Enterprise Business Wing BSNL Karnataka WELCOMES Senior Officers

Enterprise Business Wing BSNL Karnataka WELCOMES Senior Officers of BSNL 2 nd Sep 2016

Knowledge Sharing Session Key to Success of EB Units AT ALTTC, BSNL

AGENDA Key to Success Stories New Initiatives 3

PART 1 Key to Success By Surendra Shenoy, PGM (EB), Bengaluru

Know Your Customer (KYC) Requirements Development Plans Financial Conditions 5

Customer Engagement Business is continuous journey…. Periodic meeting Grievance addressing Confidence Building 6

Part of Committee/ Members KBITS SLBCC Smart City DRDO/ ISRO/ IISc Campus @ Challakere Vijaya Bank 7

Promotional Activities Advertisements Sponsoring Seminars/ Events IT Biz, Global Investor Meet, IT and Science Congress Fliers 8

Recent Promotions Newspaper Advertisement Iot Seminar 9 ICON Summit @ Bangalore University Gnana Sangama Event

Contract Handling - Case Study CBEC KSWAN 10

Case Study - CBEC • M/s. Central Board of Excise & Customs (CBEC) had called tender for CBEC WAN project with Data Centre and Hardware during 2006. • BSNL Karnataka Circle had participated the tender with consortium partnership with M/s. HP for hardware & M/s. Tata Communications Ltd for Data Centre Space. 11

CBEC - SLA Uptime for links Sl no Site Threshold % Availability % 1 2 3 DC DR BCP 99. 982 99. 96 100 99. 87 Sl no Site Category Threshold % Availability % 1 2 3 4 Cat A Cat B Cat C Cat D 99. 9 99. 5 99 99 99. 52 99. 47 99. 43 99. 06 From the above tables it is observed that even for a small deviation of 0. 02 % in the threshold , penalty imposed is very high. 12

Pursuing with Client In every meeting also BSNL informing that the penalty clause is wrongly interpreted by M/s PWC/CBEC and to release the penalty amount withheld by CBEC. But CBEC has implemented the new Penalty clause w. e. f. Q 10 onwards and with held the amount of Rs. 5, 62, 10, 000/- from Q 1 to Q 9. As per revised penalty clause, Penalty is reduced to Rs. 1. 2 Crores Penalty 13

Reasons for Contract Confirm the meeting of minds (offer and acceptance) Clarity – to avoid later disputes and save costs To ensure all essential and material issues are covered Lack of Trust – evidence of agreement and the terms – which facilitates enforcement 14

Purpose of Contracts attempt to articulate: The rights and obligations of the parties; Provisions for events or contingencies that while not expected, may occur. Provisions that avoid any undesired default provisions of any applicable law. Remedies and means of enforcing or avoiding the rights and obligations 15

Principles of Contract Mutual assent – intent to contract. There must be a “meeting of the minds. ” Offer and acceptance. Consideration – bargain for exchange. Conditions – precedent and subsequent. Representations, warranties, covenants and conditions. 16 Conclusion of a contract termination, rescission. – expiration,

Contents of Contract Title, Date and Introductory Clause Description of Parties Preambles/Recitals Function and Layout Traditional recital of consideration Definitions or defined terms Core substantive provisions Representations, warranties, covenants, indemnities, guarantees, releases Events of default and remedies Boilerplate Signature block Exhibits and attachments 17

Checklist Check parties, dates, amounts, and interest rates. Does the overall structure of the document suit your client’s needs? Does the document contain clear mandatory duty provisions regarding all performances by the other parties due to your client. Watch for the use of “shall”, “must”, and “may”. Review representations and warranties. What happens if they prove to be false what are the remedies? Internal and external consistency. If there is more than one document, is the boiler plate consistent across all documents? Are defined terms used in a consistent manner? 18 Do you have a substantive understanding of each provision and how they interact with each other? Hypothesize performance by thinking through each scenario during the life of the transaction. Hypothesize non-performance. What happens if one or both parties fail to perform all or part of the agreement? Goal is to resolve all issues at the drafting stage. Analyze what will happen if one of the parties files a bankruptcy petition or becomes subject to a receivership. Consider the worst case scenario where the parties have become hostile to each other. Will the document provide sufficient guidance of the parties or the Court?

Final Thought Listen to your client. Understand the deal and what your client wants to achieve. Use precedents wisely. Draft the best document that you can. Read and re-read your document before sending to the other side and then again before your client signs it. 19

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PART 2 Success Stories By PS Subramanyam, DGM (EB, Platinum) Bengaluru

SUCCESS STORIES CBEC NITK SBI SMS Services Vijay Bank – e-Survelliance Project CCTV Wi-fi @ Gadag City 22

CBEC WAN PROJECT

BSNL Journey with CBEC • BSNL provided the services to M/s CBEC from Sept 2009. Present contract has been expired on 31 st March 2016 • • Extended the present contract upto 30 th Sep’ 16. • EB Wing of Karnataka Circle has initiated for renewal of CBEC WAN Project during August 2014. 24

SEQUENCE OF EVENTS IIIT, New Delhi (Indraprastha Institute of Information Technology) were the advisors to move forward for further contracts by calling new RFP on expiry of contracts with BSNL w. r. t CBEC WAN Project. CBEC have appointed committee consisting of advisors from the academics, cyber security and industry agencies and sought the advise on the dimensioning of the bandwidth as well as further expansion of WAN project in new RFP 25

SEQUENCE OF EVENTS The committee came up with a strong recommendation to continue BSNL as a primary service provider for the existing as well as additional 350 links due to following reasons. 1. The present service level provided by BSNL is well within the SLA specified. 2. Network is secured. 3. BSNL wide reach across PAN India including border areas and hence faster roll out of links is anticipated. 4. Adding more operators will add the complexity in the Network. 26

SEQUENCE OF EVENTS M/s CBEC has called for PNC at M/s CBEC office New Delhi. The committee consisting of representatives from DEITY, NIC, SBI, PWC, Income tax and CBEC. • • First negotiation meeting was held on 8 th Feb’ 2016 where in BSNL offered 15% discount. • Second negotiation meeting was held on 10 th Mar’ 2016 where in BSNL offered 20% discount. • Third negotiation meeting was held on 6 th. Apr’ 2016 wherein BSNL offered 20% discount for 1 st & 2 nd year and 40% discount for 3 rd, 4 th & 5 th year. 27

Final Proposal for renewal of CBEC WAN Project for 5 years (Offered on Dated: 06/04/2016) 1 st & 2 nd Year Description Category No. of Links (A) MPLS Bandwidth Internet BW 3 rd , 4 th & 5 th year Proposed Annual Rate Total Charges BW (Rs. ) Charges for (Rs. ) for 2 years (Mbps) 2 years (Rs. ) (B) (C) (Rs. )(D=A*B (E=A*C*3) *2) A 113 16 6, 58, 320 14, 87, 80, 320 4, 93, 740 16, 73, 77, 860 B 197 8 5, 28, 320 20, 81, 58, 080 3, 96, 240 23, 41, 77, 840 C 579 4 3, 29, 680 38, 17, 69, 440 2, 47, 260 42, 94, 90, 620 DC, DR 2 300 55, 000 2, 20, 000 55, 000 3, 30, 000 NDC, NDR 2 90 19, 18, 280 76, 73, 120 17, 82, 872 1, 06, 97, 232 DC, DR 2 1024 80, 000 3, 20, 000 80, 000 4, 80, 000 895 80, 03, 80, 960 Total cost of MPLS and Internet Bandwidth Services (D+E): OFC laying charges for 646 locations(@Rs. 3, 50, 000/- per Km) 92, 27, 43, 552 172, 31, 24, 512 Rs. 22, 61, 000/- Total Project cost for 5 Years is: Rs. 194, 92, 24, 512/28

KEY OFFERINGS • CBEC is going to avail the links with BW of 4 Mbps or 8 Mbps or 16 Mbps only. Hence, BSNL needs to provide the links on OFC. • CBEC has accepted for paying one time charges of Rs. 3, 50, 000/- per Km for laying OFC at Non feasible locations. • The Approx. one time charges involved to lay OFC is Rs. 22. 61 Crores for 646 locations. • The discounts offered look like higher side but if we segregate the rate into two parts (Hardware & BW rates), BW rates are well with the delegated powers of GM (EBP) only when compared to plain MPLS rates. 29

% OF DISCOUNT BW 1&2 nd. Year rates. P. A. BW rate (BSNL share) P. A. MPLS plain BW rate P. A. %of discount offered on plain MPLS 4 Mbps Rs. 3, 29, 680/- Rs. 82, 613/- Rs. 2, 47, 067/- Rs. 2, 81, 148/- 12. 12% 8 Mbps Rs. 5, 28, 320/- Rs. 82, 613/- Rs. 4, 45, 707/- Rs. 5, 29, 448/- 15. 8% 16 Mbps Rs. 6, 58, 320/- Rs. 98, 333/- Rs. 5, 59, 987/- Rs. 6, 63, 348/- 15. 58% 3 rd, 4 th & 5 th. Yr rates P. A. SLACharges P. A. BW rate (BSNL share) P. A. MPLS plain BW rate P. A. %of discount offered on plain MPLS 4 Mbps Rs. 2, 47, 260/ - Rs. 22, 010/- Rs. 2, 250/- Rs. 2, 81, 148/- 19. 88% 8 Mbps Rs. 3, 96, 240/ - Rs. 22, 010/- Rs. 3, 74, 230/- Rs. 5, 29, 448/- 29. 3% 16 Mbps Rs. 4, 93, 740/ - Rs. 22, 010/- Rs. 4, 71, 730/- Rs. 6, 63, 348/- 28. 8% BW 30 Hardware rate + SLA charges P. A.

SUMMARY OF CHARGES • Total project cost: Rs. 194. 92 Crs. • BSNL Revenue for Bandwidth: Rs. 151. 80 Crs • Trimax Revenue: Rs. 20. 47 Crs • One time charges Rs. 22. 61 Crs. 31 for OFC laying:

NITK Wi-Fi Project

Smart Wi-fi Campus at NITK 33

Relation Between BSNL and NITK • NITK is the most valued Customer having the campus of 250 acres. • NITK requested BSNL for providing the Wi. Fi solution and WAN solution and signed MOU with BSNL for Wi. Fi and WAN Solution for 5 years. • NITK requested for providing the 744 Nos of Indoor APs and 40 Nos of outdoor Aps • Total Project Cost: Rs. 6. 75 Crores. 34 34

Ladies Hostel Block 3 Internet CCC New OFC Hostel Network Topology Ladies Hostel Block 4 Mega Hostel Block 1 Mega Hostel Block 2 Mega Hostel Block 3

About the Smart Wi-fi Campus • BSNL surveyed and submitted the final proposal to NITK in the Month of October 2015 followed by the Proof of Concept. • NITK signed the MOU for the Wi. Fi solution on 5 th April 2016 for 5 years and placed the PO on 6 th April 2016. • Requested for completing the Wi. Fi project in 90 days from the date of PO. • BSNL planned for 450 mtrs of cable laying and Installation of 8 nos of APs per day to complete the project within the 90 days. 36

SMS Solution and Statistics Presentation To By 37

Solution Background SMS Provider for SBI Since 2008 Started Solution with 30 Lacs per Month Delivery. Delivering over 1 Crore SMS per day presently. Handling increased throughput under SLA Load balanced for high reliability and throughput Multiple BSNL SMSC’s used South (Trichy SMSC) West (Pune SMSC) North (Chandigargh SMSC) End to End SMS Managed Solution 38

NEW SMS SLA’s High priority messages SMS Normal Priority SMS 39 • < • < 20 30 45 60 Lacs • <100 • <200 • <300 • <400 Lacs <10 <15 <20 <25 Sec Sec min min

SMS Statistics – July ‘ 16 P 1 Submitted 01 -July 02 -July 03 -July 04 -July 05 -July <1 Sec 70% 73% 77% 71% 75% <2 Sec 97% 96% 99% 97% 99% <3 Sec 99% 97% 99% 98% 99% <4 Sec 99% 98% 99% 99% Note: SLA is <20 Secs < 5 Sec 99% 98% 99% 99% P 2 Submitted 01 -July 02 -July 03 -July 04 -July 05 -July <1 Sec 55% 59% 73% 57% 60% <2 Sec 85% 87% 97% 86% 91% Note: SLA is <15 Min <3 Sec 91% 99% 91% 96% <4 Sec 94% 93% 99% 94% 98% < 5 Sec 95% 94% 99% 95% 98% < 1 Min 99% 98% 99% 99% 40< 5 Min 99% 99% 99%

SMS Solution offered BSNL Karnataka Circle Providing Bulk SMS Solutions to various customers. • • BSNL Karnataka Circle is delivery about 40 Crores SMS per month. • The annual revenue to BSNL Karnataka Circle from Bulk SMS is around Rs. 40 Crores • BSNL Karnataka Circle has approached other major Banks such as Bank of India, IDBI, Central Bank of India to offer contract to BSNL on nomination basis. 41

SMS Solution offered Advantages of SMS Service: We are able to fetch good revenue from Customers without involving much man-power. Service Disruption or Turn-around time for restoration is less compared to other Enterprise services. Redundancy at SMSC level to ensure 100% uptime. Customers are happy with BSNL SMS service due to transparent billing and direct connectivity from Telecom Service Provider. 42

SBI SMS Solution BSNL is the primary SMS solution provider to SBI pushing around 35 -40 Crores SMS per month. The revenue from SBI solution of SBI is around Rs. 36 Crores/annum. • • Initial Contract was renewed for 3 years upto July 2011. • SBI had subsequently renewed the contract from August 2014 upto July 2017. • In spite of stiff commercial competition from Other SMS Aggregators, BSNL is able to get around 60% of the Total SMS Volume from SBI. 43

Other Major SMS Solution 1. Canara Bank BSNL has offered customized SMS solution to Canara Bank Since October 2010. 2. Pragathi Krishna Gramin bank & Kerala Gramin bank: BSNL is offering the SMS solution since January 2013. In addition to Push SMS, Two-Way SMS Solution and Missed call alert Solution is also provided to the Bank. 3. Vijaya Bank: BSNL is offering SMS Solution since 2009 with a monthly volume of 20 Lakhs SMS. Customer is now reduced their SMS volume due to high pricing. 44

Other Major SMS Solution 4. Dena Bank: This office had continuously persuaded the Bank to Migrate the SMS solution from Other Service Provider from July 2015. 5. Dena Gujarat Gramin Bank: After continuous persuasion, Dena Gujarat Gramin Bank has migrated the SMS solution from other SMS aggregator to BSNL since June 2016. 6. Other smaller Banks such as Visvesvaraya Cooperative Bank, Janatha Seva Co-operative Bank have availed SMS solution from BSNL Karnataka Circle. 45

Challenges faced in offering • Stiff Commercial Competition from SMS Aggregators such as ACL, Valuefirst, Velti, Route. SMS, Spice Digital etc. , in offering SMS solution to our Major Enterprise Customers. • The Bulk SMS market from Other customers of Banking sectors is estimated at 100 Crore SMSs per month. We may grab atleast 50% of the volume if we can offer the solution at competitive pricing. • BSNL had currently signed agreement with M/s. Route for Delivery of International Bulk SMS, but delivery of SMS is very poor as the agreement doesn’t cover all the Levels/Telcos across the globe. • Due to non-delivery of such SMS, Customers are not coming forward to offer the contract to BSNL. New customers can be acquired only on Nomination Basis. 46

VIJAYA BANK – e-Surveillance Project

E-Surveillance Project • Vijaya Bank is implementing e-Surveillance project for their ATMs all over India • Requested for VPNo. BB connections with 256 Kbps bandwidth at 1418 ATMs • Total project cost is around Rs 8. 19 Crores for 3 years 48

Vijaya Bank E- Surveillance 49 SL. No Circle 1 2 3 4 5 6 7 8 9 10 Karnataka Kerala Andhrapradesh & Telangana Tamilnadu Gujarat Madyapradesh Rajastan Uttarpradesh Maharastra Other Circles Total No of links 379 112 158 127 65 60 52 125 64 271 1413

M-GOVERNANCE

Toll Free and PRI for m. Government of Karnataka has successfully implemented m. Governance platform as part of their m-Governance imitative. This was launched December 2014. by the Hon’ble President of India on 8 th This initiative was mainly aimed to make all Government Services available to the citizen under single umbrella. Services include: Utility services payment Applications for various Government Services Bus & Railway tickets Booking Complaint booking mechanism Tax Payments, etc. 51

Toll Free and PRI for m. Gov A short code “ 161” is allotted for this imitative on Pan India basis. This Service can be accessed by: Diling 161 (IVRS) USSD ( *161# ) SMS to 161 WAP (http(s): //mobile. karnataka. gov. in) Mobile App BSNL has provided 64 nos of “ISDN-PRIs “and 3 nos of “Toll Free Numbers” to Ce. G for their m-Governance Imitative. Call volume has increased 10 times now from 4. 5 to 45 lakhs per month Revenue is about Rs. 2 Crs. / Annum 52

CCTV Project

Bangalore Traffic Surveillance BSNL, Karnataka Circle has implemented the BTRAC Phase I & Phase II (City Traffic Surveillance) project during 2009 -2010. BSNL has supplied hardware like UPS, batteries, Switches etc. , along with the necessary bandwidth. BSNL has participated in this tender as a lead bidder and supplied these hardware through vendors. Due to the issues in Power supply and maintenance of UPS & hardware, BSNL Karnataka Circle could not resolve many complaints in this project and ultimately could not maintain the committed UPTIME for cameras. 54

Bangalore Traffic Surveillance Hence in the similar tender floated by Traffic Police BSNL participated as a consortium partner with other vendors (but not as a lead bidder) with a role of providing Bandwidth only, however it was not implemented due to power supply issues. Recently BSNL participated as a consortium partner with other vendors (but not as a lead bidder) with a role of providing Bandwidth only in the tender floated by Police department. In this tender, BSNL consortium partner was shortlisted and waiting for LOI 650 locations. Bandwidth worth Rs 4 Crores per annum 55

Wi-fi Hotspots @ Gadag

Wi-Fi Hotspots @ Gadag City 25 Hot spots with 56 Access Points set up @ Gadag City M/s Quadgen is the Vendor and commissioned in 45 days 200 Mb is the limit set per user per day Data usage is around 300 GB everyday and it is almost equivalent to district daily data usage 57

Wi-fi Usage @ Gadag City 58

PART 3 New Initiatives By Prashanth Obaiah, Jt. GM (EB G&S) Bengaluru

NEW INITIATES Smart City Io. T Start up 60

Smart City

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Davangere Requirements 65

BSNL Infrastructure Services Davangere Telephone Exchanges Belagavi 7 11 2 G BTS 37 69 3 G BTS 26 35 OFC Network (in KMs) 49 64 FTTH Connections 15 26 407 470 Broadband Connections NOTE: Data pertains only to the cities 66

BSNL Infrastructure Davangere 67 Belagavi

Preparations Davangere 68 Belagavi

BSNL Offerings Ø Upgradation of Network ØVEHICLE TRACKING SYSTEM Ø Public information, Citizen Engagement & Grievance Redressal 69

UPGRADATION OF N/W Has infrastructure readiness in upgrading all government broadband connections to FTTH connections/ ILLs 70

e. SBM Vehicle Tracking System Monitoring of the Field Status by GPS Devices fitted to the Vehicles undertaking the operations Point to Point Collection Monitoring and Control through Mobile Apps based system used by the staff undertaking the operations MIS for Waste Collection and transportation Management of Citizen Complaints Transparency in Civic Administration Real Time SMS delivery for Vehicle Breakdown and maintenance 71

Features of Public information One City One Website and App interlinking all the Govt. Departments and corporations in the city through one platform To enable all online financial transactions Easy & convenient complaint registration and tracking e. Grievance redressal through web/ mobile/ IVRS/ Call centre Intranet solution for intra departmental communications Setting up Information Kiosk connected with GIS Provide citizens with useful information on various issues – public works, maintenance, traffic, events, etc. , 72

PRESENT SCENARIO transform 73

FUTURE - SMART POLE 74

SMART POLE Ø Wi-Fi Access Points Ø CCTV Surveillance Ø Smart Lighting with Solar Ø Smart Parking Ø Digital Signage Boards Ø Environment Control Ø Command Control Centre 75

Features of Smart Lighting Adjusting the brightness (Lumens) of the street light (LED) Programmed On/ Off of street lights Identification of faulty street lights Savings on electricity bill(upto 50 -60%) Reduction of carbon emissions Maintenance and replacement Planning activities – based on the number of hours Interface with command control system 76

Features of CCTV Video recording helping in identification of bad elements Raising of Alarms to shorten response time for v Gathering of Mob v Face recognition v Crime detection Interface with command control system 77

Features of Smart Parking Vacant parking slots identified with the help of sensors or smart video camera with analytics Revenue generation with smart metering Issue of no parking violations challans Interface with command control system 78

Features of Display Board Source of Income by displaying advertisement Providing valuable information to citizens Interface with command control system 79

Features of Command Control Activities can be monitored and controlled for v Crime monitoring and reporting v Information/ Advertisement to be displayed on the digital display boards v Programming of lighting Any other smart applications can be included 80

PARTNERS 81

Go. K Proceedings 84

Internet of Things

Internet of Things During the discussion with XYID. company, received a requirement of M 2 M SIMs Sponsored 2 nd Annual Summit Internet of Things at Bangalore on Received 2 leads to provide M 2 M SIMs 86

Io. T Solution - HOPCOMS Provided 64 department SIMs to HOPCOMS Using this, department pushes rates of vegetables daily in the morning Resolved delivery issue by providing stand alone APN 87

Next Steps in Io. T Multiple type of SIMs available USIMs are capable to provide Io. T services TSEC to be taken up for M 2 M SIMs 88

Start-ups

Start-ups Government of India is planning for 10000 start up’s Bangalore NASSCOM incubation center is setting up In this regard, CGMT Karnataka has met IT Minister of Go. K 90 Principal Secretary requested for more discounts on Broadband other EB solutions for Start-ups

Collaboration is the key for success…. Thank you! Surendra Shenoy PGM (EB), O/o CGMT, BSNL, Bengaluru 9448010689 sshenoymr@gmail. com 91