Telecom Sector in India
Telecom Sector in India
•One of the fastest growing sectors in the world- Number of subscriber additions
showed a growth of 3.25% from March to April, 2009
• Key Highlights attributable to the Sector are :
Subscriber base- More than 330Mn
Second Largest Telecom Market
9 GSM & 5 CDMA players in 19 circles and 4 metros connecting 2000 towns
Lowest tariff charges in the world
Bharti Group - Overview
Bharti Airtel
•Airtel is the flagship company of Bharti Enterprises
•Asia’s leading integrated telecom services provider with operations in
India and Sri Lanka
Businesses at Bharti Airtel have been structured into three individual
Strategic Business Units (SBUs):
- Mobile Services
- Airtel Telemedia Services
- Enterprise services
• VISION: To make Airtel India’s most admired brand that will be : Liked
by more customers, targeted by top talent, benchmarked by more
businesses
•MISSION:
“We will meet global standards for telecom services that delight
customers through Customer service Focus, Empowered Employees,
Innovative Services and cost efficiency “
Porter’s 5 Forces Analysis of Industry
Challenge
Decisions Taken
Benefits
- Ability to process 1.5 million new customers per month
- Optimization of business processes through flexible,
standardized integration framework
- Outsourcing of technology enables Airtel to focus resources
on growing the business
- Tie ups enables Airtel to avoid major increases in capital
expenditures
Technology Front
3G
IPTV
FINANCIAL ANALYSIS
Problems
• Most of Youngsters leaving within 2 years of joining
• Tata Telecom largest talent competitor – 28% of people joining them
Strategies
•Revamping of PMS- employee to decide Flexi-benefits, increased Takehome
•Rotation policy: Atul Bindal- Telemedia to Telecom Business; Creation of new
position of Deputy CEO; Sanjay Kapoor- Mobile to Telemedia & DTH
Suggested Strategies
•Inclusion of Sub-ordinates in PMS
• Proper timing of Bonus and Incentive
Strategic Decisions- International Front
Key Trends
• 2007 ( Year of iPhone) – 2008 ( Touch Phones)
• Mobile Industry- more than 1 Trillion USD : 80% services & 20% infrastructure
• 50% worldwide penetration- 4 B worldwide ( 600 M China & 330 M Ind)
• 3G penetration ( Japan – 85%); Mobile Web penetration- 25%
Differentiating Factors
•Product
•Airtel Pre-paid
•Airtel Post-paid
•Blackberry Wireless Handheld
Value Added Services (VAS)
•Price
•Customer based pricing strategies.
•Flexible pricing mechanism
Controlled by TRAI.
•Place
•It has wide and extensive presence even in the remotest areas
•Airtel Customer Care Touch Points
Distributors like : Paan shops, grocery stores, chemists, outlet etc
•Promotion
•Large scale print and video advertising.
•Big celebrities like SRK and Sachin are roped in to endorse the product.
•In 2002 Airtel got its Signature tune from A.R. Rehman, this signature tune is perhaps the
most downloaded tune in India.
Provides innovations such as Bollywood movie premiers, music services such as ring back tones
& many more.
SWOT Analysis
Strengths
Market share.
Pan India Footprint.
The only operator in India other than VSNL having international submarine cables.
Customer care.
Promotions.
Weaknesses
Price Competition from BSNL and MTNL
Losing lead on technical expertise.
Opportunities
The fast extending IPLC market.
Latest technology and low-cost advantage.
Growth of mobile phone users.
Untapped Rural Market.
Threats
Market Maturity in basic telephony segment.
Marketing Front- Future Perspective
Segmentation
Long Term Outlook
Product Innovation
Quality Strategy
Heavy Advertising & Media Pioneer
Effective Sales Promotion
Competitive Toughness
Customer care
New tariff plans.
More value added services.
Increase in visibility and coverage
The AirTel - AirTel advantage
New innovative packages
More of the e-factor
Further Suggestions
• Tele-density Utilisation
India (1.29), US (60.73)
CAGR of 23.44% is required to reach network that of US
• Partnership in developing economies
• Technology Leadership
• Constantly evolving Value Added Services