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Bharti Airtel

From Wikipedia, the free encyclopedia


"Airtel" redirects here. For other uses, see Airtel (disambiguation).
This article is about Bharti Airtel worldwide. For Bharti Airtel's telecommunication operations in
India, see Airtel India.
It has been suggested that Wynk Limited be merged into this article. (Discuss) Proposed
since March 2016.

Bharti Airtel Limited

Type

Public
BSE: 532454 NSE: BHARTIARTL
Traded as
BSE SENSEX Constituent
Industry
Telecommunications
Founded
7 July 1995[1]
Founder
Sunil Bharti Mittal
Bharti Crescent, 1, Nelson Mandela
Headquarters
Road, New Delhi, India[1]
India, Sri Lanka and 17 countries
Area served
across Africa
Sunil Bharti Mittal (Chairman and
Key people
MD)

Products
Revenue
Operating
income
Profit

Fixed line and mobile telephony,


broadband and fixed-line internet
services, digital television and IPTV
966.021 billion (US$14 billion)
(2016)
341 billion (US$5.1 billion)
(2016)
54 billion (US$800 million)

Total assets
Total equity
Members
Number of
employees
Parent
Subsidiaries
Website

(2016)
2,248 billion (US$33 billion)
(2016)
708 billion (US$11 billion) (2016)
324.37 Mn (March 2015)
24,868 (2016)[2]
Bharti Enterprises (68%)[3][4]
Airtel India
Airtel Sri Lanka
airtel Africa
www.airtel.com

Bharti Airtel is an Indian global telecommunications services company based in New Delhi,
India. It operates in 18 countries across South Asia and Africa. Airtel provides GSM, 3G and 4G
LTE mobile services, fixed line broadband and voice services depending upon the country of
operation. It is the largest mobile network operator in India and the third largest in the world with
365 million subscribers.[5][6] Airtel was named India's second most valuable brand in the first ever
Brandz ranking by Millward Brown and WPP plc.[7]
Airtel is credited with pioneering the business strategy of outsourcing all of its business
operations except marketing, sales and finance and building the 'minutes factory' model of low
cost and high volumes. The strategy has since been adopted by several operators.[8] Airtel's
equipment is provided and maintained by Ericsson and Nokia Solutions and Networks[9] whereas
IT support is provided by IBM.[10] The transmission towers are maintained by subsidiaries and
joint venture companies of Bharti including Bharti Infratel and Indus Towers in India.[11] Ericsson
agreed for the first time to be paid by the minute for installation and maintenance of their
equipment rather than being paid up front, which allowed Airtel to provide low call rates of 1
(1.5 US)/minute.[12]

Contents

1 History

2 Airtel India
o 2.1 Corporate structure
o 2.2 Telemedia
o 2.3 Digital television
o 2.4 Enterprise

o 2.5 Mobile data service


o 2.6 Enterprise business solutions
o 2.7 Android-based tablet

3 International presence
o 3.1 Africa

3.1.1 Sale to Orange

o 3.2 Bangladesh

3.2.1 Merger into Robi

o 3.3 Sri Lanka


o 3.4 Channel Islands: Jersey and Guernsey
o 3.5 Subscriber base
o 3.6 One Network

4 Acquisitions and mergers


o 4.1 MTN Group merger negotiations
o 4.2 Zain
o 4.3 Warid Bangladesh
o 4.4 Telecom Seychelles
o 4.5 Wireless Business Services Private Limited
o 4.6 Augere Wireless

5 Joint ventures and agreements


o 5.1 Airtel-Vodafone
o 5.2 Robi

o 5.3 Airtel-Ericsson

6 Rebranding

7 Sponsorship

8 Signature tune

9 Green initiative
o 9.1 GreenTowers P7 program
o 9.2 Energy conservation

10 Controversies
o 10.1 Net neutrality debate
o 10.2 User privacy

11 See also

12 References

13 External links

History
In 1984, Sunil Mittal started assembling push-button phones in India,[13] which he earlier used to
import from a Taiwan company, Kingtel, replacing the old fashioned, bulky rotary phones that
were in use in the country then. Bharti Telecom Limited (BTL) was incorporated and entered
into a technical tie up with Siemens AG of Germany for manufacture of electronic push button
phones. By the early 1990s, Bharti was making fax machines, cordless phones and other telecom
gear.[14] He named his first push-button phones as 'Mitbrau'.
In 1992, he successfully bid for one of the four mobile phone network licences auctioned in
India.[14] One of the conditions for the Delhi cellular license was that the bidder have some
experience as a telecom operator. So, Mittal clinched a deal with the French telecom group
Vivendi. He was one of the first Indian entrepreneurs to identify the mobile telecom business as a
major growth area. His plans were finally approved by the Government in 1994[13] and he
launched services in Delhi in 1995, when Bharti Cellular Limited (BCL) was formed to offer
cellular services under the brand name AirTel. Within a few years Bharti became the first
telecom company to cross the 2-million mobile subscriber mark. Bharti also brought down the
STD/ISD cellular rates in India under brand name 'Indiaone'.[13]

In 1999, Bharti Enterprises acquired control of JT Holdings, and extended cellular operations to
Karnataka and Andhra Pradesh. In 2000, Bharti acquired control of Skycell Communications, in
Chennai. In 2001, the company acquired control of Spice Cell in Calcutta. Bharti Enterprises
went public in 2002, and the company was listed on Bombay Stock Exchange and National
Stock Exchange of India. In 2003, the cellular phone operations were re-branded under the single
Airtel brand. In 2004, Bharti acquired control of Hexacom and entered Rajasthan. In 2005,
Bharti extended its network to Andaman and Nicobar. This expansion allowed it to offer voice
services all across India.
Airtel launched "Hello Tunes", a Caller ring back tone service (CRBT), in July 2004 becoming
to the first operator in India to do so. The Airtel theme song, composed by A.R. Rahman, was the
most popular tune on that year.[15]
In May 2008, it emerged that Airtel was exploring the possibility of buying the MTN Group, a
South Africa-based telecommunications company with coverage in 21 countries in Africa and the
Middle East. The Financial Times reported that Bharti was considering offering US$45 billion
for a 100% stake in MTN, which would be the largest overseas acquisition ever by an Indian
firm. However, both sides emphasise the tentative nature of the talks, while The Economist
magazine noted, "If anything, Bharti would be marrying up," as MTN has more subscribers,
higher revenues and broader geographic coverage.[16] However, the talks fell apart as MTN
Group tried to reverse the negotiations by making Bharti almost a subsidiary of the new
company.[17] In May 2009, Bharti Airtel again confirmed that it was in talks with MTN and the
companies agreed to discuss the potential transaction exclusively by 31 July 2009. Talks
eventually ended without agreement, some sources stating that this was due to opposition from
the South African government.[18]
In 2009, Bharti negotiated for its strategic partner Alcatel-Lucent to manage the network
infrastructure for the fixed line business. Later, Bharti Airtel awarded the three-year contract to
Alcatel-Lucent for setting up an Internet Protocol access network across the country. This would
help consumers access internet at faster speed and high quality internet browsing on mobile
handsets.[19]
In 2009, Airtel launched its first international mobile network in Sri Lanka.[20] In June 2010,
Bhartil acquired the African business of Zain Telecom for $10.7 billion making it the largest ever
acquisition by an Indian telecom firm.[21] In 2012, Bharti tied up with Wal-Mart, the US retail
giant, to start a number of retail stores across India.[22] In 2014, Bharti planned to acquire Loop
Mobile for 7 billion (US$100 million), but the deal was called off later.[23]
Bharti Airtel Limited ("Airtel"), the world's third largest mobile operator with operations in 20
countries across Asia and Africa, today said that its Treasury division has been adjudged as a
highly commended winner of the Top Treasury Team (Asia) Awards at the Adam Smith Asia
Awards 2015.[24]

Airtel India
Main article: airtel India

Airtel India is the largest provider of mobile telephony and second largest provider of fixed
telephony in India, and is also a provider of broadband and subscription television services. It
offers its telecom services under the "airtel" brand, and is headed by Sunil Bharti Mittal.

Corporate structure
Airtel has two distinct Customer Business Units (CBU) with focus on B2C (Business to
Customer) and B2B (Business to Business) segments. Airtel's B2C business unit deals with
servicing the retail consumers, homes and small offices providing mobile, fixed line, DTH and
m-commerce services while the B2B unit deals with large corporate accounts.

Telemedia

Airtel Broadband Blocking TPB


Under the Telemedia segment, Airtel provides broadband internet access through DSL, internet
leased lines as well as MPLS (multiprotocol label switching) solutions, as well as IPTV and
fixed line telephone services. Until 18 September 2004, Bharti provided fixed line telephony and
broadband services under the Touchtel brand. Bharti now provides all telecom services including
fixed line services under a common brand airtel. As of September 2012, Airtel provides
Telemedia services to 3.3 million customers in 87 cities.[25] As on 30 November 2012, Airtel had
1.39 million broadband subscribers.[26]
Airtel Broadband provides broadband and IPTV services. Airtel provides both capped as well as
unlimited download plans. However, Airtel's unlimited plans are subject to free usage policy
(FUP), which reduces speed after the customer crosses a certain data usage limit. In most of the
plans, Airtel provides only 512kbit/s beyond FUP, which is lower than the TRAI specified limit
of half the subscriber's original speed.[27][28] The maximum speed available for home users is
16Mbit/s.
In May 2012, Airtel Broadband and some other Indian ISPs temporarily blocked file sharing
websites such as vimeo.com megavideo.com, thepiratebay.se, etc. with out giving any legal
information to the customers.[29]

Digital television
Main article: Airtel digital TV

The Digital television business provides Direct-to-Home (DTH) TV services across India under
the brand name Airtel digital TV. It started services on 9 October 2008 and had about 7.9 million
customers at the end of December 2012.[30]

Enterprise
The Enterprise business provides end-to-end telecom solutions to corporate customers and
national and international long-distance services to telcos through its nationwide fibre optic
backbone, last mile connectivity in fixed-line and mobile circles, VSATs, ISP and international
bandwidth access through the gateways and landing stations. It has two sections under it.

Mobile data service


The different services under mobile data are BlackBerry services, a web-enabled mobile email
solution working on 'Push Technology', USB modem that helps in getting instant access to
Internet and corporate applications, Airtel Data Card that gives the liberty to access the internet
anytime, Easy Mail is a platform that provides access to personal/corporate e-mails independent
of handset operating system and application services that shorten the queues at the billing
section, off-load the pressure on the billing staff and bring convenience to the user.

Enterprise business solutions


There are two kinds of solutions offered by Airtel. One is GPRS Based Solutions like mobile
applications tools for enterprise, TrackMate, automatic meter reading solutions etc. and the other
is SMS Based Solutions like interactive sms, bulk sms, inbound call centre solutions.
The India with Airtel package is said to be a one-stop-shop for availing all telecom and
connectivity solutions including mobile and fixed telephony, global and domestic data capacity
and connectivity solutions, VSAT, Virtual Private Network, data centre and cloud solutions,
Value Added Services and payment and billing integration, machine-to-machine, and managed
services.[31]

Android-based tablet
Beetel Teletech Ltd., a unit of Bharti Enterprises Ltd., on 18 August 2011, launched a 9,999
(US$150) 7-inch tablet in India based on Google Inc.'s Android operating system. The offering is
intended to capitalise on the expected demand for cheap computing devices in the world's fastestgrowing and second-largest mobile phone market.[32]

International presence

Coverage map of Bharti Airtel across 19 countries


Airtel is the one of the largest mobile operator in the world in terms of subscriber base and has a
commercial presence in 19 countries and the Channel Islands, Baysquare Technology developed
a Settlement and Reconciliation Tool (SRT) to reconcile from various data streams. The system
was developed to match the calls being captured by the network elements and the calls getting
rated, i.e. ensuring that operator is billing all calls its serves and also it is paying out to other
operators the correct billing amounts.
Its area of operations include:

The Indian Subcontinent:


o Airtel India, in India
o Airtel Sri Lanka, in Sri Lanka

Airtel Africa, which operates in 17 African countries:


o Burkina Faso, Chad, Democratic Republic of the Congo, Republic of the Congo,
Gabon, Ghana, Kenya, Madagascar, Malawi, Niger, Nigeria, Rwanda, Seychelles,
Sierra Leone, Tanzania, Uganda and Zambia.

The British Crown Dependency islands of Jersey and Guernsey, under the brand name
Airtel-Vodafone, through an agreement with Vodafone.

Airtel operates in the following countries:


Country
Burkina
Faso
Chad
Democra
tic Republic
of the Congo
Gabon

Site
Remarks
airtel Burkina Airtel Burkina Faso is the dominant player with 1,433,000
Faso
customers representing 50% market share.[33]
airtel Chad
Airtel Chad is the No. 1 operator with 69% market share.[33]
airtel DRC

Airtel is the market leader with almost 5 million customers at the


end of 2010.[citation needed]

airtel Gabon

Airtel Gabon has 829,000 customers and its market share stood at

Ghana

airtel Ghana

61%.[34]
Airtel Ghana had about 1.76 million customers at the end of 2010.
[35]

Airtel is the market leader with almost 193.4 million customers as


on 30 September 2013.[36]
Airtel Kenya is the second largest operator and has 4 million
Kenya airtel Kenya
customers.[37]
Madagas airtel
Airtel is the market leader in Madagascar with 39% market share
car
Madagascar and 2.5 million customers.[33]
Malawi airtel Malawi Airtel Malawi is the market leader with a market share of 72%.[33]
Niger
airtel Niger
Airtel Niger is the market leader with a 68% market share.[33]
Nigeria airtel Nigeria
Republic
airtel Congo B Airtel Congo is the market leader with a 55% market share.[33]
of the Congo
Rwanda airtel Rwanda Airtel launched services in Rwanda on 30 March 2012.[38]
Airtel is the leading comprehensive telecommunications services
Seychelle airtel
providers with over 55% market share of mobile market in
s
Seychelles
Seychelles.[39]
Sierra airtel Sierra
Leone
Leone
Sri
airtel Sri
Airtel Sri Lanka commenced operations on 12 January 2009. It had
Lanka
Lanka
about 1.8 million mobile customers at the end of 2010.[35]
Tanzania airtel Tanzania Airtel Tanzania is the market leader with a 38% market share.[33]
Airtel Uganda stands as the No. 2 operator with a market share of
Uganda airtel Uganda
38%.[33]
Airtel Zambia is the market leader with 69% market share.[citation
Zambia airtel Zambia needed]
India

airtel India

Channel
Islands :
AirtelJersey
Vodafone
Guernse
y

Airtel operates in the Channel Islands under the brand name


AirtelVodafone through an agreement with Vodafone.

Jersey and Guernsey are British Crown Dependencies. They are not independent countries. Therefore, Airtel's
countries of operation is considered to be 19.

Africa
Main article: airtel Africa
Airtel Africa is a subsidiary of Indian telecommunications company Airtel, that operates in 17
countries across Africa. It operates a GSM network in all countries, providing 2G or 3G
depending upon the country of operation.

On 8 June 2010, Bharti Airtel completed the purchase of mobile operations in 15 African
countries from Zain, a Kuwaiti operator.[40]
On 11 August 2010, Bharti Airtel announced that it would acquire Telecom Seychelles for
US$62 million.[41]
Sale to Orange
On 13 January 2016,Orange and Bharti Airtel International Wednesday inked a deal that will
allow Orange's acquisition of Airtel's operations in Burkina Faso and Sierra Leone. This will
bring down the number of countries where Airtel operates to 18. On 19 July 2016, Airtel
completed the sale of both these operations to France-based Orange SA.[citation needed]

Bangladesh
airtel Bangladesh Ltd. was a GSM-based cellular operator in Bangladesh. Airtel was the sixth
mobile phone carrier to enter the Bangladesh market, and originally launched commercial
operations under the brand name "Warid Telecom" on 10 May 2007. Warid Telecom
International LLC, an Abu Dhabibased consortium, sold a majority 70% stake in the company
to India's Bharti Airtel Limited for US$300 million.[42]
Merger into Robi
On 16 November 2016, airtel Bangladesh was merged into Robi as a product brand of Robi
Axiata, where Robi Axiata Limited is the Licensee of airtel Brand in Bangladesh.[43] Robi at
present is a joint venture between Axiata Group of Malaysia, Bharti Airtel, of India and NTT
Docomo Inc., of Japan. Axiata holds 68.7% controlling stake in the entity, Bharti holds 25%
while the remaining 6.3% is held by NTT Docomo of Japan.[44]

Sri Lanka
Main article: airtel Sri Lanka
Bharti Airtel Lanka (Pvt) Ltd is a subsidiary of Bharti Airtel Limited. Bharti Airtel has been
featured in Forbes Asia's Fab 50 list, rated amongst the best performing companies in the world
in the BusinessWeek IT 100 list 2007, and voted as India's most innovative company in a survey
by The Wall Street Journal[citation needed]
Airtel Lanka commenced commercial operations of services on 13 January 2009. Granted a
licence in 2007 in accordance with the Sri Lanka Telecommunications Act No. 25 of 1991, it is
also a registered company under the Board of Investment Sri Lanka. Under the license, the
company provides digital mobile services to Sri Lanka. This is inclusive of voice telephony,
voice mail, data services and GSM-based services. All of these services are provided under the
airtel brand.

Channel Islands: Jersey and Guernsey

Main article: Airtel-Vodafone


On 1 May 2007, Jersey Airtel and Guernsey Airtel, both wholly owned subsidiaries of the Bharti
Group, announced they would launch mobile services in the British Crown Dependency islands
of Jersey and Guernsey[45][46] under the brand name Airtel-Vodafone after signing an agreement
with Vodafone. Airtel-Vodafone operates a 3G network in Jersey and Guernsey.

Subscriber base
Bharti Airtel has about 303.08 million subscribers worldwide264.58 million in India and South
Asia and 50.949 million in Africa as of the end of December 2011. The numbers include mobile
services subscribers in 19 countries and Indian Telemedia services and Digital services
subscribers.[47]

One Network
One Network is a mobile phone network that allows Airtel customers to use the service in a
number of countries at the same price as their home network. Customers can place outgoing calls
at the same rate as their local network, and incoming calls are free.[48] As of 2014, the service is
available in Bangladesh, Burkina Faso, Chad, Democratic Republic of Congo, Congo
Brazzaville, Gabon, Ghana, India, Kenya, Madagascar, Niger, Nigeria, Rwanda, Seychelles,
Sierra Leone, Sri Lanka, Tanzania, Uganda, and Zambia only for International roamers from
Airtel Africa[49]

Acquisitions and mergers


MTN Group merger negotiations
In May 2008, it emerged that Airtel was exploring the possibility of buying the MTN Group, a
South Africa-based telecommunications company with operations in 21 countries in Africa and
the Middle East. The Financial Times reported that Bharti was considering offering
US$45 billion for a 100% stake in MTN, which would be the largest overseas acquisition ever by
an Indian firm. However, both sides emphasised the tentative nature of the talks. The Economist
magazine noted, "If anything, Bharti would be marrying up", as MTN had more subscribers,
higher revenues and broader geographic coverage.[50] However, the talks fell apart as MTN
Group tried to reverse the negotiations by making Bharti almost a subsidiary of the new
company.[51]
In May 2009, Airtel confirmed that it was again in talks with MTN and both companies agreed to
discuss the potential transaction exclusively by 31 July 2009.[52] Airtel said "Bharti Airtel Ltd is
pleased to announce that it has renewed its effort for a significant partnership with MTN Group".
[53]
The exclusivity period was extended twice up to 30 September 2009. Talks eventually ended
without agreement.[54]

A solution was proposed where the new company would be listed on 2 stock exchanges, one in
South Africa and one in India. However, dual-listing of companies is not permitted by Indian
law.[55]

Zain
Further information: Zain Group
In Jun 2010, Bharti struck a deal to buy Zain's mobile operations in 15 African countries, in
India's second biggest overseas acquisition after Tata Steel's $13 billion buy of Corus in 2007.
Bharti Airtel completed its $10.7 billion acquisition of African operations from Kuwaiti firm on
8 June 2010, making the Airtel the world's fifth largest wireless carrier by subscriber base. Airtel
has reported that its revenues for the fourth quarter of 2010 grew by 53% to US$3.2 billion
compared to the previous year, newly acquired Zain Africa division contributed US$911 million
to the total. However, net profits dropped by 41% from US$470 million in 2009 to
US$291 million 2010 due to a US$188 million increase in radio spectrum charges in India and
an increase of US$106 million in debt interest.[citation needed]

Warid Bangladesh
Further information: Warid Bangladesh
In 2010, Warid Telecom sold a majority 70.90% stake in the company to India's Bharti Airtel
Limited for US$300 million.[42] The Bangladesh Telecommunication Regulatory Commission
approved the deal on 4 January 2010.[56] Bharti Airtel Limited took management control of the
company and its board, and rebranded the company's services under its own airtel brand from 20
December 2010.[57][58] In March 2013, Warid Telecom sold its rest 30% share to Bharti Airtel's
Singapore-based concern Bharti Airtel Holdings Pte Limited.[59]

Telecom Seychelles
On 11 August 2010, Bharti Airtel announced that it would acquire 100% stake in Telecom
Seychelles for US$62 million taking its global presence to 19 countries. Telecom Seychelles
began operations in 1998 and operates 3G, Fixed Line, ship to shore services satellite telephony,
among value added services like VSAT and Gateways for International Traffic across the
Seychelles under the Airtel brand. The company has over 57% share of the mobile market of
Seychelles.[41] Airtel announced plans to invest US$10 million in its fixed and mobile telecoms
network in the Seychelles over three years, whilst also participating in the Seychelles East Africa
submarine cable (SEAS) project. The US$34 million SEAS project is aimed at improving the
Seychelles' global connectivity by building a 2,000 km undersea high-speed link to Dar es
Salaam in Tanzania.[60]

Wireless Business Services Private Limited


On 24 May 2012, Airtel announced an agreement to acquire a 49% stake in Wireless Business
Services Private Limited (WBSPL) at an investment of 9.07 billion (US$130 million).[61]

WBSPL was a joint venture founded by Qualcomm, and held BWA spectrum in the telecom
circles of Delhi, Haryana, Kerala and Mumbai.[62] Qualcomm had spent US$1 billion to acquire
BWA spectrum in those 4 circles.[63] The deal gave Airtel a 4G presence in 18 circles.[61] On 4
July 2013, Airtel announced that it had acquired an additional 2% equity share capital (making
its stake 51%)[64] in all the four BWA entities of Qualcomm, thereby making them its
subsidiaries.[65] On 18 October 2013, Airtel announced that it had acquired 100 percent equity
shares of WBSPL for an undisclosed sum,[66][67] making it a wholly owned subsidiary.[68][69]

Augere Wireless
Airtel purchased Augere Wireless, a company that owned 4G spectrum in the ChhattisgarhMadhya Pradesh circle in 201516 for an undisclosed sum. The Economic Times estimated to
Augere's spectrum to be worth 1.5 billion (US$22 million).[70]

Joint ventures and agreements


Airtel-Vodafone
Main article: Airtel-Vodafone
On 1 May 2007, Jersey Airtel and Guernsey Airtel, both wholly owned subsidiaries of the Bharti
Group, announced they would launch mobile services in the British Crown Dependency islands
of Jersey and Guernsey[45][46] under the brand name Airtel-Vodafone after signing an agreement
with Vodafone. Airtel-Vodafone operates a 3G network in Jersey and Guernsey.

Robi
On 16 November 2016, airtel Bangladesh was merged into Robi as a product brand of Robi,
where Robi Axiata Limited is the Licensee of airtel Brand in Bangladesh.[43] Robi is a joint
venture between Axiata Group holding 68.7%, Bharti Airtel holding 25%, and NTT DoCoMo
Inc. holding 6.3%.[44]

Airtel-Ericsson
AIn July 2011, Bharti signed a five-year agreement with Ericsson, who will manage and
optimise Airtel's mobile networks in Africa. Ericsson will modernise and upgrade Airtel's mobile
networks in Africa with the latest technology including its multi standard RBS 6000 base station.
As part of the modernisation, Ericsson will also provide technology consulting, network planning
& design and network deployment. Ericsson has been the managed services and network
technology partner in the Asian operations.[71]

Rebranding

Logo used by Airtel till November 2010


On 18 November 2010, Airtel rebranded itself in India in the first phase of a global rebranding
strategy. The company unveiled a new logo with 'airtel' written in lower case. Designed by
London-based brand agency, The Brand Union, the new logo is the letter 'a' in lowercase, with
'airtel' written in lowercase under the logo.[72] On 23 November 2010, Airtel's Africa operations
were rebranded to 'airtel'. Sri Lanka followed on 28 November 2010 and on 20 December 2010,
Warid Telecom rebranded to 'airtel' in Bangladesh.

Sponsorship
On 9 May 2009 Airtel signed a major deal with Manchester United. As a result of the deal, Airtel
gets the rights to broadcast the matches played by the team to its customers.
Bharti Airtel signed a five-year deal with ESPN Star Sports to become the title sponsor of the
Champions League Twenty20 cricket tournament. But now the deal is terminated and Karbonn
Mobiles is sponsoring Champions League Twenty20 cricket.[73]
Airtel, also signed a deal to be title sponsor the inaugural Formula One Indian Grand Prix during
the 2011 season.[74]
Airtel, signed a deal to be title sponsor the I-League for 201314 I-League.[75]

Signature tune
The signature tune of Airtel is composed by Indian musician A. R. Rahman. The tune became
hugely popular and is the world's most downloaded mobile music with over 150 million
downloads. A. R. Rahman along with Anu Malik has re-used the same tune in Kannada movie
titled Love.[76] A new version of the song was released on 18 November 2010, as part of the
rebranding of the company.[76][77] This version too was composed by Rahman himself.[77]

Green initiative
GreenTowers P7 program
Bharti Infratel is the only telecom tower company, which has installed almost 3 MWT of solar
capacity on their network, generating more than 5 million units of electricity every year. The
Green Towers P7 program is scoped for 22,000 tower sites (primarily rural areas having low or
no Grid Power availability) out of which 5,500 sites have already been implemented in the first
year as a part of this 3-year program.[78][79][80] Once completed, the initiative will reduce diesel
consumption by 66 million litres per year with a significant carbon dioxide reduction of around

150,000 MT per year. Bharti Infratel received the 2011 'Green Mobile Award ' at the GSMA
Mobile World Congress at Barcelona and was also awarded the 2010 innovative infrastructure
company of the year award at the CNBC Infrastructure Awards for this groundbreaking initiative.
Bharti remains the first company in the world to introduce the practice of sharing of passive
infrastructure by collaborating with their competition to share mobile towers and to reduce the
collective carbon footprint of the industry.[citation needed] This has become a subject of case studies in
institutions including the Harvard Business School.[citation needed]

Energy conservation
The company has installed solar hot water generator at its main campus in Gurgaon for fulfilling
the hot water requirement in the cafeteria. Majority of its facilities across NCR region are now
equipped with LES (lighting energy savers) which have reduced energy consumption in the
lighting system to the tune of 1025%. Variable frequency drives installed in the air handling
unit at its campus have helped in enhancing the efficiency of cooling system by 10%. These
measures have resulted in a total saving of 850,000 units of electricity per year.
Airtel has embarked upon technology related initiatives like virtualisation of servers that has
helped it release over 500 CPUs. Also the drive of sending e-bills to the post-paid customers is
helping save 12,840 trees annually. Within its campus the 'Secure Print Solution'an automated
queue management-based secured printing solution has led to an annualised saving of about 8
metric tonnes of paper.

Alternative energy sources such as solar energy used at 1050 sites saving 6.9 million
litres of diesel and approximately 280 million (US$4.2 million).[79]

Energy efficiency measures such as Integrated Power Management Systems and variable
speed DC generators have resulted in reduction in the rate of diesel consumption by 1.2
million liters, leading to savings of 47 million (US$700,000) across 900 sites.[79]

Demand side management like free cooling units instead of air conditioners has been
implemented across 3400+ sites, saving consumption of 4.1 million liters of diesel.[79]

Controversies
Net neutrality debate
For more details on this topic, see Net neutrality in India.
In February 2014, Gopal Vittal, CEO of Airtel's India operations, said that companies offering
free messaging apps like Skype, Line and Whatsapp should be regulated similar to telecom
operators.[81] In August 2014, TRAI rejected a proposal from telecom companies to make
messaging application firms share part of their revenue with the carriers or the government.[82] In
November 2014, TRAI began investigating if Airtel was implementing preferential access by
offering special Internet packs which allowed WhatsApp and Facebook data at rates which were

lower than its standard data rates.[83] The statements of Chua Sock Koong, Group CEO of Singtel
and also shareholder (32.15%) of Bharti Airtel share similar statements about the Anti-Net
Neutrality position.
In December 2014, Airtel changed its service terms for 2G and 3G data packs so that VoIP data
was excluded from the set amount of free data. A standard data charge of 4 paise (0.059 US) per
10 KB for 3G service and 10 paise (0.15 US) per 10 KB (more than 10,000 (US$150) for
1GB) for 2G service was levied on VoIP data.[84] A few days later Airtel announced a separated
internet pack for VoIP apps, it offered 75 MB for 75 (US$1.10) with a validity of 28 days.[85]
The TRAI chief Rahul Khullar said that Airtel cannot be held responsible for violating net
neutrality because India has no regulation that demands net neutrality.[86] Airtel's move faced
criticism on social networking sites like Facebook, Twitter and Reddit.[87] Later on 29 December
2014, Airtel announced that it would not be implementing planned changes, pointing out that
there were reports that TRAI would be soon releasing a consultation paper on the issue.[88]
In April 2015, Airtel announced the "Airtel Zero" scheme. Under the scheme, app firms will sign
a contract and Airtel will provide the apps for free to its customers.[89] The reports of Flipkart, an
e-commerce firm, joining the "Airtel Zero" scheme drew negative response. People began to give
the one-star rating to its app on Google Play.[90][91] Following the protest Flipkart decided to pull
out of Airtel Zero. The e-commerce giant confirmed the news in an official statement, saying,
"We will be walking away from the ongoing discussions with Airtel for their platform Airtel
Zero.[92]
In October 2016, India's telecom regulator TRAI recommended imposing a combined penalty of
Rs 3,050 crore on three mobile network operators Vodafone, Bharti Airtel and Idea Cellular
for denying interconnection to Mukesh Ambanis Reliance Jio Infocomm (RJio), the latest
entrant into Indias telecom service.[93]

User privacy
In June 2015, a code used by the company was accused of compromising subscribers privacy.

COMPANY PROFILE
We are Indias largest telecom company. The 200+ million strong and growing airtel family is
built on strong values and code of ethics. Know more about us below.

Fact Sheet

Our Strategy

Financial Snapshot

Organization Structure

Awards and Recognitions

FACT SHEET
Name

Bharti Airtel Limited.


Bharti Airtel Limited is a leading global telecommunications company with
operations in 18 countries across Asia and Africa. Headquartered in New
Delhi, India, the company ranks amongst the top 3 mobile service providers
globally in terms of subscribers. In India, the company's product offerings
include 2G, 3G and 4G wireless services, mobile commerce, fixed line
Business description
services, high speed DSL broadband, DTH, enterprise services including
national & international long distance services to carriers. In the rest of the
geographies, it offers 2G, 3G, 4G wireless services and mobile commerce.
Bharti Airtel had over 363 million customers across its operations at the
end of September 2016.
Established
July 07, 1995, as a Public Limited Company
ISIN
INE397D01024
Rs. 246,515 million (ended September 30, 2016-Audited)
Proportionate
Rs. 238,357 million (ended September 30, 2015-Audited)
revenue
As per Ind-AS Accounts
Rs. 94,662 million (ended September 30, 2016-Audited)
Proportionate
Rs. 82,653 million (ended September 30, 2015-Audited)
EBITDA
As per Ind-AS Accounts
Shares in issue
3997.4 Mn shares as at September 30, 2016
Bombay Stock Exchange Limited (BSE)
Listings
National Stock Exchange of India Limited (NSE)
Stock exchange
NSE BHARTIARTL
symbol
BSE 532454
India: 259,941,000 GSM mobile; 2,083,000 Homes customers and
12,405,000- Digital TV Services
Market capitalisation (status as on September 30, 2016)
customer base
Africa: 78,145,000 GSM mobile customers, SA: 8,800,000 mobile
customers
(status as on September 30, 2016)
Bharti Airtel Limited
(A Bharti Enterprise)
Bharti Crescent, 1 Nelson Mandela Road,
Registered office
Vasant Kunj, Phase II,
New Delhi - 110 070.
Tel. No.: +91 11 4666 6100
Fax No.: +91 11 4666 6411

Our Strategy

We are consistently fine-tuning our strategies and strengthening our innovative core to anticipate
and lead change in the global digital landscape.

Win Customers For Life


Vision
Objectives
Values

Our vision is to enrich the lives of our customers. Our obsession is


to win customers for life through exceptional experience.
Grow market share profitably. Accelerate non-mobile businesses.
Alive. Inclusive. Respectful.

How We Will Win:

Win through go-tomarket excellence

Win with a Brilliant


Network Experience

Win with valuable


customers

Grow share of new smartphones and 4G devices

Accelerate data penetration via intuitive pricing and


innovation

Build Indias no. 1 Payments Bank through a frugal and


digital model

Eliminate customer frustration through quality obsession

Improve customer advocacy through granular planning


and communication

Drive down unit cost per MB through leveraging multiple


technologies

Grow 3G/4G data by encouraging consumption, bundling

and upgradation

Win with a war on


waste

Win with people

Grow postpaid through propositions, store experience and


B2B drive

Accelerate B2B through improved experience

Scale homes through high-speed broadband, low-cost


access and bundling

Win DTH through disproportionate share of digitization


and innovation

Drive down cost

Lower costs and maximise sharing

Cut waste by network re-design

High-performance culture

Grow talent through strong learning, mentoring and


succession planning

FINANCIAL SNAPSHOT

ORGANIZATION STRUCTURE
Bharti airtel limited - Organization structure (India and South Asia)

MD & CEO
(India and South asia)
Gopal Vittal
DirectorMarket Operations
Ajai Puri
DirectorConsumer Business
VACANT
DirectorCustomer Experience
Sarang Kanade
Director & CEOAirtel Business
Ashok Ganapathy
Director & CEO - Global
Voice & Data Business
Ajai Chitkara

CEODirect-to-Home
VACANT
CEOAirtel Payments Bank
Shashi Arora
CEONxtra
Neil Pollock

CTO
Abhay Savargaonkar

Global CHRO
B Srikanth

Global CFO
Nilanjan Roy

Global CIO
Harmeen Mehta
DirectorGlobal Supply Chain

Moti Gyamlani

Director - Legal
Sameer Chugh

Chief Regulatory Officer


Ravi Gandhi

AWARDS AND RECOGNITIONS


Select Year
Bharti Airtel ranked first in a listing of 100 emerging market multinational companies by
Transparency International on corporate transparency and reporting. According to the study, the
Company topped the list with a cumulative score of 7.3 out of 10.
Bharti Airtel was positioned among the top eight companies in the listing of top BSE 100 listed
companies in FTI Consultings India Disclosure Index 2016 Report with a composite score of
10 out of 10.
Bharti Airtel was recognised as the Firm of the Year Telecom at the 3rd edition of ICICI
Lombard & CNBC-TV18 India Risk Management Awards.
Bharti Airtel secured the second position in Interbrands Best Indian Brands Report 2016.
Bharti Airtel has been declared winner of Golden Peacock Award for Excellence in Corporate
Governance for the year 2016.

AIRTELS MISSION, VISION AND


VALUES
THE WAY AHEAD

At airtel, we always put you at the heart of what we do. We strive to enhance your experience
with us and build a lasting
relationship with you by delivering better results every time. And this, reflects in our mission too.

Our mission
Hunger to win customers for life.

Our vision
Our vision is to enrich the lives of our customers. Our obsession is to win customers for life
through an exceptional experience.

Our values
We aim to work towards our vision, driven by our values of AIR - Alive, Inclusive & Respectful.

Alive
We are alive to the needs of our customers. We act with passion, energy and a can-do
attitude to help our customers realise their dreams. Innovation and an entrepreneurial
spirit drive us - if it cant be done, well find a way.

Inclusive
Airtel is for everyone - we champion diversity, recognising the breadth and depth of the
communities we serve. We work with them, anticipating, adapting and delivering
solutions that enrich their lives. We do this by having an open mind and embracing
change.

Respectful
We live the same lives as our customers, sharing the same joys and the same pains. We
never forget that they are why we exist. We act with due humility, always open and
honest, to achieve mutual respect.

bharti airtel
Bharti Airtel Limited is a leading global telecommunications company with operations in 20
countries across Asia and Africa. Headquartered in New Delhi, India, the company ranks
amongst the top 4 mobile service providers globally in terms of subscribers. In India, the
company's product offerings include 2G, 3G and 4G wireless services, mobile commerce, fixed
line services, high speed DSL broadband, IPTV, DTH, enterprise services including national &

international long distance services to carriers. In the rest of the geographies, it offers 2G, 3G
wireless services and mobile commerce. Bharti Airtel had over 307 million customers across its
operations at the end of November 2014.

highlights

Bharti Airtel becomes the fourth largest mobile operator in the world

Education is now available anytime, anywhere with Airtel mEducation

business divisions
mobile services

bharti airtel offers GSM mobile services in all the 22-telecom circles of India and is the largest
mobile service provider in the country, based on the number of customers.
Know More
telemedia services

The group offers high-speed broadband with the best in class network. With fixed line services in
87 cities, we help you stay in touch with your friends & family and keep you updated round the
clock
Know More
airtel business

airtel business provides a broad portfolio of services to large Enterprise, Government, Small &
Medium businesses and carrier customers. It is India's leading and most trusted provider of
communication and ICT services, offering services that include voice, data, network integration,
data center & managed services, enterprise mobile applications and digital media
Know More
digital TV services

Discover the magical experience of digital entertainment with airtel. From DVD quality picture
and sound, the best and widest variety of channels and programmes to the best on-demand
content on airtel Live, your TV viewing experience change forever with digital TV from airtel!

airtel mobile advantages

first to launch 4G in India

pocket-friendly data packs

seamless 3G connectivity

Prepaid

wide range of plans to choose from

Prepaid recharge

Get a new connection

Roaming packs

Blackberry packs

Special recharge offers

Handset offers

Switch to airtel

Family share

Postpaid

Prepaid Recharge for Corporate customers

Postpaid bill pay

My Plan

My Plan Family

My Plan Infinity

Roaming plans

Blackberry plans

Special offers

Switch to airtel

Switch to eBill

Refund through NEFT

Get more

Hello tunes

Do not disturb (DND)

Consumer alerts

VAS short codes

Mobile handsets

Xiaomi

Samsung

Motorola

Android One

Microsoft

Lava

And more

about internet

what's new

why airtel

how do I get it

at your service. always.


buy any airtel service online. It's quick, easy and secure.

how to get it?

1 select what you need

2 enter your details

3 verify & pay

Mobile internet

4G

Get 4G

Packs & Plans

Check Coverage

3G

Get 3G

Prepaid packs

Postpaid plans

Special offers

Get smartbytes

Check coverage

2G

Get 2G

Prepaid packs

Postpaid plans

Special offers

Internet for home

4G Homes

Get a new connection

Check plans

Check Coverage

Broadband

Get a new connection

Check Plans

Unlimited Voice

Get smartbytes

Shifting my broadband

Check coverage

FAQs

Speed comparison

Additional services

Wi-Fi hangout

Dongles & routers

4G

Dongle

Wi-fi Hotspot

Special Offers

Check Coverage

3G

Wireless dongle

Check coverage

Get a new connection

Get more

Antivirus

Surveillance Camera

Website builder

Broadband offer

Enjoy seamless connectivity, custom-made plans, high-speed internet access, and value added services with Airtel wireless
internet. Airtel is one of the leading internet service providers in India offering you best broadband internet plans for both
mobile & home.
Airtel also offers high-speed wireless internet connection through dongles & routers for home & office use. So get your
online broadband connection today in few easy steps and get 4G speed at the price of 3G.

Telecommunications industry
From Wikipedia, the free encyclopedia
The telecommunications industry within the sector of information and communication
technology is made up of all Telecommunications/Telephone companies and internet service
providers and plays the crucial role in the evolution of mobile communications and the
information society.
Traditional telephone calls continue to be the industry's biggest revenue generator, but thanks to
advances in network technology, Telecom today is less about voice and increasingly about text
(messaging, email) and images (e.g. video streaming). High-speed internet access for computerbased data applications such as broadband information services and interactive entertainment, is
pervasive. Digital Subscriber Line (DSL) is the main broadband telecom technology. The fastest
growth comes from (value-added) services delivered over mobile networks. [1]
The telecom sector continues to be at the epicenter for growth, innovation, and disruption for
virtually any industry. Mobile devices and related broadband connectivity continue to be more
and more embedded in the fabric of society today and they are key in driving the momentum
around some key trends such as video streaming, Internet of Things (IoT), and mobile payments.
Deloitte[2]
Think of telecommunications as the world's biggest machine. Strung together by complex
networks, telephones, mobile phones and internet-linked PCs, the global system touches nearly
all of us. It allows us to speak, share thoughts and do business with nearly anyone, regardless of
where in the world they might be. Telecom operating companies make all this happen.
Investopedia[1]
Insight Research[3] projects that telecommunications services revenue worldwide will grow from
$2.2 trillion in 2015 to $2.4 trillion in 2019.[4]

Contents

1 Market segmentation
o 1.1 Value chain

2 Global players

3 Societies

4 See also

5 References

Market segmentation
Of all the customer markets, residential and small business markets are the toughest. With
hundreds of players in the market, competitors rely heavily on price; success rests largely on
brand name strength and investment in efficient billing systems. The corporate market remains
the industry's favorite. Big corporate customers are concerned mostly about the quality and
reliability of their telephone calls and data delivery while being less price-sensitive than
residential customers. Multinationals, spend heavily on telecom infrastructure and premium
services like high-security private networks and videoconferencing. Network connectivity can
also be provided to other telecom companies by wholesaling circuits to heavy network users like
internet service providers and large corporations. [1]

Value chain
2015 share of revenues by segment[5]
segment
Infrastructure and platform vendors
Device vendors
Operators
Over-the-top content (OTT), content, advertising services
Retail and distribution

% share of revenues
5
20
55
10
10

Global players
Company
China Mobile
AT&T
Verizon Communications
Vodafone
Amrica Mvil
Telefnica
Telstra
Nippon Telegraph & Tel
Deutsche Telekom
Softbank

Top global telecom companies in 2013 [6]


Country
Market value ($ Bn)
China
213.8
USA
200.1
USA
137.3
UK
135.7
Mexico
70.7
Spain
67.1
Australia 58.4
Japan
58.2
Germany 48.8
Japan
47.2

Revenue
88.8
127.3
115.7
74.4
60.2
82.3
25.8
127
76.7
38.78

Profit
20.5
7.3
0.9
11.1
7.1
5.2
3.5
5.6
-7
3.8

Telecom Sector in India


Latest update: November, 2016

Wireless segment dominates the market

In March 2016, Indias telephone subscriber base reached 1,058.86 million

In March 2016, the wireless segment (97.62 per cent of total telephone subscriptions)
dominated the market, with the wireline segment accounting for an overall share of 2.4
per cent

Urban regions accounted for 57.6 per cent share in the overall telecom subscriptions in
the country, while rural areas accounted for the remaining share

Telecom subscriber base expands substantially

India is currently the second-largest telecommunication market and has the third highest
number of internet users in the world

Indias telephone subscriber base expanded at a CAGR of 19.96 per cent, reaching
1058.86 million during FY0716

In March 2016, total telephone subscription stood at 1,058.86 million, while teledensity
was at 83.36 percent

Industry
Browse:

Agriculture

Automobiles

Auto Components

Aviation

Banking

Biotechnology

Cement

Consumer Markets

Education and Training

Engineering

Financial Services

Food Industry

Gems and Jewellery

Healthcare

Infrastructure

Insurance

IT & ITeS

Manufacturing

Media and Entertainment

Oil and Gas

Pharmaceuticals

Real Estate

Research and Development

Retail

Science and Technology

Semiconductor

Related NewsMore
Last Updated: December 06, 2016

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GET NEWS ALERTS

India is so big. Maybe in 10 years, we can have a factory in every state.


Terry Gou
Founder and Chairman, Foxconn

Snapshot

Showcase

Presentation

Last Updated: November, 2016


SECTORAL REPORT | November, 2016
Introduction
India is currently the worlds second-largest telecommunications market and has registered
strong growth in the past decade and half. The Indian mobile economy is growing rapidly and
will contribute substantially to Indias Gross Domestic Product (GDP), according to report
prepared by GSM Association (GSMA) in collaboration with the Boston Consulting Group
(BCG).
The liberal and reformist policies of the Government of India have been instrumental along with
strong consumer demand in the rapid growth in the Indian telecom sector. The government has
enabled easy market access to telecom equipment and a fair and proactive regulatory framework
that has ensured availability of telecom services to consumer at affordable prices. The
deregulation of Foreign Direct Investment (FDI) norms has made the sector one of the fastest
growing and a top five employment opportunity generator in the country.
The Indian telecom sector is expected to generate four million direct and indirect jobs over the
next five years according to estimates by Randstad India. The employment opportunities are
expected to be created due to combination of governments efforts to increase penetration in rural
areas and the rapid increase in smartphone sales and rising internet usage.

International Data Corporation (IDC) predicts India to overtake US as the second-largest


smartphone market globally by 2017 and to maintain high growth rate over the next few years as
people switch to smartphones and gradually upgrade to 4G.
Market Size
Driven by strong adoption of data consumption on handheld devices, the total mobile services
market revenue in India is expected to touch US$ 37 billion in 2017, registering a Compound
Annual Growth Rate (CAGR) of 5.2 per cent between 2014 and 2017, according to research firm
IDC.
India is expected to have over 180 million smartphones by 2019, contributing around 13.5 per
cent to the global smartphone market, based on rising affordability and better availability of data
services among other factors.&
According to a report by leading research firm Market Research Store, the Indian
telecommunication services market will likely grow by 10.3 per cent year-on-year to reach US$
103.9 billion by 2020.
According to the Ericsson Mobility Report India, smartphone subscriptions in India is expected
to increase four-fold to 810 million users by 2021, while the total smartphone traffic is expected
to grow seventeen-fold to 4.2 Exabytes (EB) per month by 2021.
According to a study by GSMA, smartphones are expected to account for two out of every three
mobile connections globally by 2020 making India the fourth largest smartphone market. Total
number of Fourth-Generation (4G) enabled smartphone shipments in India stood at 13.9 million
units in the quarter ending December 2015, which was more than 50 per cent of total shipments,
thereby surpassing number of Third-Generation (3G) enabled smartphone shipments for the first
time.^ Broadband services user-base in India is expected to grow to 250 million connections by
2017.
Investment
With daily increasing subscriber base, there have been a lot of investments and developments in
the sector. The industry has attracted FDI worth US$ 18.38 billion during the period April 2000
to March 2016, according to the data released by Department of Industrial Policy and Promotion
(DIPP).
Some of the major developments in the recent past are:

LeEco, a Chinese technology company, has entered into a partnership with Compal
Technologies and invested US$ 7 million to set up manufacturing facility at Greater
Noida in order to start manufacturing Le2 smartphones in India.

Chinese telecom gear maker Huawei has set up its largest global service centre (GSC) at
Bengaluru in India, with an initial investment of Rs 136 crore (US$ 20.28 million), which

will extend its support to Huawei's domestic and international telecom carrier customers
in about 30 markets across Asia, Middle East and Africa.

Chinese smartphone maker Gionee, which currently assembles smartphones in


partnerships with contract manufacturers Foxconn and Dixon, plans to invest Rs 500
crore (US$ 74.56 million) to set up a manufacturing facility in India.

Singapore Telecommunications Limited (Singtel), the major shareholder in Bharti Airtel,


announced that it has signed an agreement with its majority owner Temasek Holdings
Private Limited to purchase a 7.39 per cent stake in Bharti Telecom Limited, the parent
company of Bharti Airtel Limited, in a deal worth US$ 659.51 million.

Axiata Digital, a subsidiary of Malaysias largest telecom firm Axiata Group Berhad, has
made its entry into Indian e-commerce market by investing Rs 100 crores (US$ 14.91
million) in Bengaluru-based StoreKing.

Chinese smartphone manufacturer OnePlus has partnered with Foxconn to start


manufacturing its products in India as part of its plan to have 90 per cent of the devices
sold in India to be locally manufactured by the end of 2017.

Government of India to make a windfall gain from sale of spectrum in 2016-17 and
achieve its fiscal deficit target of 3.5 per cent of Gross Domestic Product (GDP) for the
year.

Vodacom SA, a subsidiary of Vodafone Plc, has entered into an agreement with Tata
Communications Ltd to buy the fixed-line assets of TataComm's South African telecom
subsidiary Neotel Pty Ltd.

Reliance Communications Ltd, Indias fourth largest mobile services provider, has agreed
to acquire Sistema Shyam TeleServices Ltd (SSTL), the local unit of Russian company
Sistema JSFC, in a deal valued at Rs 4,500 crore (US$ 671.01 million), which includes
payments to the government for spectrum allotted to Sistema.

American Tower Corporation, a New York Stock Exchange-listed mobile infrastructure


firm, has acquired 51 per cent stake in telecom tower company Viom Networks in a deal
worth Rs 7,635 crore (US$ 1.13 billion).

Swedish telecom equipment maker Ericsson has announced the introduction of a new
radio system in the Indian market, which will provide the necessary infrastructure
required by mobile companies in order to provide Fifth-Generation (5G) services in
future.

Government Initiatives

The government has fast-tracked reforms in the telecom sector and continues to be proactive in
providing room for growth for telecom companies. Some of the other major initiatives taken by
the government are as follows:

The Ministry of Communications & Information Technology has launched Twitter Sewa,
an online communications platform for registration and resolution of user complaints in
the telecommunications and postal sectors.

The Telecom Regulatory Authority of India (TRAI) has released a consultation paper
which aims to offer consumers free Internet services within the net neutrality framework
and has proposed three models for free data delivery to customers without violating the
regulations.

The Government of India has liberalised the payment terms for spectrum auctions by
allowing two options of payments to telecom companies for acquiring the right to use
spectrum, which include upfront payment and payment in instalments.

The Department of Telecommunications (DoT) has amended the Unified Licence for
telecom operations which will allow sharing of active telecom infrastructure like antenna,
feeder cable and transmission systems between operators, thereby lowering the costs of
operations and leading to faster rollout of networks.

The Telecom Regulatory Authority of India (TRAI) has recommended a Public-Private


Partnership (PPP) model for BharatNet, the central governments ambitious project to set
up a broadband network in rural India, and has also envisaged central and state
governments to become the main clients in this project.

The Ministry of Skill Development and Entrepreneurship (MSDE) signed a


Memorandum of Understanding (MoU) with Department of Telecommunication (DoT) to
develop and implement National Action Plan for Skill Development in Telecom Sector,
with an objective of fulfilling skilled manpower requirement and providing employment
and entrepreneurship opportunities in the sector.

The Telecom Regulatory Authority of India (TRAI) has directed the telecom companies
or mobile operators to compensate the consumers in the event of dropped calls with a
view to reduce the increasing number of dropped calls.

Road Ahead
India will emerge as a leading player in the virtual world by having 700 million internet users of
the 4.7 billion global users by 2025, as per a Microsoft report. With the governments favourable
regulation policies and 4G services hitting the market, the Indian telecommunication sector is
expected to witness fast growth in the next few years.
Exchange Rate Used: INR 1 = US$ 0.0149 as on September 21, 2016

The telecommunications sector comprises companies that make communication possible on a


global scale whether through the phone or Internet. These companies created the infrastructure
that allows data to be sent anywhere in the world. The largest companies in the sector are
wireless operators, satellite companies, cable companies and Internet service providers.

Evolution
The telecommunications sector evolved from the telegraph, where communication took days, to
modern mobile technology, where large amounts of data can be sent in seconds. These shifts are
due to technology, and they changed how people live and do business. At one time,
telecommunications required physical wires connecting homes and businesses. In modern
society, this is changing with mobile technology and wireless technology becoming the primary
form of communication.
The sector's structure has also changed from a few large players to a more decentralized system
with decreased regulation and barriers to entry. Other than the service providers, smaller
companies in the telecommunications sector sell and service the equipment, such as routers,
switches and infrastructure, which enable this communication. For growth investors, these
companies provide the best opportunities for share price appreciation. In contrast, larger
companies tend to be havens for conservative, income-focused investors.

Segments Within the Telecommunications Sector


The major segments within the telecommunications sector are wireless communications,
communications equipment, processing systems and products, long-distance carriers, domestic
telecom services, foreign telecom services and diversified communication services. The fastest
growth area within the sector is wireless communications, as more and more communications
and computing shift to mobile devices. Looking forward, the sector's biggest challenge is to keep
up with people's demand for faster connections as they consume and create content, which
requires significant capital expenditures. Companies that can meet these needs thrive.
Read more: What is the telecommunications sector? | Investopedia
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