business strategy of airtel

8/13/2019 Business Strategy of Airtel

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BUSINESS STRATEGYOF

AIRTE

L

Submitted to: S u b mi t te d b y:


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IN D E

X

1. IndustryOverview---------------------------------------------------------------------------2

2. Industry toAirtel-----------------------------------------------------------------------------5

3. THE PESTELAAL!SIS-----------------------------------------------------------------------"

#. PO$TE$%S &I'E &O$(ESAAL!SIS-------------------------------------------------------13

5. S)OT

Analysis--------------------------------------------------------------------------------15*. +(,atri------------------------------------------------------------------------------------1*

". Anso//atri----------------------------------------------------------------------------------1"

0. SE$'I(E ,APAAL!SIS---------------------------------------------------------------------1

. TO)S AT$IAAL!SIS------------------------------------------------------------------2*

1.4ey Areas tat di//erentiateAirtel------------------------------------------------------2"

11.A$4ET 6E'ELOPET I A&$I(A A6 A&TE$E&&E(T--------------------------31

12.THE P$O+LES )ITH +HA$TIAI$TEL--------------------------------------------------33

13.ST$ATE,! &O$ PEET$ATIO I $7$ALA$4ET----------------------------------35

1#.$E(ET6E'ELOPETS-------------------------------------------------------------------3"

15.$e/eren8es-------------------------------------------------------------------------------------3


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All India Assam Bihar

Madhya Pradesh

J&K UP Odisha

Northeast Rajasthan

Andhra Pradesh est Ben!al

"aryana

#ujarat Maharashtra Karnata$a

Kerala Punjab

"ima%hal Pradesh

amil Nadu

'elhi

()*+,

-,*./

-,*0.

++*++

+(*(0.1*-,

.+*,(

.,*.)

(-*0)

,0*/)

,0*/+

)0*02

)1*(-

).*)(),*-)02,*()

02)*(0001*(2

00)*2+

1/,*.2

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I NDUSTRY OVERVIEW

1. Introducti on

he Indian tele%ommuni%ation industry is one o3 the lar!est & 3astest !ro4in! in the 4orld*#o5ernment re!ulatory 3rame4or$ and 6oli%ies im6lemented by ele%om Re!ulatory Authority o3 India

7RAI8 ha5e 6ro5ided a %ondu%i5e en5ironment 3or ser5i%e 6ro5iders* his has in%reased the %om6etition in

the se%tor9 4hile enhan%in! the a%%essibility o3 tele%ommuni%ation ser5i%es at a33ordable tari33s to the

%onsumers* In the last t4o de%ades9 the Indian ele%om Se%tor and mobile tele6hony in 6arti%ular has %au!ht

the ima!ination o3 India by re5olutioniin! the 4ay 4e %ommuni%ate9 share in3ormation; and throu!h its

sta!!erin! !ro4th hel6ed millions stay %onne%ted* his !ro4th has %ome at si!ni3i%ant and !ro4in! loss

to the state eindu%ed de%line in tari33s a%tin! as %atalysts 3or the !ro4th in subs%riberbase* he !ro4th story and the 6otential ha5e also ser5ed to attra%t ne4er 6layers in the industry9 4ith the

result that the intensity o3 %om6etition has $e6t in%reasin!* he se%tor edensity 5aries a%ross %ir%les and there is si!ni3i%ant urban>rural di5ide*


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he 4ireless se!ment %an broadly %lassi3ied into t4o9 #SM and @'MA se!ments based on the underlyin!

te%hnolo!y* he #SM se!ment holds the majority o3 subs%ribers 4ith (,+*)( million at the end o3 'e% 1200*

he remainin! 02(*,, million subs%ribers use @'MA based ser5i%es* hile the #SM se!ment is seein! a

%onsistent in%rease in the number o3 subs%ribers9 the @'MA se!ment is seein! a redu%tion* he @'MA

4ireless se!ment sa4 a de%rease 3rom 001*-1 million at end o3 Se6t 1200 to 02(*,, million at the end o3 'e%

1200* In %ontrast the 3i!ures 3or #SM are (.0*12 million and (,+*)( million 3or Se6t and 'e% 1200

res6e%ti5ely*

he o5erall 4ireless mar$et and %onse=uently the #SM mar$et is led by Bharti Airtel 4hi%h held 0)*.1D at

the end o3 Eeb 1201* It is 3ollo4ed by Relian%e @ommuni%ations9 4hi%h holds 0.*.,D o3 the mar$et and also

the leader in the @'MA se!ment* In the #SM se!ment9 Foda3one and Idea %losely 3ollo4 Bharti Airtel

4hile ata and Sistema 3ollo4 Relian%e @ommuni%ations in the @'MA se!ment

2. Grow t h i n Tel eco

Grow t h Dri !er"

Key 3a%tors9 4hi%h 4ill 3uel the !ro4th o3 the se%tor in%lude in%reased a%%ess to ser5i%es o4in! to laun%h o3

ne4er tele%om te%hnolo!ies li$e /#9-# and BA9 im6ro5ed and inno5ation in de5i%es9 %han!in! %onsumer

beha5iour and the emer!en%e o3 %loud te%hnolo!ies* A majority o3 the in5estments 4ill !o into the %a6ital

e


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US? 02*, billion by 120+9 4ith the ne


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2 103.210

1*

1#

121

0

*

#

2

3E

tisa

la

tLoo

%ountry mobile o6erator by subs%riber base9 behind

@hina Mobile and @hina Uni%om*

Airtel also o33ers 3iline tele6hone ser5i%es and broadband Internet a%%ess 7'S8 in o5er ). %ities in

India* It also a%ts as a %arrier 3or national and international lon! distan%e %ommuni%ation ser5i%es* he

%om6any has a submarine %able landin! station at @hennai9 4hi%h %onne%ts the submarine %able %onne%tin!

@hennai and Sin!a6ore*

Airtel is $no4n 3or bein! the 0st

mobile 6hone %om6any in the 4orld to outsour%e all o3 its business

o6erations ebase stations9 mi%ro4a5e lin$s9 et%* is maintained

by Hri%sson9 No$ia Siemens Net4or$ and "ua4ei9 and business su66ort is 6ro5ided by IBM9 and

transmission to4ers are maintained by another %om6any 7Bharti In3ratel imited* in India8* Hri%sson a!reed

3or the 3irst time to be 6aid by the minute 3or installation and maintenan%e o3 their e=ui6ment rather than

bein! 6aid u6 3ront9 4hi%h allo4ed Airtel to 6ro5ide lo4 %all rates o3 0minute 7US?2*21minute8*'urin! the

last 3inan%ial year 7122)0289 Bharti ne!otiated 3or its strate!i% 6artner Al%atel>u%ent to mana!e thenet4or$ in3rastru%ture 3or the tele>media business* In 12029 Airtel a%=uired the A3ri%an o6erations o3 the

Ku4ait based ain ele%om* In Mar%h 12019 Airtel laun%hed a mobile o6eration in R4anda* On /0 May

12019 Bharti Airtel a4arded the three year %ontra%t to Al%atel>u%ent 3or settin! u6 an Internet Proto%ol

a%%ess net4or$ 7mobile ba%$haul8 a%ross the %ountry* his 4ould hel6 %onsumerCs a%%ess internet at 3aster

s6eed and hi!h =uality internet bro4sin! on mobile handsets*

Number of GSM Subscribers as of Apr 2012 (in Millions)

151.20

11#.21 #.*0

*3.5

#3.55

*.11 5.# 3.#3 3.2* 1.*

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$+*RTI *IRTE SU$ SCRI$ ER IGURES CIRCE WISE *S O %*RC+ 2311

W+*T %*DE *IRTE SUCCESSU4

0* Airtel 4as an early entrant 4hi%h it to understand the mar$et and ma$e mista$es 4hi%h other4ise 4ould

not ha5e been 6ossible*

1* Airtel 4as able to 3oresee the 3uture and in5ested hu!ely in o6ti%al 3ibre in3rastru%ture mu%h be3ore other

6layers* his 6aid o33 4ell and it 4as able to !et many %ustomers due to its 4ide rea%h o3 net4or$*

/* Airtel ado6ted its uni=ue outsour%in! model under 4hi%h it outsour%ed all those o6erations 4hi%h it

belie5ed 4ere not the %ore %om6eten%ies o3 the %om6any* his strate!y made sure that 4ho so e5er is

handlin! a 6arti%ular 6ro%ess is the one 4ho %an do it most e33e%ti5ely & e33i%iently*

-* In5estment in Brandin! and in%reasin! @onsumer @onne%t*

+* @onstant 3o%us on %ustomer ser5i%e e5en at the times o3 6ri%e %om6etition* Other %om6anies thou!ht that

redu%in! 6ri%e 4ill be enou!h but only Airtel $ne4 that redu%in! 6ri%e in a 6ri%e %om6etition en5ironment isjust a basi% ne%essity and not a %om6etiti5e stren!th* So9 it 6ro5ided e


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%*CRO ENVIRO N%ENT* I NU ENCES 5 T+E &ESTE *N*YSI S

&O ITIC* *CTO RS

Politi%al en5ironment is one o3 the most im6ortant ma%ro 3a%tors a33e%tin! a business* he 5arious

%om6onents o3 the 6oliti%al en5ironment ha5e been dis%ussed belo4:

i. Go!ernent Sta#ilit'6

India is the 4orldCs lar!est demo%ra%y and has the 6erils asso%iated 4ith any demo%rati%ally ele%ted

!o5ernment* he s%enario is dominated by small re!ional 6arties 4ho had been brou!ht to!ether into

t4o major %oalitions led by @on!ress 7UPA8 and BJP 7N'A8*

he 3irst de%ade o3 the %entury has seen a 3airly stable !o5ernment under @on!ress as

%om6ared to the 0))2s 4hi%h sa4 !eneral ele%tions in =ui%$ su%%ession* he ris$ o3 instability

is hi!h due to the 5aried 6oliti%al ideolo!ues o3 6arties in the %oalitions*

ii. Ta7ation &olic'6

he a< Poli%y o3 India has e5ol5ed o5er the last t4o de%ades yet it is one o3 the most %om6li%ated*

he @enter and State a


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A s6ate o3 anti>!ra3t re!ulations and !ro4in! a%%ountability is edensity

and the !ro4th in #'P 6er %a6ita in de5elo6in! %ountries9 4hi%h tend to ha5e a hi!h 6er%enta!e o3

rural 6o6ulation*

he share o3 the tele%om ser5i%es industry in the total #'P has been risin! o5er the 6ast 3e4 years

7the tele%om se%tor %ontribution in #'P 4ent u6 3rom 1*+1D in EL2+ to ,*,/D in EL008*

iii. E:lo'ent6

he Indian tele%ommuni%ation industry em6loys o5er -229222 dire%t em6loyees and about ,+D o3

these em6loyees are 3rom !o5ernment>o4ned %om6anies*

he ratio o3 number o3 subs%ribers to em6loyees9 an indi%ation o3 e33i%ien%y and 6ro3itability9 is

mu%h hi!her 3or 6ri5ate %om6anies than 3or !o5ernment %om6anies*

i!. i#erali;ation6

he relaliberaliation9 the

tele%om industry has re%ei5ed more in5estments and has im6lemented hi!her te%hnolo!y*

!. orei8n Direct In!e"tent (DI)6

Eorei!n dire%t in5estment has been one o3 the major %ontributors in the !ro4th o3 the Indian e%onomy9 and

there3ore9 the need 3or hi!her E'I is 3elt a%ross se%tors in the Indian e%onomy*

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In!e"tent"6 he tele%om se%tor re=uires hu!e in5estments 3or its e

intensi5e and E'I 6lays a 5ital role in meetin! the 3und re=uirements 3or edensity is still 5ery lo4*

!i. IT)) 4as 6arti%ularly hel63ul 3or the IeS>BPO industry as it ended the !o5ernmentmono6oly in international %allin! by introdu%in! IP tele6hony* A3ter the introdu%tion o3 IP

tele6hony9 there 4as ra6id !ro4th in the number o3 data 6ro%essin! %entres and inboundoutbound

%all %entres9 4hi%h ultimately led to the outsour%in! re5olution in India*

he tele%om se%tor has been instrumental in %reatin! jobs 3or a 5ast 6ool o3 talented and $no4led!e

6ro3essionals in the I and IeS>BPO industry9 4hi%h thri5es on reliable tele%ommuni%ation

in3rastru%ture* India has be%ome an im6ortant outsour%in! destination 3or the 4orld and the boom in

this se%tor also has trans3ormed IndiaCs e%onomi% dynami%s*

!ii. inancial Ser!ice"6

Ban$in! in India has be%ome ser5i%e>oriented9 and has matured !reatly 3rom the days o3 4al$>in %ustomers

to the 6resent situation 4hen ban$s ha5e mi!rated to a1->hour ban$in! 6lat3orm to attra%t %ustomers;

ho4e5er9 this disintermediation in the business has led ban$s to be e


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manu3a%turers to enter the mar$et and to %ater to the !ro4in! demand* Eurther9 the manu3a%turers

introdu%ed lo4er> 6ri%ed handsets 4ith add>on 3a%ilities to %ater to the in%reasin! number o3

subs%ribers 3rom di33erent strata o3 the so%iety* No4 e5en entry>le5el handsets %ome 4ith 3eatures li$e

%olour dis6lay and EM radio* hus9 the 3allin! handset 6ri%es and the add>on 3eatures ha5e tri!!ered

!ro4th o3 the Indian tele%om industry*

Rural Tele:hon' 5 Connectin8 the Real India6 ith the urban mar$ets 3ast rea%hin! their saturation6oints 3or tele%om ser5i%es9 es6e%ially the 5oi%e tele6hony ser5i%es9 the 5ast rural mar$et holds a

hu!e 6otential to dri5e the 3uture !ro4th o3 the tele%om %om6anies* In 3a%t9 the tele>density in rural areas

is just about 0+D9 4hi%h re3le%ts the e


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ENVIRO N%ENT* *CTORS

In the 4a$e o3 the heated dis%ussion about !lobal 4armin!9 en5ironmental analysis has been brou!ht to the

3ore3ront o3 the media9 a 6la%e it usually only o%%u6ies in times o3 disaster9 li$e the tsunami in South Hast

Asia or the "aitian Harth=ua$e* It a33e%ts industries su%h as tourism9 3armin!9 and insuran%e more than an

industry li$e tele%ommuni%ation*

Hn5ironmental analysis in5ol5es a!!re!atin! and analysin! 4eather 6atterns and %limate %y%les* It mainly

deals 4ith:

eather

@limate

@limate @han!e

Hn5ironmental issues in ele%om Industry:

ayin! o3 %ommuni%ation lines

Settin! u6 o3 to4ers and usa!e o3 4ireless te%hnolo!y in en5ironmentally a33e%ted areas 4here

en5ironments 5ary drasti%ally*

In di33erent areas o3 the !lobe de6endin! on the biome or e%osystem o3 the re!ion the e33e%ts and

issues di33er drasti%ally and e5ery time may lead to 3indin! o3 ne4 solution* hile not a

%om6rehensi5e list9 some e


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e%hnolo!y rans3er

he 6ur6ose o3 the ele%ommuni%ation today are 6rimarily intended 3or the 6ur6oses o3 s6ee%h and are

there3ore not 6arti%ularly reno4ned 3or its ability to deli5er data* Hnhan%ements ha5e been made to the

e


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pe&t o! 'i(alr) *ithin +o,petitor o! Indian -ele&o, .e&tor H gh

Su@s8ri@er +ase

Pri8ingTari// Plans

'alue Added Servi8es

Pro/ita@ility

$e8overy o/ &ied (ost

&ORTER>S I VE ORCES *N*YSI S

" ( i )

- hr ea t o! .ub t itute P rodu & t (Medium)

+road@and Servi8es

'OIP 9SBy


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B a r # a in i n# P o * e r o! + u to , e r (High)

La8B o/ di//erentiation a=ong te servi8e


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SWOT *nal '"i "

S t ren 8 t h"

Mar$et leader 4ith 12D o3 mar$et share 3or

mobile ser5i%es*

H

India Presen%e*

Stron! Partnershi6s 4ith e%hnolo!y

5endors9 No$ia9 Al%atel u%ent9 "ua4ei9

IBM et%*

H


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$CG %a tri7

*irtel lie" in the ST*R cate8or' a" the ar-et 8rowth rate i" hi8h and it i"

leadin8 with relati!el' the hi8he"t ar-et "hare.

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*NSO %*TRI ?

o 6ortray alternati5e %or6orate !ro4th strate!ies9 I!or Anso33 %on%e6tualied a matri< that 3o%used on the

3irmCs 6resent and 6otential 6rodu%ts and mar$ets %ustomers* "e %alled the 3our 6rodu%t>mar$et strate!i%

alternati5es*

Mar$et 6enetration e


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Threat" to *i rtel

Bharti9 as one o3 the three 3irst>mo5ers in the business 7the other t4o are Foda3one and Idea89

re%ei5ed s6e%trum in the )22 M" band* @om6anies that %ame in later 4ere allotted s6e%trum in the

09,22 M" band9 4hi%h is hal3 as e33i%ient and entails +2D hi!her %a6ital and o6erational

e


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SE RV I C E G * & * N * Y S I S

Understandin! @ustomer H


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$+ *RTI *IRTE> " *::roach t o %*R@ ETING RESE*RC+ 6

AIRTEL MOBITUDE 2010

he only sur5ey to ma6 onto mobile 6hone usa!e trends a%ross the %ountry* Based on a detailed

analysis o3 data %a6turin! all do4nloaded %ontent by Airtel mobile users in 12029 this sur5ey is

%om6iled at the end o3 e5ery %alendar year > thus brin!in! out the IndiaCs 6re3eren%es and 3a5ourites

a%ross 5arious %ate!ories*

@a6tures 6re3eren%es o3 o5er 0+2 million mobile users a%ross the %ountry

In%ludes annual analysis o3 musi%9 ima!es9 5ideo do4nloads9 and data tra33i%

Highlights:

'i4ali deli!hts India most: Out o3 total SMS tra33i% o3 o5er )2 billion in the year > more than 0*1

billion SMSes 4ere e


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BENEFITS:

@ustomer se!mentation

@ross sellin! and u6 sellin! o3 rele5ant s%hemes

Mar$et analyti%s li$e re%ordin! %ustomer in3o

#eneration o3 a%%urate leads and sms bursts to the ri!ht %ustomer se!ment

@ustomied and sim6li3ied bill 3ormats9 6ayment %olle%tion %entres9 better 5alue

added ser5i%es

Kno4led!e sharin! amon! em6loyees

e>billin!

%ustomied o33ers based on user 6ro3iles

same le5el o3 ser5i%e all a%ross India

redu%ed %ost i3 %ustomer

hi!hly s%alable as the number o3 subs%ribers in%rease

automati% 6roblem es%alation 4hen timeline is brea%hed

automati%ally su!!estin! 6rodu%ts 4hen %ustomers lea5e Airtel

& RO VIDER G*& 2 (The Ser!ice De"i 8n and Standard" Ga:)6

actor" leadin8 to &ROVIDER G*& 26

a%$ o3 Systemati% Ser5i%e 'esi!n

Absen%e o3 @ustomer 'e3ined Standards*

Ina66ro6riate Physi%al H5iden%e and Ser5i%es %a6e*

$+*RTI *IRTE>" *::roach to SERVICE DESIGN6

Mayear a!reement 4ith IBM to

trans3orm its 6ro%esses and ta$e on the mana!ement o3 its I in3rastru%ture* Its ne4 6lat3orm 6ro5ides a

standardied 3rame4or$ 3or Bharti Airtel to inte!rate its %hannels and %ustomer>3a%in! 6ro%esses enablin!

a more seamless %ustomer e


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%ustomer>3a%in! 6ro%esses 4as essential to enablin! this and that IBM s stren!th in this area 4ould 6ro5e

to be a !reat 3it*

@e' $ene9it"6

Ability to 6ro%ess 0*+ million ne4 %ustomers 6er month

Outsour%in! o3 te%hnolo!y enables Bharti Airtel to 3o%us resour%es on !ro4in! the business

Im6ro5ed %ross>sellin! and tar!etin! and a more seamless9 e33i%ient total %ustomer eto>end inte!ration o3 %ustomer>3a%in! 6ro%esses

O6timiation o3 business 6ro%esses and in3rastru%ture throu!h 3le


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TELLABS " A #ALUED SU$$LIER:

Ability to brin! a%ti5ation 3rom 3our days to t4o hours9 and our billin! %y%les 3rom 0+ days to t4o

hours

on! distan%e band4idth ser5i%es ha5e been 4itnessin! healthy !ro4th in the last 3e4 years*

he !ro4th in 4ireless o6erators brin!s in hu!e o66ortunity 3or Airtel as many o3 the ne4

o6erators do not ha5e their o4n o6ti%al net4or$ in3rastru%ture* hese o6erators ha5e re%ently

been a4arded li%enses and are under !o5ernment>im6osed deadlines to roll out their ser5i%es*

he net4or$ 4as initially 6ro5isioned 4ith t4o 4a5elen!ths o3 02 #b6s ea%h9 but today it 6ro5ides

more than 0, %hannels o3 02#b6s ser5i%es9 thereby in%reasin! the number o3 $ilometres de6loyed

si!ni3i%antly9 4hile at the same time %ontinuously im6ro5in! ser5i%e =uality and reliability*

Ma


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Eollo4 a multi 6ron!ed a66roa%h 3or addressin! the attrition rates*

E()lo*ee Se,+i&e Assu,a%&e

Hdu%atin! em6loyees on or!aniation "R 6oli%ies

@ondu%tin! Hm6loyee Satis3a%tion sur5eys*

& RO VIDER G*& A (The Co uni cati on Ga:)6

actor" leadin8 to &ROVIDER G*& A6

Ine33e%ti5e @ommuni%ation to %ustomers*

Pri%in!

$+*RTI *IRTE>" *::roach to CO%%UNIC*TION6

E7ternal Counication"6

&o"itionin8 throu8h Slo8an"6

Po4er to $ee6 in tou%h: instant %ommuni%ation

ou%h tomorro4: %a6turin! lar!e mar$et9 tal$in! to a bi!!er audien%e9 4ith more entries to the

mar$et*

i5e e5ery moment : tou%hin! the ima!ination o3 the %ustomer

H


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H


28/41

Wea-ne""e" (W)

0* Out>sour%ed o4ers until

re%ently 7!i5in! %om6etitors li$e

Foda3one an ed!e8

1* Unta66ed Rural mar$et

/* Pri%e %om6etition 3rom

FSN9 BSN et%

WO Strate8ie"

1. Use re5enues 3rom

abroad to im6ro5e and

install ne4 te%hnolo!y

1* Use brand name and

S6e%ial ta%ti%s and strate!ies to

6enetrate 3urther in to the rural

mar$ets

/* Pro5idin! better ser5i%e and

su6erior e


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Its major %lients in%lude Airtel9 Foda3one9 Idea9 ata eleser5i%es9 BSN9 Relian%e Mobile9 Uninor9 MS9

Air%el and Fideo%on Mobile Ser5i%es* Bharti Airtel9 4hi%h o4ns ,. 6er%ent o3 the Bharti In3ratel unit9 thus

earns money 3rom all o3 its %om6etitors and uses that money 3or %urrent and 3uture %a6ital erun @oal

India raised ?/*+ billion in an initial 6ubli% o33erin! in 1202*

Bharti In3ratel has not only hel6ed in%rease ele%om 6enetration in se5eral 6arts o3 rural India9 but is also

seen as a Gde6endable 6artnerG to im6lement ele%om ser5i%es in Ghostile en5ironmentsG* heir to4ers ha5e

been de6loyed in areas 4here %i5ilian %on3li%t9 ina%%essible terrains and hostile %limati% %onditions ha5e

deterred other %ommuni%ation 6ro5iders 3rom enterin!* Be it 6ro5idin! %onne%ti5ity in ee33e%ti5e

%ommuni%ation 4hen and 4here itGs re=uired9In3ratel has made a si!ni3i%ant di33eren%e to the G=uality o3 li3eG9

in the %ommunities it ser5es*

In India9 Bharti In3ratel has a 5ast 3oot6rint o3 o5er //9222 to4ers a%ross 0, states o3 the Union o3 India*

Both the an%hor o6erator and the %o>o6erator %an share the same in3rastru%ture* his in%ludes the o4er andShelter 3or housin! the Base rans%ei5er Stations9 the onsite Po4er Su66ly e=ui6ments li$e 'iesel

#enerators9 Battery Ban$s9 ransmission Room9 as 4ell as ser5i%es related to Installation9 Maintenan%e9

Re6air9 O5erhaulin! and U6!radation o3 the abo5e* he o6erators need to in5est only in the GA%ti5e

H=ui6ment 4hi%h in%ludes antennas9 trans%ei5ers and asso%iated e=ui6ment*

he to4ers or 6oles %ome in 1 5arieties: !round>based 7#B8 and roo3>to6 7R8; and all o3 them meet the

sa3ety and en5ironmental re!ulations sti6ulated by the #o5ernment and 5arious a!en%ies*

1.1 $ene9it" o9 Shared In9ra"tructure

Reduced Ca:e7

ele%om business is hea5y on @a6e.2D o3 the @a6e< is utilied 3or settin! u6 and

mana!in! the ele%om in3rastru%ture* ith ARPU and Re5enue 6er to4er de%linin! o5er time9 sharin! o3

o4er and other in3rastru%ture is imminent* By sharin! in3rastru%ture9 O6erators %an o6timie their @a6eto>day mana!ement o3 your ele%om in3rastru%ture to In3ratel9 your O6e< %osts are

hu!ely redu%ed* he %ost>sa5in!s %an be used to in%rease %lient rea%h9 6ro5ide inno5ati5e ser5i%es9 andim6ro5e %ustomer satis3a%tion9 all o3 4hi%h 4ill result in hi!her ARPUs

Reduced Tie to %ar-et

By le5era!in! e


30/41

di33i%ult terrain and la%$ o3 ade=uate ba%$u6* So9 4hen %lients !o 4ith Bharti In3ratel9 not only are they sa5ed

the hassle o3 o6eratin! in su%h %onditions9 but are also able to 6enetrate ne4 mar$ets 4ith ease*

+i8he"t u:tie

he s6eed 4ith 4hi%h it rolls>out our ser5i%es ensures =ui%$ %ommen%ement o3 o6erations* Subse=uently9 the

use o3 e33i%ient 6ro%esses and su6erior monitorin! ensures minimum do4ntime 3or you* All these means9 its

%lients ha5e almost 022D u6time 4hen they !o 4ith Bharti In3ratel*

1.2 Goin8 Green

Bharti In3ratel belie5es that a healthy en5ironment is a 6rere=uisite 3or 6ro!ress9 %ontributin! to the 4ell

bein! o3 so%iety9 our 6eo6le and our business* heir business model 6romotes to4er sharin! 4hi%h hel6s

brin! do4n the %arbon 3oot6rint 3or tele%om net4or$s and 4or$s to4ards a sustainable e%onomy* Eurther9

Bharti In3ratel %ontinues to de6loy 6eo6le9 ideas and %a6ital to 3ind e33e%ti5e solutions to address

en5ironmental %hallen!es*

In this dire%tion9 they ha5e initiated #reen o4ers P( 6ro!ram based on ( inno5ati5e ideas aimed at

minimisin! de6enden%y on diesel and thereby9 %arbon 3oot6rint redu%tion* his 6ro!ram 6romotes 7a8

im6ro5in! ener!y e33i%ien%y o3 to4er in3rastru%ture e=ui6ments9 7b8 use o3 rene4able ener!y resour%es9 and

7%8 redu%tion o3 e=ui6ment load on to4er in3rastru%ture e=ui6ments*

As 6art o3 the #reen o4ers P( 6ro!ram9 Bharti In3ratel has %ommissioned:

091++ Solar 6o4ered to4ers 4ith a total installed %a6a%ity o3 more than .M

Fariable s6eed '@ 6o4ered '# sets

Inte!rated Po4er Mana!ement Systems 7IPMS89 and

Eree @oolin! Units 7E@U8

#reen sites eliminatin! use o3 '# sets

Bharti In3ratelCs #reen o4ers P( 6ro!ram has been 4idely re%o!nied a%ross the industry* Bharti In3ratel

4on the 6resti!ious #reen Mobile A4ardC at the 1200 #SMA #lobal Mobile A4ards o3 dri5in! one o3 the

lar!est !reen 6o4er initiati5es 3or mobile to4ers* he @on3ederation o3 Indian Industry 7@II8 also %on3erred

u6on Bharti In3ratel9 the National A4ard 3or H


31/41

By ma$in! use o3 %leaner9 !reener sour%es o3 ener!y li$e solar 6o4er that are more ener!y e33i%ient9 4e are

able to si!ni3i%antly redu%e o6eratin! %osts9 the bene3its o3 4hi%h are 6assed onto the %ustomer*

Our P( 6ro!ram is aimed 6re%isely at su%h 6ath>brea$in! obje%ti5es* Our G#reeno4ersG ha5e been at the

3ore3ront in usin! solar 6o4er !eneration9 and e=ui6ment su%h as dire%t %urrent diesel !enerators and 3uel

%ells in order to lo4er %arbon emissions* oday9 4e ha5e %urrently 01++ G#reeno4ersG installed a%ross the

%ountry9 4hi%h is the lar!est su%h base9 3ar ahead o3 any other 6layer in this business*

$etter %ana8eent o9 S*"

Bharti In3ratel9 li$e other Bharti #rou6 %om6anies9 ma$es ete%h e=ui6ments and

In3ormation e%hnolo!y based solutions li$e @ustomer Relationshi6 Mana!ement 7@RM89 Su66ly @hain

Mana!ement 7S@M8 and 'ata arehousin! 7'"8 so3t4areCs to dri5e do4n %osts9 mana!e in3ormation

better9 and redu%e rea%tion times* his brin!s about %ost and o6erational e33i%ien%ies9 and hel6s mana!e the

SAs better*

2. *irtel AG TE

* i r t e l i " t he 1"t and o n l ' "er ! i ce : r o ! i der t o l au n c h AG i n Ind i a and 'ou w i ll #e h a::' t o -n o w t hat

*i rt el AG TE i " l aunched i n @ol-at a and $ en8al uru.

H stands 3or on! erm H5olution it is a radio a%%ess te%hnolo!y to deli5er Fery hi!h s6eeds>u6 to

022Mb6s 7te%hni%ally8 in an ideal en5ironment* -# is a Standard in Mobile Net4or$ e%hnolo!y and stands

3or Eourth #eneration>the latest a3ter 1# and /#*

Bein! the latest 6lat3orm o3 mobile %ommuni%ations -# > H %an enable real mobile 74ireless8 broadband

e/2 ms8 ma$in! it suitable 3or all ty6e o3 hi!h s6eed a66li%ations

and ser5i%es*

Airtel -# H %an be used at home or at o33i%e 3or:

a8 ireless internet a%%ess

b8 A%%ess ri%h %ontent and multimedia a66li%ations e!: e>learnin!9 "' %ontent>mo5ies et%V

%8 Multi6le do4nloads o3 hea5y 3iles; hi!h de3inition multimedia %ontent at the same time 4ill be

6ossible

d8 "i!her u6lin$ and do4nlin$ s6eeds

e8 Seamless online streamin! 4ithout bu33erin!

38 "i!h de3inition online !amin!

!8 A%%ess business a66li%ations that re=uire hi!her s6eeds and last mile %onne%ti5ity

Users 4ill need a ne4 number 3or Airtel -# H 9 they 4ill also need a USIM to be on the Airtel -#

net4or$*

USIM stands 3or Uni5ersal Subs%riber Identi3i%ation Module; it is di33erent than your %urrent SIM sin%e it is

a 01, KB SIM* A Uni5ersal subs%riber identity module or Uni5ersal subs%riber identi3i%ation module 7SIM8

is an inte!rated %ir%uit that se%urely stores the International Mobile Subs%riber Identity 7IMSI8 and therelated $ey used to identi3y and authenti%ate subs%ribers on mobile tele6hony de5i%es

29 | P a g e


32/41

Normal SIM su66orts 1# & /# Net4or$9 but USIM Su66orts 1#9 /#9 -# Net4or$s as 4ell as JAFA

A66li%ations* Memory o3 normal SIM is .-KB 4hereas memory o3 USIM is 01,KB*

,. *irtel initiati!e 9or #etter cu"toer "u::ort

ith this9 Airtel 6roa%ti5ely %orre%ts de5i%e settin!s 4ithout any inter5ention 3rom the %ustomer %are or the

user* Bharti Airtel has im6lemented a @ustomer H

Sin%e %om6etitors as 4ell as Airtel are on the same 6lat3orm based on /# 6ri%in! and Modem Pri%in!9 Airtel

is o33erin! trial 5ersion o3 its P@ Se%ure se%urity so3t4are 3or a month to its don!le users to di33erentiate

itsel3 3rom %om6etitors* Airtel /# data %ard users %an no4 use Airtel P@ Se%ure Se%urity solution 3ree 3or a

month* Eollo4in! the /2>days trial 6eriod9 %ustomers 4ill ha5e the o6tion to buy a monthly or yearly

subs%ri6tion o3 the anti>5irus*

he basi% 6a%$ o3 Airtel P@ Se%ure in%ludes anti5irus and antis6y4are 6rote%tion 3or Rs ,+ 6er month or Rs

(+2 6er annum* hile9 the Ad5an%e 6a%$9 4hi%h also in%ludes Eire4all 6rote%tion9 is 6ri%ed at Rs 022 3or a

month or %an be brou!ht 3or Rs ,+2 3or a year*

On the other hand9 the 6remium 6a%$ o3 Airtel P@ Se%ure %omes 4ith 6arental %ontrol and s6am %ontrol

a6art 3rom 4hat the ad5an%e 6a%$ 6ro5ides* he 6remium 6a%$ %osts Rs 01+ 6er month and Rs ))) 6er

annum*

Airtel P@ Se%ure is 6o4ered by E>Se%ure9 4hi%h is desi!ned to 6rote%t the %om6uter 3rom all $inds o3

mali%ious so3t4are 7in%ludin! s6y4are9 4orms9 trojans9 root$its and ero>hour atta%$s8 and 6rote%t

%ustomersG 6ersonal in3ormation 7su%h as ban$ details9 6ass4ords et%*8 in the online domain*

FenuPala$irti9 %ountry mana!er9 India and SAAR@ at E>Se%ure said: Te are 5ery 6leased to e


33/41

%*R@ET DEVEO&%ENT I N *RI C* *ND *TER E ECT

ith Indian mar$et !ettin! hi!hly %om6etiti5e 4ith ne4 entrants resultin! 6ri%e>4ars9 lo4er ARPU and

un%lear !o5ernment 6oli%y on 5ariety o3 issues li$e the 3ees on e


34/41

only to @hina and tele6hone 6enetration o3 just se5en 6er%ent9 India stands as a te


35/41

Eollo4in! a shar6 dro6 in re5enues9 Bharti in Au!ust last year had announ%ed restru%turin! o3 its Indian and

South Asian o6erations to streamline its businesses and redu%e %osts* he $ey e6ron!ed a66roa%h* One9 to %onsolidate the business units9 and t4o9 to restru%ture the to6 mana!ement*

he Au!ust trans3ormed or!aniation stru%ture no4 ha5e t4o distin%t @ustomer Business Units 7@BUs8 4ith

%lear 3o%us on B1@ 7business to %ustomer8 and B1B 7business to business8 se!ments*

he %om6anyGs B1@ business unit 4ill ser5i%e the retail %onsumers9 homes and small o33i%es by %ombinin!

the erst4hile business units>mobile9 telemedia9 di!ital F9 and other emer!in! businesses 7li$e m>%ommer%e9

m>health9 m>ad5ertisin!89 the %om6any said*

T+E &RO$E%S WI T+ $+*RTI *IRTE

B inancial O!er


36/41

terms o3 tari33 and attra%ti5e a66li%ations9 rendered the 3irm 4ith just 1 million /# subs%ribers* It has also

a%=uired BA li%ense to o33er ser5i%es in . %ir%les but the %om6any is yet to laun%h ser5i%e* hou!h none o3

the BA li%ense holders ha5e laun%hed the ser5i%e so 3ar9 to ta$e the 3irst mo5er ad5anta!e and retain your

6otent %ustomers Bharti has to ta$e the lead in laun%hin! the ser5i%e and brin! a ne4 re5enue stream* Also9

the 3irm has to %omeu6 4ith inno5ati5e models to laun%h the -# ser5i%es so that it does not !o the /# 4ay* It

should ha5e =uality o33erin!s and need to 3o%us on enter6rise %ustomers and %onsumers e=ually to ta$e the

lead*

'ata re5enue need to be in%reased: In order to be ba%$ in the !ame9 the rules o3 the !ame ha5e to be %han!ed*

he 5oi%e mar$et in India is almost saturated 4ith around ,2D teledensity and %all tari33 at abysmally lo4*

he o66ortunity no4 is 4ith data ser5i%es and the data dri5en business is at in3an%y no4* A leader li$e

Bharti has to ta6 this o66ortunity 4ith lots o3 inno5ati5e business models and 4ithin no time* hou!h the

%om6any has started 3o%usin! enter6rise ser5i%es in a bi! 4ay9 it has no di33erentiators than its %om6etitors*

hou!h e5eryone is ta$in! about %loud ser5i%es and the SMHs are the most 6otent %ustomers o3 this9 Bharti

has yet to ha5e dedi%ated %loud ser5i%es to %ater to the + million stron! SMHs in India*

ra%tion in M>%ommer%e and M>ban$in!M>health: Bharti has more than 0(+ million mobile subs%ribers and

India has more than (22 million 6o6ulations 4ithout eo6erator mar$et* he %om6anyGs last 3e4

=uarter results 4ere also a33e%ted due to the hu!e %ash out3lo4 3or its international o6erations and on a%%ount

o3 /# & BA li%ense a%=uisition* But e


37/41

STR*TEGY OR & ENETR*TI ON I N RUR* %* R@ET

Shi3tin! %om6lete 3o%us 3rom 6rodu%t orientation to %ustomer orientation by identi3yin! the needs o3 the

rural mar$et and),o+idi%g solutio% ,athe, tha% the ),odu&t- is the idea behind the strate!y*

Bharti Airtel 4as 3a%ed 4ith the challen8e o3 6ro3itably ser5in! the rural areas o3 India* It is an ee33e%ti5e

mar$etin!9 sales9 and distribution %hannel to 6ro5ide ser5i%e 6romotion and %ustomer su66ort*

In s6ite o3 these %hallen!es9 Indian rural mar$et also 6ro5ides si!ni3i%ant o::ortunitie" 3or Bharti Airtel to

6enetrate:>

he 3uture !ro4th o3 the Indian mobile mar$et is edensity

o3 only 0,*+ 6er %ent as o3 Se6tember 122)* Indian urban mobile 6enetration is already o5er 022 6er

%ent*

Rural d4ellers 6la%e a hi!h 5alue on %ommuni%ations* @onta%tin! urbano5erseas relati5es and3riends o3ten re=uires a lon! and sometimes trea%herous tri6 to the nearest to4n to rea%h a 6ay6hone*

Farious studies 7e*!*9 3ishermen in the Indian state o3 Kerala and !rain 6rodu%ers in Ni!er8 ha5e

sho4n that in%reased mobile ser5i%e 6enetration in rural areas %ould ha5e tremendous so%io>

e%onomi% bene3its 3or the rural 6o6ulation*

ith its stron! 6resen%e in the relati5ely unta66ed rural mar$et 7o5er 1( 6er %ent mar$et share as o3

Se6tember 122)89 Bharti Airtel is 4ell>6la%ed to %ontinue !ro4th 4ith its 3o%us on under>6enetrated

Indian re!ions 4ith ne4 re5enue streams su%h /#>enabled data ser5i%es and 6ay>t5*

or the a#o!e rea"on" *irtel "hould 8o 9or alliance" and :artner"hi:" and de!i"e a eanin89ul "trate8'to addre"" the need" o9 the Rural %ar-et".

o e


38/41

o4ers* Sharin! the in3rastru%ture %ost and usa!e bet4een multi6le o6erators has hel6ed Bharti

Airtel to redu%e its o6eratin! and %a6ital ebased u6dates on %ro6 6ri%es9 3armin!

te%hni=ues9 rural health initiati5es9 and hel6 line ser5i%es*

S trate8'6

Bharti Airtel 3irst studies the %ommer%ial 5iability o3 a rural %ommunity 7and the surroundin! 5illa!es8 based

on 6arameters su%h as sour%e o3 li5elihood9 a5era!e in%ome9 and in5ol5ement in 3re=uent %ommer%ial

transa%tions or tra5els* he %om6any has de5elo6ed a 6rioritied de6loyment strate!y based on the s6e%i3ied

%riteria* Quali3yin! 5illa!es are 3irst to re%ei5e a base station9 4hi%h also %aters to nearby %ommunities* o

hel6 ensure e33i%ient usa!e and 6ro3itability 3or ea%h o3 these base stations9 Bharti Airtel tra%$s the re5enue

!enerated 6er base station 7instead o3 ARPU9 4hi%h is %onsidered less rele5ant in a rural %onte


39/41

As o3 Mar%h /09 12029 Bharti Airtel had added ) million ne4 %ustomers to rea%h a total o3 01,

million %onne%tions* A%%ordin! to estimates9 rural users a%%ounted 3or .2 6er %ent o3 the %om6anyCs

net subs%riber adds in that =uarter*

'es6ite Bharti AirtelCs o5erall ARPU o3 just under ?+9 its mobile di5isionCs earnin!s be3ore interest9

ta


40/41

$rand a-eo!er6

W Airtel also had a brand ma$eo5er 3rom mature to youn! be%ause major 6ortion o3 Indian 6o6ulation

%onsists o3 youth* he to6 0(2 Bharti e


41/41

Re9erence"

www.ai rtel. in/annual-report- 11/annualreport11. htm l

www. en. wik ipedia. or g/wi k i/ Bhart i_Ai rt el

www.ai rtel. in/AnnualResult s/ Bhart i_Ai rt el_annual_report_f ull_2010- 2011

tt< D w ww.8 is8 o .8 o= e n7S s o lu tio n s 8 o llatera l n s 3 # 1 n s 5 2 5 n s 5 3 " n s " 5n s 1 5 0 (is 8 o + a rtiAirtel (

S. t= l

tt< D w ww.a/r i8a.airtel.8 o = w < s w 8 = 8 o nn e 8 t a/ri8 aairtel a /ri8a H o = e (S $ Strate g y

www. cci. in/ pdf/ sur veys_r eport s/i ndi as_t el ecom_sect or. pdf

www. dot. g ov. in/ osp/Br ochur e/ Br ochur e. htm
http://www.airtel.in/annual-report-11/annualreport11.htmlhttp://www.airtel.in/annual-report-11/annualreport11.htmlhttp://www.airtel.in/annual-report-11/annualreport11.htmlhttp://www.airtel.in/annual-report-11/annualreport11.htmlhttp://www.airtel.in/annual-report-11/annualreport11.htmlhttp://www.airtel.in/annual-report-11/annualreport11.htmlhttp://www.airtel.in/annual-report-11/annualreport11.htmlhttp://www.airtel.in/annual-report-11/annualreport11.htmlhttp://www.airtel.in/annual-report-11/annualreport11.htmlhttp://www.airtel.in/annual-report-11/annualreport11.htmlhttp://www.en.wikipedia.org/wiki/Bharti_Airtelhttp://www.en.wikipedia.org/wiki/Bharti_Airtelhttp://www.en.wikipedia.org/wiki/Bharti_Airtelhttp://www.airtel.in/AnnualResults/Bharti_Airtel_annual_report_full_2010-2011http://www.airtel.in/AnnualResults/Bharti_Airtel_annual_report_full_2010-2011http://www.airtel.in/AnnualResults/Bharti_Airtel_annual_report_full_2010-2011http://www.airtel.in/AnnualResults/Bharti_Airtel_annual_report_full_2010-2011http://www.airtel.in/AnnualResults/Bharti_Airtel_annual_report_full_2010-2011http://www.airtel.in/AnnualResults/Bharti_Airtel_annual_report_full_2010-2011http://www.airtel.in/AnnualResults/Bharti_Airtel_annual_report_full_2010-2011http://www.airtel.in/AnnualResults/Bharti_Airtel_annual_report_full_2010-2011http://www.airtel.in/AnnualResults/Bharti_Airtel_annual_report_full_2010-2011http://www.airtel.in/AnnualResults/Bharti_Airtel_annual_report_full_2010-2011http://www.airtel.in/AnnualResults/Bharti_Airtel_annual_report_full_2010-2011http://www.airtel.in/AnnualResults/Bharti_Airtel_annual_report_full_2010-2011http://www.cisco.com/en/US/solutions/collateral/ns341/ns525/ns537/ns705/ns1058/Cisco_BhartiAirtel_Chttp://www.cisco.com/en/US/solutions/collateral/ns341/ns525/ns537/ns705/ns1058/Cisco_BhartiAirtel_Chttp://www.cisco.com/en/US/solutions/collateral/ns341/ns525/ns537/ns705/ns1058/Cisco_BhartiAirtel_Chttp://www.cisco.com/en/US/solutions/collateral/ns341/ns525/ns537/ns705/ns1058/Cisco_BhartiAirtel_Chttp://www.cisco.com/en/US/solutions/collateral/ns341/ns525/ns537/ns705/ns1058/Cisco_BhartiAirtel_Chttp://www.cisco.com/en/US/solutions/collateral/ns341/ns525/ns537/ns705/ns1058/Cisco_BhartiAirtel_Chttp://www.cisco.com/en/US/solutions/collateral/ns341/ns525/ns537/ns705/ns1058/Cisco_BhartiAirtel_Chttp://www.cisco.com/en/US/solutions/collateral/ns341/ns525/ns537/ns705/ns1058/Cisco_BhartiAirtel_Chttp://www.cisco.com/en/US/solutions/collateral/ns341/ns525/ns537/ns705/ns1058/Cisco_BhartiAirtel_Chttp://www.cisco.com/en/US/solutions/collateral/ns341/ns525/ns537/ns705/ns1058/Cisco_BhartiAirtel_Chttp://www.cisco.com/en/US/solutions/collateral/ns341/ns525/ns537/ns705/ns1058/Cisco_BhartiAirtel_Chttp://www.cisco.com/en/US/solutions/collateral/ns341/ns525/ns537/ns705/ns1058/Cisco_BhartiAirtel_Chttp://www.africa.airtel.com/wps/wcm/connect/africaairtel/africa/Home/CSR/Strategyhttp://www.africa.airtel.com/wps/wcm/connect/africaairtel/africa/Home/CSR/Strategyhttp://www.africa.airtel.com/wps/wcm/connect/africaairtel/africa/Home/CSR/Strategyhttp://www.africa.airtel.com/wps/wcm/connect/africaairtel/africa/Home/CSR/Strategyhttp://www.africa.airtel.com/wps/wcm/connect/africaairtel/africa/Home/CSR/Strategyhttp://www.africa.airtel.com/wps/wcm/connect/africaairtel/africa/Home/CSR/Strategyhttp://www.cci.in/pdf/surveys_reports/indias_telecom_sector.pdfhttp://www.cci.in/pdf/surveys_reports/indias_telecom_sector.pdfhttp://www.cci.in/pdf/surveys_reports/indias_telecom_sector.pdfhttp://www.cci.in/pdf/surveys_reports/indias_telecom_sector.pdfhttp://www.cci.in/pdf/surveys_reports/indias_telecom_sector.pdfhttp://www.cci.in/pdf/surveys_reports/indias_telecom_sector.pdfhttp://www.cci.in/pdf/surveys_reports/indias_telecom_sector.pdfhttp://www.dot.gov.in/osp/Brochure/Brochure.htmhttp://www.dot.gov.in/osp/Brochure/Brochure.htmhttp://www.airtel.in/annual-report-11/annualreport11.htmlhttp://www.en.wikipedia.org/wiki/Bharti_Airtelhttp://www.airtel.in/AnnualResults/Bharti_Airtel_annual_report_full_2010-2011http://www.cisco.com/en/US/solutions/collateral/ns341/ns525/ns537/ns705/ns1058/Cisco_BhartiAirtel_Chttp://www.cisco.com/en/US/solutions/collateral/ns341/ns525/ns537/ns705/ns1058/Cisco_BhartiAirtel_Chttp://www.africa.airtel.com/wps/wcm/connect/africaairtel/africa/Home/CSR/Strategyhttp://www.cci.in/pdf/surveys_reports/indias_telecom_sector.pdfhttp://www.dot.gov.in/osp/Brochure/Brochure.htm

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