Umang Jain VS Kanchanamala Tarunima Bharadwaj Amit Goyal Ankit Jain Akshit Patel

BIMHRD MGT 1 ,2011-13

Flow of presentation

About Bharti Airtel Owner and management Services offered New initiatives in services Financial snapshots Indian telecom sector Telecom ecosystem Porters five force model Swot Analysis Strategies Recent events Question answer round

Bharti Airtel Limited

Registered & Corporate Office

Bharti Airtel Limited, Bharti Crescent, 1, Nelson Mandela Road, Vasant Kunj, Phase II, New Delhi 110 070, India Website http://www.airtel.com Listed During the year, there was no change in the authorised, issued,subscribed and paid-up equity share capital of the Company which stood at `Rs 18,987,650,480 divided into Rs.3,797,530,096 equity shares of ` 5 each as at March 31, 2011.

Owner and Management

Board of directors: Mr. Sunil Bharti Mittal Chairman & Managing Director Mr. Manoj Kohli CEO (International) & Joint Managing Director Mr. Sanjay Kapoor CEO (India & South Asia) The Company won the 2010 Gallup Great Workplace Award once again and featured amongst the top 10 companies in Business Today Best Company to Work for survey. The great place to work study rated Airtel amongst Top 4 Large companies. The Outlook Business - Aon Hewitt survey rated Airtel amongst the Top 5 companies in India.

Services offered
Wireless Services
2G/3G Rural Market

Enterprise Services Carrier Corporate Passive

Telemedia Services Fixed Line Broadband DTH

Infrastructure Bharti Infratel Indus Tower

New services initiatives in 201011

3G Services in 9 of 13 airtel voice blog,

circles with 3G spectrum airtel money - Indias first mobile wallet service by a telecom operator airtel call manager, a service that enables a customer to keep his/her callers informed

worlds first voice blogging service airtel world SIM for international travellers Live Aarti on mobile LearnNext an eLearning website for the Companys broadband users

 IPTV services in

Global Data Services

Bangalore, the 2nd city after Delhi airtel broadband TV, allows the broadband customers to watch live TV on their computers or laptops Unified Service Management Centre (uSMC), i-Care was deployed across all countries of operation

in Thailand and Malaysia Indias first High Definition (HD) box with Dolby digital plus offering 7.1 MAMO (My Airtel My Offer) is Africa's first marketing tool offering segmented and personalised offers to both active and inactive customers.

Financials Snapshot

Financial Snapshots

Indian Telecom Sector

Financial year 2011 saw the continuance of

strong customer growth for the Indian telecom market, which witnessed a 36% increase in its customer base during the 12-month period.
While wireless customers decreased by 6% the

growth of telecom sector was fuelled by the wireless segment. The wireless segment crossed the 800 Mn customer mark with 812 Mn customers as at end of March 31, 2011.

 Growth in broadband services has been very low

with 12 Mn broadband customers representing a broadband penetration of just 1% With the advent of 3g services in India , Telecom sector is all set to witness a new wave of mobile applications ushering the growth of data services including internet browsing, entertainment services,application stores, video calling, enterprise services, m-Heath,m-Education, m-Commerce, egovernance, etc. This is expectedto provide the trigger for the next phase of growth of the telecomindustry.

Telecom Ecosystem
Indian Telecom Industry Framework
Indian Government Bodies
Independent Bodies

They formulate various policies and pass laws to regulate the telecom industry in India.
Wireless Planning and Coordination (WPC)
Department of Telecommunications

Handles spectrum allocation and management

They undertake various research activities and monitor the quality of service provided in the Indian telecom industry. They also provide various recommendations to improve the status of telecom operations in India. Telecom Regulatory Authority of India (TRAI)

DoT Licensee and frequency management for telecom

Exclusive policy making body of DoT

Independent regulatory body

Telecom Commission
Group on Telecom and IT (GoT-IT)

Telecom Disputes Settlement and Appellate Tribunal (TDSAT)

Telecom disputes settlement body

Handles ad hoc issues of the telecom industry

Porters 5 Forces
Customer Bargaining Power

Threat of New Entrants

Threat from Competition

Threat of Substitutes

Supplier Bargaining Power

1. Threat from Competition

Wireless Market Top 4 garnering 75% market share

HIGH

2. Customer Bargaining Power

Lack of differentiation among Service
HIGH

Providers
Cut throat Competition

Low Switching Costs

Number Portability will have Ve Impact

Businesses & Consumers

3. Suppliers Bargaining Power

LOW

4. Threat of Substitutes
Landline CDMA Video Conferencing VOIP - Skype, Gtalk, Yahoo Messenger e-Mail & Social Networking Websites
BROADBAND SERVICES
DIMINISHING MARKET HIGH

5. Threat of New Entrants

Huge License Fees to be paid upfront & High gestation

period
Spectrum Availability & Regulatory Issues Infrastructure Setup Cost - High Rapidly changing technology
LOW

SWOT
Strengths
Largest Telecom

Weakness
Outsourcing of Core

Systems Player in India Lack of emerging ~80Mn, 22.6% market investment Strategic Alliance with opportunity other stakeholders in Bharti Airtel include Sony-Ericsson, Nokia - and Sing Tel Pan India Presence Strong Financials
Source: CMIE Report NOV 08

SWOT
Opportunities
Bharti Infratel Cutting

Threats
India centric Major

Down cost in Rural area Match Box Strategy Scale of Penetration Current Tele-Density rural teledensity still at 33.8%; Low Broadband Penetration, Rural Telephoney . In Africa, the mobile penetration level across most of the countries of operation is very low.

revenues from India Falling ARPU & AMOU Intense Competition & Shortage of Bandwidth Regulatory Environment Increased

Airtel Strategy
MANTRA : Focus on Core Competencies and Outsource the rest!
Product Innovation

Pricing

Core Competencies

VAS

Marketing and Branding

Operational Strategies.
Higher emphasis on ARPU/min stark contrast

with other operators who concentrate on ARPU only. Aim to become a one stop shop for all telecommunication services under the Bharti umbrella. Exploring opportunities in international markets. Hived off tower infrastructure into a separate entity.

Future Strategies
Translate its expertise in Indian markets to other

emerging economies. This could call for acquisitions globally. Technology leadership is a must Airtel must ensure that its reliance on GSM technology does not render it obsolete. Indian market inspite of being the worlds largest is still not matured. Opportunities abound in the hinterland which must be exploited.

Recent events
Mobile Number Portability (MNP):

MNP was launched on a pan India basis on January 20,2011. Sri Lanka, Bangladesh and Africa offer exciting potential for Airtel and the Company is using its experience in the Indian telecom market to build a low cost business model for these markets as well. Airtel became Indias first online self care service for pre paid mobile customers. It has outsourced all its advertising ,inventory

References
Bharti Airtel, Annual Report -2011

Investors presentation, Bharti Airtel Limited,

November 2011 Capitaline Database http://capitaline.com Indian Telecommunication Sector - August 2007, IBEF Report

THANK YOU !!