Airtel

Presented By: -
Gaurav Aggarwal - 02
Dhawal Kantawala - 12
Yatin Mota - 19
Hardik Shah - 29
NMIMS- MBA Capital Anurag Surana - 31
Markets- 2008-2010 Jwalit Vyas - 33
Suyash Gupta - 34
Indian Telecom Sector
• Fastest Growing Sector – CAGR 22% (2002-08)
• Second Largest Telecom Market

– Lowest tariff charges in the world
– Wireless Subscribers – 315.3 Mn
– Wireline Subscribers – 38.4 Mn
– Teledensity – 30.6
• 23 Circles - 4 Categories ( Metro, A, B & C)
• Bharti Airtel – Largest player with presence in 23 Circles
GROUP 7 2
Bharti Airtel
• Largest Private Integrated Telecom Company in India
• 3rd Largest Wireless Operator in the World
• Largest & Fastest Growing Wireless Operator in India
• Largest Telecom Company listed on Indian Stock

Exchange
GROUP 7 3
Vision 2010
• By 2010 Airtel will be the most admired brand
in India:
– Loved by more customers
– Targeted by top talent
– Benchmarked by more businesses
Vision 2020
• To build India's finest business conglomerate
by 2020
• Supporting education of underprivileged
children through Bharti Foundation
• Strategic Intent:
– To create a conglomerate of the future by bringing
about “Big Transformations through Brave
Actions.”
Mission
• “ We at Airtel always think in fresh and
innovative ways about the needs of our
customers and how we want them to feel. We
deliver what we promise and go out of our
way to delight the customer with a little bit
more”
Core Values
• Empowering People - to do their best
• Being Flexible - to adapt to the changing environment
and evolving customer needs
• Making it Happen - by striving to change the status
quo, innovate and energize new ideas with a strong
passion and entrepreneurial spirit
• Openness and transparency - with an innate desire to
do good
• Creating Positive Impact – with a desire to create a
meaningful difference in society.
Objectives/Goals
• To undertake transformational projects that
have a positive impact on the society and
contribute to the nation building process.
• To Diversify into new businesses in
agriculture, financial services and retail
business with world-class partners
• To lay the foundation for building a
“conglomerate” of future
Changing Demographics
Demand for VAS & Broadband

services Among Youth
28 % Urban Population
Rapid Urbanization
Rising Income level
Source: Mckinsey Report

Integrated Telecom
Company(Product Portfolio)
 Wireless Services  Enterprise Services
– 2G/3G – Carrier
– Rural Market – Corporate
 Telemedia Services  Passive Infrastructure

– Fixed Line – Bharti Infratel
– Broadband – Indus Tower
– DTH
GROUP 7 10
Geographical Presence India ...
Soucre: TRAI 11
SWOT ANALYSIS
Strengths
• Largest Telecom player in India – subscriber base over
100mn
• Pan India Presence
• High Pat Margins – 24.8%
• Low debt on books – D/E of 0.3
• Good ARPU of RS 199
• Strategic Alliance with other stakeholders in Bharti Airtel
include Sony-Ericsson, Nokia - and Sing Tel
• Experience of launching 3G services in SriLanka
• High cash balance of $1bn
SWOT ANALYSIS
Weakness
• Tariff war at its peak
• Increased competition due to new licenses &
issuance of cross over technology
• ARPU drop is a certainty, expect drop of about 20%
• Mobile Termination Charges reduced to .20 per min,
indications towards zero MTC
• M & A regulations restrict attractive synergies
• DTH – a big worry
• Land Line & fixed line service are in a matured stage
SWOT ANALYSIS
Opportunity
• Lot of scope in rural areas
• Current Tele-Density – 37 is still low among
developing countries
• Low broadband penetration – company well
equipped to take business to next level
• Fast extending IPLC market, only player other than
VSNL to have International Submarine cable network
• Expected consolidation in industry in medium term
due to tariff wars
SWOT ANALYSIS
Threat
• India centric - Major revenues from India
• 93% revenues from Bharti Televentures, only
7% from other group companies
• Mobile Number Portability by Jan 2010 –
impact on margins
• Inability to obtain 3G spectrum in key circle
• Revision of License fees
• Revision of spectrum usage charges
1. Threat from Competition
Wireless Market – Top 4 garnering 75% market share
HIGH
16
4. Threat of Substitutes
 Landline DIMINISHING MARKET HIGH
 CDMA
 Video Conferencing
BROADBAND
SERVICES
 VOIP - Skype, Gtalk, Yahoo Messenger
 e-Mail & Social Networking Websites
17
5. Threat of New Entrants
 Huge License Fees to be paid upfront & High gestation
period
LOW
 Entry of MVNOs & WiMAX operators
 Spectrum Availability & Regulatory Issues
 Infrastructure Setup Cost - High
 Rapidly changing technology
18
Airtel – Strategy
MANTRA : Focus on Core Competencies and
Outsource the rest!
Product
Innovation
Core
Pricing VAS
Competencies
Marketing
and
Branding
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.
References
• Bharti Airtel, Annual Report -2009
• Investors presentation, Bharti Airtel Limited, November 2009
• Telecommunication Services, Indian Industry: A Monthly
Review, CMIE – November 2009
• Analyst Report – Bharti Airtel, Asit C. Mehta Invesment
Intermediates Ltd.
• Telecommunication Sector Report – March 2009, CRISIL
• Capitaline Database http://capitaline.com
• Indian Telecommunication Sector - August 2008, IBEF Report
• “Next Big Spenders – Indian Middle Class”, Businessweek
GROUP 7 22

Airtel

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Airtel

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Presented By: -

• Second Largest Telecom Market

• 23 Circles - 4 Categories ( Metro, A, B & C)

• Bharti Airtel – Largest player with presence in 23 Circles

• 3rd Largest Wireless Operator in the World

• Largest & Fastest Growing Wireless Operator in India

• Largest Telecom Company listed on Indian Stock

Demand for VAS & Broadband

28 % Urban Population

Rising Income level

Source: Mckinsey Report

 Telemedia Services  Passive Infrastructure

 Rapidly changing technology

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