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SWOT ANALYSIS OF BSNL Strengths BSNL has fully integrated IP-enabled infrastructure platform thus implying applicationconvergence, 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 focuson its main business of marketing its serviceBSNL has been able to maintain a strongdistributioncapability. It has a selling capacity of 25 million per annum as compared to Nokias 20 million per annum.It has 90000 handset outlets as compared to Nokias 42000. It has presence in 5000 townsserviced by 1500 distributors as compared to Nokias presence in 4600 towns serviced by 250distributors/micro-distributors.It can leverage its strength in wireless connectivity in the future tooffer mobile telecom services. It has wireless connectivity available in 4500 towns with aspeed of 144kbps.Backing by a healthy balance sheet of the parent company helps in investing in assets for longterm growth. Also the BSNL culture focuses on financial conservatism, thus providing it withgood human skills at managing capital.

Weaknesses The BSNL network does not deliver on the Quality of Service parameters as decided by TelecomRegulatory authority of India (TRAI). Due to this it suffers from high call dropping rates and areduction in brand equity.BSNL has a major presence only in C Circle. It needs to establish itself also inother 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 thefastest 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 ina greaterthan-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 likeTriple Play, wherein a single cable can deliver voice, data, video on demand and IPTV provideus with a unique opportunity to an integrated player who is well positioned to deliver thisservice.Strong strategic partnerships: Strong strategic alliances with network companies may helpBSNL 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 andknowhow.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. Extensivenetwork coverage, coupled with aggressive pricing and innovative products and services wouldhelp 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 whennumber portability gets introduced in the market.

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 andknowhow.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. Extensivenetwork coverage, coupled with aggressive pricing and innovative products and services wouldhelp 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 whennumber portability gets introduced in the market. Threats Regulatory decisions and changes: On the regulatory front, reduction in the entry fee and theannual license fee for National Long Distance and International Long Distance (ILD), combinedwith the impending implementation of Carrier Access Code (CAC) would lead to greater competition in the Long Distance segment. The implementation of Carrier Access Code wouldmake 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 fromthe introduction of CAC.

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