Executive Summary: Study of Bharti Airtel LTD

Study of Bharti Airtel Ltd.
1. EXECUTIVE SUMMARY
This report on Bharti Airtel is done to find out certain objective regarding the strategic approach
adopted by Airtel to stand strongly in competitive telecom market. Airtel marketing strategy is
analyse using various models such as porters generic strategy, BCG matrix, !force model, "#$T
analysis, ansoff matrix of Airtel, etc.
Also a detailed study of company%s financial position is done to find out its market position.
The study includes operating profits ,net sales, revenue and expenditure of Airtel.
&t also talks about the telecom industry in &ndia, different players, role of T'A&. &t also gives
information about recent strategies of Airtel such as changing of the brand Airtel logo,etc.
The report gives information on ho( Airtel adjusted itself to changing market conditions,(hat are
the various marketing strategies it takes to become )
st
company by subscriber and revenue.
*astly, some findings and suggestions are recommendate on the basis of this study.
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2. INTRODUCTION TO INDIAN TELECOM INDUSTRY
2.1. Introduction
The &ndian telecommunication industry is the (orld+s fastest gro(ing industry (ith ,,) million
mobile phone subscribers as of -anuary ./)). &t is also the second largest telecommunication
net(ork in the (orld in terms of number of (ireless connections after China.
As the fastest gro(ing telecommunications industry in the (orld, it is projected that &ndia (ill
have ).)0 billion mobile subscribers by ./)1.2urthermore, projections by several leading global
consultancies indicate that the total number of subscribers in &ndia (ill exceed the total subscriber
count in the China by ./)1. The industry is expected to reach a si3e of 144,0.) crore 56"7,8.,
billion9 by ./). at a gro(th rate of over .8 per cent, and generate employment opportunities for
about )/ million people during the same period.
According to analysts, the sector (ould create direct employment for ..: million people and for ,
million indirectly. &n .//:!/0 the overall telecom e;uipments revenue in &ndia stood at )18,:11
crore 56"71/.1: billion9 during the fiscal, as against )),1:. crore 56"7..8) billion9 a year
beforeToday, it is the fastest gro(ing market in the (orld and represents uni;ue opportunities for
6.". companies in the stagnant global scenario.. The (ireless technologies currently in use are
Global "ystem for <obile Communications 5G"<9 and Code =ivision <ultiple Access 5C=<A9.
There are primarily 0 G"< and C=<A operators providing mobile services in )0 telecom
circles and 4 metro cities, covering ./// to(ns across the country.
Telephone "ubscribers 5#ireless and *andline9> :/8.)1 million 5feb. ./))9
*and *ines> 14.04 million 5feb. ./))9
Cell phones> ,,).): million 5feb. ./))9
<onthly Cell phone Addition> ):.: million 5feb. ./))9
Teledensity> 8,.8,? 5feb. ./))9
@rojected Teledensity> ) billion, :4? of population by ./)..
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2.2. Evolution of t! indu"tr#$I%&ort'nt Mil!"ton!"
Aistory of &ndian Telecommunications
):) 2irst operational land lines (ere laid by the government near Calcutta,
5"eat of British po(er9
)::) Telephone service introduced in &ndia
)::1 <erger (ith the postal system
)0.1 2ormation of &ndian 'adio Telegraph Company 5&'T9
)01. <erger of BTC and &'T into the &ndian 'adio and Cable Communication
Company 5&'CC9
)04, Cationali3ation of all foreign telecommunication companies to form the @osts, Telephone and
Telegraph 5@TT9, a monopoly run by the government+s <inistry of Communications
)0: =epartment of Telecommunications 5=$T9 established, an exclusive provider of domestic and
long!distance service that (ould be its o(n regulator 5separate from the postal system9
)0:8 Conversion of =$T into t(o (holly government!o(ned companies> the Didesh "anchar Cigam
*imited 5D"C*9 for international telecommunications and <ahanagar Telephone Cigam *imited
5<TC*9 for service in metropolitan areas.
)00, Telecom 'egulatory Authority of &ndia created.
)000 Cellular "ervices are launched in &ndia. Ce( Cational Telecom @olicy is adopted.
./// =$T becomes a corporation, B"C*
2.(. Ot!r M')or *l'#!r" in t! M'r+!t,
3
There are three types of players in telecom services>
"tate o(ned companies 5B"C* and <TC*9
@rivate &ndian o(ned companies 5'eliance &nfocomm, Tata Teleservices,9
2oreign invested companies 5Dodafone!Bssar, Bscotel, &dea Cellular, B@* <obile, "pice
Communications9
A. -SNL
$n $ctober ), ./// the =epartment of Telecom $perations, Government of &ndia became a
corporation and (as renamed Bharat "anchar Cigam *imited 5B"C*9. B"C* is no( &ndia%s
leading telecommunications company and the largest public sector undertaking. &t has a net(ork of
over 4 million lines covering /// to(ns (ith over 1 million telephone connections. The state!
controlled B"C* operates basic, cellular 5G"< and C=<A9 mobile, &nternet and long distance
services throughout &ndia 5except =elhi and <umbai9. B"C* (ill be expanding the net(ork in line
(ith the Tenth 2ive!Eear @lan 5)00.!0,9. B"C*, (hich became the third operator of G"< mobile
services in most circles, is no( planning to overtake Bharti to become the largest G"< operator in
the country. B"C* is also the largest operator in the &nternet market, (ith a share of .) per cent of
the entire subscriber base.
-. MTNL
<TC* (as set up on )st April )0:8 by the Government of &ndia to upgrade the ;uality of telecom
services, expand the telecom net(ork, and introduce ne( services and to raise revenue for telecom
development needs of &ndia%s key metros F =elhi, and <umbai, the business capital. &n the past ),
years, the company has taken rapid strides to emerge as &ndia%s leading and one of Asia%s largest
telecom operating companies. The company has also been in the forefront of technology
induction by converting )//? of its telephone exchange net(ork into the state!of!the!art digital
mode. The Govt. of &ndia currently holds 8..? stake in the company. &n the year /1!/4, the
company+s focus (ould be not only consolidating the gains but also to focus on ne( areas of
enterprise such as joint ventures for projects outside &ndia, entering into national long distance
operation, (idening the cellular and C=<A!based #** customer base, setting up internet and
allied services on an all &ndia basis. <TC* has over million subscribers and 1.0,1,4 mobile
subscribers. #hile the market for fixed (ireline phones is stagnating, <TC* faces intense
competition from the private playersGBharti, Autchison and &dea Cellular, 'eliance &nfocommG
in mobile services. <TC* recorded sales of 's. 8/.. billion 57).1: billion9 in the year /.!/1, a
decline of .: per cent over the previous year%s annual turnover of 's.
81.0. billion.
C. RELIANCE IN.OCOMM
4
'eliance is a 7)8 billion integrated oil exploration to refinery to po(er and textiles conglomerate
. &t is also an integrated telecom service provider (ith licenses for mobile, fixed, domestic long
distance and international services. 'eliance &nfocomm offers a complete range of telecom
services, covering mobile and fixed line telephony including broadband, national and international
long distance services, data services and a (ide range of value added services and applications.
'eliance &ndia <obile, the first of &nfocomm+s initiatives (as launched on =ecember .:, .//..
This marked the beginning of 'eliance+s vision of ushering in a digital revolution in &ndia by
becoming a major catalyst in improving ;uality of life and changing the face of &ndia. 'eliance
&nfocomm plans to extend its efforts beyond the traditional value chain to develop and deploy
telecom solutions for &ndia+s farmers, businesses, hospitals, government and public sector
organi3ations. 6ntil recently, 'eliance (as permitted to provide only Hlimited mobilityI services
through its basic services license. Ao(ever, it has no( ac;uired a unified access license for ):
circles that permits it to provide the full range of mobile services. &t
has rolled out its C=<A mobile net(ork and enrolled more than 8 million subscribers in one year
to become the country%s largest mobile operator. &t no( (ants to increase its market share and has
recently launched pre!paid services. Aaving captured the voice market, it intends to attack the
broadband market.
D. TATA TELESERVICES
Tata Teleservices is a part of the 7). billion Tata Group, (hich has 01 companies, over .//,///
employees and more than ..1 million shareholders. Tata Teleservices provides basic 5fixed line
services9, using C=<A technology in six circles> <aharashtra 5including <umbai9, Ce( =elhi,
Andhra @radesh, Tamil Cadu, Gujarat, and Jarnataka. &t has over ://,/// subscribers. &t has no(
migrated to unified access licenses, by paying a 's. .4 billion 57)./ million9 fee, (hich enables
it to provide fully mobile services as (ell. The company is also expanding its footprint, and has
paid 's. 4.), billion 570/ million9 to =oT for )) ne( licenses under the &6C 5interconnect usage
charges9 regime. The ne( licenses, coupled (ith the six circles in (hich it already operates,
virtually gives the C=<A mobile operator a national footprint that is almost on par (ith B"C*
and 'eliance &nfocomm. The company hopes to start off services in these )) ne( circles by August
.//4. These circles include Bihar, Aaryana, Aimachal @radesh, Jerala, Jolkata, $rissa, @unjab,
'ajasthan, 6ttar @radesh 5Bast9 K #est and #est Bengal.
E. VSNL
5
$n April ), )0:8, the Didesh "anchar Cigam *imited 5D"C*9 ! a (holly Government o(ned
corporation ! (as born as successor to $C". The company operates a net(ork of earth stations,
s(itches, submarine cable systems, and value added service nodes to provide a range of basic and
value added services and has a dedicated (ork force of about ./// employees. D"C*+s main
gate(ay centers are located at <umbai, Ce( =elhi, Jolkata and Chennai. The international
telecommunication circuits are derived via &ntelsat and &nmarsat satellites and (ide band
submarine cable systems e.g. 2*AG, "BA!<B!#B!. and "BA!<B!#B!1. The company+s A='s
are listed on the Ce( Eork "tock Bxchange and its shares are listed on major "tock Bxchanges in
&ndia. The &ndian Government o(ns approximately .8 per cent e;uity, <Ls @anatone 2invest
*imited as investing vehicle of Tata Group o(ns 4 per cent e;uity and the overseas holding
5inclusive of 2&&s, A='s, 2oreign Banks9 is approximately )1 per cent and the rest is o(ned by
&ndian institutions and the public. The company provides international and &nternet services as (ell
as a host of value!added services. &ts revenues have declined from 's. ,/.:0 billion 57).8. billion9
in .//)!/. to 's. 4:.). billion 57).) billion9 in .//.!/1, (ith voice revenues being the mainstay.
.. VODA.ONE ESSAR
Dodafone Bssar, commonly referred to as Dodafone, is a cellular operator in &ndia that covers .1
telecom circles in &ndia. &t (as formerly kno(n as /utci"on E""'r. &t is based in <umbai.
Dodafone Bssar is the &ndian subsidiary of Dodafone Group 8,? and Bssar Group 11?. &t is the
second largest mobile phone operator in terms of revenue behind Bharti Airtel, and third largest in
terms of customers. Dodafone had about )1/.0 million customers as of 2ebruary ./)).
$n 2ebruary )), .//,, Dodafone agreed to ac;uire the controlling interest of 8,? held by *i Ja
"hing Aoldings in Autch!Bssar for 6"7)).) billion, pipping 'eliance Communications, Ainduja
Group, and Bssar Group, (hich is the o(ner of the remaining 11?. The (hole company (as
valued at 6"= ):.: billion. The transaction closed on <ay :, .//,. =espite the official name
being Dodafone Bssar, its products are simply branded Dodafone. &t offers both prepaid and
postpaid G"< cellular phone coverage throughout &ndia (ith good presence in the metros.
Dodafone Bssar provides ..,G services based on 0// <A3 and ):// <A3 digital G"<
technology. Dodafone Bssar (ill launch 1G services in the country in the -anuary!<arch ;uarter of
./)) and plans to spend up to 7// million (ithin t(o years on its 1G net(orks
0. IDEA
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&ndian regional operator &=BA Cellular *td. has a ne( o(nership structure and grand designs to
become a national player, but in doing so is likely to become a thorn in the side of 'eliance
Communications *td. &=BA operates in eight telecom Hcircles,I or regions, in #estern &ndia, and
has received additional G"< licenses to expand its net(ork into three circles in Bastern &ndia !!
the first phase of a major expansion plan that it intends to fund through an &@$, according to parent
company Aditya Birla Group .
/. AIRCEL
The Aircel group is a joint venture bet(een <axis Communications Berhad of <alaysia and
"indya "ecurities K &nvestments @rivate *imited, (hose current shareholders are the 'eddy family
of Apollo Aospitals Group of &ndia, (ith <axis Communications holding a majority stake of ,4?.
Aircel commenced operations in )000 and became the leading mobile operator in Tamil Cadu
(ithin ): months. &n =ecember .//1, it launched commercially in Chennai and ;uickly
established itself as a market leader ! a position it has held since.
Aircel began its out(ard expansion in .// and met (ith unprecedented success in the Bastern
frontier circles. &t emerged a market leader in Assam and in the Corth Bastern provinces (ithin ):
months of operations. Co(, the company has completed rollout in all .1 telecom circles including
Chennai, Tamil Cadu, Assam, Corth Bast, $rissa, Bihar, -ammu K Jashmir, Aimachal @radesh,
#est Bengal, Jolkata, Jerala, Andhra @radesh, Jarnataka, =elhi, 6@5#est9, 6@5Bast9,
<aharashtra K Goa , <umbai, Aaryana , <adhya @radesh, @unjab, Gujarat and 'ajasthan.
Aircel has (on many a(ards and recognitions. Doice and =ata gave Aircel the highest rating for
overall customer satisfaction and net(ork ;uality in .//8. Aircel emerged as the top mid!si3e
utility company in Business(orld+s +*ist of Best <id!"i3e Companies+ in .//,. Additionally,
Tele.net recognised Aircel as the best regional operator in .//:.
#ith over . million happy customers in the country, Aircel is a full!fledged national operator.

2.1. T!l!co% *olic# Environ%!nt
&ndian telecommunications today benefits from among the most enlightened regulation in the
region, and arguably in the (orld. The sector, sometimes considered the Hposter!boy for economic
reforms,I has been among the chief beneficiaries of the post!)00) liberali3ation. 6nlike electricity,
for example, (here reforms have been stalled, telecommunications has generally been seen as
removed from Hmass concerns,I and thus less subject to electoral calculations. <arket oriented
7
reforms have also been facilitated by lobbying from &ndia%s booming technology sector, (hose
continued success of course depends on the ;uality of communications infrastructure.
=espite several hiccups along the (ay, the Telecom 'egulatory Authority of &ndia 5T'A&9, the
independent regulator, has earned a reputation for transparency and competence. #ith the recent
resolution of a major dispute bet(een cellular and fixed operators, &ndian telecommunications,
already among the most competitive markets in the (orld, appears set to continue gro(ing rapidly.
#hile telecom liberali3ation is usually associated (ith the post!)00) era, the seeds of reform (ere
actually planted in the )0:/s. At that time, 'ajiv Gandhi proclaimed his intention of Hleading &ndia
into the .)
st
century,I and carved the =epartment of Telecommunications 5=$T9 out of the
=epartment of @osts and Telegraph. 2or a time he also even considered corporati3ing the =$T,
before succumbing to union pressure. &n a compromise, Gandhi created t(o =$T!o(ned
corporations> <ahanagar Telephone Cigam *imited 5<TC*9, to serve =elhi and Bombay, and
Didesh "anchar Cigam *imited 5D"C*9, to operate international telecom services. Ae also
introduced private capital into the manufacturing of telecommunications e;uipment, (hich had
previously been a =$T monopoly. These and other reforms (ere limited by the unstable coalition
politics of the late )0:/s. &t (as not until the early )00/s, (hen the political situation stabili3ed,
and (ith the general momentum for economic reforms, that telecommunications liberali3ation
really took off. &n )004, the government released its Cational Telecommunications @olicy 5CT@!
049, (hich allo(ed private fixed operators to take part in the &ndian market for the first time
5cellular operators had been allo(ed into the four largest metropolitan centers in )00.9. 6nder the
government%s ne( policy, &ndia (as divided into ./ circles roughly corresponding to state
boundaries, each of (hich (ould contain t(o fixed operators 5including the incumbent9, and t(o
mobile operators.
As ground!breaking as CT@!04 (as, its implementation (as unfortunately marred by regulatory
uncertainty and over!bidding. A number of operators (ere unable to live up to their profligate bids
and, confronted (ith far less lucrative net(orks than they had supposed, pulled out of the country.
As a result, competition in &ndia%s telecom sector did not really become a reality until )000. At that
time the government%s Ce( Telecommunications @olicy 5CT@!009 s(itched from a fixed fee
license to a revenue sharing regime of approximately )?. This figure has subse;uently been
lo(ered 5to )/?!).?9, and is expected to be reduced even further over the coming years. "till,
&ndia continues to derive substantial revenue from license fees 57:// million in .//)!.//.9,
leading some critics to suggest that the government has abrogated its responsibilities as a regulator
to those as a seller. Another, perhaps even more significant, problem (ith &ndia%s initial attempts to
introduce competition (as the lack of regulatory clarity. @rivate operators complained that the
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licensor F the =$T F (as also the incumbent operator. The many stringent conditions attached to
licenses (ere thus seen by many as the =$T%s attempt to limit competition. &t (as in response to
such concerns that the government in )00, set up the Telecom 'egulatory Authority of &ndia
5T'A&9, the nation%s first independent telecom regulator.
$ver the years, T'A& has earned a gro(ing reputation for independence, transparency and an
increasing level of competence. Barly on, ho(ever, the regulator (as beleaguered on all fronts. &t
had to contend (ith political interference, the incumbent%s many challenges to its authority, and
accusations of ineptitude by private players. Throughout the late )00/s, T'A&%s authority (as
steadily (hittled a(ay in a number of cases, (hen the courts repeatedly held that regulatory po(er
play (ith the central government. &t (as not until .///, (ith the passing of the T'A& Amendment
Act, that the regulatory body really came into its o(n. Coming just a year after CT@!00, the act
marks something of a (atershed moment in the history of &ndia telecom liberali3ation. &t set the
stage for several key events that have enabled the vigorous competition (itnessed today. "ome of
these events include>
The corporati3ation of the =$T and the creation of a ne( state!o(ned telecom company, Bharat
"anchar Cigam *td 5B"C*9, in .///M
The opening up of &ndia%s internal long!distance market in .///, and the subse;uent drop in long!
distance rates as part of T'A&%s tariff rebalancing exerciseM
The termination of D"C*%s monopoly over international traffic in .//., and the partial
privati3ation of the company that same year, (ith the Tata group assuming a .? stake and
management controlM
The gradual easing of the original duopoly licensing policy, allo(ing a greater number of operators
in each circleM
The legali3ation, in .//., of &@ telephony 5a move that many believe (as held up due to lobbying
by D"C*, (hich feared the conse;uences on its international monopoly9M
The introduction in .//1 of a Calling @arty @ays 5C@@9 system for cell phones, despite
considerable opposition 5including litigation9 by fixed operatorsM And, more generally, the
commencement of more stringent interconnection regulation by T'A&, (hich has moved from an
interoperator Hnegotiations!basedI approach 5often used by the stronger operator to negotiate ad
infinitum9 to a more rules!based approach. All of these events have created an impressive for(ard!
momentum in &ndian telecommunications, resulting in a vigorously competitive and fast!gro(ing
sector.
9
&ndia has also suffered from its fair share of regulatory hiccups. <any operators 5mobile players in
particular9 still complain about the difficulties of gaining access to the incumbent%s 5B"C*9
net(ork, and the government%s insistence on capping 2=& in the telecom sector to 40? 5a move
made in the name of national security9 limits capital availability and thus net(ork rollout. &n
addition, &"@s, (ho (ere allo(ed into the market under a liberal licensing regime in )00:,
continue to haemorrhage money, and have been pleading (ith the government for various forms of
relief, including the provision of unmetered phone numbers
for &nternet access. =espite initially impressive results, the gro(th of &nternet in the country has
recently stalled, (ith only : million users. Broadband penetration, too, remains tiny.
But perhaps the biggest F and, until recently, most intractable F regulatory problem has been the
dra(n!out battle over Hlimited mobilityI telephony. This imbroglio began in )000, (hen <TC*
sought permission from T'A& to provide C=<A!based #** services (ith Hlimited mobility.I
G"< cellular operators (ere soon up in arms, arguing that Hlimited mobilityI (as simply a
backdoor entry into their business. <oreover, fixed operators had paid lo(er license and spectrum
fees than cellular one%sM (ere not re;uired to pay access charges for cell!to!fixed calls 5unlike their
cellular counterparts9M and, amidst accusations of cross!subsidi3ation, (ere charging considerably
lo(er rates than the cellular operators. The resulting conflict dragged on in the courts and in the
political arena for years. 2ixed operators including ne( entrants 'eliance and Tata Teleservices
claimed that they (ere being prevented from providing a cheap service that (ould drive
penetration and be of benefit to the Hcommon manIM cellular players bitterly opposed (hat they
perceived as une;ual regulatory treatment for t(o kinds of operators (ho (ere in fact offering the
same service. The real victim, of course, (as the &ndian telecommunications market, (hich
suffered from investor perceptions of regulatory confusion and operator in!fighting. &n late .//.,
for example, thousands of mobile users in Ce( =elhi (ere for a time cut off from the fixed!line
net(ork (hen <TC* shut do(n interconnection for cellular companies. 5<TC* later attributed
the incident to a Htechnical snag.I9 &t (as not until late .//1 that the issue (as finally resolved,
under considerable government pressure, (hen cellular operators agreed to (ithdra( their many
cases against the fixed!line operators. 2ixed operators (ould in effect be allo(ed to enter the
mobile businessM in return, the government granted cellular players several concessions, including
lo(er revenue!share arrangements estimated to total over 7.)/ million. @erhaps most notably, the
government announced its intention to adopt a Hunified access licensingI regime, (hich (ould in
the future provide a single, technology!neutral license for fixed and cellular operators. The hope is
that this ne( license category (ill prevent a repeat of the recent controversy, and allo( ne(
technologies to enter the &ndian market (ithout re;uiring a (holesale re(rite of licensing la(s.
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2.2. MA3OR MAR4ET TRENDS
The telecoms trends in &ndia (ill have a great impact on everything from the humble @C, internet,
broadband 5both (ireless and fixed9, cable, handset features, talking "<", &@TD, soft s(itches,
and managed services to the local manufacturing and supply chain. This report discusses key
trends in the &ndian telecom industry, their drivers and the major impacts of such trends affecting
mobile operators, infrastructure and handset vendors.
A. /i5!r 'cc!&t'nc! for 6ir!l!"" "!rvic!"
&ndian customers are embracing mobile technology in a big (ay 5an average of four million
subscribers added every month for the past six months itself9. They prefer (ireless services
compared to (ire!line services, (hich is evident from the fact that (hile the (ireless subscriber
base has increased at , percent CAG' from .//) to .//8, the (ire!line subscriber base gro(th
rate is negligible during the same period. &n fact, many customers are returning their (ire!line
phones to their service providers as mobile provides a more attractive and competitive solution.
The main drivers for this trend are ;uick service delivery for mobile connections, affordable
pricing plans in the form of pre!paid cards and increased purchasing po(er among the ): to 4/
years age group as (ell as si3eable middle class F a prime market for this service. "ome of the
positive impacts of this trend are as follo(s. According to a study, ): percent of mobile users are
(illing to change their handsets every year to ne(er models (ith more features, (hich is good
ne(s for the handset vendors. The other impact is that (hile the operators have only limited
options to generate additional revenues through value!added services from (ire!line services, the
mobile operators have numerous options to generate non!voice revenues from their customers.
"ome examples of value!added services are ring tones do(nload, coloured ring back tones, talking
"<", mobisodes 5a brief video programme episode designed for mobile phone vie(ing9 etc.
<oreover, there exists great opportunity for content developers to develop applications suitable for
mobile users like mobile gaming, location based services etc. $n the negative side, there is an
increased threat of virus F spread through mobile data connections and Bluetooth technology F in
mobile phones, making them unusable at times.
-. MER0ERS
=emand for ne( spectrum as the industry gro(s and the fact the spectrum allocation in done on
the basis of number of subscribers (ill force companies to merge so as to claim large number of
subscribers to gain more spectrum as a precursor to the launch of larger and expanded services.
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Ao(ever it must also be noted that this may very (ell never happen on account of lo( telecom
penetration.
C. NE7 CIRCLES
As mentioned earlier there is a significant number of tier!. and tier 1 cities that can accommodate
more players (e expect aggressive response by the companies to such opportunities as and (hen
they are created.
2.8. Con"tr'int",
"lo( pace of the reform process .
&t (ould be difficult to make in!roads into the semi!rural and rural areas because of the lack of
infrastructure. The service providers have to incur a huge initial fixed cost to make inroads into
this market. Achieving break!even under these circumstances may prove to be difficult.
The sector re;uires players (ith huge financial resources due to the above mentioned constraint.
6pfront entry fees and bank guarantees represent a si3eable share of initial investments. #hile the
criteria are important, it tends to support the existing big and older players. 2inancing these
re;uirements re;uire a little more liberal approach from the policy side.
(. INTRODUCTION O. -'rti Airt!l Ltd.
(.1. Vi"ion 9 &ro%i"!
By ./)/ Airtel (ill be the most admired brand in &ndia>
*oved by more customers
Targeted by top talent
Benchmarked by more businesses
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#e at Airtel al(ays think in fresh and innovative (ays about the needs of our customers and ho(
(e (ant them to feel. #e deliver (hat (e promise and go out of our (ay to delight the customer
(ith a little bit more
(.2. Mi""ion
H#e at Airtel al(ays think in fresh and innovative (ays about the needs of our customers and ho(
(e (ant them to feel. #e deliver (hat (e promise and go out of our (ay to delight the customer
(ith a little bit more.I
(.(. Cor! V'lu!"
E%&o6!rin5 *!o&l! ! to do their best
-!in5 .l!:i;l! ! to adapt to the changing environment and evolving customer needs
M'+in5 it /'&&!n ! by striving to change the status ;uo, innovate and energi3e ne( ideas (ith a
strong passion and entrepreneurial spirit
O&!nn!"" 'nd tr'n"&'r!nc# ! (ith an innate desire to do (ell
Cr!'tin5 *o"itiv! I%&'ct F (ith a desire to create a meaningful difference in society.
(.1. 0o'l"
To undertake tr'n"for%'tion'l &ro)!ct" that have a positive impact on the society and contribute
to the nation building process.
To Div!r"if# into ne( businesses in agriculture, financial services and retail business (ith (orld!
class partners
To lay the foundation for building a <con5lo%!r't!= of future
(.2. Co%&'n# ov!rvi!6
&ncorporated on -uly ,, )00, Bharti Airtel *td is a division of Bharti Bnterprises. The businesses
of Bharti Airtel are structured into t(o main strategic groups !<obility and &nfotel. The <obility
business provides G"< mobile services in all .1 telecommunications circles in &ndia, (hile the
&nfotel business group provides telephone services and &nternet access over ="* in ) circles. The
company complements its mobile, broadband, and telephone services (ith national and
international long!distance services. The company also has a submarine cable landing station at
13
Chennai, (hich connects the submarine cable connecting Chennai and "ingapore. Bharti Tele!
Dentures provides end!to!end data and enterprise services to corporate customers by leveraging its
nation(ide fibre! optic backbone, last mile connectivity in fixed!line and mobile circles, D"ATs,
&"@ and international band(idth access through the gate(ays and landing station. All of Bharti
Tele!Dentures+ services are provided under the Airtel brand.
Telecom giant Bharti Airtel is the flagship company of Bharti Bnterprises. The Bharti Group has a
diverse business portfolio and has created global brands in the telecommunication sector. Bharti
has recently forayed into retail business as Bharti 'etail @vt. *td. under a <o6 (ith #al!<art for
the cash K carry business. &t has successfully launched an international venture (ith B* 'othschild
Group to export fresh agree products exclusively to markets in Burope and 6"A and has launched
Bharti ANA *ife &nsurance Company *td under a joint venture (ith ANA, (orld leader in
financial protection and (ealth management.
Airtel comes to you from Bharti Airtel *imited, &ndia%s largest integrated and the first private
telecom services provider (ith a footprint in all the .1 telecom circles. Bharti Airtel since its
inception has been at the forefront of technology and has steered the course of the telecom sector
in the country (ith its (orld class products and services. The businesses at Bharti Airtel have been
structured into three individual strategic business units 5"B6%s9 ! <obile "ervices, Airtel
Telemedia "ervices K Bnterprise "ervices. The mobile business provides mobile K fixed (ireless
services using G"< technology across .1 telecom circles (hile the Airtel Telemedia "ervices
business offers broadband K telephone services in 0 cities and has recently launched &ndia+s best
=irect!to!Aome 5=TA9 service, Airtel digital TD.
(.8. Or5'ni>'tion Structur!
14
(.?. -u"in!"" Divi"ion"
Mo;il! S!rvic!" @20 A (0B
Bharti Airtel offers G"< mobile services in all the .1!telecom circles of &ndia and is the largest
mobile service provider in the country, based on the number of customers.
Airt!l T!l!%!di' S!rvic!"
The group offers high speed broadband internet (ith a best in class net(ork. #ith *andline
services in 04 cities (e help you stay in touch (ith your friends K family and the (orld. Get (orld
class entertainment (ith &ndia%s best direct to home 5=TA9 service digital TD in more than )/
cities
Ent!r&ri"! S!rvic!"
Bnterprise "ervices provides a broad portfolio of services to large Bnterprise and Carrier
customers. This division comprises of the Carrier and Corporate business unit. Bnterprise "ervices
is regarded as the trusted communications partner.
(.C. S!rvic!" Off!r!d -# Airt!l
The Company is a part of Bharti Bnterprises, and is &ndia+s leading provider of telecommunications
services. The businesses at Bharti Airtel have been structured into three individual strategic
15
business units 5"B6%s9 ! mobile services, broadband K telephone services 5BKT9 K enterprise
services. The mobile services group provides G"< mobile services across &ndia in .1 telecom
circles, (hile the BKT business group provides broadband K telephone services over 08 cities.
The Bnterprise services group has t(o sub!units ! carriers 5long distance services9 and services to
corporate.
Al these services are provided under the Airtel brand. &ts include
Doice "ervices
<obile "ervices 5.G O 1G9
"atellite "ervices
<anaged =ata K &nternet "ervices
<anaged e!Business "ervices
Voic! S!rvic!",
Bharti Airtel became the first private fixed!line service provider in &ndia. &t is no( promoted under
the Airtel brand. 'ecently, the Government opened the fixed!line industry to unlimited
competition. Airtel has subse;uently started providing fixed! line services in the four circles of
=elhi, Aaryana, <adhya @radesh, Jarnataka, Tamil Cadu K 6@ 5#est9.
Airtel Bnterprise "ervices believes that these circles have high telecommunications potential,
especially for carrying Doice K =ata traffic. These circles (ere strategically selected so as to
provide synergies (ith Airtel%s long distance net(ork and Airtel%s extensive mobile net(ork. Airtel
Bnterprise "ervices, &ndia+s premium telecommunication service, brings to you a (hole ne(
experience in telephony. 2rom integrated telephone services for Bnterprises and small business
enterprises to user!friendly plans for Broadband &nternet "ervices 5="*9, (e bring innovative,
cost!effective, comprehensive and multi!product solutions to cater to all your telecom and data
needs.
Voic! $ *roduct *ortfolio,
Airtel Bnterprise "ervices telephone services go beyond basic telephony to offer our users a (hole
host of Dalue Added "ervices as (ell as premium add!ons. Bach telephone connection from Airtel
16
Bnterprise "ervices is backed by a superior fibre!optic backbone for enhanced reliability and
;uality telephony. 2e( of the Dalue Added "ervices offered are Calling *ine &dentification, Three
@arty Conferencing, =ynamic *ock, Aunting Cumbers, and @arallel 'inging etc. Airtel Bnterprise
"ervices Doice "ervices provide 2ree =ial!up &nternet access that is bundled along (ith your
Telephone connection from Airtel. &t%s fast, reliable and gives you unlimited &nternet access.
Mo;il! S!rvic!",
Airtel%s mobile footprint extends across the country in .) telecom circles. &ts service standards
compare (ith the very best in the (orld. &n fact, that%s ho( Bharti has managed to (in the trust of
millions of customers and makes it one of the top operators in the (orld, in terms of service and
subscriber base. The company has several 2irsts to its credit>
The 2irst to launch full roaming service on pre!paid in the country.
The 2irst to launch 1.J "&< cards.
The 2irst in Asia to deploy the multi band feature in a (ireless net(ork for efficient usage of
spectrum.
The 2irst to deploy Doice Puality Bnhancers to improve voice ;uality and acoustics.
The 2irst telecom company in the (orld to receive the &"$ 0//)>./// certification from British
"tandards &nstitute

S't!llit! S!rvic!" ,
Airtel Bnterprise "ervices provides you connectivity (here ever you take your business $ur
"atellite "ervices bring you the benefits of access in remote locations. Airtel Bnterprise "ervices is
a leading provider of broadband &@ satellite services and =A<AL@A<A services in &ndia. $ur
solutions support audio, video and voice applications on demand.
"atellite "ervices include >
@A<AL=A<A
B&T ! &nternet
D@C
"atellite based &@*Cs for redundancy reasons
M'n'5!d D't' 9 Int!rn!t S!rvic!",
17
Airtel Bnterprise "ervices brings you a comprehensive suite of data technologies. "o (e are able to
support all types of net(orks and ensure our customers can migrate their net(ork to the future
seamlessly.
$ur <anaged =ata K &nternet services make our customers future proof. <anaged =ata K &nternet
"ervices include>
<@*"
AT<
2'
&nternet
&@*C
*eased *ines
Customised "olutions
&nternational <anaged "ervices
<etro Bthernet

M'n'5!d !$-u"in!"" S!rvic!" ,
Airtel Bnterprise "ervices offers an internationally benchmarked, carrier class hosting, storage and
business continuity services. A range of services that help to keep your business running the (ay
you (ant! .4x,. Thanks to our (orld!class high tech =ata Centres. <anaged e!Business "ervices
include>
Co!lo> =edicated and "hared
BC'" "ervices
#eb hosting
(.D. Cor&or't! R!"&on"i;ilit# 't -'rti Airt!l
18
At Bharti, C"' is a (ay of life. Bach department and employee strives to be sensitive to the
stakeholders and environment (ithin their (ork context. Bharti encourages employees to take
decisions and design business!linked processes that are sensitive to communities and environment.
Corporate "ocial 'esponsibility 5C"'9 in Bharti encompasses much more than only social
outreach programs. &t is an integral part of the (ay Bharti conducts its business.
The essence of Bharti%s commitment to Corporate "ocial 'esponsibility is embedded in the
QCorporate Dalues%, (hich stem from its deepest held beliefs.
These Dalues are>
To be responsive to the needs of our customers
To trust and respect our employees
To continuously improve our services F innovatively and expeditiously
To be transparent and sensitive in our dealings (ith all stakeholders
They encourage their employees to take decisions and design business processes, keeping in mind
the follo(ing>
Bthics, fairness and being correct
<eeting and going beyond compliances and legal re;uirements
"ho(ing respect and sensitivity to(ards stakeholders and communities, and
Curturing the environment
They practice their C"' beliefs and commitments through a three!pronged approach>
Bngaging (ith stakeholders
Bnsuring stakeholder sensitive policies and practices
6ndertaking programs for our employees, community and environment
Bharti Airtel sensiti3es its employees to(ards C"' issues at various forums. #e feel that it is
important that each employee should understand the importance of environmental, social and
economical aspects (hile taking business decisions. At Bharti, each employee is sensiti3ed
to(ards C"' issues and thus operations at the ground level are influenced. "uch sensiti3ation
exercises have resulted in many socially and environmentally sensitive decisions on the ground.
(.1E. So%! /!'dlin!"
.in'nci'l Y!'r 2EEC$ED,
19
Airtel offers ) centLmin call rates from 6" to &ndia, April :, .//0
Airtel pioneers )8 <bps Broadband in &ndia, April 8, .//0
Bharti Airtel and Australia -apan Cable collaborate to create a ne( connectivity solution to
Australia from "ingapore and the 6", <arch 1), .//0
Bharti Airtel to $bserve "ilent period from <arch 1), .//0, <arch .1, .//0
Airtel digital TD brings Aome the <agic (ith Jareena Japoor, <arch ., .//0
Bharti Airtel announces apex level organisation changes, <arch )., .//0
Bharti Airtel (ithdra(s Q0% dialling on its fixed line service, <arch 0, .//0
A ' 'ahman to soon knock on Airtel digital TD customers% door, 2ebruary .,, .//0
Bharti Airtel launches (orld%s first #indo(s!based $nline =esktop on Airtel broadbandF po(ered
by <icrosoft and Civio, 2ebruary ), .//0
Airtel and mChek announce milestone of $ne <illion usersM introduce a broad range of ne(
mCommerce services, -anuary ./, .//0
.in'nci'l Y!'r 2EED$1E,
Bharti Airtel Announces "trategic $rganisation Changes 2or 2uture Gro(th
Bharti enters into exclusive discussions (ith Rain for the ac;uisition of Rain Africa BD
)4, 2ebruary ./)/, Rain Ghana issued a resolution to accept a 7)/., billion buyout offer from
Bharti Airtel *imited 5Bharti9 to enter into exclusive discussions until . <arch ./)/, regarding
the sale of its African unit, Rain Africa BD.
Bharti Airtel ties up financing for proposed ac;uisition of Rain Africa BD
Bharti Airtel and global telcos boost Trans!@acific connectivity (ith the launch of the 6nity cable
system
Bharti Airtel extends partnership (ith Bricsson
Bharti set to ac;uire Rain Africa BD
Bharti Airtel, ATC and Pualcomm *aunch the ATC "mart in &ndia
Airtel introduces fastest ever speed for broadband users in &ndia
Bharti Airtel to $bserve "ilent period from <arch 1), ./)/
.in'nci'l Y!'r 2EE1E$11,
20
P. 2E)) 'evenues at 's. ),.) crore, up by 4,? E!o!E
Bharti Airtel submitted its bid for 1G spectrum auction (hich starts from April 0, ./)/.
Bharti Airtel has partnered (ith 6"!based soft(are maker D<(are &nc. &t has done this in order to
focus on the cloud!based managed computer services market.
$n <ay ):, ./)/, Airtel (on 1G spectrum in )1 circles> =elhi, <umbai, Andhra @radesh,
Jarnataka, Tamil Cadu, 6ttar @radesh 5#est9, 'ajasthan, #est Bengal, Aimachal @radesh, Bihar,
Assam, Corth Bast, -ammu K Jashmir for 's. ).,.0 crores.
Bharti Airtel (ins broadband spectrum in four circles> <aharashtra, Jarnataka, @unjab and
Jolkata for 's. 11)4.18 crores.
:, -une ./)/, Bharti Airtel completed a deal to Rain Telecom+s businesses in ) African countries
for 7)/., billion.
August )), ./)/, Bharti Airtel announced that it (ould ac;uire )//? stake in Telecom "eychelles
for 6"78. million taking its global presence to )0 countries.
./ "eptember ./)/, Bharti Airtel said that it has given contracts to Bricsson &ndia, Cokia "iemens
Cet(orks 5C"C9 and Aua(ei Technologies to set up infrastructure for providing 1G services in the
country.
Airtel unveils ne( youthful and dynamic global identity.
): Covember, ./)/, Bharti Airtel announced a re!branding campaign (herein, they (ould be
referred as airtel, (ith a ne( logo.
./ =ecember ./)/, Airtel launched its ne( identity for Bangladesh subscribers.
$n .1 =ecember ./)/, Airtel opened its first underground terrestrial fibre optic cable built in
alliance (ith China Telecom.
$n .1 2ebruary ./)), Bharti Airtel launched the Burope!&ndia gate(ay cable system, along (ith
)8 other global telecom firms. A ),/// kilometre long cable, bet(een <umbai and *ondon.
$n ., 2ebruary ./)), Bharti Airtel launched its speech recognition based service, +$ne Cumber,
$ne Doice+
Bharti Airtel to observe silent period from <arch 1), ./))
(.11 0ro6t Str't!5i!" -# Airt!l,
21
Bharti Airtel is structured as four strategic business units ! <obile, Telemedia, Bnterprise and
=igital TD. The mobile business offers services in &ndia, "ri *anka and Bangladesh. The
Telemedia business provides broadband, &@TD and telephone services in 04 &ndian cities.
The Bnterprise business provides end!to!end telecom solutions to corporate customers and national
and international long distance services to carriers. The =igital TD business provides =TA
services across &ndia. All these services are provided under the Airtel brand. Airtel%s national high!
speed optic fiber net(ork currently spans over )):,11, 'kms across &ndia.
-'rti Airt!l 'nd 5lo;'l t!lco" ;oo"t Tr'n"$*'cific conn!ctivit# 6it t! l'unc of t!
Unit# c';l! "#"t!%,
&n a move that is set to boost Trans!@acific connectivity, Bharti Airtel, one of Asia%s leading
integrated telecom services providers and global telcos announced the launch of the 6nity cable
system. The 6nity consortium together (ith its suppliers CBC Corporation and TB "ubCom
5formerly Tyco Telecommunications9, have successfully completed comprehensive end!to!end
testing, making the cable system ready for service.
This cable link synergises (ith Bharti Airtel%s existing multiple high speed connectivity options
from &ndia to "ingapore on i.i and from Chikura, near Tokyo to the 6" (est Coast. Bharti Airtel%s
investments in 6nity, is part of its plans to expand it global net(ork through its o(nership of the
i.i submarine cable system and consortium o(nership in other global undersea cable systems like
"BA!<B!#B 4, B&G, &!<B!#B and AAG.
The 6nity cable system provides direct connectivity bet(een Chikura, located on the coast near
Tokyo, and #est Coast net(ork @oints!of!@resence in *os Angeles, @alo Alto and "an -ose. At
Chikura, 6nity is seamlessly connected to other cable systems, further enhancing connectivity into
Asia. Through the deployment of state!of!the!art submarine cable technology, the five fiber pair
6nity cable system is designed to deliver up to 4.: Terabits per second 5Tbps9 of band(idth across
the @acific, (ith each fiber pair having a capacity of up to 08/ Gigabits per second 5Gbps9.
The name 6nity (as chosen to signify a ne( type of consortium, born out of potentially
competing systems, to emerge as a system (ithin a system, offering o(nership and management of
individual fiber pairs.
-'rti Airt!l !:t!nd" &'rtn!r"i& 6it Eric""on,
22
Bharti Airtel and Bricsson further strengthened their strategic partnership (ith a 6"= ).1 billion
net(ork expansion contract. Airtel users (ill enjoy an enhanced voice ;uality and faster data
access. The agreement (ill enable Airtel to put in place a converged net(ork and expanded
coverage in rural &ndia. Bricsson (ill expand and upgrade Airtel%s net(ork in ) of &ndia%s ..
telecom circles.
As part of this contract, Bricsson (ill supply its industry!leading portfolio of energy efficient
.GL..G radio base stations, circuit and packet core, micro(ave transmission and &ntelligent
Cet(ork. &n addition, Bricsson (ill ensure that Bharti Airtel%s core and transport net(ork is 1G!
ready in order to reduce time to market and enable the fast rollout of 1G services at a later date.
The expansion covers introduction of some of the latest technologies (ithin the (ireless (orld
(hich (ill bring better ;uality voice to end users, support more users in using one base station,
enhanced data rates using Bvolved B=GB technology and other ne( services.
Bricsson is the largest telecom net(ork supplier supplying, for example, mobile, (ire line, =TA,
device management and variety of services such as prepaid to Airtel.
-'rti Airt!lF /TC 'nd Gu'lco%% L'unc t! /TC S%'rt in Indi',
ATC Corporation, a global smartphone designer and Bharti Airtel, one of Asia%s leading integrated
telecom service providers, announced an exclusive partnership to launch the ATC "mart in &ndia
in collaboration (ith Pualcomm &ncorporated. The ATC "mart marks ATC%s strategic focus on
&ndia, the fastest gro(ing telecom market in the (orld. ATC "mart, an easy!to!use and affordable
smartphone, aims to create a ne( category of smartphones by bringing the globally acclaimed
ATC "mart to the masses.
ATC has al(ays focused on setting the stage for ne( mobile experiences and the ATC "mart is
clear differentor from touch phone and the result of customer feedback from all over the (orld for
an easier!to!use, affordable smartphone.
The ATC "mart incorporates the latest cutting!edge features and is po(ered by Pualcomm%s Bre(
<obile @latformS operating system. The stylish device sports a ..:!inch T2T!*C= touch!
23
sensitive screen (ith PDGA resolution and is e;uipped (ith a 1. mm stereo audio jack. The ATC
"mart also includes a 1./ megapixel color camera (ith fixed focus and flashlight.
As the undisputed leader in the &ndian telecom industry, Airtel is constantly delighting its
customers and offering innovations to enrich their experience. #ith the ATC "mart, Airtel
customers (ill be the first in the (orld to experience a revolutionary "martphone that is not only
affordable but is also 1G!ready.
Airt!l introduc!" f'"t!"t !v!r "&!!d for ;ro'd;'nd u"!r" in Indi',
Bharti Airtel has pioneered / <bps broadband F the fastest (ireline broadband for its consumer
segment on D="*. in the country. &nitially, the service (ould be available in select fe( locations
in =elhi and Gurgaon. As the leading private broadband service provider in the country, Bharti
Airtel has been the pioneer in introducing high speed broadband in &ndia (ith the launch of its )8
<bps plans last year.
Airtel, (ith this step, brings in a (orld class experience for its broadband customers (ith
introduction of / <bps speed ! the fastest, (ired broadband service on next generation D="*.
technology. This ultra!fast broadband connection (ill allo( customers, the convenience to
do(nload songs in seconds and full length feature films in less than three minutes.
@o(ered by Airtel%s Carrier Bthernet Cet(ork, the service (ill be initially available in select fe(
premium locations in =elhi and Gurgaon, (ith phased roll!out in cities of <umbai, Chennai and
Bangalore. Customers can avail the follo(ing plans for ultra high!speed broadband. &t has priced
this service in a very strategic (ay>
/ <B@" T 's. :000 per month, experience / <bps broadband speed (ith free data
transfer upto .// GB and additional free value added services 5DA"9 like @arallel 'inging,
#ebsite Builder 5Basic9, @C "ecure 5Anti!Dirus soft(are9, $nline "torage, 6nlimited Gaming on
Games on =emand.
1/ <B@" ! T 's. ,000 per month, experience 1/ <bps broadband speed (ith free data
transfer upto .//GB and additional free DA" like @arallel 'inging, #ebsite Builder 5Basic9, @C
"ecure 5Anti!Dirus soft(are9, $nline "torage, 6nlimited Gaming on Games on =emand.
24
D="*. 5Dery Aigh "peed =igital "ubscriber *ine9 is the ne(est and most advanced standard of
="* broadband (ire line communications. &t is designed to support the (ide deployment of Triple
@lay services such as voice, video, data, &@TD, high definition television 5A=TD9 and interactive
gaming. D="*. also enables customers to stream A= Content any(here from the internet (orld
as (ell.
-'rti "!t to 'cHuir! I'in Afric' -V,
Bharti Airtel *imited 5HBhartiI9, Asia%s leading telecommunications service provider, has entered
into a legally binding definitive agreement (ith Rain Group to ac;uire Rain Africa BD based on an
enterprise valuation of 6"= )/., billion.
6nder the agreement, Bharti (ill ac;uire Rain%s African mobile services operations in ) countries
(ith a total customer base of over 4. million. Rain is the market leader in ten of these countries
and ranks second in four countries. #ith this ac;uisition, Bharti Airtel (ill be the (orld%s fifth
largest (ireless company (ith operations across ): countries. Bharti group%s global telecom
footprint (ill expand to .) countries along (ith the operations in "eychelles, -ersey, and
Guernsey.
This agreement is a landmark for global telecom industry and game changer for Bharti. <ore
importantly, this transaction is a pioneering step to(ards "outh cooperation and strengthening of
ties bet(een &ndia and Africa. #ith this ac;uisition, Bharti Airtel (ill be transformed into a truly
global telecom company (ith operations across ): countries fulfilling our vision of building a
(orld!class multinational. The strength of the brand and the historical &ndian connect (ith Africa
coupled (ith our uni;ue business model (ill allo( it to unlock the potential of these emerging
markets.
After Airtel ac;uired Celtel in .//, they have gro(n substantially to become one of Africa%s
leading mobile operators. Bharti Airtel has a fantastic track record in running successful operations
in the emerging markets.
Rain Africa BD has mobile operations in the follo(ing ) countries ! Burkina 2aso, Chad, Congo
Bra33aville, =emocratic 'epublic of Congo, Gabon, Ghana, Jenya, <adagascar, <ala(i, Ciger,
Cigeria, "ierra *eone, Tan3ania, 6ganda, and Rambia. The total population of these ) countries
stands at over 4/ million (ith telecom penetration of approximately 1.?.
25
#ith this ac;uisition Bharti%s total customer base (ill increase to around ),0 million in ):
countries. Bharti launched mobile services in &ndia in )00, "ri *anka in .//0 and ac;uired #arid
in Bangladesh in -anuary ./)/.
"tandard Chartered Bank is the *ead Advisor to Bharti on this transaction. Barclays Capital is the
-oint *ead Advisor and "B& Group is the *ead $nshore Advisor. Global &nvestment Aouse J"CC
is the 'egional Advisor to Bharti on this transaction.
*ooking at the kind of investments made by Bharti and its route for "trategic inorganic gro(th,
Airtel is expecting a very bright future ahead (ith becoming leading telecom player (orld(ide.
In"i5t" ';out -'rti$I'in d!'l,
The board of Ju(ait%s Rain Telecom has accepted a 7)/.,!billion 5's 40,,// crore9 offer from
Bharti Airtel for the bulk of its African assets, breathing ne( life into the &ndian company%s
cherished ambition of transforming itself into an emerging!market multinational. Bharti (ould
ac;uire )//? of Rain%s African operations. "udan and <orocco (ould be out of the deal.
The deal (ould be an all!cash deal (here Bharti (ould pay 7,// mn to Rain by year end. Telecom
<inister A 'aja said that the Bharti!Rain deal (as good for the &ndian industry.
@eople familiar (ith the matter and Ju(ait%s state ne(s agency J6CA said Rain%s board had
unanimously approved Bharti%s offer for all of Rain%s African assets except those in "udan and
<orocco.
HBharti Airtel%s bid to buy Rain Africa assets in the Black ContinentU proved successfulU The
bid involves up to 7)/., billion of investments. &f the deal fructifies, the ac;uisition (ill give
Bharti a firm foothold in a relatively untapped market and pit it in direct competition (ith <TC,
(ith (hich it has tried and failed to merge t(ice. The operations spread across ) African
countries that Bharti is seeking to buy are grouped under an entity called Rain &nternational.
Africa has nearly 4/ million mobile phone users and a teledensity under /?, still offering large
room for gro(th for a company that is battling a fierce tariff (ar in &ndia%s overcro(ded mobile
phone market. &f it buys Rain%s African operations, Bharti (ill be catapulted past China 6nicom,
"(eden%s Telia"onera, and Germany%s T!<obile to become the (orld%s seventh!largest mobile
phone company by subscribers.
26
The banker said &ndia%s largest phone firm is under!leveraged and has Henough borro(ing
capacityI and Hfinancing flexibilityI.At the end of =ecember, Bharti%s net debt (as just /.) times
its e;uity and it had cash reserves of about 's ,,8// crore.
Another banker (ith kno(ledge of the deal said Bharti is likely to maintain flexibility on payment
depending on ho( the talks progressGit could be financed entirely by cash or be a part!cash and
part!share deal. Bharti may even consider raising 7// million!7) billion from the e;uity market
and around 7,. billion in debt.
*ast year, (hen Bharti (as in talks (ith <TC, it (as looking to raise around 7 billion in debt.
2or the overseas component of the loan of 71!1. billion, it (ould have had to pay around 1)
basis points above the benchmark *ondon inter!bank offered rate plus fees of / bps. The pricing
is likely to come do(n by over / bps no(
"tanChart is currently Bharti%s sole banker (hile Rain is being represented by 6B" in *ondon. A
third banker said the deal could be in t(o stepsGthe first involving the buyout of the African
operations as (ell as a small stake in Rain itself. "ubse;uently, Bharti (ould become a majority
holder of Rain and the total value of the deal (ould be around 7)/ billion.
<any analysts see the Bharti stock coming under pressure in the immediate future due to a strain
on cash flo( as (ell as Rain%s lo( operating margins. The valuation may appear slightly stretched
right no(, but Airtel needs a foothold in Africa. #ith Rain, <TC and Dodacom the only large
players (ith African operations, Airtel%s choice is limited.
There (ill be some strain on the balance sheet, but Airtel (ill become a global player (ith this
ac;uisition. &ndia is attractive in the long term, but not in the short term and Airtel needs to
diversify at a time (hen not too many assets are up for sale. Bharti can replicate it in Africa, (here
market conditions are similar.
Competitive landscape in Africa (ill only get tougher (ith the disappearance of the pent!up
demand for rudimentary telecom services as operators have plucked most of the lo(!hanging fruit
in their markets.
O-3ECTIVE
The &ndian communications scenario has transformed into a multiplayer, multi product market
(ith varied market si3e and segments. #ithin the basic phone service the value chain has split into
domesticLlocal calls, long distance players, and international long distance players. Apart from
having to cope (ith the change in structure and culture 5government to corporate9, Airtel has had
to gear itself to meet competition in various segments F basic services, long distance5*=9,
27
&nternational *ong =istance 5&*=9, and &nternet "ervice @rovision 5&"@9.&t has forayed into mobile
service provision as (ell. $bjective of study are>
*ri%'r# O;)!ctiv!
To find out (hat marketing strategies the Airtel is implementing to defend and increase the market
share.
S!cond'r# o;)!ctiv!
To find (ho are the competitors of the Airtel and the market shares of the competitors and (hat
strategies Airtel is implementing to beat its competitors.
To find out ho( Airtel react to the technology changes in the communications sector,
MET/ODOLO0Y
*RIMARY DATA SOURCES
@rimary data is collected by $bservation method and Bxperiment.
SECONDARY SOURCE
&nternet
Ce(spaper
<aga3ines
$thers
1. ANALYSIS
1.1. S7OT ANALYSIS
2ollo(ing is the "#$T Analysis for A&'TB*
28
STRENGTH
VERY .OCUSED ON TELECOM
Bharti Airtel is largely focused on the telecom, around 01? of the total revenue comes from
telecom 5Total telecom revenue 's 1,1.89.
LEADERS/I* IN .AST 0RO7IN0 CELLULAR SE0MENT
Airtel is holding leadership position in cellular market. Bharti Airtel is one of &ndia+s leading
private sector providers of telecommunications services based on an aggregate of .,,.10,,,
29
customers as on August 1), .//8, consisting of .,84:,8:8 G"< mobile and ),0),/,) broadband
K telephone customers.
*AN INDIA .OOT*RINT
Airtel offers the most expansive roaming net(ork. *etting you roam any(here in &ndia (ith its
@an!&ndia presence, and trot across the globe (ith &nternational 'oaming spread in over .4/
net(orks. The mobile services group provides G"< mobile services across &ndia in .1 telecom
circles, (hile the BKT business group provides broadband K telephone services in 0. cities.
T/E ONLY O*ERATOR IN INDIA OT/ER T/AN VSNL /AVIN0
INTERNATIONAL SU-MARINE CA-LES.
Airtel, the monopoly breaker shattered the Telecom monopoly in the &nternational *ong =istance
space (ith the launch of &nternational "ubmarine cable Cet(ork i.i jointly (ith "ingapore
Telecommunications *td. in the year .//.. This has brought a huge value to the &@*C customers,
delivering them an option besides the incumbent carrier, to connect to the outside (orld.
WEAKNESS
*RICE COM*ETITION .ROM -SNL AND MTNL.
Airtel is tough competition from the operators like B"C* and <TC* as these t(o operators are
offering services at a lo( rate.
UNTA**ED RURAL MAR4ET.
Although Airtel have strong @resence throughout the country but still they are far a(ay from the
&ndian rural part and generally this part is covered by B"C* so indirectly Airtel is losing revenue
from the rural sector.
OPPORTUNITIES
T/E .AST EXTENDIN0 I*LC MAR4ET
An &@*C 5international private leased circuit9 is a point!to!point private line used by an
organi3ation to communicate bet(een offices that are geographically dispersed throughout the
(orld. An &@*C can be used for &nternet access, business data exchange, video conferencing, and
any other form of telecommunication. Airtel Bnterprise "ervices and "ingTel jointly provide
&@*Cs on the Cet(ork i.i. The *anding "tation in "ingapore is managed by "ingTel and by Airtel
30
in Chennai 5&ndia9. Bach *anding "tation has @o(er 2eeding B;uipment, "ubmarine *ine
Terminating B;uipment and "=A system to po(er the cable, add (avelengths and convert the
"T<!84 output to "T<!) data streams respectively.
LATEST TEC/NOLO0Y AND LO7 COST ADVANTA0E
The costs of introducing cellular services for Airtel are marginal in nature, as it needs only to
augment its cellular s(itchLe;uipment capacity and increase the number of base stations. The
number of cities, to(ns and villages it has covered already (orks to its advantage as putting more
base stations for cellular coverage in these areas comes (ith negligible marginal cost. Besides such
cost advantages, it has also other cost advantages for the latest cellular technology. As a late
entrant into the cellular market, it has dual advantage of latest technology (ith modern features,
unlike other private cellular operators (ho started their service more than 4! years back and lo(
capital cost due to advantages of large scale buying of cellular s(itchLe;uipment.
/U0E MAR4ET
The cellular telephony market is presently expanding at a phenomenal L (hopping VV rate every
year and there is still vast scope for Airtel to enter Lexpand in this market. Besides there is a vast
rural segment (here the cellular services have not made much head(ay and many customers are
looking to(ards Airtel for providing the service to them. #ith its (ide and extensive presence
even in the remotest areas, Airtel poised to gain a big market share in this segment (hen it expands
cellular services into the rural areas.
THREATS
COM*ETITION .ROM OT/ER CELLULAR
&t is time for B"C* to improveLexpand its cellular services. 2ierce and cut!throat competition is
already in place (ith the markets ever abu33 (ith several tariff reductions and announcement of
attractive packages, trying to grab most of the Qmind share% of the Qking% ! Qthe consumer%, (hose
benefits are increasing (ith passing of everyday. &f B"C* is not innovative and agile, its cellular
service (ill be a flop. &t needs to be proactive (ith attractive packaging, pricing and marketing
31
policies lest its presence in the market be treated (ith disdain by the private cellular companies.
The launch of #** services by 'eliance &nfocomm has aggravated the situation.
MAR4ET MATURITY IN -ASIC TELE*/ONY SE0MENT
Although Airtel entered in the basic telephony market it%s a biggest there for the company as the
basic telephony market has reached

32
1.2. -C0 MATRIX
The -C0 %'tri: 5aka B.C.G. analysis, BCG!matrix, Boston Box, Boston <atrix, Boston
Consulting Group analysis9 is a chart that had been created by Bruce Aenderson for the Boston
Consulting Group in )0,/ to help corporations (ith analy3ing their business units or product lines.
This helps the company allocate resources and is used as an analytical tool in brand marketing,
product management, strategic management, and portfolio analysis.
To use the chart, analysts plot a scatter graph to rank the business units 5or products9 on the basis
of their relative market shares and gro(th rates.
C'" co6" are units (ith high market share in a slo(!gro(ing industry. These units typically
generate cash in excess of the amount of cash needed to maintain the business. They are regarded
as staid and boring, in a WmatureW market, and every corporation (ould be thrilled to o(n as many
as possible. They are to be WmilkedW continuously (ith as little investment as possible, since such
investment (ould be (asted in an industry (ith lo( gro(th.
Do5", or more charitably called pets, are units (ith lo( market share in a mature, slo(!gro(ing
industry. These units typically Wbreak evenW, generating barely enough cash to maintain the
business+s market share. Though o(ning a break!even unit provides the social benefit of providing
jobs and possible synergies that assist other business units, from an accounting point of vie( such
33
a unit is (orthless, not generating cash for the company. They depress a profitable company+s
return on assets ratio, used by many investors to judge ho( (ell a company is being managed.
=ogs, it is thought, should be sold off.
Gu!"tion %'r+" 5also kno(n as problem child9 are gro(ing rapidly and thus consume large
amounts of cash, but because they have lo( market shares they do not 5!n!r't! %uc c'". The
result is large net cash consumption. A ;uestion mark has the potential to gain market share and
become a star, and eventually a cash co( (hen the market gro(th slo(s. &f the ;uestion mark does
not succeed in becoming the market leader, then after perhaps years of cash consumption it (ill
degenerate into a dog (hen the market gro(th declines. Puestion marks must be analy3ed
carefully in order to determine (hether they are (orth the investment re;uired to gro( market
share.
St'r" are units (ith a high market share in a fast!gro(ing industry. The hope is that stars become
the next cash co(s. "ustaining the business unit+s market leadership may re;uire extra cash, but
this is (orth(hile if that+s (hat it takes for the unit to remain a leader. #hen gro(th slo(s, stars
become cash co(s if they have been able to maintain their category leadership, or they move from
brief stardom to dogdom.
-C0 M'tri: of -'rti Airt!l Ltd,
34
BCG <atrix is used to find out the relative gro(th prospects of the product line. #ithin the Airtel
product line leased, private, circuit are among star. Airtel is going to have a submarine cable
bet(een "ingapore and Chennai (ith the collaboration of singtel. This (ill help Airtel to maintain
its position in &@*C market. 'ight in &ndia only D"C* have such cables.
1.(. ANSO.. MATRIX
35
&t is also kno(n as @roduct!<arket Gro(th <atrix.
The Ansoff *roduct$M'r+!t 0ro6t M'tri: is a marketing tool created by &gor Ansoff and first
published in his article W"trategies for =iversificationW in the Aarvard Business 'evie( 5)0,9.
The matrix allo(s marketers to consider (ays to gro( the business via existing andLor ne(
products, in existing andLor ne( markets F there are four possible productLmarket combinations.
This matrix helps companies decide (hat course of action should be taken given current
performance. The matrix consists of four strategies>
M'r+!t &!n!tr'tion 5existing markets, existing products9> <arket penetration occurs (hen a
company entersLpenetrates a market (ith current products. The best (ay to achieve this is by
gaining competitors+ customers 5part of their market share9. $ther (ays include attracting non!
users of your product or convincing current clients to use more of your productLservice, (ith
advertising or other promotions. <arket penetration is the least risky (ay for a company to gro(.
*roduct d!v!lo&%!nt 5existing markets, ne( products9> A firm (ith a market for its current
products might embark on a strategy of developing other products catering to the same market
5although these ne( products need not be ne( to the marketM the point is that the product is ne( to
the company9. 2or example, McDonald's is al(ays (ithin the fast!food industry, but fre;uently
markets ne( burgers. 2re;uently, (hen a firm creates ne( products, it can gain ne( customers for
these products. Aence, ne( product development can be a crucial business development strategy
for firms to stay competitive.
36
M'r+!t d!v!lo&%!nt 5ne( markets, existing products9> An established product in the marketplace
can be t(eaked or targeted to a different customer segment, as a strategy to earn more revenue for
the firm. 2or example, Lucozade (as first marketed for sick children and then rebranded to target
athletes. This is a good example of developing a ne( market for an existing product. Again, the
market need not be ne( in itself, the point is that the market is ne( to the company.
Div!r"ific'tion 5ne( markets, ne( products9> Dirgin Cola, Dirgin <egastores, Dirgin Airlines,
Dirgin Telecommunications are examples of ne( products created by the Virgin Group of UK, to
leverage the Dirgin brand. This resulted in the company entering ne( markets (here it had no
presence before.
An"off M'tri: for -'rti Airt!l Ltd.
37
To portray alternative corporate gro(th strategies, &gor Ansof conceptuali3ed a matrix that focused
on the firm%s present and potential products and markets L customers. Ae called the four product!
market strategic alternatives
The company should follo( all four strategies depending on the demand and product as indicated
in the matrix. The company perhaps needs to focus more on the comparatively neglected area of
diversification.
MAR4ET *ENETRATION, Airtel entered in broadband and fixed phone line market.
*RODUCT DEVELO*MENT, &@*C products
MAR4ET DEVELO*MENT, Airtel is no( looking for overseas market.
Company has already made his presence in Cigeria and "eycheles.
DIVERSI.ICATION, Airtel has no( outsourcing sum of its services like customer services (ith
&B<
38
1.1. INDUSTRY STRUCTURE *ORTERJS MODEL
'B *ORTERS 0ENERIC STRATE0Y
Mic'!l *ort!r has described a category scheme consisting of three general types of strategies
that are commonly used by businesses to achieve and maintain competitive advantage. These three
generic strategies are defined along t(o dimensions> strategic scope and strategic strength.
Strategic scope is a demand!side dimension 5@orter (as originally an engineer, then an economist
before he speciali3ed in strategy9 and looks at the si3e and composition of the market you intend to
target. Strategic strength is a supply!side dimension and looks at the strength or core competency
of the firm. &n particular he identified t(o competencies that he felt (ere most important> product
differentiation and product cost 5efficiency9.
*ort!rJ" 0!n!ric Str't!5# for -'rti Airt!l Ltd.
39
;B *ORTERS .IVE .ORCES MODEL
The industry structure has become relatively unfavourable compared to earlier monopolistic times
the earlier pattern used to be that the national telecom company used to o(n every segment of the
40
value chain till the international gate(ay. #ith liberali3ation there (as competition in virtually
every segment. There are companies that provide local connectivity, those that function as long
distance carriers, and those that provide only gate(ay links. "ome integrated players operate in all
segments. The intensity of competitive pressures across the chain is reflected in the do(n(ard
spiral being (itnessed in tariffs and prices to customer. The value chain for cellular mobile service
and &nternet "ervice @roviders 5other than cable based net connections9 is similar in as much as the
calls reach the destination through similar local loop, long distance and international gate(ay.
1. Tr!'t fro% Co%&!tition
Wireless Market Top 4 garnering 75% market share
The subscriber gro(th for Airtel is only 1,? as compared to 'eliance K Dodafone (hose gro(th
is nearly 8/?. After the launch of 'eliance G"< in all &ndia basis the subscriber base has
increased tremendously. &n <umbai region Airtel could not become Co. ) because of its technical
problems in coverage.
2. Cu"to%!r -'r5'inin5 *o6!r
a. *ack of differentiation among "ervice @roviders
b. Cut throat Competition
41
c. *o( "(itching Costs
d. Cumber @ortability (ill have FDe &mpact
e. Businesses K Consumers
(. Su&&li!r" -'r5'inin5 *o6!r
1. Tr!'t of Su;"titut!"
a. *andline
b. C=<A
c. Dideo Conferencing
d. D$&@ ! "kype, Gtalk, Eahoo <essenger
e. e!<ail K "ocial Cet(orking #ebsites
2. Tr!'t of N!6 Entr'nt"
a. Auge *icense 2ees to be paid upfront K Aigh gestation period
b. Bntry of <DC$s K #i<AN operators
c. "pectrum Availability K 'egulatory &ssues
d. &nfrastructure "etup Cost ! Aigh
e. 'apidly changing technology
1.2. ENVIRONMENTAL ANALYSIS
42
&t is a systematic examination of al 1 levels of the environment (ith at least three purposes>
=etecting important economic, social, cultural, environmental, health, technological, and political
trends, situations, and events &dentifying the potential opportunities and threats for the institution
implied by these trends, situations, and eventsX Gaining an accurate understanding of your
organi3ation%s strengths and limitations "TBB@ refers to changes in the social, technological,
economic, environmental, and political sectors that affect organi3ations directly and indirectly. A
"TBB@ analysis of the macro environment indicates that economic 5a phone call being a cheaper
(ay to stay in touch than outstation travel for example9 and social factors 5(orking outside the
home to(n9 have forced the pace of utili3ation of technology 5@ublic Cal $ffices, mobile phones,
net(orked companies9. &ncreasing customer a(areness has raised expectations and vocal demands
are being articulated for consumer rightsM such political factors have in turn impacted the
competitive environment by (ay of entry of private players, independent regulation, and a policy
frame(ork tilted to(ards a Qlevel playing field% for ne( entrants. A near environment analysis
indicates that the competitors are becoming active resource rivals 5political and financial9 apart
from applying pressures as customer rivals. The customer has, needless to say, benefited from
increased choice from (ithin the communications services basket itself
CORE COM*ETENCE
Airtel core competencies are sales K promotions and as of no( Airtel is leading brand in mobile
services in &ndia. Airtel have three big personality Di3. "achin Tendulkar , "hahrukh Jhan and
music maestro A. '. 'ahman for endorsing there product and services currently Airtel is
outsourcing there no competence function and try to fully concentrate on his core competency that
is sales promotion.
2. AIRTEL K STRATE0Y
43
<ACT'A> 2ocus on Core Competencies and $utsource the restY
A. Str't!5#
Airtel partnered (ith leading players in telecommunication players across the globe.
&t has managed to (ork (ith the best of domain specialists globally and emerge as a (orld
class entity.
@artnerships include operational contracts (ith mar;uee vendors and strategic investors
ranging from private e;uity investors to global telecom giants.
-. O&!r'tion'l Str't!5i!"
44
Aigher emphasis on A'@6Lmin F stark contrast (ith other operators (ho concentrate on
A'@6 only.
Aim to be become a one stop shop for all telecommunication services under the Bharti
umbrella.
Bxploring opportunities in international markets.
Aived off to(er infrastructure into a separate entity.
C. .utur! Str't!5i!"
Translate its expertise in &ndian markets to other emerging economies.
This could call for ac;uisitions globally.
Technology leadership is a must F Airtel must ensure that its reliance on G"< technology
does not render it obsolete.
&ndian market inspite of being the (orld%s largest is still not matured. $pportunities
abound in the hinterland (hich must be exploited.
8. .INDIN0S
Str't!5ic 'lli'nc!
45
The company has a strategic alliance (ith "ingTel. The investment made by "ingTel is one of the
largest investments made in the (orld outside "ingapore in the company. The company also has a
strategic alliance (ith Dodafone. The investment made by Dodafone in Bharti is one of the largest
single foreign investments made in the &ndian telecom sector. The company%s mobile net(ork
e;uipment partners include Bricsson and Cokia. &n the case of the broadband and telephone
services and enterprise services 5carriers9, e;uipment suppliers include "iemens, Cortel, Corning,
among others. The Company also has an information technology alliance (ith &B< for its group!
(ide information technology re;uirements and (ith Cortel for cal centre technology re;uirements.
Out"ourcin5 The cal centre operations for the mobile services have been outsourced to &B<
=aksh, Ainduja T<T, and Teletech K <phasis. Ov!r"!'" M'r+!t. Airtel is looking for overseas
market and already started operation in Cigeria and "eycheles.
Co%&!tition
Airtel is facing strong competition from 'eliance, TATA &ndicom, <TC* and B"C* in spite of the
fact they are far a(ay from Airtel technologically but these t(o have an inside rich in rural and
urban area and have lo( tariff rates.
-r'nd A%;'""'dor
Airtel have strong brand ambassador, "achin Tendulcar, "hahrukh Jhan, Jareena Japoor, "aif Ali
Jhan and A . '. rehman to promote their product and services. 2aces that Airtel choose to
represent itself are the icon of &ndian youth. "o in some (ay &ndian customer link them selves to
these brand ambassador and thus to the Bharti Airtel as a brand they trust.
L!'d!r in T!l!co% %'r+!t
Airtel is holding a position of <arket *eader by having ./ percent of the total market share.
.ir"t Mov!r" Adv'nt'5!
46
Airtel is popular for introducing ne( schemes K facilitiesM some are as follo(s, Blectronic
recharge, Aello tunes, Airtel *iveY, @ortfolio manager, "ong catcher, Basy music, Black berry
handsets, <!che;ues.
0ro6t .'ctor"
?. SU00ESTIONS
47
After the complete analysis of entire "T6=E researcher put for(ard a set of recommendations
(hich are as follo(s>
*RICIN0
=epending on the market conditions L competition from cellular or (l!mobile service providers
and also to suit local conditions, there should be flexible pricing mechanism 5either at central or
local level9.
IM*ROVEMENT IN TEC/NOLO0Y
Airtel should immediately shift to third generation s(itches by replacing its c!dot s(itches. This
(ill improve the ;uality of service to desired level and provide simultaneous integration (ith the
nation(ide net(ork. The special distribution of the transmission to(ers should be increased to
avoid Hno signal pocketsI
ESTA-LIS/MENT O. DISTRI-UTION C/ANNELS
Airtel should establish (idespread and conspicuous distribution to match that of the competitors.
The distribution net(ork shall make the product visible and available at convenient locations.
UNTA**ED RURAL MAR4ET
*arge part of &ndian rural market is still untapped therefore Airtel is re;uired to bring that area
under mobility.
-$1 . -I-LIO0RA*/Y
48
&@*C &nternational @rivate *eased Circuit
B"C* Bhart "anchar Cigam *td
<TC* <ahanagar Telephone Cigam *td
T'A& Telephone 'egulatory Authority of &ndia
RE.ERENCE
Bharti Airtel, Annual 'eport !./)/
&nvestors presentation, Bharti Airtel *imited, Covember .//:
Telecommunication "ervices, &ndian &ndustry> A <onthly 'evie(, C<&B F Covember
./)/
Analyst 'eport F Bharti Airtel, Asit C. <ehta &nvesment &ntermediates *td.
Telecommunication "ector 'eport F <arch .//:, C'&"&*
Capitaline =atabase http>LLcapitaline.com
&ndian Telecommunication "ector ! August .//,, &BB2 'eport
(((.airtel.in
airtel!broadband.com
(((.trai.gov.in
(((.hindustantimes.com
http>LL(((.moneycontrol.comLfinancialsLbhartiairtelLratiosLBA/:
http>LL(((.moneycontrol.comLannual!reportLbhartiairtelLdirectors!reportLBA/:
http>LL(((.telecomindiaonline.comLindia!telecom!gro(th!and!subscribers!./)).html
http>LLcoai.inLstatistics.php
http>LL(((.oppapers.comLessaysLAistory!$f!Telecom!&ndustryL.:/48
http>LL(((.indiala(offices.comLpdfLtelecommunication.pdf
49
-$2 ANNEXURES
.in'nci'l" 't 5l'nc!
@R" ;B .YE? .YEC .YED .Y1E
"ales ):4../. .,8.08 1,1..) 4):..0
Sales growth (%) 57.9% 50.4% 4.0% !4."%
$perating profit ,4.4/, )/0.1)4 )1.,80 ),4.,.:
#perating pro$it 40.4% 9.5% %.5% 4".75%
margin (%)
Cet profit 4/.8./ ,.,81 ,:.0/ 0).81)
&et pro$it margin (%) !!."% !0.9% !".04% !".'9%
4!# R'tio",
4!# R'tio" $ Airt!l M'r$E8 M'r$E? M'r$EC M'r$ED M'r$1E
=ebt B;uity 'atio /.8 /.4, /.11 /..: /.)4
*ong Term =ebt B;uity 'atio /.8) /.41 /.1/ /..8 /.).
Su;"cri;!r 0ro6t
0rou& Co%&'n# 6i"! L %'r+!t "'r! $ 3'nM2E11
Sr.
No.
N'%! of Co%&'n# Tot'l Su;"cri;!r .i5ur!"@in
Million"B
L M'r+!t S'r!
1 -'rti 12DE822(1 1D.?(2
2 R!li'nc! Co% 1(EEDC1(( 18.1(D
( Vod'fon! 12?(81(12 12.CEE
1 -SNL 1112D81?D 11.1?C
2 T't' C?((11E2 1E.C(1
8 Id!' C12CD811 1E.128
? Airc!l 21C(1?D8 8.1(E
C Uninor 2E(E222E 2.21D
50
D Si"t!%' DED1?22 1.12C
1E Vid!ocon 8E112(( E.?18
11 MTNL CCD22E2 1.1E(
12 Loo& (E8212E E.(CE
1( St!l 2211??? E.(12
11 /.CL 11?E81? E.1C2
12 Eti"'l't 1222?1 E.E28
18 Si"t!%' (D1E( E.EE2
Tot'l Su;"cri;!r CE81282CC 1EE
Inco%! 9 E:&!nditur! @in Cr.B
O&!r'tin5 *rofit @in Cr.B
51
N!t S'l!" @in Cr.B
R!v!nu! M'r+!t S'r! @in LB
52
53

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