it was observed that BSNL will not find any
difficulty to extend its service in the market. It has already become a market leader in
a year and a half.

11
BSNL have to concentrate on 3 basic points: -
Quality Service.
Competitive Price.
Fast solution of Customers complaints.
1.2 LIMITATIONS
The basic limitation was that the time was limited.
Sources of data for collection of secondary data were limited
Replies of the respondent were biased
Respondent were busy and cant provide enough time.
There was area restriction and the study was limited to the existing or
incoming customers of BSNL Pune.

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2.1 INTRODUCTION
We have technology, finally, that for the first time in human history allows people to
really maintain rich connections with much larger numbers of people.
-Pierre Omidyar
In recent years, personal data communications in the form of Internet access has seen
an enormous growth. Broadband access is a fast-growing telecommunication market
globally, and India has a huge market potential. It is estimated that, to be affordable to
50% of the population, broadband access must be provided at around US$ 6
7(nearly Rs. 300) per month. India is a large country with about two hundred million
homes. It is therefore potentially a large market. But as the mobile telephony
revolution has shown, India becomes a large market only at the right price point.
Broadband is no exception. Assuming that a household is willing to spend a
maximum of 2.5% of its income as a recurring expense on Internet.
Broadband Internet is an enabling technology. It can enable Internet-based education,
Internet-based transactions and Internet based entertainment to transform India. Even
though India is known all over the world today as an Information and Communication
Technology powerhouse, within the country Internet has played a relatively minor
role. Massive broadband penetration into Indian homes can change this. Broadband
Internet availability would also spur job creation and enhance economic / GDP
growth. It would enable India to become a design house for the world, besides
becoming a service center for the world.

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3.1 PURPOSE FOR STUDY
In recent years, personal data communications in the form of Internet access has seen
an enormous growth. Broadband access is a fast-growing telecommunication market
globally, and India has a huge market potential. It is estimated that, to be affordable to
50% of the population, broadband access must be provided at around US$ 6
7(nearly Rs. 300) per month. India is a large country with about two hundred million
homes. It is therefore potentially a large market. But as the mobile telephony
revolution has shown, India becomes a large market only at the right price point.
Broadband is no exception. Assuming that a household is willing to spend a
maximum of 2.5% of its income as a recurring expense on Internet.
Until the Government of India did not announce the Broadband Policy 2004 various
Internet service providers provided high - speed (mainly between 64kbps 556 kbps)
internet service in the name of Broadband. Everyone has its own standard and there
was no unified standard for the broadband service. Once the Broadband Policy 2004
was announced BSNL thought to exploit its copper loop lines to provide the
Broadband Service with a brand name DataOne . BSNL has decided to use ADSL
technology by which it can provide a broadband service till the 2Mbps speed. BSNL
launched its service on 14th
January 2005 and has targeted to give a 6 million
connections upto 2007. Giving 50 connections per day BSNL has become the market
leader in just 18 months with 32,000 connections registered in Pune alone. With a
1,02,200 strong Internet consumer base BSNL has a big advantage over its
competitors but the way ahead is not at all a cup of tea for BSNL. In the era of
Information Technology there is a huge potential in the market and to capture this
market BSNL needs to know the customer s demand and interests about this service.

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3.2 BSNL BROADBAND SERVICES
3.2a DEFINING BROADBAND
Keeping in view the present status, Broadband connectivity is defined at present as:
An always-on data connection that is able to support interactive services including
Internet access and has the capability of the minimum download speed of 256 kilo bits
per second (kbps) to an individual subscriber from the Point Of Presence (POP) of the
service provider intending to provide Broadband service where multiple such
individual Broadband connections are aggregated and the subscriber is able to access
these interactive services including the Internet through this POP. The interactive
services will exclude any services for which a separate license is specifically required,
for example, real-time voice transmission, except to the extent that it is presently
permitted under ISP license with Internet Telephony.
3.2b DATAONE HOW ACTUALLY IT WORKS?
Traditional phone service connects the home or business to the BSNL over copper
wire that are wound around each other and called twisted pair. Modem demodulates
the analog signal of the telephone line and turns its values into the string of 0 and 1
value, which is known as digital signals.
DataOne uses ADSL (Asymmetric Digital Subscriber Line) Technology, which is
devoted to the downstream direction, sending data to user. Only a small portion of
bandwidth is available for upstream. Using this BSNL is giving download speed upto
2Mbps.
BSNL has setup its main server at Bangalore, which will authenticate and monitor the
working of the broadband service and a backup, is setup at Pune.

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The following graphical view shows how Data One works: -
BSNL Exchange Telephone Modem Computer
Figure: - 1
Internet

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4.1 OBJECTIVES
The objective of the project are divided into two:
1. Primary Objective and
2. Secondary Objective
4.1a PRIMARY OBJECTIVE
To find out the market potential of BSNL broadband service in Pune
4.1b SECONDARY OBJECTIVE
1. Market potential of DataOne (Broadband service of BSNL)
2. Competitors Analysis
3. Market awareness about BSNL Broadband Service
4. New opportunities in this market
5. Problems related to this service

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4.2 SCOPES AND LIMITATIONS
4.2a LIMITATIONS
1. Time: -
The major important factor, which always brings constraints, the period of 2 months,
was not sufficient to expand the objectives completely. The objective study of the
problem was completed but results may not be considered for whole population of the
consumers.
2. Co operation: -
Consumers were found to be co-operative; however some did not give sufficient time
for the discussion, but gave information without hesitancy.
3. Spectrum: -
The results obtained can be applied locally. This is not the representative of whole
geographical area. Therefore information based on this feasible data and suggestions
based on it cannot be implemented nation wide.

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5.1 A JOURNEY OF TELECOMMUNICATION IN INDIA, FROM
PWD TO BSNL
BSNL was the India s first name in the telecommunication industry. BSNL is
celebrating 150 years of Indian telecommunications. The history of
telecommunications in India is actually an interesting story. Each innovation, each
achievement, each milestone is a revolution in itself. From almost a non-existent
entity in the Public Works Department (PWD) to being the torchbearer of
development, flag bearer of growth and carrier of national self-reliance, Indian
telecom sector has indeed come a long way. From PWD to P&T to DoT, BSNL has
been at the center of action all through this incredible passage of time.
The recognition of being world s 7th
largest telecom company, BSNL, by all means is
the icing on the cake of Indian telecom sector.
The first experimental electric telegraphs line was started between Calcutta and
Diamond Harbour in November 1850. A year later the line was completed and opened
for East India Company s traffic. The visionary behind this landmark was Dr.
William O Shaughnessy credited to pioneer telegraph and telephone in India. This
led to construction of 4000 miles of telegraph line connecting Calcutta and Peshawar
in the north via Agra and Bombay through Sindhwa Ghats, Bombay and Madras in
the south as well as Ootacamund and Bangalore.
In 1854 when the Telegraph Act was enacted and a regular Telegraph Department
was setup to open telegraph facilities for public.
Dr. William O Shaughnessy, who was a part of PWD Department, was elevated as the
first superintendent of the Indian Telegraph Department (ITD). In the historical
archives, the year 1895 has vital importance, phonograms were introduced for the first
time at Bombay and Calcutta and in 1902, and the first Wireless Telegraph Station
was established.
1905 can be termed as the cornerstone of today s telecom profile. It was the year that
the control of the Telegraph Department was transferred from PWD to Commerce &

23
Industry Department except for the matters connected with electricity and building. It
was the time that the beatification and classification of the Department happened. In
1907, women signalers were employed for the first time. In 1914 the Postal and
Telegraph Departments were amalgamated under single Director General of P&T
Department. This year also witnessed the opening of first automatic exchange at
Shimla with capacity of 700 lines and 400 actual connections.
In 1960s while the Beatles wave was sweeping the world, the Indian telecom think
tank was busy in introducing microwave culture. The first microwave route between
Calcutta and Asansol was opened. The 1970s witnessed the installation of SPC
Gateway Telex Exchange and introduction of the first International Subscriber Dialed
(ISD), the setting up of Telecommunications Consultants India Limited and
commissioning of the first Optic Fiber System for local junction in Pune.
The 1980s, completely established Indian telecom as the first frontrunner. In one giant
leap, the universe shrinked. The first satellite earth station for domestic
communications was setup at Secundrabad. A revolution happened with the
establishment of C Dot. The first mobile telephone service and the first radio paging
service were introduced in Delhi. The MTNL and VSNL were set up and the
International Gateway Packet Switch System was commissioned in Bombay. 1980s
also saw the restructuring of the P&T Department into Department of Posts and
Department of Telecommunication (DoT).
However, the 90s witnessed breathtaking advances and value addition till date. The
announcement of National Telecom Policy for setting up of Telecom Regulatory
Authority of India (TRAI) and opening the market of Telecommunication for private
players.
In October, 2000 Department of Telecommunications corporatised as BSNL, the
largest telecom company in India. BSNL rolled out its CellOne and Excel mobile
post and pre paid services in October 2002. January 2005 BSNL started its new
broadband service named as DataOne .

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BSNL has emerged as the largest basic telecom and mobile network operator in its
license areas, an undisputed Telecom Titan in India. Since Independence, total
landline connections as on date are approximately 4 crores; whereas mobile phones
after introduction has crossed the figure of 1.75 crores at the growth rate of 100% per
annum.
The journey is indeed fascinating, eye opening and by all means a learning experience
for one and all. However it is not the end. The forays are continuing, the innovations
are happening, technology is becoming friendlier and the customer is wining and
gaining.
A journey of 150 years Telecommunication in India, from PWD to BSNL
1850
1854
1914
1980s
2000 DoT
PWD
Indian Telegraph
Department (ITD)
P&T Department
Department of
Telecommunication (DoT)Department of
Posts
MTNLVSNL
BSNL
Telegraph
Act, 1854
150Years

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5.2 ABOUT BSNL
Bharat Sanchar Nigam Ltd. formed in October, 2000, is World's 7th largest
Telecommunications Company providing comprehensive range of telecom services in
India: Wire line, 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 Lakh 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.
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.

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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.

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5.3 VISION, MISSION AND OBJECTIVE
5.3a VISION
To become the largest telecom Service Provider in South East Asia.
5.3b MISSION
1. To provide world class State-of-art technology telecom services on demand at
affordable price.
2. To Provide world class telecom infrastructure to develop the country's
economy
5.3c OBJECTIVE
To be a Lead Telecom Services Provider.
Build customers confidence through quality and reliable service.
Provide Bandwidth on demand.
Contribute towards:
i. National Plan Target of 250 million subscriber base for the country by
December 2007.
ii. Broadband customers base of 20 million in the country by 2010 as per
Broadband Policy 2004.
iii. Telephone in all villages.
iv. Implementation of Triple play as a regular commercial proposition
.

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5.4 SERVICES PROVIDED BY BSNL

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5.5 ADDRESSES
5.5a Pune Head Office: -
Office of Principal General Manager Telecom
Telephone Bhavan
281/B, Bajirao Road, Pune 411002
5.5b Maharashtra Head Office: -
Office of Chief General Manager Telecom
BSNL Maharashtra Telecom Circle
Telecom Fountain Building II
MG Road, Fort Mumbai 400001
5.5c BSNL Corporate Office: -
Statesman House,
B 148, Barakhamba Road,
New Delhi 110001
5.5d BSNL Registered Office: -
10th
Floor, Statesman House,
B 148, Barakhamba Road,
New Delhi 110001

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5.6 ORGANISATIONAL CHART OF BSNL

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5.7 FINANCIAL STATUS OF BSNL
5.7a ASSETS
Bharat Sanchar Nigam Limited has got fixed assets valuing more than Rs. 62,862
Crores (US $ 14.29 billion), which are in the form of Land, Buildings, Cables,
Apparatus & Plants etc.
5.7b REVENUE
The Department of Telecom operations now known as BSNL, has shown sustained
growth in the last 15 years. The growth rate in 2004-05 was 6.5%

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5.7c CAPITAL INVESTMENT
Annual Investment in the network has increased from Rs. 785 crores (US$ 0.18
billion) in 1986-87 to over Rs. 7578 crores ( US $ 1.72 billion) in 2004-05. This
investment has been financed mainly by the internal accruals. The planned capital
outlay during 2006-07 is Rs. 19431 crores ( US $4.42 billion).
5.7d CUMULATIVE CAPITAL OUTLAY
Department of Telecom Operations, now BSNL, had as of 31-3-2005 a cumulative
investment in Gross fixed assets of over Rs 143,930 crores (US $ 32.71 billion).
Cumulative Fixed Assets have grown at an average annual rate of over 12% in the last
15 years.

33
CHAPTER-6
INDIA AND BROADBAND

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6.1 INDIA AND BROADBAND INTRODUCTION
InfoTech is growing, but in broadband or high-speed Internet penetration, India
continues to be a laggard, says a report. While, US is the world's leading broadband
country with over 25.1 million lines, followed by Japan (13.6 m), China (13.5 m),
South Korea (11.1 m) and Canada (4.7 m), India had only 82,000 lines till December
31, 2003.
Across the globe, broadband lines touched 100.8 million in 2003, compared to 62
million in 2002, says an analysis by UK-based Point Topic's. Despite being a
knowledge-based solution provider with BPO success, India has only 2 broadband
users for every 10,000 people and 4 Internet users for 1,000 people.
"It is a wake-up call for India," says Sujit Kumar, chairman of CII's national
broadband committee. "We are what China was 3 years back. China will soon
overtake Japan and even US because broadband is a priority. We need a similar
national broadband policy."
Industry leaders said India would lose out if it doesn't aim for 3 million broadband
homes within 2-3 years. India currently has 6 million Internet users & only 10 million
PCs. The push has to come from BSNL and MTNL as they have 15 million telephone
connections in urban homes of which 2.5 million homes use dial up for surfing the
net. "They can turn to broadband connection." says an industry representative. BSNL
official explains that they plan to have 6 million broadband lines by 2007-end.
Rural India is all set to witness IT revolution like never before. With the
announcement of the much-awaited Broadband Policy, public distribution system
especially in government services such as education, health, e-governance,
entertainment and e-commerce, is likely to get a boost.
To push broadband and Internet penetration in the country, the government has
announced its broadband policy.

35
The only significant decision taken as part of the new policy is to permit use of Wi-Fi
(Wireless Fidelity) on the 2.4 GHz band in outdoor locations against the present
regime of restricting it to a closed area. The move will enable consumers to access the
Internet even while they are traveling in a car or train similar to what they can do with
mobile phones.
The policy augurs well for BSNL since its opposition to unbundling the last mile has
been taken into account by the government. Unbundling would have allowed small
Internet Service Providers (ISP) to use the state owned company's copper lines across
the country to offer broadband services.
Justifying the decision, Mr. Dayanidhi Maran, Union Minister of Communication and
IT, said, "We are not in favour of local loop unbundling. We have studied the
countries where local loop was unbundled and it has been a disaster as it leads to
confusion in the market. We feel that the future of broadband will be on wireless
therefore Wi-Fi will be a big boost."
On the fiscal measures, Mr. Maran said that his Ministry would be working with the
Ministry of Finance to work out a package for giving a boost to broadband usage. In
other measures, the Government has opened up the 5.15 GHz band for indoor use of
low power Wi-Fi systems. Procedures for obtaining clearance for radio frequency
usage have also been simplified for VSAT operators. Broadband operators will also
be able to use the Cable TV network as franchisees.
Policy Target of government is

36
CHAPTER-7
BROADBAND POLICY 2004

37
7.1 BROADBAND POLICY 2004
Broadband policy was declared in the year 2004 by the Government of India, Ministry
of Communication and Information Technology, Department of Telecommunications.
It is given as follows
7.1a PREAMBLE
Recognizing the potential of ubiquitous Broadband service in growth of GDP and
enhancement in quality of life through societal applications including tele - education,
telemedicine, e-governance, entertainment as well as employment generation by way
of high speed access to information and web-based communication, Government have
finalised a policy to accelerate the growth of Broadband services.
Demand for Broadband is primarily conditioned and driven by Internet and PC
penetration. It is recognized that the current level of Internet and Broadband access in
the country is low as compared to many Asian countries. Penetration of Broadband,
Internet and Personal Computer (PC) in the country was 0.02%, 0.4% and 0.8%
respectively at the end of December 2003. Currently, high speed Internet access is
available at various speeds from 64 kilobits per second (kbps) onwards and presently
an always-on high speed Internet access at 128 kbps is considered as Broadband .
There are no uniform standards for Broadband connectivity and various countries
follow various standards. Government envisions an accelerated growth in Internet
penetration and PC, as the success of Broadband would largely be dependent on their
spread. It has been decided that following shall be the framework of the policy.
7.2 BROADBAND CONNECTIVITY
Keeping in view the present status, Broadband connectivity is defined at present as
An always-on data connection that is able to support interactive services including
Internet access and has the capability of the minimum download speed of 256 kilo bits
per second (kbps) to an individual subscriber from the Point Of Presence (POP) of the
service provider intending to provide Broadband service where multiple such

38
individual Broadband connections are aggregated and the subscriber is able to access
these interactive services including the Internet through this POP. The interactive
services will exclude any services for which a separate license is specifically required,
for example, real-time voice transmission, except to the extent that it is presently
permitted under ISP license with Internet Telephony.
7.3 The estimated growth for Broadband and Internet subscribers in the country
envisaged through various technologies is as follows:
7.4 TECHNOLOGY OPTIONS FOR BROADBAND SERVICES
The Broadband Policy Framework visualizes creation of infrastructure through
various access technologies, which can contribute to growth and can mutually coexist.
Spread of infrastructure is a must for healthy competition and therefore it would be
the endeavor of the Government that the telecommunication infrastructure growth in
the country is not compromised in any manner.
Various access technologies, inter-alia, are:
i. Optical Fibre Technologies
ii. Digital Subscriber Lines (Dsl) On Copper Loop
iii. Cable TV Network
iv. Satellite Media
v. Terrestrial Wireless
7.5 OTHER ISSUES
7.5a Bandwidth availability is a major driver for broadband services. In a competitive
environment, service providers are expected to take appropriate steps for making
required bandwidth available in a time bound manner within their license framework.

39
Cost of bandwidth constitutes a major cost component for Broadband services. TRAI
issued a consultation paper for international bandwidth leased line cost. Government
has recently decided to reduce the license fee for Infrastructure, who provides end-to-
end bandwidth, to 6% of Adjusted Gross Revenue. The amount of bank guarantee has
also been reduced to Rs.5 crores from Rs.100 crores.
7.5b ROLE OF OTHER AGENCIES
PCs, content and applications are important constituents for overall growth of Internet
and Broadband services. Broadband services will accelerate decentralized governance
at Panchayat level.
The role of other facilitators such as electricity authorities, Departments of ITs of
various State Governments, Departments of Local Self Governments, Panchayats,
Department of Health and Family Welfare, Department of Education is very
important to carry the advantage of Broadband services to the users particularly in
rural areas.
7.5c FISCAL ISSUES
The Department of Telecommunications assigns a very high priority to indigenous
manufacture of Broadband related equipments. It shall endeavour to work closely
with the concerned Ministries and Manufacturers Associations so that the equipments
are available at an affordable price. The department is conscious of the fact that
Broadband services can reach the urban and rural consumers only if services are
offered at affordable and easy terms. Department of Telecommunications will work
out a package in consultation with Ministry of Finance and related Departments as
well as concerned service providers to achieve this

40
CHAPTER-8
BSNL AND INTERNET

41
BSNL provides the following types of connections to access Internet to customer.
8.1 PSTN DIAL UP ACCESS
BSNL internet service offers flexible options of access plans for PSTN dial-up in
various slabs of 25,50,100, 200, 500 and 1,000 hours. With Sancharnet dialup account
you get all India roaming advantage which is not available with any other ISP because
you can access sancharnet internet by dialing '172233' from any city in India
8.2 ISDN DIAL UP ACCESS
Enjoy blazing fast Internet surfing and download speeds in 64 and 128 Kbps ISDN
dial up connections. The uniform all India access no. for ISDN access is '172225'.
8.3 LEASED LINE ACCESS
Enjoy round the clock internet connectivity at speeds varying from 64 Kbps to 45
Mbps. various plans are available to suit different needs. ISDN dial backup packages
for Internet Leased Line Customers are also available.
8.4 DIRECT INTERNET ACCESS (DIAS)
BSNL also provides DIAS in selected cities of the Country. The DIAS offers a wire-
line solution for high speed symmetrical Internet access on the existing telephone
lines. It provides an "always on" internet access that is permanently available at
customer's premises. DIAS combines voice and internet data packets on a single
twisted pair wire at subscriber premises that means you can use telephone and surf
internet at the same time.
8.5 ACCOUNT FREE INTERNET DIAL UP ACCESS BASED ON
CLI
Duration based Dialup Internet Service(CLI based) is a unique method providing
Internet service in which the Customer can access the Internet service from any

42
telephone through dial up. The service allows automatic registration on first LOGIN.
The authentication will be based on CLI of the telephone with the password supplied
by the caller. The charging is totally usage based and the service is a post paid service
like normal PSTN. The billing will be separate based on the duration of use and will
be charged to telephone bill(CLI based) as Internet access charge at the prescribed
rate. The service is available in selected cities. The access no. of this service is
'172222' in all cities.
8.6 BROADBAND CONNECTION
Broadband service is based on DSL technology (on the same copper cable that is used
for connecting telephone). This provides high speed internet connectivity upto 8Mbps.
This is always - on internet access service with speed ranging from 256Kbps to 8
Mbps.
8.7 WI-FI
Wi-Fi Services have been introduced for providing high speed internet access at
convenient public locations hereunder called as Hot Spots. Installation of Hot Spots is
already under process at various cities/ locations. Hot Spot Type-A is applicable for
public utility services like Airports, Railway Stations, Universities and their campus
etc.
8.8 SANCHARNET CARD
BSNL has also launched "SANCHARNET CARD" recently. The Sancharnet
Card" is a prepaid Internet Access Card with following features for customers:
Self-register for internet access with your choice of user id
Renew your existing Sancharnet Account
Wide Range of Internet Access Packages

44
9.1 INTRODUCTION
DataOne is the Broadband service of BSNL. This service is being provided on
existing copper wire infrastructure. In addition to the High Speed Internet Service
being provided through this technology, other services such as VPN, Multicasting,
Video Conferencing, Video-on-Demand, Broadcast application etc will also be added
shortly.
BSNL is in the process of commissioning of a world class, multi-gigabit, multi-
protocol, convergent IP infrastructure through National Internet Backbone II (NIB-II),
that will provide convergent services through the same backbone and broadband
access network. The Broadband service will be available on DSL technology (on the
same copper cable that is used for connecting telephone), on a countrywide basis.
In terms of infrastructure for broadband services NIB-II would put India at par with
more advanced nations. The services that would be supported includes always-on
broadband access to the Internet for residential and business customers, Content based
services, Video multicasting, Video-on-demand and Interactive gaming, Audio and
Video conferencing, IP Telephony, Distance learning, Messaging: plain and feature
rich, Multi-site MPLS VPNs with Quality of Service (QoS) guarantees. The subscribe
will be able to access the above services through Subscriber Service Selection System
(SSSS) portal.
9.2 KEY OBJECTIVES
To provide high speed Internet connectivity (upto 8 Mbps)
To provide Virtual Private Network (VPN) service to the broadband customers
To provide dial VPN service to MPLS VPN customers.
To provide multicast video services, video-on-demand, etc.
To provide a means to bill for the aforesaid services by either time-based or
volume-based billing. It shall provide the customer with the option to select
the services through web server
To provide both pre-paid and post paid broadband services

45
9.3 TECHNICAL CAPABILITY OF THE BACKBONE
The Broadband Service will be given through the state of the art Multi Protocol Label
Switching (MPLS) based IP Infrastructure, which is designed to provide reliable
routes to cover all possible destinations within and outside the country. Layer 1 of the
network will consist of a high speed Backbone comprising of 24 powerful Core
Routers connected with high speed 2.5 Gbps(STM-16) links. The routers are located
on the national DWDM network interfacing at STM-16 optical level to provide for
high transmission speeds
9.4 ADVANTAGE OF MPLS OVER OTHER TECHNOLOGIES
MPLS VPN is a technology that allows a service provider like BSNL to have
complete control over parameters that are critical to offering its customers service
guarantees with regard to bandwidth throughputs, latencies and availability
9.5 SERVICES AVAILABLE THROUGH BROADBAND
High speed Internet Access: This is the always-on Internet access service
with speed ranging from 256 kbps to 8 Mbps.
Bandwidth on Demand: This will facilitate customer to change bandwidth as
per his / her requirement. For example a customer with 256 kbps can change
to 1 Mbps during the video Conferencing session.
Multicasting: This is to provide video multicast services for application in
distance education, telemedicine etc
Dial VPN Service: This service allows remote users to access their private
network securely over the NIB-II infrastructure.
Video and Audio Conferencing:
Content based Services: Like Video on Demand, Interactive Gaming, Live
and time shifted TV

46
9.6 REQUIREMENTS IN ORDER TO USE DATAONE
BSNL's Bfone (Basic phone) connection
Personal Computer with 10/100 Ethernet Port
ADSL CPE (Customer Premise Equipment). This can be taken from BSNL at
nominal rental per month.
9.7 LAUNCH OF THE SERVICE
The Broadband Service has been launched in Bangalore, Chennai, Hyderabad and
Kolkata from 14th January 2005. Soon, it will be extended to more than 200 cities
9.8 DOES BSNL PROVIDE PC FOR BROADBAND ACCESS
BSNL has tied up with HCL Info systems Ltd. to launch the BSNL HCL PC for
DataOne broadband customers in the country

47
9.9 DATA ONE TARIFFS
9.9a DATAONE START UP PLAN 250
PARTICULARS TARIFF IN Rs.
Bandwidth 256 Kbps
Monthly Charges (Rs) 250
Discounted Annual Payment Option to
Customers (Rs)
2500
Download/Upload Limit (GB) per month 0.4 GB
Additional Usage Charges/MB beyond free
download/upload limit (Rs)
1.40
Free E-mail IDs/Space (Per E-mail ID) 1/5 MB
Security Deposit NIL
Night Unlimited (0200-0800 Hrs) Not Available
Minimum Hire Period Three Months

48
9.9b DATA ONE HOME PLAN
TARIFF IN Rs.
PARTICULARS HOME
UL 900
PLUS **
HOME
UL 900##
HOME
500
HOME
1000
HOME
1800
HOME
3300
Bandwidth 256
Kbps
256
Kbps
256
Kbps
384
Kbps
512 Kbps 1 Mbps
Monthly Charges
(Rs)
900 900 500 1000 1800 3300
Discounted Annual
Payment Option to
Customers (Rs)
9000 9000 5000 10000 18000 33000
Download/Upload
Limit per month
Unlimited Unlimited 1.0 GB 2 GB 5 GB 10 GB
Additional Usage
Charges/MB
1.20 1.00 0.80 0.80
Free E-mail
IDs/Space
2/5 MB 2/5 MB 1/5 MB 1/5 MB 1/5 MB 2/5 MB
Security Deposit 1 month
rental
1 month
rental
NIL 1 month
rental
1 month
rental
1 month
rental
Night Unlimited
(0200-0800 Hrs)
Yes Yes Yes Yes
Minimum Hire
Period
One Month One Month Three
Months
One
Month
One
Month
One
Month
Note:
** For Home Plan UL 900 Plus: Telephone Rental per month- Nil, Free Calls- Nil,
MCU charges per Pulse @ Rs. 1/- shall be applicable. The calls shall be charged as
per pulse rate of BSNL Bfone General Plan. Security Deposit and Installation charges
as applicable for Local/STD/ISD shall be taken from new customers.
##
For Home Plan UL 900: Telephone Rental per month, Free Calls & MCU charges
per pulse shall be as per existing plan of the customer.

49
9.9c DATA ONE BUSINESS PLAN
BUSINESS
700
BUSINESS
1200
BUSINESS
3000
BUSINESS
5000
BUSINESS
9000
Bandwidth 256Kbps 256 Kbps 512Kbps 1 Mbps 2 Mbps
Single /Multi
User-(SU/MU)
SU SU MU MU MU
Monthly Charges
(Rs)
700 1200 3000 5000 9000
Discounted
Annual Payment
Option (Rs)
7000 12000 30000 50000 90000
Download/
Upload Limit
(GB) per month
2 GB 4 GB 10 GB 20 GB 40 GB
Additional Usage
Charges/MB (Rs)
1.20 1.00 0.80 0.60 0.60
Free E-mail
IDs/Space
1/5MB 1 / 5 MB 2 / 5 MB 2 / 5 MB 4 / 5 MB
Static IP Address
(On Request)
Not
Available
Not
Available
Not
Available
One One
Web Hosting
Space (On
Request)
Not
Available
Not
Available
Not
Available
5 MB 5 MB
Domain Name
(On Request)
Not
Available
Not
Available
Not
Available
One One
Security Deposit 1 month
rental
1 month
rental
1 month
rental
1 month
rental
Rs. 5000
Minimum Hire
Period
One Month One Month One Month One Month One Month

50
9.9d DATAONE -TEMPORARY CONNECTION (w.e.f. 01st
April 2006)
Bandwidth Above 256 Kbps
Installation Charges 500
Security deposit for modem 1000
Modem rental 200
Plan charges Double of the normal rental
Additional usage charges As per plan applicable
Note : The minimum charges shall be for a period of 15 days.
9.9e CONDITION FOR PROVIDING FREE MODEM
For Home plans of 1800 and above and for Business plans, the modem shall be given
free if the customer commits for the period as shown below and pays the necessary
charges in advance. In this case customers will than own the modem and not required
to return the modem.
HOME PLAN BUSINESS PLAN
PLAN COMMITTED
PERIOD
PLAN COMMITTED
PERIOD
Home 1800 12 months Business 1200 18 months
Home 3300 6 months Business 3000 9 months
Business 5000 6 months
Business 9000 3 months

51
9.9f MODEM ON OUTRIGHT PURCHASE
It is decided to offer different types of modems on outright purchase basis to
Data one customers. Different options are given below:
MODEM TYPE
PORTS TYPE-I TYPE-II TYPE-III TYPE-IV
Ethernet One One Four Four
Wi-Fi - One - One
USB One - - -
Charges
(Rs)
1200 1800 1500 2000
9.9g MODEM ON RENT
Only Type I modem is given on rental at present.
The monthly rental for Type I, II, III and IV modems shall be as given below
MODEM TYPE
PARTICULARS TYPE-I TYPE-II TYPE-III TYPE-IV
Monthly rental Rs. 100*
p.m.
Rs. 125*
p.m.
Rs. 100*
p.m.
Rs. 125*
p.m.
* New Rental with effect from 18-07-2006.

52
CHAPTER-10
COMPETITOR S ANALYSIS

53
10.1 TARIFFS OF DATAONE & ITS COMPETITORS
10.1a TARIFFS OF BSNL BROADBAND (DATAONE)
DataOne
Bandwidth
Monthly
Rate (Rs)
Time/Download
Limit
Discounted
Annual Charge
Others
Home Plans
256 Kbps 250 0.4 GB 2500 No Rental Security
256 Kbps 500 1GB 5000 No Rental Security
384 Kbps 1000 2 GB 10000
512 Kbps 1800 5 GB 18000
1 Mbps 3300 10 GB 33000
Business Plans
256 Kbps 700 2 GB 7000
256 Kbps 1200 4 GB 12000
512 Kbps 3000 10 GB 30000
1 Mbps 5000 20 GB 50000
2 Mbps 9000 40 GB 90000
2 months Rental Security
Installions charges : Rs 250
Modem charge: Rs 2000 for
purchase or Rs.100 monthly
with Rs 500 as security
10.2 % Service Tax Extra
Table : - 10.1a
10.2 TARIFFS OF BSNL S COMPETITORS IN PUNE MARKET
10.2a AIRTEL
Airtel
Bandwidth
Monthly
Rate (Rs)
Time/Download
Limit
Additional
usage charges
(Rs/hour)
Others
64 Kbps 249
10 Hrs for day/ 25
Hrs for night
Rs 20 for day/Rs
10 for night
128 Kbps 349
Rs 30 for day/Rs 15
for night
Rs 20 for day/Rs
10 for night
64 Kbps 600 Unlimited _
Registration Charge: Rs1000
Modem Rental: Rs 99
Modem Security Deposit: Rs
500
128 Kbps 550 _
Rs 30 for day/Rs
15 for night
256 Kbps 500 1GB Rs2/MB
Rs 400 can be used for
internet or voice pulses,
Modem deposit: Rs1000
Installation Charges:Rs800
128 Kbps 550
10 Hrs for day/ 25
Hrs for night
Rs 30 for day/Rs
15 for night
100 Free voice pulses. Voice
registration charges: Rs 1000
128 Kbps 995
Rs10 for day/ Rs
12.5 for night
_ 200 Free voice Pulses
256 Kbps 1400 1.25GB Rs1.40/MB
Table : - 10.2a

54
10.2b EXATT-NET
ExattNet
Bandwidth
Monthly
Rate (Rs)
Time/Download
Limit
Validity Months Others
By the Hour
96 Kbps 140 20 30
96 Kbps 180 30 30
96 Kbps 300 50 60
Mega Club
512 Kbps 175 100 MB 30 days
1 Mbps 275 200 MB 30 days
1 Mbps 575 500 MB 60 days
1 Mbps 1150 1GB 3
1 Mbps 1900 2GB 6
1 Mbps 4000 5GB 12
Club Unlimited
Installation charges pulse10.2
percent service tax
Table : - 10.2b
10.2c HATHWAY DATACOM
Hathway Datacom
Plan Bandwidth Renewal Price Liteway Validity Months
Liteway
Liteway-1Regular 256Kbps 500 1GB 1
Liteway-1Xtra
(Prepaid) 256Kbps 3000 7GB 6
Liteway-1Regular 256Kbps 1000 2GB 1
Liteway-1Xtra
(Prepaid) 256Kbps 6000 13GB 6
Liteway 8 to 8 256Kbps 400 Unlimited 1
Paceway
Paceway-1
(Prepaid) 512Kbps 3000 2.4GB 6
Table : - 10.2c

55
10.2d IQARA
Iqara
Plan
Monthly
Rate (Rs)
Time/Download
Limit
MB Based Plan
IQ 325 699 325 MB 184 Days
IQ 500 949 500 MB 366 Days
IQ 500 500 500 MB 31 Days
IQ 1000 1750 1000 MB 365 Days
IQ 2000 3999 2000 MB 366 Days
IQ 3000 4999 3000 MB 366 Days
One time installation free.
50% discount on data transfer
(MB) during night hours(10
PM to 10 Am). Lan card is
required for the service will
not be provided by Iqara
Broadband.
Unlimited Plans
Iqara Comfort
(40Kbps) 750
_
31 Days
Iqara Delight
(64Kbps) 999
_
31 Days
Iqara Angel
(256Kbps) 499
_
31 Days
For Iqara Comfort Delight ,
Angle Surfing time only
between 10 PM to 10 AM
Plus sales tax.
Table : - 10.2d

56
10.2e PACENT
Pacent
Bandwidth
Monthly
Rate (Rs)
Time/Download
Limit
25 Kbps 390 Unlimited 1
Installation cost Rs3000
which includes for Cat 5 cable
32 Kbps 550 Unlimited 1 No LAN card provided
40 Kbps 750 Unlimited 1 10.2% service tax extra
75 Kbps 350 1 Night Scheme 11pm to 8 am
150 Kbps 550 1
128 Kbps 300 100 MB 1
128 Kbps 550 200 MB 1
128 Kbps 1000 500 MB 1
256 Kbps 1900 1 GB 2
256 Kbps 3700 2 GB 3
256 Kbps 9000 5 GB 6
256 Kbps 16500 10 GB 12
32 Kbps 750 _ 3 100 Hours
64 Kbps 1300 _ 3 100 Hours
32 Kbps 3500 _ 12 500 Hours
64 Kbps 6500 _ 12 500 Hours
Table : - 10.2e
10.2f RELIANCE BROADBAND
Reliance Broadband
Bandwidth
Monthly
Rate (Rs)
Time/Download
Limit
128 Kbps 750 _ _
256 Kbps 1200 _ _
512 Kbps 3000 _ _
Installation charges :Rs 1000
Table : - 10.2f

57
10.2g TATA INDICOM
Tata Indicom
Bandwidth
Monthly
Rate (Rs)
Time/Download
Limit
Prepaid -Time based
DSL 397 20 Hrs 1 Installation cost Rs2204
DSL 827 50 Hrs 1
DSL 1323 100 Hrs 5
DSL 5290 480 Hrs 1 year
Prepaid -Volume based
DSL 397 200 MB 1
DSL 827 500 MB 1
DSL 1984 1200 MB 6
DSL 3174 2400 MB 1 year
DSL 6612 6000 MB 1 year
Postpaid
DSL 500 20 Hrs 1
DSL 1000 50 Hrs 1
Installation cost Rs2755 for
USB modem (Rs 1000
refundable)
DSL 500 250 MB 1
DSL 875 500 MB 1
Rs 8816 for router (Rs 1000
refundable)
DSL 1500 1 GB 1
DSL 3600 3 GB 1
Additional Static IP- Rs 5000
per annum
DSL 5100 6 GB 1
DSL 6000 Unlimited 1
Table : - 10.2g

58
10.2h SIFY BROADBAND
Sify Broadband
Bandwidth
Monthly
Rate (Rs)
Time/Download
Limit
64Kbps 220 15Hrs
64Kbps 440 40Hrs
64Kbps 600 60Hrs
64Kbps 800 100Hrs
64Kbps 1125 150Hrs
Hourly Range Premium: 50% free at night (10pm to 6am and
100% free on Sunday
64Kbps 330 15Hrs 1
64Kbps 660 40Hrs 2
64Kbps 900 60Hrs 3
64Kbps 1200 100Hrs 6
64Kbps 1700 150Hrs 12
Data Transfer Range
128 kbps 220 200 MB 1
256 kbps 400 400 MB 1
256 kbps 475 500 MB 2
256 kbps 650 700 MB 2
256 kbps 950 1 GB 3
Unlimited Range
64 kbps 695 Unlimited 1
Installing charges depends on
cable operator, Rs 2000-5000
128 kbps# 400 Night Unlimited 1
# Night (9.00pm-9.00am)
Daytime usage (9.00am-
9.00pm) not allowed.
Table : - 10.2h

59
CHAPTER-11
RESEARCH METHOLOGY

60
11.1 RESEARCH METHODOLOGY INTRODUCTION
Research methodology is a way to systematically solve the research problem. It may
be understood as a science of studying how a research is done scientifically. We can
say that research methodology has many dimensions and research methods do
constitute a part of the research methodology. The study of research methodology
gives the student the necessary training in gathering materials required, and also
training in technique for the collection of data appropriate to particular problem. It
helps in the use of statistics, questionnaire and controlled experimentation and in
recording evidences, sorting it out and interpreting it. Knowledge of research
methodology is helpful in various fields. Research methodology plays key role in
project work. It consists of series of actions or steps necessary to effectively carry out
research and the desired sequencing of these steps.
11.2 DATA COLLECTION METHOD
Data is collected from both Primary and Secondary data source. The primary sources
were mainly the consumers and BSNL staffs (especially Marketing wing) and data
was collected through survey technique. The survey technique was carried out
through questionnaires and personal interview. The secondary data sources were the
BSNL reference books, customers details documents and BSNL Pune Intranet.
11.2a PRIMARY DATA SOURCE
Primary data is that data which is collected for the 1st
time Questionnaire and
personnel interview methods were used to collect Primary data. This data was
collected by asking questions to Consumers and staffs of BSNL.
11.2b SECONDARY DATA SOURCE
Secondary data is that data which is already assembled & need not to be collected.
Library method was used to collect Secondary data. These data were colleted from the
BSNL reference books, BSNL archives, customers details and BSNL Pune Intranet.

61
11.3 RESEARCH INSTRUMENT
The research instrument used here are two structured questionnaires. The first
questionnaire was made for general public and it consisted of twelve questions. The
second questionnaire was made for DataOne customers and it consisted of seventeen
questions.
The questionnaire consisted of following type of questions
i. Closed ended: These are the questions that specify all the possible answers
that are easy to tabulate & interpret. Further sub-types used are
a. Dichotomous questions: These are the questions with only 2 possible
answers.
b. Multiple choice questions: These are the questions with more than 3
or more answers.
c. Rating scale: It is a scale that rates some attribute from poor to
excellent
ii. Open ended: These type questions allow respondents to answer in their own
words & often reveal about how people think. They are especially useful in
exploratory research where researcher is looking for insight into how people
think rather than how many people think in a certain way. The sub-types used
are
a. Unstructured questions: Respondents can answer in unlimited no. of
ways.
b. Word association: Respondents mention what comes to their mind
when the hear the brand name
11.4 SAMPLING
Sample is small group taken under consideration from total customer population. This
small group represents the total population. In the project I studied market in Pune
city. As it was impossible to approach all respondents of city, a sample was selected

62
which represent whole city. The sample size for random sampling were fifty people
and the sample size for DataOne customers was hundred people. The areas covered
were Sada Shiv Peth, Shukrawar Peth, Shaniwar Peth, Guruwar Peth, Ghorpade Peth,
Narayan Peth, Prabhat Road, Senapati Bapat Road, Shivajinagar, Deccan and F. C.
Road.
11.5 DATA EVALUATION
All the data collected was not accepted as it was collected. It was filtered & only
relevant data is introduced in the report which helped in achieving objective of the
project. This relevant data is finally analyzed and evaluated to make the final report
and to deduce final conclusion.

64
12.1 DATA ANALYSIS INTRODUCUION
Data analysis and interpretation plays an important role in turning quantity of paper
into defensible, actionable sets of conclusions and reports. It is actually a set of
method and technique that can be used to obtain information and insights from data.
It can lead the researcher to information and insights that would not be available. It
can help to avoid erroneous judgments and conclusion. It can provide a background to
help interpret and understand analysis conducted by others. Knowledge of power of
data analysis techniques can constructively influence research objectives and research
design.

65
12.2 DIVISION OF INTERNET USERS
Type of Connection Number of Users Percentage of Users
Dial-Up 14 28%
Broadband 23 46%
Cable 13 26%
Total 50 100%
Division of Internet Usesr
28%
46%
26%
Dial-Up
Broadband
Cable
12.2a INTERPRETATION
Fifty people were asked at random about the type of internet connection they
use.
Amongst these 46% (23 in number) use broadband connection
28% (14 in number) person have dial-up connection
The remaining 26% (13 in number) use cable connection to access internet.
Thus, maximum number of people use broadband connection to operate
internet

66
12.3 AWARENESS OF PEOPLE ABOUT BROADBAND
Awareness Level Number of Respondent Percentage of Respondent
Not Aware 6 12%
Partially Aware 16 32%
Fully Aware 28 56%
Total 50 100%
Awareness Level of People About
Broadband
12%
56% 32%
Not Aware
Partially Aware
Fully Aware
Fifty people were asked randomly whether they are aware about the
broadband or not.
Amongst these 12% (6 in number) people were not at all aware about the
broadband
32% (16 in number) people were partially aware about the broadband
And the remaining 56% (28 in number) people were fully aware about the
broadband
Thus, we see that more than fifty percent people are fully aware about the
broadband

67
12.4 PREFERENCES WHILE CHOOSING A BROADBAND CONNECTION
Ranking
Parameters 1 2 3 4 5
Connectivity 11 12 12 15 0
Cost-Effectiveness 13 12 14 10 1
Speed 15 14 10 11 0
Download/Upload Limits 11 12 14 12 1
Technology 0 0 0 2 48
Total 50 50 50 50 50
Preferences While Choosing a Broadband Connection
0
10
20
30
40
50
60
1 2 3 4 5
Ranks
NumberofConsumers
Connectivity
Cost-Effectiveness
Speed
Download/Upload Limits
Technology
Fifty people were asked randomly to rank the parameters according to the
preferences they would give them while choosing a broadband connection
The parameters and the ranking are given as follows
o Connectivity
11 people gave connectivity the first rank.12 people gave it
second rank. 12 people gave it third rank. 15 people gave
connectivity fourth rank and no one gave connectivity the fifth
rank.

68
o Cost-Effectiveness
13 people gave cost-effectiveness the first rank.12 people gave
it second rank. 14 people gave it third rank. 10 people gave
cost-effectiveness fourth rank and 1 person gave cost-
effectiveness the fifth rank.
o Speed
15 people gave speed the first rank.14 people gave it second
rank. 10 people gave it third rank. 11 people gave speed fourth
rank and no one gave speed the fifth rank.
o Download/Upload limits
11 people gave download/upload limit the first rank.12 people
gave it second rank. 14 people gave it third rank. 12 people
gave download/upload limit fourth rank and 1 person gave
download/upload limit the fifth rank.
o Technology
No one gave technology first, second or third preference. 2
people gave it the fourth preference and 48 people ranked
technology as the fifth parameter.
Thus, we see while choosing a broadband connection the most preferable
parameter is speed, then comes cost-effectiveness, then download/upload
limit, then connectivity and the technology comes last.

69
12.5 DIVISION OF BROADBAND USERS
Service Providers Number of Users Percentage of Users
BSNL 19 38%
Others 31 62%
Total 50 100%
Division of Broadband Users
38%
62%
BSNL
Others
Fifty people were asked randomly about the broadband service provider they
have.
Amongst these 38%(19 in number) use BSNL broadband connection.
Rest(8 in number) 62%(31 in number) have broadband connection other than
BSNL.
Thus, we see BSNL alone have almost 40% market share of broadband while
others(8 in number) all together have 60% market share.
Note: Others include service provider such as Airtel, Exatt-Net, Hathway Datacom,
Iqara, Pacent, Reliance Broadband, Tata Indicom and Sify Broadband.

70
12.6 DIVISION OF INTERNET USERS OF BSNL
Brand Name Type of Connection Number of User's Percentage of User's
Sancharnet Pre-Paid Dial Up 14200 14%
Net One Post-Paid Dial Up 56000 55%
Data one Broadband 32000 31%
Total 102200 100%
Division of Internet Users of BSNL
14%
55%
31%
Sancharnet
Net One
Data one
Total number of internet users are divided into three: Sancharnet(Prepaid Dial-
Up), Net One(Postpaid Dial-Up) and Data One(Broadband)
Out of total internet customers of BSNL 14%(14,200 in number) use
Sancharnet
55% (56,000 in number) use Net One
Remaining 31%(32,000 in number) use Data One
Thus, maximum number of people use postpaid dial-up connection but this is
rapidly being converted into broadband connection (Data One)

71
12.7 INCREASE IN NUMBER OF BSNL INTERNET USERS
Type of Connection Jul-05 Jul-06
Sancharnet 11000 14200
Net One 44000 56000
Data One 5103 32000
Total 60103 102200
Increase in number of BSNL Internet Users
0
20000
40000
60000
80000
100000
120000
Sancharnet
Net O
ne
Data
O
ne
Total
Type of Connection
NumberofUsers
Jul-05
Jul-06
There was rapid increase in the internet customers of BSNL
Sancharnet customers increased from 11,000 to 14,200 in number showing
29% growth
Net One customers increased from 44,000 to 56,000 in number showing
27.3% growth
Data one customers increased from 5,103 to 32,000 in number showing 527%
growth
Thus, we see that broadband customers of BSNL are growing at tremendous
rate and has grown more-more than BSNL prepaid and postpaid dial-up
customers

72
12.8 FAMILIARITY TO DATA ONE
Reason for Familiarity Number of Customers Percentage of Customers
Own Research and Knowledge 22 22%
Family, Friends and Relatives 31 31%
Advertisements 47 47%
Total 100 100%
Familiarity to Data One
22%
31%
47%
Own Research and
Knowledge
Family, Friends and
Relatives
Advertisements
Hundred customers of BSNL Data One were asked randomly about how they
came to know about Data One services and they responses are as follows
22% themselves had the knowledge
31% came to know about data one through family, friends and relatives
The remaining 47% people came to know about it through advertisements.
Thus, we see advertisements had the maximum effect as far as Data One
services are concerned

73
12.9 REASON FOR CHOOSING BSNL
1. Better Service and Goodwill
2. Economic Tariff Plans
3. Download/Upload Limit
4. Just Needed
Number of Reason(s) Number of Customers Percentage of Customers
First 5 5%
Second 9 9%
Third 2 2%
Fourth 8 8%
First and Second 22 22%
Second and Third 18 18%
First and Third 4 4%
First, Second and Third 32 32%
Total 100 100%
Reason for Choosing BSNL
5%
9%
2%
8%
22%
18%
4%
32%
First
Second
Third
Fourth
First and Second
Second and Third
First and Third
First, Second and
Third

74
Hundred customers of BSNL were asked randomly why they choose BSNL as
broadband service provider.
Amongst these hundred 5% choose it for better service and goodwill only
9% choose it for economic tariff plans only
2% choose it for good download/upload limit only
8% people just needed a broadband connection so they choose it
22% choose it because of better service and goodwill and economic tariff
plans both
18% choose it because of better economic tariff plans and download/upload
limit both
4% choose it because of better economic better service and goodwill and
download/upload limit both
The remaining 32% people choose it because of better service and goodwill,
economic tariff plans and good download/upload limit all three
Thus, we see that most people choose BSNL for all the three parameters

75
12.10 CONVERSION TO DATA ONE
Type of Conversion Number of Customers Percentage of Customers
Dial-up to Data One 24 24%
New to Data One 76 76%
Total 100 100%
Conversion to Data One
24%
76%
Dial-up to Data One
New to Data One
Hundred BSNL customers were asked about their conversion to BSNL
broadband (Data One)
Out of these 24 converted themselves from BSNL dial-up to BSNL broadband
76 people were totally new to BSNL internet services as broadband.
Thus, we see that BSNL broadband is highly popular

76
12.11 DIVISION OF DATA ONE CUSTOMERS
Type of Customers Number of Customers Percentage of Customers
Household Customers 29728 93%
Business Customers 2272 7%
Total 32000 100%
Division of Data One Users
7%
93%
Household
Customers
Business
Customers
Data One customers are divided as follows
93% (29,728 in number) of data one customers are household customers
7% (2272 in number) of data one customers are business customers
Thus, maximum number of data one customer are household customers

77
12.12 USE OF DATA ONE
Type of Use Number of Customers
Home or Personal Use 65
Office or Business Use 33
Educational Purpose 54
Use of Data One
65
33
54
0
10
20
30
40
50
60
70
Home or Personal
Use
Office or Business
Use
Educational Purpose
Type of Use
NumberofCustomers
Hundred customers were asked about what they use broadband mainly for
Out of these 65 people mainly use it for home or personal purpose
54 people use it for educational purpose
And 33 people mainly use it for office or business purpose
Thus, mainly people use broadband (Data One) for home or personal purpose
then for educational purpose and least for office or business purpose

78
12.13 CUSTOMER THOUGHTS ABOUT DATA ONE TARIFFS
Tariffs as Compared to
Other Service Providers
Number of
Customers
Percentage of
Customers
Cheaper 29 29%
Economical 38 38%
Costlier 27 27%
Equivalent 6 6%
Total 100 100%
Tariffs as Compared to Other Service
Providers
29%
38%
27%
6%
Cheaper
Economical
Costlier
Equivalent
Hundred customers were asked randomly about the tariff plans of BSNL as
compared to their competitors
Out of these 29% people think the tariff plans are cheaper than competitors
38% think they are economical
27% think they are costlier than the competitors
And remaining 6% think they are equivalent to their competitors plan
Thus, we see maximum people think that BSNL tariff plans are economical
and cheaper than their competitors plan

79
12.14 PROBLEMS FACED BY DATA ONE CUSTOMERS
Type of Problem Number of Customers
Long Delivery Period 63
Incorrect Bills 47
Customer Services 42
Low Speed 6
Low Upload/Download Limit 17
Problems Faced by Data One Customers
63
47
42
6
17
0
10
20
30
40
50
60
70
Long Delivery Period
Incorrect Bills
Customer Services
Low Speed
Low Upload/Download LimitType of Problem
NumberofCustomers
Hundred customers of BSNL were asked randomly regarding the problems
faced by them in Data One service
Out of these 63 people faced the problem of long delivery period
47 customers faced the problem of incorrect bills
42 people had problem in customer services of BSNL
17 people had the problem with download/upload limit being low
6 people faced the problem regarding low speed and connectivity
Thus, maximum customers have problem with long delivery periods and
incorrect bills while least have problem with the speed and connectivity

80
12.15 BILLING PROBLEMS FACED BY DATA ONE THE CUSTOMERS
Incorrect Bills Number of Customers Percentage of Customers
Yes 47 47%
No 53 53%
Total 100 100%
Problem of Incorrect Bills
47%
53%
Yes
No
About BSNL customers were asked whether they faced any problem of
incorrect billing
Out of these hundred 53 customers had no problem in billing
While 47 customers said they faced the problem of incorrect billing
Thus, we see that there is billing problem which is taken proper care of

81
12.16 SATISFACTION ON ACTION TAKEN AGAINST INCORRECT BILLS
]
Satisfied Number of Customers Percentage of Customers
Yes 19 40%
No 28 60%
Total 47 100%
Satisfaction on Action Taken Against
Billing
40%
60%
Yes
No
Out of hundred randomly chosen customers forty seven customers faced the
billing problems. These 47 customers were asked regarding the action taken
by BSNL in this regard.
Out of forty seven customers who faced the problem of incorrect billing 28
(60%) were fully satisfied by the action taken by BSNL
The remaining 19 (40%) were not satisfied by the action taken by BSNL
Thus we see that almost two-third people were fully satisfied by the action
taken by BSNL in order to solve the problem of incorrect billing.

82
12.17 RANKING OF DIFFERENT PARAMETERS OF DATA ONE SERVICE
Parameters Poor Average Good Very Good Excellent Total
Timely Delivery 53 38 9 0 0 100
Pricing 4 21 38 26 11 100
Connectivity 8 29 36 18 9 100
Download/Upload Limit 27 39 22 12 0 100
Technology 0 52 41 7 0 100
Customer Service 53 41 6 0 0 100
Complaint Redressal 43 54 3 0 0 100
Ranking of different Parameters of Data One
0
10
20
30
40
50
60
Timely Delivery
Pricing
Connectitivity
Download/Upload Limit
Technology
Customer Service
Complaint Redressal
Parameters
NumberofCustomers
Poor
Average
Good
Very Good
Excellent
Hundred customers of BSNL were asked to rank seven services related to
BSNL and Broadband according to Poor, Average, Good, Very Good and
Excellent.
The parameters and its rankings are given as follows
o Timely Delivery
Out of hundred 53 customers rated it as poor, 38 rated it as
average, 9 rated it as good and none rated it as very good or
excellent.

83
o Pricing
Out of hundred customers 4 customers rated pricing of BSNL
as poor, 21 rated it as average, 38 rated it as good and 26 rated
it as very good and 11 rated it as excellent
o Connectivity
Out of hundred customers 8 customers rated connectivity as
poor, 29 rated it as average, 36 rated it as good and 18 rated it
as very good and 9 rated it as excellent
o Download/Upload Limit
Out of hundred customers 27 customers rated connectivity as
poor, 39 rated it as average, 22 rated it as good and 12 rated it
as very good and none rated it as excellent
o Technology
Out of hundred customers none rated technology as poor or
excellent. 52 people rated it average, 41 rated it as very good
and 7 rated at as very good.
o Customer Services
Out of hundred customers 53 rated customer services as poor,
41 rated it as average, 6 rated it as good and none rated it as
very good or excellent.
o Complaint Redressal
Out of hundred 43 customers rated it as poor, 54 rated it as
average, 3 rated it as good and none rated it as very good or
excellent
Thus we see customers rated most of the parameters as average or good.
Customers were mainly unhappy with timely delivery of the services,
customer services and complaint redressal.
Customers were satisfied with the download/upload limit and also with the
technology employed
Customers were very happy with the pricing and connectivity of the BSNLs
broadband services.

84
12.18 RANKING CUSTOMER SERVICE OF BSNL
Quality of Service Number of Customers Percentage of Customers
Poor 48 48%
Average 36 36%
Good 16 16%
Very Good 0 0%
Excellent 0 0%
Total 100 100%
Ranking of Customer Service of BSNL
48
36
16
0 0
0
10
20
30
40
50
60
Poor Average Good Very Good Excellent
Quality of Service
NumberofCustomers
Hundred randomly chosen customers of BSNL were asked to rank the
customer services of BSNL
Out of these 48 customers ranked customer service of BSNL as poor
36 of the customers ranked it as average
And the remaining 16 ranked it as good.
None of the customers ranked it as very good or excellent
Thus, we see that most of the customers are not satisfied by the customer
services offered by the BSNL

85
12.19 RANKING OF BROADBAND SERVICE OF BSNL
Quality of
Service
Number of
Customers
Percentage of
Customers
Poor 2 2%
Average 26 26%
Good 46 46%
Very Good 22 22%
Excellent 4 4%
Total 100 100%
Ranking of Broadband Service of BSNL
2
26
46
22
4
0
5
10
15
20
25
30
35
40
45
50
Poor Average Good Very Good Excellent
Quality of Service
NumberofCustomers
Hundred randomly chosen customers of BSNL were asked to rank the overall
broadband services of BSNL (Data One)
Out of these 2 customers ranked overall broadband service of BSNL as poor
26 of the customers ranked it as average
46 of the customers ranked it as good.
22 of the customers ranked it as very good.
And the remaining 4 ranked it as excellent.
Thus, we see that the customers are very much satisfied by the overall
broadband services of BSNL.

86
12.20 SATISFACTION LEVEL OF DATA ONE CUSTOMERS
Satisfaction Level Number of Customers Percentage of Customers
Continuing Service 91 91%
Discontinued Service 2 2%
Want to Discontinue 7 7%
Total 100 100%
Satisfaction Level of Data One Customers
91%
2%
7%
Continuing Service
Discontinued Service
Want to Discontinue
To find the satisfaction level of the Data One customers about 100 customers
of BSNL broadband were asked whether they are continuing the services or
not
Out of these hundred 91 of the customers are continuing the services and want
to continue it
2 customers has disconnected the services
And the remaining 7 are continuing the service but want to disconnect it
Thus, we see that almost 90% of the customers are satisfied by broadband
services offered by the BSNL and want to continue it

87
CHAPTER-13
NEW OPPORTUNITIES
AND PROBLEMS

88
13.1 NEW OPPORTUNITIES IN THIS MARKET
BSNL is coming up with Content based Services: Like Video on Demand, Interactive
Gaming, Live and time shifted TV in future to expand its market. Billing for the
aforesaid services will be either time-based or volume-based. It shall provide the
customer with the option to select the services through web server. Services like
Video on Demand, Live and time shifted TV are one of the most new technology
based entertainment channel, which is hot cake in the market.
The market for interactive services is very promising in the India. Telecom operators
have a great opportunity to create new revenue streams by developing and deploying
services catered toward this specific market.
As they increase their service offerings, telecom operators could also draw revenue
from targeted advertising, according to 'IP Video Services: Analysis and Forecast.'
The IP network allows real-time customer measurement, so telecom operators can
build targeted advertising pieces into their bundle of services and increase customer.
To realize these new possibilities, telecom operators will have to form strong
partnerships with network, software, and other solutions providers to ensure the
proper service infrastructure.
If telecom operators want to venture into the video market, they have to do away with
their 'traditional fixed-line provider' image and offer services that really excite
consumers. It is through this strategy that telecom operators can build strong customer
loyalty.
13.2 PROBLEMS RELATED TO THIS SERVICE
BSNL is not new in the field of providing internet service yet broadband is a new
technology for the company and it has to keep on improving itself to provide the best
services to the consumers to keep them loyal. Philip Kotler rightly says, It is no
longer enough to satisfy customers; you must delight them.

89
Problems related with this service are
a. Only ADSL technology is favored by the copper loop, which BSNL is using to
provide this service. Taking about ADSL (Asymmetric Digital Subscriber
Line) on which data stream can be upto 2Mbps in downstream and maximum
600 kbps in upstream. So in near future it will not be easy task for BSNL to
provide high-speed service.
b. BSNL has to face a lot of competition in this market because it holds no more
monopoly. The market is full of new and players having somehow upper hand
in the terms on technology in respect to BSNL.
c. Reliance and Bharti Telecom companies have already spread their optical
cables in many parts of the country. They will be the biggest challengers to
BSNL in this market.
d. Broadband is no more just providing fast connectivity. Customers want more
than that i.e. services like Video on Demand, Interactive Gaming, Live and
time shifted TV. The company providing best and extra services will only be
the consumers first choice

90
CHAPTER-14
OBSERVATIONS, FINDINGS
AND LIMITATIONS

91
14.1 OBSERVATIONS AND FINDINGS
As stated earlier there are main three types of consumers in this field and they are
1. Household consumers
2. Small Business consumers
3. Big Business consumers
14.1 WAYS TO COMPETE
Now all are competing with each other on the basis of different strategies or
combination of one or more strategies. But if we try to summarize the strategies then
we will find that most of these are common and including all these are not more than
the followings: -
14.1a PRICE:
This is the basis of competition for most of the competitors in the market. Still the
market is not on the way of price war. BSNL is the only one which is providing
minimum package of Rs 250 per month with a 0.4 GB download/upload limit.
14.1b QUALITY SERVICE:
Quality Service is the most important strategy used to compete in this market because
customers is no more price centric only in India, they need better quality in the service
provided to them.
14.1c DOWNLOAD/ UPLOAD LIMITS:
When it comes to data transfer limit BSNL may face problem because even household
customers are not very happy with 1GB limit. Some of them are providing unlimited
data transfer to customers with just charging a little bit high prices, which eager
customers will not hesitate to pay.

92
14.1d ADVERTISEMENTS:
Only Sify and Reliance is countering BSNL in market through advertisements. Others
are not even bothering on doing advertisements.
14.1e PERFORMANCE:
BSNL lacks on the prompt action where as others are a bit ahead in this line. BSNL
takes nearly 8 10 days to install broadband in the customer s premises. But when it
comes to service performance customers are happy.
14.1f DIFFERENT SCHEMES:
BSNL is coming up with Content based Services: Like Video on Demand, Interactive
Gaming, Live and time shifted TV in future to expand its market.
14.2 LIMITATIONS
i. AREA LIMITATION: The study was limited to Pune city only. Hence
findings may differ from other parts of India where I have not visited
ii. NON-RESPONSE ERROR: It is almost impossible to obtain data from each
& every respondent covered in sample. There are always some respondents
who refuse to give information
iii. LIMITED SOURCE OF DATA COLLECTION: Sources of data for
collection of secondary data were limited
iv. TIME CONSTRAINT: There was time constraint to this project. The project
has to be completed within 2 months.
v. BUSY RESPONDENT: Many times respondents were so busy that they
didn t give reply. There were biased replies also.
vi. OTHER REASONS: There were heavy rains during the period of survey. So
there was many times problem in conducting survey & transportation,

93
CHAPTER-15
CONCLUSION AND
SUGGESTIONS

94
15.1 MARKET FEEDBACK ABOUT DATAONE (CONCLUSION):
As a summer trainee in BSNL , I would like to conclude my project work on
Market Potential of BSNL Broadband Service in Pune. It was really very interesting
interacting with customers and have an insight into BSNLs brand image in their
minds.
The main aim was to know the factors & attributes of brand, and services provided by
it which customer look when he goes to buy broadband connection. From the survey,
overall conclusion was that people are quite satisfied with the BSNL broadband
services.
After interviewing 100 customers and 50 people at random I found out some of the
points about DataOne which are as follows
15.1a PRICE: -
Though customers find BSNL broadband service cheaper than others but they the
minimum cost Rs. 250 is still costly to household customers because they get only 0.4
GB download/upload limit and Rs. 1.40 per extra Mb download which further makes
this cheaper service costly.
15.1b DOWNLOAD LIMIT: -
Customers find it sufficient for them, as they are still not much clear about this.
General thinking of customer is that data transfer occurs only when files are
downloaded and uploaded. Surfing net is not counted. But it is not true. One cannot
view a website unless and until it get download on the RAM of computer. But in
general a household is not only surfs but also downloads a lot. So in future when they
will come across their heavy broadband bills they will not be happy, because the cost
charged to them is very high i.e. Rs. 1.40 per MB once they cross their limit. The
download limit must be minimum 1 GB for the plan Home 250 and making at least

95
double for the other plans. Because the customer will go to those who will provide
more at the least cost.
15.1c COMPULSORY LANDLINE CONNECTION: -
BSNL has made it very clear that it is not going to provide broadband connection
unless and until one has a landline connection. The reason behind is that they connect
the computer with the same line on which the telephone is connected and the
broadband is given on that telephone. But the customers are not happy. Those who are
new customers and need only broadband feels that they forced to get a landline
connection and due to this they have to pay more because the monthly charge for
telephone is burden to them as they don t need it. They want that BSNL must start the
scheme same as B-phone internet (popularly known as Plan499) in which the
telephone connection is given having internet facility and customer is free from
landline charges burden.
15.1d INADEQUATE INFORMATION: -
BSNL staffs still lack information related to many of the questions asked by the
customers. The most important question which they face is related to the rates charged
by the BSNL varies largely what it advertises. The staffs do not have the proper
knowledge of what charges will be charged to the customers at the time of registration
for the service. At the time of registration there are four types of options, which a
customer can choose, they are
1. Monthly charges for Broadband and Modem.
2. Monthly charges for Broadband and one time payment of Modem.
3. Annual charges for Broadband and one time payment of Modem.
4. Annual charges for Broadband and monthly charges of Modem.
So, in the absence of clear chart with them regarding this, staffs are not aware about
the correct amount and they tell the approx amount to the customers and if it varies a
lot then there is a problem. To avoid these situations department must provide a rate
chart to each registration center.

96
15.1e TIMELY SERVICE: -
Customers feel that taking 8-10 days to install broadband is a long period and the
service must get started as early as possible.
15.1f FREE MODEM OPTION: -
For the different plans if the customer commits for the period as per the tariff chart
and pays charges in advance then they will own the modem and will not be require to
return it. This is the option given to the customers in their form but as per my
observation neither the staff knows about this nor the software because it has no such
option. It is a serious matter and department must look into this matter because it can
create serious allegation against BSNL
.
15.2 WHAT BSNL MUST WORK OUT? (SUGGESTIONS):
After taking to customers and staffs I suggest the following points to keep customers
happy
15.2a QUICK SERVICE: -
BSNL must try to provide services as early as possible and reduce the waiting list so
that customer must not get irritated.
15.2b PROPER CO-ORDINATION: -
Staffs of BSNL are still not comfortable with the queries of customers about this new
service, as they sometimes feel dumb to some of the questions. They must get proper
updating from the head office related to any changes or problems faced by the staffs.

97
15.2c MONOPOLISTIC NATURE: -
BSNL is still not out of its monopolistic nature. It has to realize that there is a huge
competition in the market and has no more monopoly in the market. Customers do not
need us anymore as they have lots of choice in the market. So BSNL must work out
on the service quality where it face sever blow from its competitors.
15.2d QUALITY SERVICE: -
BSNL customers generally have following complains with the company
Number of days have passed yet I have not got the connection
I have got an incorrect bill
I have made a number of complaints but no one is hearing
BSNL has to resolve them as early as possible because it affects the service quality
very badly.

98
CHAPTER-16
REFERENCES AND
ABBREVIATIONS

99
16.1 REFERENCES
BOOKS
i. Marketing Management by Philip Kotler
ii. Research Methodology by C.R Kothari
iii. Company Manuals
a. A House Journal of BSNL
b. Annual Report 2004-2005
WEBSITES
i. www.bsnl.co.in
ii. www.bsnl.in
iii. www.bsnlpune.com
iv. www.bsnlmaharashtra.com
v. www.tnd.bsnl.co.in
vi. www.dot.gov.in
vii. www.trai.gov.in
viii. BSNL Pune Intranet
ix. BSNL Maharashtra Intranet
x. www.google.co.in

100
16.2 ABBREVIATIONS
P&T -- Post and Telegraph
DoT -- Department of Telecommunication
BSNL Bharat Sanchar Nigam Limited
C Dot Center for Development of Telematics
MTNL Mahanagar Telecom Nigam Limited
VSNL Videsh Sanchar Nigam Limited
WLL Wireless In Local Loop
GB Giga Byte
Mb Mega Byte
IP Intelligent Peripheral
DIT Department of Information Technology

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