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Digital and DataBusiness
2012
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airtel iCreate 2012
Current Business Context:
India has witnessed a rapid acceleration of Mobile Voice Consumption and today has over
800 mln Mobile Customers. Mobile Telephony has changed the way Indians communicate
with each other and had significant impact on lifestyles, the economy and bridging distances
and divides - across various barriers and spectrums
Bharti airtel as the Leading Mobile Operator in the country has been instrumental in making
mobile services available across the length and breadth of this country through innovative
products, marketing strategies and through extensive network deployment backed by the
best distribution infrastructure in this country
Over the course of the last 3-4 years , the Mobile phone has become a " lifestyle enabler"
and a extension of oneself for the consumer offering much more than pure " voice
connectivity" to the user.
BUSINESS CASE
airtel would like to make the transition from being a Telecom Voice Service Provider to a
digital/data Services Provider as a logical extension of keeping pace with the changing
dynamics of the usage patterns of customers
With one of the lowest tariffs in the world, the Indian telecom industry is facing
unprecedented pressures on margins which warrant an accelerated transition to non voice
Revenue generation in the Digital Space and the Data Space (Mobile Internet, 2G, 3G and 4G
LTE)
CASE OBJECTIVES
1. To build and present a comprehensive 360 plan outlining the key strategies & go to
market imperatives that airtel needs to execute for a successful transition into the Digital &
Data business.
Sub Objective 1:
How does airtel create an ecosystem that helps in accelerated penetration of Mobile
Internet/Data & also drives consumption amongst existing users of Mobile Internet?
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airtel iCreate 2012
Context:
Bharti airtel has a significant % of customers that have Data Enabled Devices with them
who do not use Data through their Mobile Device. Also the usage/consumption amongst
people who are using is very nascent and not consistent
With ~ Rs 14000 crores spent for License fee for 3G Services, offtakes on 3G have to be
accelerated at a rapid pace.
Given India's population, a large part of our customers are in rural markets (defined as <
20K Population). How can synergy be leveraged between Rural customers and the world
of Mobile Internet as a sustainable business model for Bharti airtel?
Prima Facie evidence clearly suggests that consumption is a function of need and ALSO
the device that the consumer is using. Hence consumption of Mobile Internet/Data is
higher on Smartphones as compared to Featurephones.
Sub Objective 2
What are the key enablers/alliances that Bharti airtel should be cognizant of and also
participate actively in to create an environment that helps it meet its business objectives?
Context
The fundamental requirement to access the world of internet through the mobile deviceis the need for having a GPRS Phone for 2G Services or a 3G Enabled device (like an
Iphone, Other smartphones). Hence what should be Bharti airtel's approach to possible
alliances
Content partnerships
Smart alliances with Internet companies - like google/facebook/others as required
Sub Objective 3
Given that Bharti airtel has been a very successful business in the last 15 years - how do
we build a culture/people DNA that enables success for us in this transition?
Context
Bharti airtel has a successful set of employees who have grown with the organization
and actively participated in the success that has been seen in the last 15 years
However, the transition requires an enhanced level of understanding of the
internet/data space. Speed to Market, Innovation and strong consumer insights would
be required to enhance chances of success.
What & how should airtel focus on building mindset, DNA and a culture that creates the
right environment for success? What should be Bharti airtel's organizational investments towards this cause?
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airtel iCreate 2012
Sub Question 4
How can Bharti airtel Leverage its Current Assets (Customer quantum & customer
behaviour, Infrastructure, Distribution, Core Competencies) to build competitive
advantage over its key competition?
Bharti airtel is the ONLY integrated player in the country with a strong presence across
Mobile, DTH (Direct to Home) and Telemedia/Broadband Services on its Fixed Line/Fibre
Network. Our product offerings pan across Consumer Segment (B2C) and Enterprise
Segment
With 200 Mln Customers across these 3 Business Lines and with a World Class
Distribution Infrastructure - it is possibly best poised to make the transition. What
specifics actions/initiatives need to be done to ensure that these core strengths around
these elements are leveraged to the max to build a competitive edge over the other
players
INDUSTRY/MARKET CONSTRAINTS
The telecom Industry has 12-13 operators in the voice space and hence it is a
competitive market. Any product changes - specially pricing is likely to be copied in the
next 48-72 hours by the key operators
3G is offered in the operating states by the incumbent (BSNL/MTNL) and 3 (depending
on allocation of 3G Licenses post bidding) private operators.
While a significant amount of Customer Analytics based on their usage behaviour is
available - demographically the analytics are moderate and typically have not been used
extensively for segmented propositions
All operators follow their own segmented strategies for targeting customers with value
propositions and offers
Overall the customer (on voice) is price sensitive and also well informed. Insights on Mobile
Internet/Data, Customer Needs and consumption/usage behaviour are significantly lower
than Voice.