airtel ppt report on strategy
TRANSCRIPT
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Institute of Management Technology, Ghaziabad
REPORT ON
S
PGDM P/T [08-11], TerDEEPANKER AGRA
PRABHJYOT SINGH BH
SUSHAN RUN
PARIKSHITRAUNAQ SI
NILESH
Page 1
bmitted By:
- V, Group 8AL 08EM-014
TTI 08EM-030
GTA 08EM-048
AIN 08EM-028GH 08EM-034
AID 08EM-024
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Institute Of Management Techn
Ghaziabad
1. Introduction
2. Company History
3. Strategic Intent4. Industry Analysis
a. External Analy
i. Industry
ii. PESTEL
iii. PORTER
iv. Opportu
v. Threat
b. Internal Analysi. Strength
ii. Weakne
iii. Financial
5. Recommendations
ogy, Ghaziabad
ology
is
Analysis
MODEL
nities
iss
ses
s
Page 2
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INTRODUCTION
Bharti Enterprises is one
telecom, agri business, fina
Bharti Airtel, a group
telecommunications servic
mobile services, telemedi
always been at the forefro
with its world-class services
In the area of financial serv
offer life insurance, general
Bharti Retail, a wholly own
format consumer friendly s
Walmart, for wholesale ca
operations.
Other businesses in the gr
and FieldFresh Foods Priv
Limited to offer fresh fruits
international markets.
BHATI AIRTEL
Airtel is Indias largest inte
with a footprint in all the
been at the forefront of t
sector in the country with it
The businesses at Bharti Aibusiness units (SBUs) - M
Services, Digital TV Services
Mobile business pr
technology across 23
Airtel Telemedia Ser
in 94 cities.
ogy, Ghaziabad
of Indias leading business groups wit
cial services, retail and manufacturing.
ompany, is one of Asias leading
s with operations in India and Sri La
services and enterprise services. Bh
nt of the telecom revolution, transform
built on leading edge technologies.
ices, Bharti has been partnering with AX
insurance and asset management servic
ed subsidiary of Bharti Enterprises ope
ores, while Bharti Walmart is a B2B join
h and carry and back-end supply chain
up are Beetel for communication and
te Limited, a joint venture with Del
and vegetables, and processed food in I
grated and the first private telecom se
3 telecom circles. Bharti Airtel since its
chnology and has steered the course
s world class products and services.
tel have been structured into Four indibile Services, Airtel Telemedia Service
vides mobile & fixed wireless servic
telecom circles.
ices business offers broadband & tele
Page 3
h interests in
providers of
nka, spanning
rti Airtel has
ing the sector
A of France to
es.
ates multiple-
t venture with
management
edia devices,
Monte Pacific
ndia as well as
vices provider
inception has
f the telecom
idual strategic& Enterprise
s using GSM
hone services
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Enterprise services
customers and natio
Digital TV services pr
All these services are provstudy we will concentrate o
With 10-crore subscribers i
country mobile services
telecom company globally.
Ventures, the company cro
5-crore mark in October
company in the world. The
Targeting 20-crore subscrib
series of network augment
over one-lakh base station
network coverage across t
service management centr
rural areas by March 2010,
Airtel at present has 25 per
terms of revenue. It is only
Airtel has set a very ambiti
2-3 Years.
ogy, Ghaziabad
provide end-to-end telecom solutions
al & international long distance services
vides Direct To Home Television Service
ided under the Airtel brand. For the pn the Mobile Business
n May 2009, Airtel has become the thir
perator in the world and sixth larg
After having started its service in 1995
ssed the 7.5-crore customer mark in Au
007, making it one of the fastest gr
irst 2.5-crore subscribers were achieved
ers in the next 2-3 years, Airtel will be
tion and customer service initiatives.
sites by this year-end to set up wid
he country and establish a state-of-th
, besides setting up one-lakh Airtel ser
he said.
cent subscriber share and 30 per cent
behind China Mobile and China Unicom.
ous target of doubling the subscriber b
Page 4
to corporate
to carriers.
s
urpose of the
largest single
st integrated
as Bharti Tele-
gust 2008 and
wing telecom
in July 2006.
undertaking a
e will roll-out
r and deeper
-art customer
ice centres in
arket share in
se in the next
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Company Histo
2009
Becomes third larges
subscriber base of 10
70% stake in the Ban2006-2008
Profit crosses US $ 1
Receiver licenses for
Launch of Airtel Cal
aimed at the Indian
Strategic Partnership
2005-2006 All-India Footprint wi
Vodafone acquires 1
Becomes Indias Lar
customer base
2004
Airtel announced the l2001-2003
Joins the US $ 1 Bn re
Strategic PartnershiCompany core IT net
First private operator
2001-2002
IndiaOne, Indias fi
distance service laun
Eastern foray throug
across India
Indias first private su
IPO through India;s fi First Provate operat
Nadu and Karnataka
1999-2000
The largest Private s
Providing Cellular Ser
ogy, Ghaziabad
y
t single country mobile service provide
Crore.
ladesh business of Abu Dhabi based Wa
Bn
providing 2G & 3G mobile services in Sri
l Home Services a calling card services
iaspora
with Google for search through Mobile
h the launch of mobile services in Assa
% economic interest in the Company
est integrated private operator base
aunch of a BlackBerry Wireless Solution i
venue Club
with IBM and Ericsson for outsoork activities
to launch mobile services in J&K
st private sector national and inte
hed
h acquisition and new licenses for eig
bmarine Cable Landing station in JV wit
rst 100% book building issue
r to offer Landline services in Haryan
ector operator in India after acquiring
vices in Punjab, Karnataka and Andhra P
Page 5
by crossing a
rid Telcom
Lanka
for countries
on the total
n India
rcing of the
national long
ht new circles
Singtel
, Delhi, Tamil
JT Mobile for
radesh
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Acquired Skycell, Che
Singtel acquires stake
1997-98
The first Private tele
telephony in Madhya Incorporation of Bha
India and Bharti BT In
1995-96
Mobile Services und
in Delhi and Himacha
British Telecom Plc (B
ogy, Ghaziabad
nnai and expands South Indian Footprin
in Company
com service provider to obtain a licen
Pradeshrti BT VSAT Ltd. for providing VSAT s
ternet Ltd.
r the brand name Airtel launched for
l Pradesh
T) acquires stake in Company
Page 6
e for landline
lutions across
the forst time
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Strategic
Promise:
We at Airtel always thin
customers and how we wa
out of our way to delight th
Objectives of th
Airtel has set an ambitiou
years. Through this study
Weaknesses, Opportunities
target.
ogy, Ghaziabad
in fresh and innovative ways about th
nt them to feel. We deliver what we p
e customer with a little bit more
e Study
s target of doubling the subscriber ba
we will understand the strategic posi
and threats that will play a role in ac
Page 7
Intent
needs of our
romise and go
e in next 2-3
ion, Strength,
ieving Airtels
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External Analys
Indian Telecom SectorThe Indian telecom Sector
to 525 Million telecom c
largest market, second to
lowest in the world.
The India population stand
relatively large young popu
current Telecom penetrati
is one of the lowest in the
well as increased penetra
Broadband subscribers als
again the lowest in the w
broadband subscribers by 2
ogy, Ghaziabad
s
nalysisas seen a phenomenal growth and curr
stomers. Indian telecom market is
only China. However the penetration
s close to 1.2 billion with increasing ur
lation, which is a major driver for telec
n stands at 44.87% ie 525.65 mn telec
orld. The growth will come from expan
tion, giving dual advantage. Growth i
as the penetration is just 0.63% 7.4
orld. Government has set a target to
010.
Page 8
ntly has close
orlds second
is one of the
anization and
m sector. The
m subs which
ing market as
s expected in
mn, which is
reach 20 mn
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Indias Competitive AdvThe Porters Diamond Mod
Mobile Sector. All Five fact
Rivalry; Factor Conditions
Conditions are Favorable
ogy, Ghaziabad
antage in Mobile Sectorel below shows the Competitive Advan
rs namely Government; Firms Strategy,
; Related and Supporting Industries
Page 9
tage of Indian
Structure and
and Demand
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PESTEL Analysis
Political and Regulatory Iss
Political factors are how aeconomy. The unpreceden
well supported by the polic
January 2010
Proposal to Waiver o
2009
Regulatory on Qualit
Interconnection Regu
Interconnection Usag Resale of Internation
GoM has been consti
2008
Guidelines for 3G Spe
DoT issues 121 Letter
Guidelines for Mobile
DoT allows active infr
2007
Dual Technology Allo2006
Number portability p
2005
An attempt to boost
FDI limit was raised f
2004
Intra-circle merger g
Broadband Policy 20
by 20102003
Calling Party Pays (CP
Unified Access Licens
Reference interconn
2002
ogy, Ghaziabad
ues
nd to what degree a government inteted growth of the Indian telecom indu
reforms. Some of the key Highlights ar
License fees in Rural Areas
of Services for Telecom Sector
lation for Broadcasting Sector
e Charge Regime- Charges have been ral Private Leased Circuit (IPLC)
itutes to decide the pricing of 3G Spectr
ctrum Auction issued. Foreign Players al
s of Intent (LoIs) for UAS licences
Number Portability Services
astructure sharing
ed
roposed
ural telephony was made
om 49 to 74 per cent
idelines were established
4 was formulated to target 20 million
P) implemented
ing (UAL) regime established
ct order issued
Page 10
rvenes in thestry has been
given below:
ionalized
m
lowed to bid.
internet users
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ILD services unlocke
Go-ahead to CDMA t
Initiation of internet
Reduction of license
2001 Additional licenses in
Reduction of license
Limited launch of CD
Reduction of GSM ce
Widening of service
Initiation of 3rd and
.
The above table from TRAI
services and hence on the
charges in India are among
the licensing fees. clearly, t
develop and provide qualit
ogy, Ghaziabad
to competition
echnology
elephony in India
ees
basic and cellular services
ee
MA WLL (M)
llular tariff
overage by the then players
th GSM operator networks
shows the impact of various regulations
subscriber base between 1998 and 20
t the lowest in the World due to gradu
he above regulations have helped the S
service at affordable prices.
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on the cost of
7. The Mobile
al reduction in
ector to grow,
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ECONOMIC
Economic factors include e
the inflation rate. These fa
and make decisions.It is udecent levels of Inflation an
which is fuelled by the gr
telecom is said to contribu
telecom will continue to
Economic factors in India l
Growth of the Mobile indus
SOCIAL
Social factors include th
distribution, career attitude
product or a service. Firstl
lowest mobile penetration
Secondly, 35 % population i
base. Thirdly, Urbanizatio
connectivity. This also hin
impetus for Growth.
Clearly the Social Scenario i
ogy, Ghaziabad
conomic growth, interest rates, excha
tors have major impacts on how busi
disputed that India is a long term grod GDP. India is still posting a robust gro
wth in the services and manufacturin
e to the growth of Economy. And in I
lay an important role. Hence we for
ike Growing GDP and disposable inco
try.
cultural aspects, population grow
s etc.. Trends in social factors affect the
y, India has favorable Social factors wi
in the second most populous country
s below 14 yrs of age which is a huge fu
is increasing leading to an increase
s that growth in the rural industry c
also in favor of the industry.
Page 12
nge rates and
esses operate
th Story withth of 8 % GDP
g sectors. The
dias case the
esee that the
e will help in
th rate, age
demand for a
th one of the
in the world.
ture customer
demand for
an be a good
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TECHNOLOGICAL
Technological factors inclu
as R&D activity, automation
change. They can determinand influence outsourcing
costs, quality, and lead to in
The Indian telecom sect
companies in various areas,
distance calls, value added
The above diagram shows
in the Mobile Industry.
3G Services The Ne
In the conducive bus
services. The global rservices.India expect
market is well pois
categories such as sp
Worldwide Interope
Digital Divide
ogy, Ghaziabad
de technological and environmental
, technology incentives and the rate o
barriers to entry, minimum efficient pecisions. Furthermore, technological s
novation.
r offers unprecedented opportunitie
such as 3G, virtual private network, int
ervices, etc.
arious Technologies that will provide Gr
Buzz Word
iness environment, India Inc. awaits th
evenue for 3G is 60 per cent higher thas to replicate its 2G growth in 3G servi
d to leverage the 3G service offerin
rts, games and music.
ability for Microwave Access (WiMAX)
Page 13
aspects, such
technological
oduction levelifts can affect
s for foreign
rnational long
owth Avenues
rollout of 3G
that of otheres. The Indian
gs in content
Bridge the
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Infrastructure Sharin
Optimizing Costs In t
will improve coverag
Active Infrastructure
Antenna systems,infrastructure with s
Value Added Service
Rolling out of adva
advancement and he
Porters Five Forces Mo"Porter's five forces" is a
strategy development de
School in 1979. It useseconomics to derive five f
therefore attractiveness of
overall industry profitabil
combination of forces acts
industry would be one appr
ogy, Ghaziabad
e midst of the telecom boom, common
and quality of calls and reduce costs.
sharing has started in 2008 which ena
ables and transmission systems, Bitches and networking).
VAS)
nced VAS has been possible due to
nce creating higher value for Buyers and
elframework for the industry analysis
veloped by Michael E. Porter of Har
concepts developing Industrial Orgaorces that determine the competitive
a market. Attractiveness in this contex
ity. An "unattractive" industry is on
to drive down overall profitability. A ve
oaching "pure competition".
Page 14
infrastructure
les sharing of
ackhaul (core
Technological
Sellers.
and business
ard Business
nization (IO)intensity and
refers to the
e where the
y unattractive
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We will study the Above 5 F
Competitive Rivalry
The Competitive Rivalry in
players enter the industry. The Competition is
customer brings wit
competition.
Here we shall discuss two la
1. Bharat Sanchar Niga
the seventh-largest t
wide range of servi
mobile, internet, broBSNL is the largest
services helping it to
areas.
Rural Penetration
BSNL is playing a lead
rural areas. It has be
by pioneering its serv
India, except Delhi a
state-owned player.Low Cost Strategy
BSNL is a low-cost
helped BSNL in penet
2. Reliance Communica
Reliance Communica
about a digital revolu
vast population with
Reliance Infocom,
postcards, built a 60,the entire country. R
its eight circle footpri
world mobile portal.
1X network.
Integrated Service
ogy, Ghaziabad
orces model for Mobile Sector in the Ind
India is high and will continue to in
price and quality based. The entry
h it a new set of price cut and he
rge Competitors of Airtel and their Strat
Ltd. BSNL, a state-owned service prov
elecommunication company in the wo
ces in India, such as wireline, CDMA
dband, carrier, MPLS-VPN, VSAT, VoIP, Ioperator in basic services in India wi
establish its presence as the largest op
ership role in developing the telecom in
en successful in increasing its cellular s
ices in the rural terrain. Its services cov
nd Mumbai, which are covered by M
ervice provider of many services. Thi
rating the market.
tions
ions, previously known as Reliance Inf
tion in the Indian telecom industry by pr
affordable means of information and c
ith the aim of making mobile calls
000-kilometre-long fibre optic backboneliance currently offers its services in 3
nts; it also initiated mobile data services
This portal leverages the data capabilit
Page 15
ia.
rease as new
f every new
ce intensifies
egies:
ider in India, is
rld. It offers a
mobile, GSM
N, etc.th its cellular
erator in rural
frastructure in
bscriber base
r the whole of
NL, the other
strategy has
com, brought
oviding Indias
mmunication.
cheaper than
, crisscrossing0 towns with
through its R-
of the CDMA
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From the beginni
communication servi
greater number of h
Nokia.
Large Distribution NReliance has create
communication stor
expanding its reach a
electronic recharge o
Other Competitors being Id
Competitive Rivalry is high i
ogy, Ghaziabad
ng, Reliance believed in providin
es to its customers. The company claim
ndsets compared to those sold by the
tworkd the largest chain of digital enter
es Reliance Web World. The co
ggressively through retail outlets, sales a
utlets.
a, MTNL, Vodafone, Telenor, Spice, Ora
n the Mobile Sector
Page 16
g integrated
s that it sells a
arket leader,
tainment and
pany is also
gents and
nge
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Supplier Power
The supplies in Mobile se
Service providers and the H
Network Equipments: Ther
Nokia Siemens, Ericsson, H
suppliers the power of thes
of the operators if supplies
Tower Providers: Though t
Towers but still the covera
bargaining power of Tower
Handset Suppliers: Nokia,
players. The bargaining p
competing amongst thems
Overall we can make out
Industry
Buyer Power
Switching cost is lo
which will lead to fur
services are not met.
The Voice and messa
the competition no
similar across the op
The customers are
introduction of pay p
Buyers are wanting
Hence the companies have
Satisfaction.
ogy, Ghaziabad
ctors primarily comprise of Switch Su
andset providers.
e are limited Network Equipment provid
awei. Due to the increase in demand an
suppliers are high and may impact the
are not smooth.
he new sharing technology has helped
e remains a problem due to few Towe
providers if High.
Samsung, LG, Sony, iPhone and nu
wer of Handset Suppliers is less as
lves
that the key supplies powers are hi
. Government is also introducing Num
her switching between the operators if
ge based services are moving toward a
depends mostly on the prices as th
rators.
emanding more value for money whi
r second plans.
ore and more value added service at ch
to now focus on Customer Delight and
Page 17
pliers, Tower
ers like ZTE
d limited
growth plan
in utilizing the
r provider The
merous other
they are also
h for Mobile
ber portability
the prices and
commodity as
e services are
ch has lead ti
aper prices
not Customer
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Threat of Substitutes
The VOIP is getting p
Video Conferencing i
CDMA is another thr
The threat of substitutes is
similar quality and service
Potential for New Entrants
The government is al
Many mobile players
NLD/ILD operations.
The sharing businessdown the capital req
The potential for new entra
The above External an
Opportunities and Threats f
Opportunities: Exponentially Growin
The Rural Landscape
fees in rural areas.
which is just 15 %
provides a massive
Rural Household co
Rural segment is curr
New Technologies an
the proliferation andevolve their infrastru
from the base stati
auctions is due w
Convergence will b
services, using IP as t
ogy, Ghaziabad
pular for Eg. Skype, Vonage etc.
also getting popular
at to GSM players
high as the alternate modes are much
o issuing new licenses in the current cir
are also entering the enterprise busines
has reduced the capital requirement anirement for new player.
nt is also high.
Macro-Environment Analysis pro
aced by Airtel which can be summarize
g Market both in size and usage
: The Regulators have proposed the wa
Clubbing the regulators policy with l
provides immense opportunity to Airt
opportunity for Airtel to expand its c
prise of 70 % of Indias Population.
ently 8-10 % per month
d Paradigms: As growth in data traffic a
adoption of web services the telecomcture through their access transmission
ns to the core switching network.
ich provides a big opportunity to
vital phenomenon to support all n
e strategic technology
Page 18
cheaper with
les.
s by launching
thus bringing
ides us the
as below:
iver of license
w teledensity
el. Rural area
stomer base.
he growth in
celerates with
operators willinfrastructure
G and BWA
he company.
twork and IT
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Strong Strategic Part
with Singtel, which h
due to technology tr
and technology par
solutions. Value Added Service
operators. Airtel ha
exploited further for
Threat
Increased Competiti
wireless market in
players in to newerCDMA technology.
national long dista
pressure of marketin
Substitutes like VOI
threat to internation
ogy, Ghaziabad
nerships for Technology: Airtel has str
s helped in providing quality services t
nsfer. AIrtel also has strong alliances w
ners who also drive development a
s: These services bring both Value to
special services and the opportunit
better profitability.
n may reduce market share and /or
the year 2008-09 saw the entry of
circles along with operators migratingThe market also saw entry of inte
ce operators. This has lead to tarif
g expenditure in the coming year.
for eg Skype, Vonage etc. these ser
al long distance calls.
Page 19
ategic alliance
the customer
ith equipment
nd innovative
ustomers and
can still be
Revenue: The
any existing
to GSM fromrnational and
erosion and
ices are a big
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Internal Analysi
Asias leading providers of t
licensed jurisdictions (also kServed an aggregate of 1
whom 110,511,416 subscr
Services either for voice an
DSL. The largest wireless se
customers as of Septemb
solutions to our enterpris
connectivity both nationall
All these services are rende
The company also deploys,to telecom operations und
owns 42% of Indus Towers
top providers of passive inf
Strength:
3rd Largest Wireless o
Largest private integr
6th Largest integrated Largest wireless oper
Largest private fixed l
Largest telecom com
Weakness:
An often cited origin
Sunil Bharti Mittal ov
experience of how
start-up business had
Until recently Airtel
strength of some of
important if your co
The fact that the Air
could signal the lack
ogy, Ghaziabad
s
elecommunication services with presen
nown as Telecom Circles) in India, and i3,439,670 customers as of Septembe
ibe to GSM services and 2,928,254
/or broadband access delivered throug
rvice provider in the country, based on
er 30, 2009. Offer an integrated sui
customers, in addition to providing
and internationally. Also offer DTH and
red under a unified brand Airtel.
owns and manages passive infrastructr its subsidiary Bharti Infratel Limited.
Limited. Bharti Infratel and Indus Towe
astructure services in India.
perator in the world
ated telecom company in India
telecom operator in the worldator in India
ine operator in India
any listed on Indian Stock Exchanges
l weakness is that when the business
er 15 years ago, the business has little
cellular telephone system actually w
to outsource to industry experts in the
did not own its own towers, which w
its competitors such as Hutchison Ess
pany wishes to provide wide coverage
el has not pulled off a deal with Sout
of any real emerging market investme
Page 20
e in all the 22
Srilanka.30, 2009; of
se Telemedia
he number of
e of telecom
long distance
IPTV Services.
ure pertainingBharti Infratel
rs are the two
as started by
nowledge and
orked. So the
ield.
s a particular
r. Towers are
ationally.
Africa's MTN
t opportunity
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for the business once
Business Units
1. Mobile/Wireless Servic
India and Sri Lanka. Weon the number of cust
September 30,2009 and
as on September 30, 2
added services through
1,362,464 outlets. Our n
non-census towns and
the countrys populati
launches in the world wi
months of launch. AirtelSri Lanka. The company
created a wide distribut
retailers across the coun
Product Portfolio
ogy, Ghaziabad
the Indian market has become mature.
s: We offer mobile services using GSM
re the largest wireless service providermers. We had 110,511,416 mobile cu
customer market share of 23.5% of wi
09.We offer post-paid, pre-paid, roa
our extensive sales and distribution ch
etwork is present in 5,072 census towns
illages in India, thus covering approxi
n. Airtel Sri Lanka is amongst the fa
th a base of over 1 million customers wi
already has presence in 16 administrathas launched 3.5G services in the major
ion network comprising of 23 distribut
try.
Page 21
technology in
in India, basedtomers as on
reless market,
ing and value
nnel covering
and 429,723
ately 83% of
stest growing
hin six
ive districts oftowns and has
rs and 15,000
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2. Telemedia Services: We
(fixed line) in 95 cities w
SMB segment. We had
which 40.5% were subs
offerings in this segmen
local, national and inter
Broadband Internet acc
ogy, Ghaziabad
provide broadband (DSL), data and tele
ith growing focus on the various data so
2,928,254 customers as on Septembe
cribing to broadband/ internet services
include installation of fixed-line teleph
ational long distance voice connectivity
ss through DSL.
Page 23
hone services
lutions for the
r 30, 2009 of
? Our product
nes providing
and
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Product Portfolio
Strategies
ogy, Ghaziabad Page 24
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3. Enterprise Services: E
communications service
We provide long distanc
customers. We own a st
network infrastructure eIndia and connecting
infrastructure comprise
and SDH POPs and over
India reach in 301 LDCA
Our international infrast
system connecting Chen
submarine cable syste
Singapore, and investm
across transatlantic ansystems such as Asia A
Europe (IMEWE), Unity
Submarine System (EAS
We have also built terr
such as Nepal and Bhut
large corporates. We
telecommunication nee
suite of communication
managed services. We sunique requirements
Manufacturing and Dis
PSUs and Retail amo
International MPLS Servi
Domestic and Internati
Audio and Video confer
Professional Services,
Access Services, Fixed
solutions, Domestic andenablement solutions.
ogy, Ghaziabad
nterprise Services is Indias leading
to large Enterprise and Carrier custom
wholesale voice and data services to o
ate of the art national and internationa
nabling us to provide connectivity servicIndia to the world. Our national
of 113,326 Rkms of optical fibre, ov
1,500 POIs with the local exchanges, p
s and 1275 SDCAs.
ructure includes ownership of the i2i su
nai to Singapore, consortium ownershi
connecting Chennai and Mumbai t
nt in a number of diverse submarine
transpacific routes. Our investmentserica Gateway (AAG), India Middle Eas
North, EIG (Europe India Gateway) a
y) will expand our global network acros
estrial express connectivity to neighbo
n. We deliver end to end telecom solu
serve as the single point of co
s for corporate customers in India by
services across data, voice, network in
ecialize in providing customized solutioof different industry verticals; B
ribution, Media, Education, Telecom,
g others. These services include;
ces, Internet Services, Remote Access V
nal Private Leased Circuits, Satellite s
encing, Datacenter Services, Network I
anaged Network Services, Terrestrial
Line and Converged Voice Services,
International Toll free services and Mo
Page 25
provider of
rs.
er 400 carrier
l long distance
es both withinlong distance
r 1,500 MPLS
roviding a pan
bmarine cable
of the SMW4
Europe and
cable systems
in new cableand Western
nd East Africa
5 Continents.
ring countries
ions to Indias
ntact for all
roviding a full
tegration, and
s to addressSI, IT, ITeS,
Government,
omestic and
N Services,
rvices (VSAT),
tegration and
and Wireless
ontact centre
bile enterprise
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4. Digital TV Services: Airt
is available through m
Centres in over 5,000 to
ogy, Ghaziabad
l Digital TV, with a base of over 1.3 milli
re than 54,000 retail points and Airt
ns and thousands of villages across the
Page 26
on customers,
l Relationship
country.
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5. Passive Infrastructure S
services on a non-discri
Infratel deploys, owns
India. Infratel also holds
Bharti Infratel, Vodafoncircles common with Inf
29,112 towers in 11 circl
the right of use has bee
Indus Towers has a po
right of use.
ogy, Ghaziabad
ervices: Bharti Infratel provides passive
inatory basis to all telecom operators i
and manages passive infrastructure in
42% share in Indus Towers (a Joint Ve
e and Idea Cellular). Indus operates iratel, 12 circles on exclusive basis). Bha
les, excluding the 35,066 towers in 12 ci
n assigned to Indus with effect from Ja
tfolio of 100,728 towers including the
Page 27
infrastructure
n India. Bharti
11 circles of
ture between
16 circles (4rti Infratel has
rcles for which
nuary 1, 2009.
towers under
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Financials
The consolidated To
2009 of Rs.19,787 cr
15% on a year on yea EBITDA margins impr
of the previous year.
The Net Income for t
crore, a growth of 19
The strong Free Cas
Net Debt to Rs.4,211
all-time low of 0.12.
The consolidated To
2009 of Rs. 9,846 cro The Company contin
secure cost efficienci
EBITDA at Rs. 4,142
margins improved to
previous year.
Bharti had 113.4 mn
the total customer b
maintained its lead
wireless subscribers
Highlights for the Half Year
Total Revenues of
EBITDA of Rs.8,29
EBITDA margin at
Cash Profit of Rs.
Net Income of Rs.
Highlights for the Second
Overall customer
Net addition of 82
Market leader w
subscribers at 23.
Total Revenues of
ogy, Ghaziabad
al Revenues for the half year ended
re grew by 13% and EBITDA of Rs. 8,293
r basis.oved to 41.9% from 41.3% in the corres
he half year ended September 30, 200
over last year.
Flow of Rs. 2,617 crore resulted in th
crore, with the Net Debt to Equity rat
tal Revenues for the quarter ended
re grew by 9%.ued to leverage its scale and vendor p
s, leading to improved margins.
crore grew by 12% on a year on year
42.1% from 41.0% in the correspondin
customers, as on September 30, 2009,
se of 42% over the corresponding perio
rship position through market shar
t 23.5%, as on September 30, 2009.
ended September 30, 2009
Rs. 19,787 crore (up 13% Y-o-Y).
crore (up 15% Y-o-Y).
1.9% (prior year: 41.3%)
,511 crore (up 32% Y-o-Y).
4,838 crore (up 19% Y-o-Y).
uarter ended September 30, 2009
ase at 11.34 crore
.44 lakh customers in a single quarter.
ith a customer market share of all
%.
Rs. 9,846 crore (up 9% Y-o-Y).
Page 28
eptember 30,
crore grew by
onding period
was Rs.4,838
e reduction of
io reaching an
eptember 30,
artnerships to
basis. EBITDA
period of the
an increase in
last year and
of all India
India wireless
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EBITDA of Rs. 4,14
EBITDA margin at
Cash Profit of Rs.
Net Income of Rs.
ogy, Ghaziabad
2 crore (up 12% Y-o-Y).
2.1% (prior year: 41.0%)
,099 crore (up 31% Y-o-Y).
2,321 crore (up 13% Y-o-Y).
Page 29
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RECOMMENDA
After the complete anal
recommendations which ar
PRICING
Depending on the market
service providers and also t
mechanism (either at centr
IMPROVEMENT IN TECHN
Airtel should immediately s
switches. This will improv
simultaneous integration w
the transmission towers sh
ESTABLISHMENT OF DISTRI
Airtel should establish wid
the competitors. The distr
available at convenient loca
UNTAPPED RURAL MARKE
Large part of Indian rural
bring that area under mobil
IONS
sis of entire STUDY we put forw
as follows:
onditions / competition from cellular
o suit local conditions, there should be
l or local level).
LOGY
hift to third generation switches by repl
the quality of service to desired lev
ith the nationwide network. The special
uld be increased to avoid no signal poc
BUTION CHANNELS
spread and conspicuous distribution to
ibution network shall make the produ
tions
arket is still untapped therefore Airtel
ity.
rd a set of
r WLL-mobile
lexible pricing
lacing its c-dot
l and provide
distribution of
kets
match that of
ct visible and
is required to