BHARAT SANCHAR NIGAM LIMITED (A Government of India Enterprise) Office of the General Manager Telecom, East Godavari Telecom District AP Circle, Rajahmundry

BHARAT SANCHAR NIGAM LIMITED (A Government of India Enterprise) Office of the General Manager Telecom, East Godavari Telecom District AP Circle, Rajahmundry NOTICE INVITING EOI (Expression of Interest) No.BSNL-EG/Mktg/RMY/FRANCHISEE/EOI/09-10/1 Dated 14 - 10 - 2009 Sealed EOIs are invited on behalf of CGM BSNL AP Telecom. Circle for selection of Franchisees for sale of BSNL services and products in AP Telecom. Circle from eligible bidders for the territories given in Annexure –I. Cost of EOI EMD Document Rs.2,00,000/- Rs.1,125/- 1. Eligibility: i) Educational Qualification : Minimum Graduate ii) Turn Over Name of the Territory Turn Over in Rs. KAKINADA-II Rs.50 Lakhs AMALAPURAM Rs.25 Lakhs RAZOLE Rs.25 Lakhs Turnover : Sales proceed as per Sales Tax assessment for the last two financial Years (07-08, 08-09) iii) Experience : Operating in consumer market directly with branded products either in FMCG, Electronic appliance, Electrical goods, Telecom products as mentioned below. Name of the Territory Experience KAKINADA-II 2 Years AMALAPURAM 1 Year RAZOLE 1 Year iv) a) Space (Carpet Area)--- 150 sq.ft (for Show room) 1 b) Location : in commercial area with sufficient parking Space, on Ground floor only, on Main road or clearly visible from main road. Layout and Location map with a neat front view Photograph to be submitted along with EOI. 2. Requirements : i) EMD for Rs.2 Lakhs along with EOI in the form of Demand Draft Drawn in favour of the officer as mentioned in the enclosed Annexure –II. ii) Performance Bank Guarantee to be submitted before signing of agreement within 15 days of issue of provisional LOI. iii) Manning of show room at least 14 hrs / day (8AM to 10 PM) 7 days a week. iv) Attending complaints (8 AM to 8 PM) 7 days a week. 3. Selection of Franchisee : Selection of Franchisees will be made by the Selection Committee duly constituted for this purpose based on the marks obtained as per the eligibility conditions. 4. NO BID FORM WILL BE ISSUED BY THIS OFFICE. IT IS TO BE DOWNLOADED FROM WEBSITE www.ap.bsnl.co in Cost of Form is Rs.1,125/- (Rupees one thousand on hundred and twenty five only) should be submitted in the form of demand draft drawn in favor Accounts Officer in Column 3 of Annexure-II and the same should be submitted along with EOI document, failing which the bid form will be summanly rejected. 5. Sealed EOIs are to be addressed to the officer as mentioned in the enclosed Annexure-II and to be dropped in the Bid box kept at the address mentioned in the enclosed Annexure-II in person before 1300 Hrs. of 05-11-2009 or can be sent through Registered Post so as to reach the designated officer before 1300 Hrs. of 05-11- 2009. The name of the District and Territory should be super scribed on the top of the bid document as well as on the top of the envelope, BSNL is not responsible for delay incurred in transit and no claim on this account shall be entertained. 6. Separate bid form (EOI) to be submitted for each Territory, along with cost of the tender document and EMD. 7. The EOI will be opened at 1700 hrs. of 05-11-2009 , in the office of the designated officer as mentioned in the enclosed Annexure-II in the presence of bidders/authorized representatives of the bidders who wish to be present. The list of documents attached to EOI will only be verified in their presence and evaluation will be done later. 8. During the entire evaluation process, if it is observed that the submitted document is not exactly as per original document provided in the Website and / or it is tampered / changed / altered / modified in any way, the bid will be summarily rejected. 9. The General Manager, BSNL, East Godavari SSA reserves the right to reject any or all the tenders without assigning any reason. 2 Annexure-I Type Name of the Name of the S.No. of the Areas / Exchanges Covered SSA Territory SSA Ambajipeta, Pulletikurru, Allavaram, Devaguptam, Komaragiripatnam, Amalapuram, Guttinadeevi, Kandikuppa, Peruru, Mukkamala, Mukteswaram, I. Polavaram, 1 AMALAPURAM Kesanakurrupalem, Muramalla, Katrenikona, Anathavaram, Challapalli, Kunavaram, N. Kothapalli, Savarapalem, Uppalaguptam, EAST Mummidivaram Exchanges C GODAVARI Kesanapalli, Lakkavaram, Malkipuram, Sankaraguptham, 2. RAZOLE Tatipaka, Komarada, Pasarlapudi, Ponnamanda, Razole, Antarvedi, Sakhinetipalli Exchanges Gurazanapalli, Karapa, Velangi, Gollapalem, Jagannadhagiri, 3. KAKINADA-II Kazuluru, Kakinada-JN, Kakinada- Main, Gadimoga, Tallarevu, P. Kothuru, Kolanka, Yanam Exchanges ANNEXURE – II Designated Officer address & location of SSA D.Ds in favour of the Tender Box Divisional Engineer (Commercial & Marketing), AO (Cash), O/o GMTD, EAST O/o GMTD, BSNL Bhavan, Fort Gate, BSNL, Rajahmundry GODAVARI Rajahmundry-533150 3 BHARAT SANCHAR NIGAM LIMITED (A Government of India Enterprise) MANUAL OF FRANCHISEESHIP CONCEPT FOR BSNL PRODUCTS AND SERVICES Expression of Interest Document for Sales and Distribution Policy No.BSNL-EG/Mktg/RMY/FRANCHISEE/EOI/09-10/1 Dated 14 - 10 - 2009 ******* O/o General Manager Telecom, BSNL Bhavan, Fort Gate, Rajahmundry-533150 4 TABLE OF CONTENTS S.No. Title Page No. 1 Preamble 6 2 Expression of Interest Route 7 3 Sales & Distribution Policy 7 4 Eligibility for BSNL Franchisee ship and selection 9 5 Selection Criteria 12 6 Relaxation for Rural Area in Selection Criteria 13 7 Right 13 8 Responsibilities of Franchisee 13 9 Review 16 10 Other Outlets of BSNL 16 11 Discounts / Commission & Incentive policy 16 12 Refund of Expenditure by Franchisee 18 13 Office Support to Franchisee 18 14 Payment Terms 19 15 Operations & Accounting procedures 20 16 Office Support 21 17 Inspections 21 18 General Terms and Conditions 21 19 Quota for distribution 24 20 Support structure 24 Annexures appearing in the EOI & Agreement Annexure – “A” 26 Annexure – “B” 27 Annexure – “C” 28 Annexure – “D” 30 Annexure – “E”, “F”, “H” 32 Annexure – “I” 33 Annexure – “J” 34 Annexure – “M” 37 Annexure – “N” 37 Annexure – “P” 38 Annexure -“Q” 41 Annexure-“R” 42 Annexure – “S” 43 5 1.1 .PREAMBLE Consequent upon corporatization of Department of Telecom into a Corporate Entity i.e. BSNL, a need has been felt to have additional distribution channel apart from company owned outlets. This is all the more necessary as BSNL is facing increasing competition in all types of services and has to respond quickly for delivery of its services as well as to respond to customer inquiry and complaints so as not only to maintain its market share in the emerging telecom scenario but also to expand and acquire new market segments. BSNL’s aim is to have multiple channels of delivery of its product and services. Apart from its own outlets (Customer Service Centers) STD/ISD PCOs were the first alternate channel for availability of its services to consumers. Later on marketing agents were appointed to sell its ITC cards. In the year 2002 BSNL appointed dealers and distributors to sell its then newly introduced post-paid and pre-paid cellular services. Under the proposed policy there will be Franchisees selling all BSNL services which includes cellular, basic, WLL, Internet, ITC Cards etc., instead of having separate dealers and distributors for different services. The type of services offered by the franchisees includes providing new connection in cellular, basic fixed line, WLL, Internet, value added services of cellular and basic, selling of recharge coupons and ITC cards, provisioning of Data services like leased line, ISDN, MPLSVPN, broadband services. In addition to generating demand and meeting targets for providing services offered by BSNL, the franchisees will have to do after sales services including receiving, attending and rectifying complaints and selling add-on products if approved by BSNL. 1.2 Procedure for selection of franchisees in a nut-shell showing relevant clauses a) No. of areas of operation will be decided as per the type of the SSA and number of telecom points.(Clause 3) b) Notification will be issued in News papers calling for EOI. The same will be kept available in the AP Telecom web site. (Clause 2) c) The period of agreement will be two years from the date of signing of the agreement. (Clause 2) d) The bids are to be submitted along with EMD of Rs 2 lakhs and required documents. (Clause 4.2.1.a) e) The validity of the bids is 6 months (Clause 4.2.3) f) The bids which are submitted along with DD for required EMD amount and other documents will only be evaluated. (Clause 4.2.1.a & 18.xxv) g) The site of the proposed show room should be visited by the committee nominated by SSA head (Clause 5.a) h) The committee for evaluating the bids will be consisting of two DGMs and one DGM(Finance) of the SSA nominated by GMTD of the SSA (Clause 4.3.c) i) The relative position of the bidders will be decided as per the marks obtained by them (Clause 5.b) j) Top two bidders of the list will be short listed and interviewed (Clause 5.c) k) The selected bidder will be issued provisional LOI and the bidder will be asked to establish the ownership of the show room and submit the original documents for verification (Clause 5.d) l) The verification of the ownership of the show room should be arranged by the bidder within 15 days of provisional LOI (Clause 5.d) m) PBG for the amount applicable to the SSA , (in the prescribed format) , should be submitted within 15 days of provisional LOI (Clause 5.d) 6 n) If the ownership of the showroom is not established or PBG amount is not paid within 15 days of provisional LOI, the provisional LOI will be cancelled and EMD amount will be forfeited.

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