Airtel PPT Report on Strategy

7/29/2019 Airtel PPT Report on Strategy

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Institute of Management Technology, Ghaziabad

REPORT ON

S

PGDM P/T [08-11], TerDEEPANKER AGRA

PRABHJYOT SINGH BH

SUSHAN RUN

PARIKSHITRAUNAQ SI

NILESH

Page 1

bmitted By:

- V, Group 8AL 08EM-014

TTI 08EM-030

GTA 08EM-048

AIN 08EM-028GH 08EM-034

AID 08EM-024


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Institute of Management Technol

Institute Of Management Techn

Ghaziabad

1. Introduction

2. Company History

3. Strategic Intent4. Industry Analysis

a. External Analy

i. Industry

ii. PESTEL

iii. PORTER

iv. Opportu

v. Threat

b. Internal Analysi. Strength

ii. Weakne

iii. Financial

5. Recommendations

ogy, Ghaziabad

ology

is

Analysis

MODEL

nities

iss

ses

s

Page 2


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INTRODUCTION

Bharti Enterprises is one

telecom, agri business, fina

Bharti Airtel, a group

telecommunications servic

mobile services, telemedi

always been at the forefro

with its world-class services

In the area of financial serv

offer life insurance, general

Bharti Retail, a wholly own

format consumer friendly s

Walmart, for wholesale ca

operations.

Other businesses in the gr

and FieldFresh Foods Priv

Limited to offer fresh fruits

international markets.

BHATI AIRTEL

Airtel is Indias largest inte

with a footprint in all the

been at the forefront of t

sector in the country with it

The businesses at Bharti Aibusiness units (SBUs) - M

Services, Digital TV Services

Mobile business pr

technology across 23

Airtel Telemedia Ser

in 94 cities.

ogy, Ghaziabad

of Indias leading business groups wit

cial services, retail and manufacturing.

ompany, is one of Asias leading

s with operations in India and Sri La

services and enterprise services. Bh

nt of the telecom revolution, transform

built on leading edge technologies.

ices, Bharti has been partnering with AX

insurance and asset management servic

ed subsidiary of Bharti Enterprises ope

ores, while Bharti Walmart is a B2B join

h and carry and back-end supply chain

up are Beetel for communication and

te Limited, a joint venture with Del

and vegetables, and processed food in I

grated and the first private telecom se

3 telecom circles. Bharti Airtel since its

chnology and has steered the course

s world class products and services.

tel have been structured into Four indibile Services, Airtel Telemedia Service

vides mobile & fixed wireless servic

telecom circles.

ices business offers broadband & tele

Page 3

h interests in

providers of

nka, spanning

rti Airtel has

ing the sector

A of France to

es.

ates multiple-

t venture with

management

edia devices,

Monte Pacific

ndia as well as

vices provider

inception has

f the telecom

idual strategic& Enterprise

s using GSM

hone services


4/31


Enterprise services

customers and natio

Digital TV services pr

All these services are provstudy we will concentrate o

With 10-crore subscribers i

country mobile services

telecom company globally.

Ventures, the company cro

5-crore mark in October

company in the world. The

Targeting 20-crore subscrib

series of network augment

over one-lakh base station

network coverage across t

service management centr

rural areas by March 2010,

Airtel at present has 25 per

terms of revenue. It is only

Airtel has set a very ambiti

2-3 Years.

ogy, Ghaziabad

provide end-to-end telecom solutions

al & international long distance services

vides Direct To Home Television Service

ided under the Airtel brand. For the pn the Mobile Business

n May 2009, Airtel has become the thir

perator in the world and sixth larg

After having started its service in 1995

ssed the 7.5-crore customer mark in Au

007, making it one of the fastest gr

irst 2.5-crore subscribers were achieved

ers in the next 2-3 years, Airtel will be

tion and customer service initiatives.

sites by this year-end to set up wid

he country and establish a state-of-th

, besides setting up one-lakh Airtel ser

he said.

cent subscriber share and 30 per cent

behind China Mobile and China Unicom.

ous target of doubling the subscriber b

Page 4

to corporate

to carriers.

s

urpose of the

largest single

st integrated

as Bharti Tele-

gust 2008 and

wing telecom

in July 2006.

undertaking a

e will roll-out

r and deeper

-art customer

ice centres in

arket share in

se in the next


5/31


Company Histo

2009

Becomes third larges

subscriber base of 10

70% stake in the Ban2006-2008

Profit crosses US $ 1

Receiver licenses for

Launch of Airtel Cal

aimed at the Indian

Strategic Partnership

2005-2006 All-India Footprint wi

Vodafone acquires 1

Becomes Indias Lar

customer base

2004

Airtel announced the l2001-2003

Joins the US $ 1 Bn re

Strategic PartnershiCompany core IT net

First private operator

2001-2002

IndiaOne, Indias fi

distance service laun

Eastern foray throug

across India

Indias first private su

IPO through India;s fi First Provate operat

Nadu and Karnataka

1999-2000

The largest Private s

Providing Cellular Ser

ogy, Ghaziabad

y

t single country mobile service provide

Crore.

ladesh business of Abu Dhabi based Wa

Bn

providing 2G & 3G mobile services in Sri

l Home Services a calling card services

iaspora

with Google for search through Mobile

h the launch of mobile services in Assa

% economic interest in the Company

est integrated private operator base

aunch of a BlackBerry Wireless Solution i

venue Club

with IBM and Ericsson for outsoork activities

to launch mobile services in J&K

st private sector national and inte

hed

h acquisition and new licenses for eig

bmarine Cable Landing station in JV wit

rst 100% book building issue

r to offer Landline services in Haryan

ector operator in India after acquiring

vices in Punjab, Karnataka and Andhra P

Page 5

by crossing a

rid Telcom

Lanka

for countries

on the total

n India

rcing of the

national long

ht new circles

Singtel

, Delhi, Tamil

JT Mobile for

radesh


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Acquired Skycell, Che

Singtel acquires stake

1997-98

The first Private tele

telephony in Madhya Incorporation of Bha

India and Bharti BT In

1995-96

Mobile Services und

in Delhi and Himacha

British Telecom Plc (B

ogy, Ghaziabad

nnai and expands South Indian Footprin

in Company

com service provider to obtain a licen

Pradeshrti BT VSAT Ltd. for providing VSAT s

ternet Ltd.

r the brand name Airtel launched for

l Pradesh

T) acquires stake in Company

Page 6

e for landline

lutions across

the forst time


7/31


Strategic

Promise:

We at Airtel always thin

customers and how we wa

out of our way to delight th

Objectives of th

Airtel has set an ambitiou

years. Through this study

Weaknesses, Opportunities

target.

ogy, Ghaziabad

in fresh and innovative ways about th

nt them to feel. We deliver what we p

e customer with a little bit more

e Study

s target of doubling the subscriber ba

we will understand the strategic posi

and threats that will play a role in ac

Page 7

Intent

needs of our

romise and go

e in next 2-3

ion, Strength,

ieving Airtels


8/31


External Analys

Indian Telecom SectorThe Indian telecom Sector

to 525 Million telecom c

largest market, second to

lowest in the world.

The India population stand

relatively large young popu

current Telecom penetrati

is one of the lowest in the

well as increased penetra

Broadband subscribers als

again the lowest in the w

broadband subscribers by 2

ogy, Ghaziabad

s

nalysisas seen a phenomenal growth and curr

stomers. Indian telecom market is

only China. However the penetration

s close to 1.2 billion with increasing ur

lation, which is a major driver for telec

n stands at 44.87% ie 525.65 mn telec

orld. The growth will come from expan

tion, giving dual advantage. Growth i

as the penetration is just 0.63% 7.4

orld. Government has set a target to

010.

Page 8

ntly has close

orlds second

is one of the

anization and

m sector. The

m subs which

ing market as

s expected in

mn, which is

reach 20 mn


9/31


Indias Competitive AdvThe Porters Diamond Mod

Mobile Sector. All Five fact

Rivalry; Factor Conditions

Conditions are Favorable

ogy, Ghaziabad

antage in Mobile Sectorel below shows the Competitive Advan

rs namely Government; Firms Strategy,

; Related and Supporting Industries

Page 9

tage of Indian

Structure and

and Demand


10/31


PESTEL Analysis

Political and Regulatory Iss

Political factors are how aeconomy. The unpreceden

well supported by the polic

January 2010

Proposal to Waiver o

2009

Regulatory on Qualit

Interconnection Regu

Interconnection Usag Resale of Internation

GoM has been consti

2008

Guidelines for 3G Spe

DoT issues 121 Letter

Guidelines for Mobile

DoT allows active infr

2007

Dual Technology Allo2006

Number portability p

2005

An attempt to boost

FDI limit was raised f

2004

Intra-circle merger g

Broadband Policy 20

by 20102003

Calling Party Pays (CP

Unified Access Licens

Reference interconn

2002

ogy, Ghaziabad

ues

nd to what degree a government inteted growth of the Indian telecom indu

reforms. Some of the key Highlights ar

License fees in Rural Areas

of Services for Telecom Sector

lation for Broadcasting Sector

e Charge Regime- Charges have been ral Private Leased Circuit (IPLC)

itutes to decide the pricing of 3G Spectr

ctrum Auction issued. Foreign Players al

s of Intent (LoIs) for UAS licences

Number Portability Services

astructure sharing

ed

roposed

ural telephony was made

om 49 to 74 per cent

idelines were established

4 was formulated to target 20 million

P) implemented

ing (UAL) regime established

ct order issued

Page 10

rvenes in thestry has been

given below:

ionalized

m

lowed to bid.

internet users


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ILD services unlocke

Go-ahead to CDMA t

Initiation of internet

Reduction of license

2001 Additional licenses in

Reduction of license

Limited launch of CD

Reduction of GSM ce

Widening of service

Initiation of 3rd and

.

The above table from TRAI

services and hence on the

charges in India are among

the licensing fees. clearly, t

develop and provide qualit

ogy, Ghaziabad

to competition

echnology

elephony in India

ees

basic and cellular services

ee

MA WLL (M)

llular tariff

overage by the then players

th GSM operator networks

shows the impact of various regulations

subscriber base between 1998 and 20

t the lowest in the World due to gradu

he above regulations have helped the S

service at affordable prices.

Page 11

on the cost of

7. The Mobile

al reduction in

ector to grow,


12/31


ECONOMIC

Economic factors include e

the inflation rate. These fa

and make decisions.It is udecent levels of Inflation an

which is fuelled by the gr

telecom is said to contribu

telecom will continue to

Economic factors in India l

Growth of the Mobile indus

SOCIAL

Social factors include th

distribution, career attitude

product or a service. Firstl

lowest mobile penetration

Secondly, 35 % population i

base. Thirdly, Urbanizatio

connectivity. This also hin

impetus for Growth.

Clearly the Social Scenario i

ogy, Ghaziabad

conomic growth, interest rates, excha

tors have major impacts on how busi

disputed that India is a long term grod GDP. India is still posting a robust gro

wth in the services and manufacturin

e to the growth of Economy. And in I

lay an important role. Hence we for

ike Growing GDP and disposable inco

try.

cultural aspects, population grow

s etc.. Trends in social factors affect the

y, India has favorable Social factors wi

in the second most populous country

s below 14 yrs of age which is a huge fu

is increasing leading to an increase

s that growth in the rural industry c

also in favor of the industry.

Page 12

nge rates and

esses operate

th Story withth of 8 % GDP

g sectors. The

dias case the

esee that the

e will help in

th rate, age

demand for a

th one of the

in the world.

ture customer

demand for

an be a good


13/31


TECHNOLOGICAL

Technological factors inclu

as R&D activity, automation

change. They can determinand influence outsourcing

costs, quality, and lead to in

The Indian telecom sect

companies in various areas,

distance calls, value added

The above diagram shows

in the Mobile Industry.

3G Services The Ne

In the conducive bus

services. The global rservices.India expect

market is well pois

categories such as sp

Worldwide Interope

Digital Divide

ogy, Ghaziabad

de technological and environmental

, technology incentives and the rate o

barriers to entry, minimum efficient pecisions. Furthermore, technological s

novation.

r offers unprecedented opportunitie

such as 3G, virtual private network, int

ervices, etc.

arious Technologies that will provide Gr

Buzz Word

iness environment, India Inc. awaits th

evenue for 3G is 60 per cent higher thas to replicate its 2G growth in 3G servi

d to leverage the 3G service offerin

rts, games and music.

ability for Microwave Access (WiMAX)

Page 13

aspects, such

technological

oduction levelifts can affect

s for foreign

rnational long

owth Avenues

rollout of 3G

that of otheres. The Indian

gs in content

Bridge the


14/31


Infrastructure Sharin

Optimizing Costs In t

will improve coverag

Active Infrastructure

Antenna systems,infrastructure with s

Value Added Service

Rolling out of adva

advancement and he

Porters Five Forces Mo"Porter's five forces" is a

strategy development de

School in 1979. It useseconomics to derive five f

therefore attractiveness of

overall industry profitabil

combination of forces acts

industry would be one appr

ogy, Ghaziabad

e midst of the telecom boom, common

and quality of calls and reduce costs.

sharing has started in 2008 which ena

ables and transmission systems, Bitches and networking).

VAS)

nced VAS has been possible due to

nce creating higher value for Buyers and

elframework for the industry analysis

veloped by Michael E. Porter of Har

concepts developing Industrial Orgaorces that determine the competitive

a market. Attractiveness in this contex

ity. An "unattractive" industry is on

to drive down overall profitability. A ve

oaching "pure competition".

Page 14

infrastructure

les sharing of

ackhaul (core

Technological

Sellers.

and business

ard Business

nization (IO)intensity and

refers to the

e where the

y unattractive


15/31


We will study the Above 5 F

Competitive Rivalry

The Competitive Rivalry in

players enter the industry. The Competition is

customer brings wit

competition.

Here we shall discuss two la

1. Bharat Sanchar Niga

the seventh-largest t

wide range of servi

mobile, internet, broBSNL is the largest

services helping it to

areas.

Rural Penetration

BSNL is playing a lead

rural areas. It has be

by pioneering its serv

India, except Delhi a

state-owned player.Low Cost Strategy

BSNL is a low-cost

helped BSNL in penet

2. Reliance Communica

Reliance Communica

about a digital revolu

vast population with

Reliance Infocom,

postcards, built a 60,the entire country. R

its eight circle footpri

world mobile portal.

1X network.

Integrated Service

ogy, Ghaziabad

orces model for Mobile Sector in the Ind

India is high and will continue to in

price and quality based. The entry

h it a new set of price cut and he

rge Competitors of Airtel and their Strat

Ltd. BSNL, a state-owned service prov

elecommunication company in the wo

ces in India, such as wireline, CDMA

dband, carrier, MPLS-VPN, VSAT, VoIP, Ioperator in basic services in India wi

establish its presence as the largest op

ership role in developing the telecom in

en successful in increasing its cellular s

ices in the rural terrain. Its services cov

nd Mumbai, which are covered by M

ervice provider of many services. Thi

rating the market.

tions

ions, previously known as Reliance Inf

tion in the Indian telecom industry by pr

affordable means of information and c

ith the aim of making mobile calls

000-kilometre-long fibre optic backboneliance currently offers its services in 3

nts; it also initiated mobile data services

This portal leverages the data capabilit

Page 15

ia.

rease as new

f every new

ce intensifies

egies:

ider in India, is

rld. It offers a

mobile, GSM

N, etc.th its cellular

erator in rural

frastructure in

bscriber base

r the whole of

NL, the other

strategy has

com, brought

oviding Indias

mmunication.

cheaper than

, crisscrossing0 towns with

through its R-

of the CDMA


16/31


From the beginni

communication servi

greater number of h

Nokia.

Large Distribution NReliance has create

communication stor

expanding its reach a

electronic recharge o

Other Competitors being Id

Competitive Rivalry is high i

ogy, Ghaziabad

ng, Reliance believed in providin

es to its customers. The company claim

ndsets compared to those sold by the

tworkd the largest chain of digital enter

es Reliance Web World. The co

ggressively through retail outlets, sales a

utlets.

a, MTNL, Vodafone, Telenor, Spice, Ora

n the Mobile Sector

Page 16

g integrated

s that it sells a

arket leader,

tainment and

pany is also

gents and

nge


17/31


Supplier Power

The supplies in Mobile se

Service providers and the H

Network Equipments: Ther

Nokia Siemens, Ericsson, H

suppliers the power of thes

of the operators if supplies

Tower Providers: Though t

Towers but still the covera

bargaining power of Tower

Handset Suppliers: Nokia,

players. The bargaining p

competing amongst thems

Overall we can make out

Industry

Buyer Power

Switching cost is lo

which will lead to fur

services are not met.

The Voice and messa

the competition no

similar across the op

The customers are

introduction of pay p

Buyers are wanting

Hence the companies have

Satisfaction.

ogy, Ghaziabad

ctors primarily comprise of Switch Su

andset providers.

e are limited Network Equipment provid

awei. Due to the increase in demand an

suppliers are high and may impact the

are not smooth.

he new sharing technology has helped

e remains a problem due to few Towe

providers if High.

Samsung, LG, Sony, iPhone and nu

wer of Handset Suppliers is less as

lves

that the key supplies powers are hi

. Government is also introducing Num

her switching between the operators if

ge based services are moving toward a

depends mostly on the prices as th

rators.

emanding more value for money whi

r second plans.

ore and more value added service at ch

to now focus on Customer Delight and

Page 17

pliers, Tower

ers like ZTE

d limited

growth plan

in utilizing the

r provider The

merous other

they are also

h for Mobile

ber portability

the prices and

commodity as

e services are

ch has lead ti

aper prices

not Customer


18/31


Threat of Substitutes

The VOIP is getting p

Video Conferencing i

CDMA is another thr

The threat of substitutes is

similar quality and service

Potential for New Entrants

The government is al

Many mobile players

NLD/ILD operations.

The sharing businessdown the capital req

The potential for new entra

The above External an

Opportunities and Threats f

Opportunities: Exponentially Growin

The Rural Landscape

fees in rural areas.

which is just 15 %

provides a massive

Rural Household co

Rural segment is curr

New Technologies an

the proliferation andevolve their infrastru

from the base stati

auctions is due w

Convergence will b

services, using IP as t

ogy, Ghaziabad

pular for Eg. Skype, Vonage etc.

also getting popular

at to GSM players

high as the alternate modes are much

o issuing new licenses in the current cir

are also entering the enterprise busines

has reduced the capital requirement anirement for new player.

nt is also high.

Macro-Environment Analysis pro

aced by Airtel which can be summarize

g Market both in size and usage

: The Regulators have proposed the wa

Clubbing the regulators policy with l

provides immense opportunity to Airt

opportunity for Airtel to expand its c

prise of 70 % of Indias Population.

ently 8-10 % per month

d Paradigms: As growth in data traffic a

adoption of web services the telecomcture through their access transmission

ns to the core switching network.

ich provides a big opportunity to

vital phenomenon to support all n

e strategic technology

Page 18

cheaper with

les.

s by launching

thus bringing

ides us the

as below:

iver of license

w teledensity

el. Rural area

stomer base.

he growth in

celerates with

operators willinfrastructure

G and BWA

he company.

twork and IT


19/31


Strong Strategic Part

with Singtel, which h

due to technology tr

and technology par

solutions. Value Added Service

operators. Airtel ha

exploited further for

Threat

Increased Competiti

wireless market in

players in to newerCDMA technology.

national long dista

pressure of marketin

Substitutes like VOI

threat to internation

ogy, Ghaziabad

nerships for Technology: Airtel has str

s helped in providing quality services t

nsfer. AIrtel also has strong alliances w

ners who also drive development a

s: These services bring both Value to

special services and the opportunit

better profitability.

n may reduce market share and /or

the year 2008-09 saw the entry of

circles along with operators migratingThe market also saw entry of inte

ce operators. This has lead to tarif

g expenditure in the coming year.

for eg Skype, Vonage etc. these ser

al long distance calls.

Page 19

ategic alliance

the customer

ith equipment

nd innovative

ustomers and

can still be

Revenue: The

any existing

to GSM fromrnational and

erosion and

ices are a big


20/31


Internal Analysi

Asias leading providers of t

licensed jurisdictions (also kServed an aggregate of 1

whom 110,511,416 subscr

Services either for voice an

DSL. The largest wireless se

customers as of Septemb

solutions to our enterpris

connectivity both nationall

All these services are rende

The company also deploys,to telecom operations und

owns 42% of Indus Towers

top providers of passive inf

Strength:

3rd Largest Wireless o

Largest private integr

6th Largest integrated Largest wireless oper

Largest private fixed l

Largest telecom com

Weakness:

An often cited origin

Sunil Bharti Mittal ov

experience of how

start-up business had

Until recently Airtel

strength of some of

important if your co

The fact that the Air

could signal the lack

ogy, Ghaziabad

s

elecommunication services with presen

nown as Telecom Circles) in India, and i3,439,670 customers as of Septembe

ibe to GSM services and 2,928,254

/or broadband access delivered throug

rvice provider in the country, based on

er 30, 2009. Offer an integrated sui

customers, in addition to providing

and internationally. Also offer DTH and

red under a unified brand Airtel.

owns and manages passive infrastructr its subsidiary Bharti Infratel Limited.

Limited. Bharti Infratel and Indus Towe

astructure services in India.

perator in the world

ated telecom company in India

telecom operator in the worldator in India

ine operator in India

any listed on Indian Stock Exchanges

l weakness is that when the business

er 15 years ago, the business has little

cellular telephone system actually w

to outsource to industry experts in the

did not own its own towers, which w

its competitors such as Hutchison Ess

pany wishes to provide wide coverage

el has not pulled off a deal with Sout

of any real emerging market investme

Page 20

e in all the 22

Srilanka.30, 2009; of

se Telemedia

he number of

e of telecom

long distance

IPTV Services.

ure pertainingBharti Infratel

rs are the two

as started by

nowledge and

orked. So the

ield.

s a particular

r. Towers are

ationally.

Africa's MTN

t opportunity


21/31


for the business once

Business Units

1. Mobile/Wireless Servic

India and Sri Lanka. Weon the number of cust

September 30,2009 and

as on September 30, 2

added services through

1,362,464 outlets. Our n

non-census towns and

the countrys populati

launches in the world wi

months of launch. AirtelSri Lanka. The company

created a wide distribut

retailers across the coun

Product Portfolio

ogy, Ghaziabad

the Indian market has become mature.

s: We offer mobile services using GSM

re the largest wireless service providermers. We had 110,511,416 mobile cu

customer market share of 23.5% of wi

09.We offer post-paid, pre-paid, roa

our extensive sales and distribution ch

etwork is present in 5,072 census towns

illages in India, thus covering approxi

n. Airtel Sri Lanka is amongst the fa

th a base of over 1 million customers wi

already has presence in 16 administrathas launched 3.5G services in the major

ion network comprising of 23 distribut

try.

Page 21

technology in

in India, basedtomers as on

reless market,

ing and value

nnel covering

and 429,723

ately 83% of

stest growing

hin six

ive districts oftowns and has

rs and 15,000


22/31

Institute of Management Technology, Ghaziabad Page 22


23/31


2. Telemedia Services: We

(fixed line) in 95 cities w

SMB segment. We had

which 40.5% were subs

offerings in this segmen

local, national and inter

Broadband Internet acc

ogy, Ghaziabad

provide broadband (DSL), data and tele

ith growing focus on the various data so

2,928,254 customers as on Septembe

cribing to broadband/ internet services

include installation of fixed-line teleph

ational long distance voice connectivity

ss through DSL.

Page 23

hone services

lutions for the

r 30, 2009 of

? Our product

nes providing

and


24/31


Product Portfolio

Strategies

ogy, Ghaziabad Page 24


25/31


3. Enterprise Services: E

communications service

We provide long distanc

customers. We own a st

network infrastructure eIndia and connecting

infrastructure comprise

and SDH POPs and over

India reach in 301 LDCA

Our international infrast

system connecting Chen

submarine cable syste

Singapore, and investm

across transatlantic ansystems such as Asia A

Europe (IMEWE), Unity

Submarine System (EAS

We have also built terr

such as Nepal and Bhut

large corporates. We

telecommunication nee

suite of communication

managed services. We sunique requirements

Manufacturing and Dis

PSUs and Retail amo

International MPLS Servi

Domestic and Internati

Audio and Video confer

Professional Services,

Access Services, Fixed

solutions, Domestic andenablement solutions.

ogy, Ghaziabad

nterprise Services is Indias leading

to large Enterprise and Carrier custom

wholesale voice and data services to o

ate of the art national and internationa

nabling us to provide connectivity servicIndia to the world. Our national

of 113,326 Rkms of optical fibre, ov

1,500 POIs with the local exchanges, p

s and 1275 SDCAs.

ructure includes ownership of the i2i su

nai to Singapore, consortium ownershi

connecting Chennai and Mumbai t

nt in a number of diverse submarine

transpacific routes. Our investmentserica Gateway (AAG), India Middle Eas

North, EIG (Europe India Gateway) a

y) will expand our global network acros

estrial express connectivity to neighbo

n. We deliver end to end telecom solu

serve as the single point of co

s for corporate customers in India by

services across data, voice, network in

ecialize in providing customized solutioof different industry verticals; B

ribution, Media, Education, Telecom,

g others. These services include;

ces, Internet Services, Remote Access V

nal Private Leased Circuits, Satellite s

encing, Datacenter Services, Network I

anaged Network Services, Terrestrial

Line and Converged Voice Services,

International Toll free services and Mo

Page 25

provider of

rs.

er 400 carrier

l long distance

es both withinlong distance

r 1,500 MPLS

roviding a pan

bmarine cable

of the SMW4

Europe and

cable systems

in new cableand Western

nd East Africa

5 Continents.

ring countries

ions to Indias

ntact for all

roviding a full

tegration, and

s to addressSI, IT, ITeS,

Government,

omestic and

N Services,

rvices (VSAT),

tegration and

and Wireless

ontact centre

bile enterprise


26/31


4. Digital TV Services: Airt

is available through m

Centres in over 5,000 to

ogy, Ghaziabad

l Digital TV, with a base of over 1.3 milli

re than 54,000 retail points and Airt

ns and thousands of villages across the

Page 26

on customers,

l Relationship

country.


27/31


5. Passive Infrastructure S

services on a non-discri

Infratel deploys, owns

India. Infratel also holds

Bharti Infratel, Vodafoncircles common with Inf

29,112 towers in 11 circl

the right of use has bee

Indus Towers has a po

right of use.

ogy, Ghaziabad

ervices: Bharti Infratel provides passive

inatory basis to all telecom operators i

and manages passive infrastructure in

42% share in Indus Towers (a Joint Ve

e and Idea Cellular). Indus operates iratel, 12 circles on exclusive basis). Bha

les, excluding the 35,066 towers in 12 ci

n assigned to Indus with effect from Ja

tfolio of 100,728 towers including the

Page 27

infrastructure

n India. Bharti

11 circles of

ture between

16 circles (4rti Infratel has

rcles for which

nuary 1, 2009.

towers under


28/31


Financials

The consolidated To

2009 of Rs.19,787 cr

15% on a year on yea EBITDA margins impr

of the previous year.

The Net Income for t

crore, a growth of 19

The strong Free Cas

Net Debt to Rs.4,211

all-time low of 0.12.

The consolidated To

2009 of Rs. 9,846 cro The Company contin

secure cost efficienci

EBITDA at Rs. 4,142

margins improved to

previous year.

Bharti had 113.4 mn

the total customer b

maintained its lead

wireless subscribers

Highlights for the Half Year

Total Revenues of

EBITDA of Rs.8,29

EBITDA margin at

Cash Profit of Rs.

Net Income of Rs.

Highlights for the Second

Overall customer

Net addition of 82

Market leader w

subscribers at 23.

Total Revenues of

ogy, Ghaziabad

al Revenues for the half year ended

re grew by 13% and EBITDA of Rs. 8,293

r basis.oved to 41.9% from 41.3% in the corres

he half year ended September 30, 200

over last year.

Flow of Rs. 2,617 crore resulted in th

crore, with the Net Debt to Equity rat

tal Revenues for the quarter ended

re grew by 9%.ued to leverage its scale and vendor p

s, leading to improved margins.

crore grew by 12% on a year on year

42.1% from 41.0% in the correspondin

customers, as on September 30, 2009,

se of 42% over the corresponding perio

rship position through market shar

t 23.5%, as on September 30, 2009.

ended September 30, 2009

Rs. 19,787 crore (up 13% Y-o-Y).

crore (up 15% Y-o-Y).

1.9% (prior year: 41.3%)

,511 crore (up 32% Y-o-Y).

4,838 crore (up 19% Y-o-Y).

uarter ended September 30, 2009

ase at 11.34 crore

.44 lakh customers in a single quarter.

ith a customer market share of all

%.

Rs. 9,846 crore (up 9% Y-o-Y).

Page 28

eptember 30,

crore grew by

onding period

was Rs.4,838

e reduction of

io reaching an

eptember 30,

artnerships to

basis. EBITDA

period of the

an increase in

last year and

of all India

India wireless


29/31


EBITDA of Rs. 4,14

EBITDA margin at

Cash Profit of Rs.

Net Income of Rs.

ogy, Ghaziabad

2 crore (up 12% Y-o-Y).

2.1% (prior year: 41.0%)

,099 crore (up 31% Y-o-Y).

2,321 crore (up 13% Y-o-Y).

Page 29


30/31

Institute of Management Technology, Ghaziabad Page 30


31/31

RECOMMENDA

After the complete anal

recommendations which ar

PRICING

Depending on the market

service providers and also t

mechanism (either at centr

IMPROVEMENT IN TECHN

Airtel should immediately s

switches. This will improv

simultaneous integration w

the transmission towers sh

ESTABLISHMENT OF DISTRI

Airtel should establish wid

the competitors. The distr

available at convenient loca

UNTAPPED RURAL MARKE

Large part of Indian rural

bring that area under mobil

IONS

sis of entire STUDY we put forw

as follows:

onditions / competition from cellular

o suit local conditions, there should be

l or local level).

LOGY

hift to third generation switches by repl

the quality of service to desired lev

ith the nationwide network. The special

uld be increased to avoid no signal poc

BUTION CHANNELS

spread and conspicuous distribution to

ibution network shall make the produ

tions

arket is still untapped therefore Airtel

ity.

rd a set of

r WLL-mobile

lexible pricing

lacing its c-dot

l and provide

distribution of

kets

match that of

ct visible and

is required to

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Airtel PPT Report on Strategy

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