SWOT ANALYSIS OF BSNL

Strengths

BSNL has fully integrated IP-enabled infrastructure platform thus implying application

convergence, service convergence and network convergence.

It has been successful in building right alliances in the form of network alliances with Ericsson

and Cisco Systems, IT alliances with HP Compaq, interconnecting alliances. Thus it can focus

on its main business of marketing its serviceBSNL has been able to maintain a strongdistribution

capability. It has a selling capacity of 25 million per annum as compared to Nokia’s 20 million

per annum.

It has 90000 handset outlets as compared to Nokia’s 42000. It has presence in 5000 towns

serviced by 1500 distributors as compared to Nokia’s presence in 4600 towns serviced by 250

distributors/micro-distributors.It can leverage its strength in wireless connectivity in the future to

offer mobile telecom services. It has wireless connectivity available in 4500 towns with a

speed of 144kbps.

Backing by a healthy balance sheet of the parent company helps in investing in assets for long

term growth. Also the BSNL culture focuses on financial conservatism, thus providing it with

good human skills at managing capital.

Weaknesses

The BSNL network does not deliver on the Quality of Service parameters as decided by Telecom

Regulatory authority of India (TRAI). Due to this it suffers from high call dropping rates and a

reduction in brand equity.

BSNL has a major presence only in C’ Circle. It needs to establish itself also in

other circles so that it can compete with player like Bharti on a national scale.

Opportunities

A strong economy and a growing market: The Indian telecommunication industry is amongst the

fastest growing telecom markets in the world and is poised to deliver solid growth as a result of

several economic reforms that have lead to strong GDP growth pegged at approximately 9.1%

for FY 2007-08. Increasing per capita income supported by increased consumption is resulting in

a greater-than-proportionate impetus for telecom growth. As India still remains one of the lowest

penetrated markets, it is one of the most attractive telecom markets in the world today.

New technologies and paradigms: The trend towards adoption of Next Generation Networks

(NGN) is global and the discussions in India are still at a preliminary stage. Technologies like

Triple Play, wherein a single cable can deliver voice, data, video on demand and IPTV provide

us with a unique opportunity to an integrated player who is well positioned to deliver this

service.

Strong strategic partnerships: Strong strategic alliances with network companies may help

BSNL Communication to focus on marketing its services. Alliances provide the service provider
the access to technological know-how as well as best practices to enhance customer experience.

It is important to leverage the strengths of our partners and benefit from their experience and

know-how.

Introduction of number portability: Number portability would allow customers to retain their

telephone numbers even after switching service providers or networks. Companies with better

service delivery and customer care platforms stand to gain over their competitors. Extensive

network coverage, coupled with aggressive pricing and innovative products and services would

help in gaining a larger share of the market. Given a competitive position and focus on customer

delight, BSNL may be positioned to attract subscribers presently on other networks, as and when

number portability gets introduced in the market.

Threats

Regulatory decisions and changes: On the regulatory front, reduction in the entry fee and the

annual license fee for National Long Distance and International Long Distance (ILD), combined

with the impending implementation of Carrier Access Code (CAC) would lead to greater

competition in the Long Distance segment. The implementation of Carrier Access Code would

make it easier for customers to choose their long distance carrier, regardless of the access

provider. A focus on offering value-for-money services to consumers would stand to gain from

the introduction of CAC.