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Presenters
Mohak marwah
Hindoli Bhattacharjee
Jasbir Singh Karishma Bothra
Piyush Jain
Nimeel Mehta Kaushal Joshi
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Flow of presentation
Emerging markets
Background of the company and industry analysis
Czar of Indian telecom and its outcome Challenges and Competitors
Countering Threats
Ready to tap and current scenario(including 3G) Outlook and SWOT analysis
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Emerging markets
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Emerging markets are nations with social or
business activity in the process of rapid
industrialization.
India and china are the largest among them
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MSCI Barra list
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Dow Jones list
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Similar concepts
BRIC Brazil, Russia, India and China
BRICET BRIC + Eastern Europe and Turkey
BRICS BRIC + South Africa BRICM BRIC + Mexico
CIVETS Columbia + Indonesia + Vietnam +
Egypt + Turkey + South Africa
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Emerging markets
r e te gr t in e ne re en e 2007 t 2010
% growth
96%
5 %
42%
20%20%
20%
1 %
sia a i i
estern E r e
Countries
n ia an ina
i e East an ri a
Latin meri a
rt meri aEastern E r e
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Leading players
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Rank Brand Parent Company Brand Value ($bn)
1 Vodafone Vodafone Group 26.59
2 AT&T AT&T 24.6
3 Verizon Verizon Comm 24.38
4 Orange France Telecom 18.35
5 China Mobile China Mobile 13.87
6Telecom
ItaliaTelecom Italia 9.43
7 T-Mobile Deutsche Telekom 8.96
8 Movistar Telefonica 7.95
9 NTT DoCoMo NTTC 7.54
10 BT BT Group 7.29
11 Sprint Sprint Nextel Corp. 7.07
12 Telefonica Telefonica 6.33
13Alcatel-
LucentAlcatel-Lucent 5.16
14America
MovilAmerica Movil 5.08
15 Telstra Telstra Corp. 4.64
16 O2 Telefonica 4.62
17China
UnicomChina Unicom 3.45
18 Qwest Qwest Comm Intl 3.06
19 SoftBank Softbank Corp. 3.02
20 KDDI KDDI Corp. 3.01
21 Telenor Telenor 2.97
22 Swisscom Swisscom 2.96
23 MTS Mobil TeleSystems 2.79
24 CNCChina Netcom
Group2.55
25 Airtel Bharti Airtel Ltd 2.48
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Reason for growth
Market size.
Green field competitive opportunity.
Lower cost structure.
Availability of cheaper cell phones.
Increased per capita income.
Technology.
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Indian Sector
Company Name Market Cap in Crores
arti irte 108066.23
e iance o nication 32683.44
Idea e ar 14368.92
ata o nication 13181.25
ata e e er ice 4393.06
S ice o nication 4136.13
4044.6
2475.12
In ra tr ct re 2210.49
n o i e o a 1403.52
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THE CZAR OF INDIAN TELCOM
Building a Strong Brand Various Brand Ambassador(SRK, Sachin, A R Rahman)
Largest advertiser in India
Power to keep in Touch( )
Touch Tomorrow( )
Live every Moment ( )
Express Yourself ( 3)
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Business Model Innovation Lean organization
Outsourcing Network Deployment- Nokia andEricsson
IT services IBM
Customer Contact Centers Nortel
Different Payment Model from revenue per share to
cost per all.
Free incoming calls to its mobile phone user.
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ACCOLADES
Best CMT company for years ( - ) in terms of
Shareholder Performance Index.
MIS Asia IT Excellence Awardfor best Change in
Management
2005 Indian Mobile Operator of the Year.
Competitive Service Provider of the Year.(2006)
CEO of the Year Sunil Mittal(2006).
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COUNTERING THE THREATS
NETWORK EXPANSION
Expanding all over the country.
Increased budget of annual investment to $2 Billion per year from an average of
$ .5
Billion per year
Planned to expand aggressively in the rural areas in the future and cover of
the country by 2010.
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COUNTERING THE THREATS
TARGETING ALL SEGMENTS
BAL did away with the practice of using
a single marketing strategy to target all
the customers
Rural Segment:
Tied up with Nokia to offer entry-level handsets to its customers to counter self-
branded handsets offered by Vodafone & Tata.
Reduced the tariffs and lowered fixed & recurring charges .
The aim was to remove entry barriers for the customers and increase the user
base by further expanding the market.
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COUNTERING THE THREATS
Urban Segment:
Categorized these consumers based on ARPU and
adaptability to VAS and Technologies
High End users were segmented into a separate category
called funsters
BAL planned to focus its marketing efforts on these tech savvy users.
Tied-up HTC and RIM to provide high-end hand held devices to its high end corporate
users.
The aim was to increase its falling ARPU with the help of such high-end offers.
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COUNTERING THE THREATS
Wooing the Rural Masses
The challenge in penetrating the rural masses was low
ARPU, high cost of building infrastructure for network
& diverse languages and dialects.
BAL started to tie-up with shop owners in remote areas of India.
Started providing economical plans (with handset bundling) to rural masses toincrease uptake.
BAL launched a joint venture company IFFCO Kisan Sanchar Limited with
to provide VAS and voice services to farmers throughout India.
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COUNTERING THE THREATS
New Advertising Strategy
The aim here was to Reposition the Airtel brand as branding played an
important role in the telecom sector
BAL began to rollout some new promotional campaigns like
KUCH BANDHAN ATOOT HOTE HAIN
stressed on the wide coverage that the nationwide mobile
coverage of Airtel provided.
BARRIERS BREAK WHEN PEOPLE TALK
was aimed at projecting Airtel as a Global brand.
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COUNTERING THE THREATS
New Technology
The next generation 3G services were another area on which BAL decided tofocus in order to retain its dominant position in the Indian telecom servicesmarket.
It will help it increase its revenues in the view of its steadily falling ARPU.
In the 3G auction conducted by GoI, BAL was an aggressive bidder.
.
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TAPPING UNTAPPED MARKET
International presence in
Seychelles through its subsidiary Telecom Seychelles Limited.
Europe (Channel Islands) through its subsidiaries Jersey
Airtel Limited (JAL) and Guernsey Airtel Limited (GAL). In 2006, Airtel became the first Indian telecom operator to
launch 3G services in Seychelles
In May 2007, JAL and GAL entered into a partnership with
Vodafone to launch mobile services in Channel Islands underthe Vodafone-Airtel brand.
Airtel started in operations in Srilanka in 2008
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BAL & MTN
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Fallout between BAL & MTN
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Bharti Zain Deal
Set to Enter Africa one of the few remaining global high growthmarkets:
" Bharti Airtel is set to become worlds fifth largest wireless company with
operations across 18 countries
" Bhartis total customer base to be around 179 million and includes Zain
Africas mobile operations in 15 countries with over 2 million customers " Bhartis telecom footprint to cover 1.8 billion people across Asia and
Africa second largest among telcos
With this acquisition, Bharti Airtel will be the worlds fifth largest
wireless company with operations across 18 countries. Bharti
groups global telecom footprint will expand to 21 countriesalong with the operations in Seychelles, Jersey, and Guernsey.
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Bharti Zain Deal
The total cost of the deal is expected to be10
.7
billion dollars.Where 9 billion dollars and 1.7 billion through debt and the restis to be paid in the following year, which is about 700 milliondollars. The entire process is managed with 1.9% rate ofinterest.
Standard Chartered Bank is the Lead Advisor to Bharti on thistransaction. Barclays Capital is the Joint Lead Advisor and SBIGroup is the Lead Onshore Advisor. Global Investment HouseKSCC is the Regional Advisor to Bharti on this transaction.
The acquisition gives Bharti Airtel a total customer base of180
million, including 131 million subscribers it had in India at theend of April.
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Bharti & the 3G spectrum F
our years of delay, 3 days and18
3 rounds of frenetic bidding later,the auction of 3G mobile spectrum wound down finally, delivering an
unexpected bonanza of Rs 67,719 crore ($15 billion) for the
governments dry coffers and paving the way for services such as
video calling and high-speed internet using phones to be launched
across India. The thirteen 3G licences bagged by Suni Mittal-promoted Bharti Airtel
cover 59% of India's cellular subscribers and 61% of revenues this
is the maximum 3G coverage any telecom operator has managed.
Data released by sector regulator Trai reveal that regions where
Bharti has bagged 3G spectrum contributes about 70% of itsrevenues.