15114376 business-model-of-airtel

VALUE PROPOSITIONFOR YOU• Mobile• Home Phones• Broadband and Internet• BlackBerry• Email on the go• Calling Cards• Wireless Network• Digital TV

FOR YOUR BUSINESS

• Data and IP solutions• Voice Solutions• Conferencing

AIRTEL 2

Suppliers Bargaining Power

6GROUP 7

Untapped Potential

7

225.21206

140.398.4

7653

19.9

5.17.0

9.112.8

18.3

0

50

100

150

200

250

2002–03 2003–04 2004–05 2005–06 2006–07 2007–08 (asof June2007)

Sub

scrib

ers

(in m

illion

)

0

4

8

12

16

20

24

Tel

eden

sity

(in

per

cent

)

Telecom Subscriber Base Teledensity

Large number of additions in telecom subscribers

Low teledensity (depicting large untapped potential)

TelecomAdvantage

CAGR 40.4%

-- Rapid Urbanization -- Rising Income level

Post Paid Connection - For Premium Segment

Pre-Paid Connection - For Middle income Segments

32 k Sim - For Large No. of Contacts – Mainly For Business Sector.

Low Priced and Youth Oriented schemes (e.g. Campus pack, Student pack)

Promotion In Regional Languages to Tap Rural Market

Value Added Services (eg. Callertune etc.) – Youth Oriented

Connection with Blackberry and other business customer oriented services.

Target Customers

Focusing on Business Sector

• Data IP Solutions• Conferencing• Voice Solutions

Want to grab the potential of market of business sector by these services.

11

• Strengths• Largest Telecom Player

in India - ~80Mn, 22.6%• Strategic Alliance with

other stakeholders in Bharti Airtel include Sony-Ericsson, Nokia - and Sing Tel

• Pan India Presence• Strong Financials

Strategy

• Airtel partnered with leading players in telecommunication players across the globe.

• It has managed to work with the best of domain specialists globally and emerge as a world class entity.

• Partnerships include operational contracts with marquee vendors and strategic investors ranging from private equity investors to global telecom giants.

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.

Future

• Customer service and experience• Capture home and SMB• Robust leadership pipeline to support growth

Where is the Recession?

• Customer base – 6.4 crore• Market share – 23.8% as against 22.4%• Total revenues – Rs. 27,025 cr up 46% YOY

basis• Net Income – Rs. 6701 crores up 57% YOY• Cash Profit Rs. 11,137 crores up 52% YOY

Just in

Airtel - Strategy

MANTRA : Focus on Core Competencies and Outsource the rest!

Core Competencies

Product Innovati

on

VAS

Marketing and

Branding

Pricing

Revenue Model

THANK YOU for your attention