Presentation on Bharti Airtel ltd.

Company Introduction

Started in 1976 as bicycle manufactureIn 1985 entered into telecom industryIn 1995 Bharti won its first mobile phone network licenseIn 2002 company went for IPOIn 2004 Bharti renamed as Bharti Airtel Ltd.

Emerging as the Market Leader

By the end of 2001, BAL customers were doubling every year.

But the revenue model they were using was not as successful as it was in the western countries.

So they replaced the current Subscriber-led model with Minute to Factory model.

Outsourced critical process such as information technology, customer support, and back-end support.

BAL benefited from increasing AMPU as compared to the ARPU from previous model.

In 2005, introduced ‘Future Factory- Center of Innovation’ a research center for 3G applications and various other customer-friendly applications.

By 2005 BAL started entering rural areas but the penetration was low and the urban area were becoming saturated and the competition was increasing.

In 2006, BAL and Reliance to share radio towers and other infrastructure under the Mobile Operators Shared Tower(MOST).

In 2007, BAL, Vodafone and Idea started a company together which provided network expansion and sharing passive network across the country.

COMPETITIONS

GLOBALIZATIONS

African largest telecom operator and BAL

Zain AcquisitionsOn March 20th, 2010 Airtel acquired Zain's African business for US$ 10.7 billion.

Problem faced by Airtel

Valuation issue

Current development

Challenges in Africa Cultural & language

barriers

Political & Regulatory framework

Unstable Government

Currency Fluctuations

Huge cost of Infrastructure development

No Economies of Scale