Report On Telecom Industry (Airtel) IEMS, Hubli

Indian Telecom Industry
History
1851 • Introduction of Telegraph services

1947 • Foreign Telecom Companies
nationalized to form PTT
1980’s: The Beginning • Tele-density in 1980-81: 0.3%
• Introduction of public pay phones
• Private Sector allowed
• DoT, MTNL and VSNL formed
Early to Mid 90’s: A Messy Affair • Telecom policy 1994
– Basic telephony service to
private operators
– 49% FDI
- 8 licensees began operations in Aug
1995
Late 90’s • Birth of a regulator: TRAI
• NTP 1999
• (New Telecom Policy)
2000+ • CAGR of around 85% since 1999
• FDI: 74% (2005)
2007-2009 • having the world's lowest call rates the
fastest growth in the number of
subscribers (45 million in 4 months),
• the fastest sale of million mobile
phones (in a week),
• the world's cheapest mobile handset
• the world's most affordable colour
phone
Quick Facts
Institute of Excellence in
Management Science, Hubli.
Total telecom subscribers : 429.72 million (March 2009)
Wireless subscribers : 391.76 million
Wire line subscribers : 37.94 million
Tele density : 36.98 per cent
India’s service providers revenue in Q1 (2009): $8.2 billion
India’s Rural Mobile Phone Users : 100 Million
Telecom services
Telecommunication sector in India is primarily subdivided into two segments, which are Fixed
Service Provider (FSPs) and Cellular Services. Telecom industry in India constitutes some
essential telecom services like telephone, radio, television and Internet. Telecom industry in
India is specifically emphasizing on latest technologies like GSM (Global System for Mobile
Communications), CDMA (Code Division Multiple Access), PMRTS (Public Mobile Radio
Trunking Services), Fixed Line and WLL (Wireless Local Loop). India has a prospering market
specifically in GSM mobile service and the number of subscribers is growing very fast.
Internet
PMRTS
VSATs
Radio Paging
GMPCS
Basic Services
Mobile Services
Industry Sectors
From holistic point of view telecom industry can be divided to four sub-sets. The major forces in
Indian telecom industry are Service providers. All major telecom equipment suppliers have their
R&D centers in India. In last 5 years, global giants in mobile devices have set up their
manufacturing facitilities in India. The discussions in this document are mainly restricted to only
Telecom Service Providers.
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Growth Avenues
1. Managed Services: is another segment
that is attracting telecom companies. On
account of the rapidly growing
subscriber base, service providers find it
difficult to manage their infrastructure
and network management operations. In
such cases, they completely or partially
outsource their infrastructure or network
management operations.
To reduce their network deployment costs,
many service providers are considering infrastructure sharing offers the following advantages:
• Improved service quality
• Increased affordability for customers
• Faster roll out of services in rural and remote areas
• Significant reduction in initial set up costs
• Increased environmental aesthetics
• Lower operating costs for service providers
1. Enterprise Telecom Services: includes key services, such as voice over Internet protocol
(VoIP), dedicated telecom communication systems; IT infrastructure enabled unified
communication services, etc. Telecom service providers are increasingly targeting enterprises
by providing dedicated services and are expected to witness major developments in near
future.
2. Virtual Private Network is a private data network that provides connectivity within closed
user groups via public telecommunication infrastructure. Competition is likely to heat up in
the VPN segment as DoT has relaxed the norms for private players.
3. 3G The Indian government plans to auction the spectrum for 3G services by inviting bids
from domestic as well as foreign players, and creating a competitive environment that offers
better services to consumers. Therefore, the 3G spectrum is among the major investment
opportunities and growth drivers of the telecom industry.
• The immense potential for 3G is reflected by the 30–40 percent annual growth in Value-
Added Services.
• Cell phone manufacturers are striving to develop USD 100 priced 3G handsets for the
Indian market.
India expects to replicate its 2G growth in 3G services.
1. WiMAX has been one of the most significant developments in wireless communication in
the recent past. Since this mode of communication provides network access in inaccessible
locations at a speed of more than 4 Mbps, it is expected to be a major factor in driving
telecom services in India, especially wireless services. Thus, it will lead to the increased use
of telecom services, Internet, value-added services and enterprise services. WiMAX is
expected to accelerate economic growth and assist in providing better education, healthcare
and entertainment services.
• It is estimated that India will have 13 million WiMAX subscribers by 2012.
• Aircel is the pioneer in WiMAX technology in India.
• The state-owned player, BSNL, aims to connect 74,000 villages through WiMAX.
• Bharti, Reliance and VSNL have acquired licenses in the 3.3GHz range to utilise the
opportunities offered by this domain.
1. Value Added Services:The VAS industry was worth USD 632 million in 2006–07. The
industry is estimated to grow by 60 percent in 2007–08 and become an USD 1,011 million
opportunity.
The VAS industry is currently focussing on the entertainment sector, such as the Indian film
industry and cricket; however, there is scope for growth in other avenues as utility-based
services, such as location information and mobile transactions.
2. Rural Telephony: As the government targets to increase rural teledensity from the current 2
percent to 25 percent by 2012, rural telephony will require major investments. This segment
will boost the demand for telecom services, equipment, Internet services and other value-
added services; thereby, offering great market opportunities for telecom players.
Industry Revenue (2002-2010)
According to a Frost & Sullivan industry

analyst, by 2012, fixed line revenues are
expected to touch US$ 12.2 billion while
mobile revenues will reach US$ 39.8 billion in
India. India has become the second country in
the world to have more than 100 million
CDMA-based (code division multiple access)
mobile phone subscribers after the US, which
has 157 million CDMA users. The Indian
telecommunications industry is on a growth
trajectory with the GSM operators adding nearly 9 million new subscribers in April 2009, taking
the total user base to 297 million, a growth of 3.11 per cent over the additions made the previous
month. The figures, however, do not include the GSM subscriber additions made by Reliance
Telecom.
Year Revenue(US$ billion)
2002-03 9
2003-04 10
2004-05 11
2005-06 15
2006-07 20
2008-09 32
2009-10(forecasted) 43
Subscriber Growth
India added 130 million new customers in 2008-09, the largest globally. The country’s cellular
base witnessed close to 50 per cent growth in 2008, with an average 9.5 million customers added
every month. By April 2009, the total number of telephone connections reached 441.47 million.
With this growth, the overall tele-density reached 37.94 at the end of April 2009. According to
Business Monitor International, India is currently adding 8-10 million mobile subscribers every
month. It is estimated that by mid 2012, around half the country's population will own a mobile
phone. This would translate into 612 million mobile subscribers, accounting for a tele-density of
around 51 per cent by 2012.
Bharti Airtel
Vodafone Essar
BSNL
IDEA
Aircel
Reliance GSM
MTNL
Loop Mobile
Tata TeleservicesInstitute of Excellence in

Major Players
Wireless Service Providers (Market share)
Handset Manufacturers (Market share)
Major Investments
The booming domestic telecom market has been attracting huge amounts of investment which is
likely to accelerate with the entry of new players and launch of new services. Buoyed by the
rapid surge in the subscriber base, huge investments are being made into this industry.
• The Russian government is likely to pick up equity amounting to US$ 670 million-US$
700 million in Sistema Shyam TeleServices Ltd (SSTL), a joint venture between Russia-
based telecom major Sistema and Shyam Group in India, by the end of this financial year.
SSTL is also planning to invest US$ 5.5 billion over the next 5 years in India.
• Norway-based telecom operator Telenor has bought a 60 per cent stake in Unitech
Wireless for US$ 1.23 billion.
• Japanese telecom major NTT DoCoMo acquired a 27.31 per cent equity capital of Tata
Teleservices for about US$ 2.6 billion in November 2008.
• Bahrain's Batelco has signed a deal to buy 49 per cent in Chennai-based S-Tel, a GSM
service provider, for US$ 225 million.
• BSNL, India's leading telecom company in revenue terms, will put in about US$ 1.16
billion in its WiMax project.
• Vodafone Essar will invest US$ 6 billion over the next three years in a bid to increase its
mobile subscriber base from 40 million at present to over 100 million.
• Telecom operator Aircel, which launched GSM mobile services in Bangalore in February
2009, plans to invest US$ 220.58 million over the next year to set up base stations across
the state.
Telecom Regulatory Authority of India (TRAI)
1. Recommendatory Functions
• Need and timing for introduction of new service provider
• Terms and conditions of license to a service provider
• Revocation of license for non-compliance of terms and conditions of license
• Measures to facilitate competition and promote efficiency in the operation to facilitate
growth in industry
• Technological improvement in services by service providers
• Inspection of type of equipment used by service provider
• Measures for Technological development
• Efficient Management of available spectrum
1. Mandatory Functions
• Ensure compliance of terms and conditions of license
• Fix the terms and conditions of their inter connectivity between service providers
• Ensure Technical compatibility and effective inter-connection between different
service providers
• Regulate arrangements for sharing of revenues amongst service providers
• Lay-down the standards of QoS to be provided by service provider, ensure this by
periodical survey
• Lay-down and ensure time period for providing local and long-distance circuits of
telecommunication between different service providers
• Maintain inter-connect agreement register
• Ensure compliance of USO(universal service obligation)
1. Other functions
• Levy fees and other charges as determined by regulations
• Perform administrative functions as entrusted to it by Central government or as per
TRAI act
• Notify in Official Gazette the service rates and message rates within and outside India
Evolution of Telecom in India
National Coverage
Bharti Airtel
Type Public (BSE: 532454)

Founded 1995 as Bharti Tele-
Ventures
Founder(s) Sunil Bharti Mittal
Headquarters New Delhi, India
Key people Sunil Mittal
(Chairman) & (CEO)
Industry Telecommunications
Products Wireless
Telephone
Internet
Satellite television
Revenue ▲ US$ 6.73 billion (2008)
Net income ▲ US$ 1.59 billion (2008)
Total assets ▲ US$ 12.28 billion (2008)
Owner(s) Bharti Enterprises
Website Bharti.com
Airtel.in
Fact Sheet Of The Company
Name: Bharti Airtel Limited.
Business Description: Provides GSM mobile services in all the 22

telecom circles in India, and was the first
private operator to have an all India
presence. Provides telemedia services (fixed
line and broadband services through DSL)
in 95 cities in India. Also provides DTH
service named Airtel Digital TV
Established: July 07, 1995, as a Public Limited Company
Shares in Issue: 1,898,373,280 as at June 30, 2009
Listings: The Stock Exchange, Mumbai (BSE) The

National Stock Exchange of India Limited
(NSE)
Customer Base: 102,367,881 GSM mobile and 2,827,881

Telemedia Customers (status as on June 30,
2009)
Operational Network: Provides GSM mobile services in all the 22

telecom circles in India, and was the first
private operator to have an all India
presence.
Introduction
India's largest and world's third largest cellular service provider with more than 82 million
subscribers –Bharti Airtel is a merger between Bharti Group and Airtel it’s a well know Ned
brand in India as well as Asia . Owned by Mr. Sunil Bharti Mittal. Telecom giant Bharti Airtel is
the flagship company of Bharti Enterprises. The Bharti Group has a diverse business portfolio
and has created global brands in the telecommunication sector. Bharti has recently forayed into
retail business as Bharti Retail Pvt. Ltd. under a MoU with Wal-Mart for the cash & carry
business. It has successfully launched an international venture with EL Rothschild Group to
export fresh agri products exclusively to markets in Europe and USA and has launched Bharti
AXA Life Insurance Company Ltd under a joint venture with AXA, world leader in financial
protection and wealth management.
Airtel comes to you from Bharti Airtel Limited, India’s largest integrated and the first private
telecom services provider with a footprint in all the 23 telecom circles. Bharti Airtel since its
inception has been at the forefront of technology and has steered the course of the telecom sector
in the country with its world class products and services. The businesses at Bharti Airtel have
been structured into three individual strategic business units (SBU’s) - Mobile Services, Airtel
Teliemedia Services & Enterprise Services. The mobile business provides mobile & fixed
wireless services using GSM technology across 23 telecom circles while the Airtel Telemedia
Services business offers broadband & telephone services in 95 cities and has recently launched
India's best Direct-to-Home (DTH) service, Airtel digital TV. The Enterprise services provide
end-to-end telecom solutions to corporate customers and national & international long distance
services to carriers. All these services are provided under the Airtel brand.
Bharti Airtel offers GSM mobile services in all the 23-telecom circles of India and is the largest
mobile service provider in the country, based on the number of customers.
The group offers high speed broadband internet with a best in class network. With Landline
services in 94 cities we help you stay in touch with your friends & family and the world. Get
world class entertainment with India’s, best direct to home (DTH) service, digital TV in more
than 150 cities.
1. Enterprise Services- provides a broad portfolio of services to large Enterprise and
Carrier customers. This division comprises of the Carrier and Corporate business unit.
Enterprise Services is regarded as the trusted communications partner.
2. Diverse business portfolio- Mr. Sunil Bharti believe and adopt strategy of diversification
they always come with new product in new area like mobile, land line, DTH , and broad
band.
3. Operations in all 23 circles-In India there are 28 states and Airtel operate or rotate their
services in 23 states it’s a big achievement in itself and its also want to cover other
remain state .
4. 2nd most trusted service brand in India by ET survey- when ET did survey at that
time they found that it’s a most trusted brand of India .After BSNL people trust at Airtel
Services.
5. Mr. Mittal awarded by Padama Bhashan in 2007 and GSM Association chairman’s
award in 2008
6. Bharti Airtel recognized as Best Global Wholesale Carrier for 2009 at Telecoms World
Awards Middle East
7. Airtel Call Home launches Pay per Second plan for its US customers
8. Airtel Customers to enjoy substantial advantage while roaming anywhere
9. Bharti Airtel launches Far-East Connect Network to serve global wholesale customers
across Asia and the Pacific
10. Airtel ‘Call Home’ announces calling from US to Gujarat, Maharashtra and Rajasthan at
1.25 c / min Flat
11. Bharti Airtel inaugurates its Center for Shared Services for Taxation in Delhi NCR
Organizational Structure
As an outcome of a restructuring exercise conducted within the company; a new integrated
organizational structure has emerged; with realigned roles, responsibilities and reporting
relationships of Bhartis key team players.
With effect from March 01, 2006, this unified management structure of 'One Airtel' will enable
continued improvement in the delivery of the Groups strategic vision
VISION
By 2010 Airtel will be the most admired brand in
India:
➢ Loved by more customers

➢ Targeted by top talent
➢ Benchmarked by more businesses
“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”
MISSION
➢ Recruit & Maintain Caliber Working Staff
➢ Provides Customer Specific Software Solution
➢ Continues Improvement in Software Quality
➢ Not remain as Only Software Solution Provider, but be as Continues Service Provider
➢ To empower stakeholders in services and inventories to deal with associated
Subsidiary Companies
• Bharti Hexacom
• Bharti Comtel
• Bharti Aquanet
• Bharti Broadband
• Bharti Infratel
• Bharti Telemedia
• Bharti Airtel (UK, USA, Canada, Hongkong, USA, Lanka)
Products
Products and Services

Services offered by Bharti Airtel can be classified into:
• Mobile services – Based on number of customers Bharti Airtel is largest mobile service
operator in India. This company offers mobile services based on GSM technology. For
convenience of its customers Bharti Airtel has both prepaid and post paid facilities.
• Enterprise business – Bharti Airtel provides integrated services comprising mobile,
telephone, broadband, data and connectivity services internationally as well as nationally
for small, medium and large scale enterprises. Its carrier service provides network
connectivity through optic fiber over a distance of more than 35,000 km. Bharti Airtel is
a member of South East Asia – Middle East – Western Europe – 4 consortiums which
include 15 global telecommunication service providers.
• Airtel Telemedia Services – This Company offers high speed broadband services
through landlines in 94 cities.
Subscriber Base
The Airtel subscriber base according to TRAI - Telecom Regulatory Authority of India as of
February 2009 was:
• Chennai - 2,133,677
• Delhi - 4,671,177
• Mumbai - 2,791,963
• Kolkata - 2,456,896
• Madhya Pradesh - 7,690,609
• Gujarat - 3,981,660
• Andhra Pradesh - 8,892,353
• Karnataka - 9,820,812
• Tamil Nadu - 6,003,040
• Kerala - 2,169,633
• Punjab - 3,754,405
• Maharashtra - 6,248,906
• Uttar Pradesh (West) - 2,256,862 & (East) - 5,722,386
• Rajasthan - 6,704,274
• West Bengal & Andaman and Nicobar Islands - 3,501,560
• Himachal Pradesh - 951,121
• Bihar - 7,152,245
• Orissa - 2,811,453
• Assam - 1,448,389
• Other North Eastern States - 890,054
• Jammu and Kashmir - 1,590,935
The total is 101,114,971 or 24.2% of the total 375,742,592 GSM + CDMA mobile connections
in India till February 2009; and presently the Airtel is Number 1 operator in India. In 2009 Airtel
also launched in Sri Lanka.
On the 9th of May, 2009 Airtel signed a major deal with Manchester United Football Club. As a
result of the deal, Airtel gets the rights to broadcast the matches played by the team to its
customers.
Corporate Governance
Bharti Airtel Limited firmly believes in the principles of Corporate Governance and is
committed to conduct its business in a manner, which will ensure sustainable, capital-efficient
and long-term growth thereby maximizing value for its shareholders, customers, employees and
society at large. Company’s policies are in line with Corporate Governance guidelines prescribed
under Listing Agreement/s with Stock Exchanges and the Company ensures that various
disclosures requirements are complied in ‘letter and spirit’ for effective Corporate Governance.
During the financial year 2003-04, the Company was assigned highest Governance and Value
Creation (GVC) rating viz. ‘Level 1’ rating by CRISIL, which indicates that the company’s
capability with respect to creating wealth for all its stakeholders is the highest, while adopting
sound Corporate Governance practices. This rating was re-affirmed by CRISIL on April 20,2006
Corporate Responsibility at Bharti Airtel
Overview
At Bharti, CSR is a way of life. Each department and employee strives to be sensitive to the
stakeholders and environment within their work context. Bharti encourages employees to take
decisions and design business-linked processes that are sensitive to communities and
environment.
Corporate Social Responsibility (CSR) in Bharti encompasses much more than only social
outreach programs. It is an integral part of the way Bharti conducts its business. The essence of
Bharti’s commitment to Corporate Social Responsibility is embedded in the ‘Corporate Values’,
• To be responsive to the needs of their customers.
• To trust and respect their employees.
• To continuously improve their services – innovatively and expeditiously.
• To be transparent and sensitive in their dealings with all stakeholders.
They encourage their employees to take decisions and design business processes, keeping in
mind the following:
• Ethics, fairness and being correct.
• Meeting and going beyond compliances and legal requirements.
• Showing respect and sensitivity towards stakeholders and communities.
• Nurturing the environment.
They practice their CSR beliefs and commitments through a three-pronged approach:
• Engaging with stakeholders.
• Ensuring stakeholder sensitive policies and practices.
Bharti Airtel sensitizes its employees towards CSR issues at various forums. They feel that it is
important that each employee should understand the importance of environmental, social and
economical aspects while taking business decisions. At Bharti, each employee is sensitized
towards CSR issues and thus operations at the ground level are influenced. Such sensitization
exercises have resulted in many socially and environmentally sensitive decisions on the ground.
For example, Confidence Plan for hearing impaired people, covers noise-making DG sets at
extra cost, investing in consumer awareness campaigns to ensure safe use of mobile are some
examples of the above.
Community Initiatives
Overview
Corporate Social Responsibility is embedded in, and built upon, the stated ‘values’ of Bharti –
the institution. These values guide all their activities and each employee is encouraged to take
decisions and design business-linked processes that are sensitive to communities and
environment.
“We have an obligation to fulfill to society and the communities in which we operate, and
help improve the quality of life for everyone, today and in the future.”
Based on the basic guidelines and direction provided in the Code of Conduct, Bharti has
undertaken many community programs.
a) Bharti’s contribution to society is structured through two channels, namely,

Bharti’s Corporate Social Responsibility (CSR) Initiatives, including initiatives
undertaken by way of employee mobilization as well as running environment related
programs; and
b) Bharti Foundation, a separate vehicle established in 2000 to lead the CSR agenda of
Bharti Group of Companies
c) CSR Initiatives @ Bharti Airtel: Bharti Airtel has a nation-wide presence that has
grown at an exponential rate in the recent years. Each local office undertakes special
programs for the local community, thereby reaching out to people. Many projects like
material collection drive and blood donation camps are organized for the welfare of the
underprivileged community. Bharti constantly searches for new, innovative ways of
reducing the consumption of resources, with the aim of leaving a better and greener earth
for future generations.
d) Response to Disaster
• Bharti Airtel’s response to Tsunami Disaster: Bharti Airtel undertook the

following initiatives for immediate relief and rehabilitation to Tsunami victims:
• Built a mobile network in Andaman & Nicobar islands in less than 3 months to
aid rapid rehabilitation of the island
• Donated Rs. 1 Crore to the Prime Minister’s Relief Fund, in addition to
contributions from employees.
e) Airtel Experience Centre by Access MP… for the benefit of the benefit of visually
impaired people as well as people from deprived section of society.
• Created 29 Airtel Crisis Communications centres in Tamil Nadu.

• Raised resources for Tsunami victims by initiatives such as a ‘Benefit Cricket
Match’.
a) Employees of Bharti Airtel also contributed through a Donation Collection Drive, with a
difference. All employees were not only given the freedom to choose the amount they
wished to donate, but also the agency they wished to donate to.
One of the most memorable actions was the heroic way in which Bharti employee re-
established connections after Tsunami hit Tamil Nadu. After being washed away by the
wave, this employee went back to work on restoring connectivity for the struck region.
Word of his dedication spread within Bharti and he received tremendous response from
his fellow Bhartians. Over 80 emails were addressed to him and presented to him in
recognition.
b) Bharti Airtel’s response to Assam, Bihar and West Bengal floods: Bharti Airtel also
partnered with an NGO to provide relief to the flood victims in the flood hit areas of
Assam, Bihar and West Bengal. A ‘Material Collection Drive’ was undertaken across
Bharti offices, for collection of material such as clothes, utensils, footwear, blankets, dry
ration and monetary donations. 55 cartons of clothes and 65 kilos of ration were
dispatched, in addition to monetary contributions.
c) Bharti Airtel during Mumbai Floods: Bharti Airtel employees climbed up the towers to
restore the networks so that their customers could conveniently reach its employees.
d) Bharti Airtel’s response to Kashmir earthquake: Bharti Airtel’s ‘Rapid Response

Team’ responded to the Kashmir earthquake by bringing more than 2000 food packets
and water bottles to the affected area. Money, clothes, woolens and blankets were also
collected from employees to distribute among earthquake victims.
e) Other initiatives of Bharti Airtel: Bharti Airtel employees have undertaken varied
initiatives to reach out to the local community. Some of such initiatives are listed below:
• Airtel Ashiana for underprivileged children at the Mohali office of Airtel.
• BIL North tied up with an NGO to distribute daily surplus food to needy children.
a) Bharti Foundation: Although CSR is executed at all levels in the organization, the
Promoters of Bharti Enterprises established Bharti Foundation in 2000 with a vision,
“To help underprivileged children and youth of our country realize their potential.”
Bharti Foundation’s mission is to create and support programs that bring about
sustainable changes through education, use of technology and information and best
practice sharing.
Bharti Foundation has established itself the goals of improving accessibility and quality
of education at the school level for underprivileged children, and to provide education
and training opportunities to youth
Awards And Recognition

Bharti Airtel has received recognition for its innovative practices across the world, some
are as follows:
• 3rd Largest Wireless Operator In The World
• Largest Private Integrated Telecom Company In India
• Largest Wireless Operator In India
• Largest Private Fixed Line Operator In India
• Largest Telecom Company Listed On Indian Stock

Exchanges
• Sunil Bharti Mittal - Gsm Association Chairman’s Award 2008
• Sunil Bharti Mittal - Chosen For Padma Bhushan Awards In 2007
• Airtel Was Chosen As The 2nd Most Trusted Service Brand In India In The ‘Most
Trusted Brands 2008 Survey’ Conducted By The Economic Times - Brand Equity
• Awarded With Top Honors At The Gsma Mobile World Congress Conference 2008 In
Barcelona For The Category “Best Billing/ Customer Care Solution.”
• Adjudged As The ‘Best Carrier India‘ At The Telecom Asia Award 2008
• Adjudged As ‘Company Of The Year’ At The Cnbc India Business Leader Awards 2007
• Economic Times ‘Company of the Year 2007’ Award For Corporate Excellence Gallup
Great Workplace Award For 2008 -Airtel is one of the only 20 companies worldwide and
the only company from India to receive the prestigious award. The other winners include
companies like Standard Chartered, Qwest Communications and Campbell Soup
Company etc. Airtel is one of the only 20 companies worldwide and the only company
from India where Organization engagement score is higher in more than 50% of the
population
7 P’s of Airtel
1. Product
 Airtel Pre-paid
 Airtel Post-paid
 Business Solutions
 Blackberry Wireless Handheld
 Value Added Services (VAS)
The different value added services provided by Airtel are-
 Instant Balance Enquiry
 24Hr recharge Facility
 Caller line identification
 Call divert, Call wait & Call Hold
 Multimedia messaging service (MMS)
 Airtel Live Portal
 SMS based Information Service
 Hello Tunes & Ring Tones
 Voice Mail Service
 Easy Post-paid bill collection
 Gifting of Ring Tones & Hello Tunes
 GPRS
1. Price
 Customer based pricing strategies.
 Flexible pricing mechanism
 Controlled by TRAI.
1. Place
 It has wide and extensive presence even in the remotest areas
 Airtel Customer Care Touch Points
 Distributors like E.g. Pan shops, grocery stores, chemists, outlet etc.
1. Promotion
 Large scale print and video advertising.
 Big celebrities like SRK and Sachin are roped in to endorse the product because it
 In 2002 Airtel got its Signature tune from A.R.Rehman, this signature tune is the
most downloaded tune in India.
 Provides innovations such as Bollywood movie premiers, music services such as ring
back tones & many more.
Some promotional activities
1. People
 Total Employees 25616 (Bharti Airtel consolidated) as per Q3 08.
 Dedicate and passionate workforce.
 One of the best customer supports.
 Have won 2nd Best employer award in 2004.
1. Process
 Process for services is very easy and customer can avail it very easily.
 121 is the customer support no. which can be dialed from anywhere in India.
1. Physical Environment
The First Mover Advantage
• Electronic recharge
• Hello tunes
• Airtel Live!
• Portfolio manager
• Song catcher
• Easy music
• Black berry handsets
• M-cheques
Porter’s 5 Forces Model
1. Threat from Competition

Wireless Market – Top 4 garnering 75% market share
OP Margin Net Margin

Company Sep-07 Sep-08 Sep-07 Sep-08
Bharti 43.00% 38.00% 26.40% 19.30%

Rcom 37.90% 31.60% 23.90% 13.20%
IDEA 32.80% 26.60% 14.10% 6.50%
MTNL 23.70% 22.90% 7.00% 6.80%
2. Customer Bargaining Power
• Lack of differentiation among Service Providers

• Cut throat Competition
• Low Switching Costs
• Attractive Schemes for new connection
• Availability of all operators everywhere
• Difficulty to differentiate Brand
• Businesses & Consumers
• Number Portability will have negative Impact
1. Suppliers Bargaining Power
2. Threat of Substitutes
• Landline
• CDMA
• World Phone
• Video Conferencing
• VOIP - Skype, Gtalk, Yahoo Messenger
• e-Mail & Social Networking Websites
1. Threat of New Entrants
Low Because
• Huge License Fees to be paid upfront & High gestation period
• Entry of MVNOs & WiMAX operators
• Spectrum Availability & Regulatory Issues
• Infrastructure Setup Cost - High
• Rapidly changing technology
High Because
• Entry through 3G
• New Entrants are ready to enter with Huge Capital Considering the attractiveness
of the market
• Increase of FDI to 76% bringing competition from Foreign players
• New Entrants from Non telecom companies with the ease of Outsourcing
High
Porters Generic Strategy
DIVERSIFICATIO
PRODUCT
MARKET
PENETRATION
DEVELOPMENT
N
LOOKING
ENTERED
IPLC PRODUCTS
IN
FOR
BROADBAND
OVERSEAS MARKET
AND
OUTSOURCING
FIXED LINE MARKET
Ansoff Matrix
To portray alternative corporate growth strategies, Igor Ansoff conceptualized a matrix that focused
on the firm’s present and potential products and markets / customers. He called the four product-
market strategic alternatives
➢ market penetration [existing market + existing product],

➢ market development [existing product + new market],
➢ product development [existing market + new product], and
➢ Diversification [new product + new market].
The company should follow all four strategies depending on the demand and product as indicated in
the matrix. The company perhaps needs to focus more on the comparatively neglected area of
diversification.
➢ Market Penetration: Airtel entered in broadband and fixed phone line market.
➢ Product Development: IPLC products. [An IPLC (international private leased circuit) is
a point-to-point private line used by an organization to communicate between offices that
are geographically dispersed throughout the world. An IPLC can be used for Internet
access, business data exchange, video conferencing, & any other form of
telecommunication.]
➢ Market Development: Airtel is now looking for overseas market. Company has already
make his presence in Nigeria and Seychelles
➢ Diversification : Airtel has now outsourcing sum of its services like customer services
with IBM
Detailed Value Chain
PEST ANALYSIS
Political:-
Governmental and legal issues affecting how the company operates
• Regulation - Dominating Brand
• Infrastructure - First mover Advantage
• Banning of phone use in certain circumstances
• Health issues - Heath Ministry
Economic:-
Factors influencing the purchasing power of customers and the company are cost of capital.
• Cost of 3G licenses - Lowering down
• Cost of calls being driven down
• Worldwide recession - Both Boon and Bane
• Third world countries - New opportunity
Social:-
Demographic and cultural aspects of the environment which influence customer needs and market size
• Health Issues
• Demographics
• Social Trends
• Picture phones
• Mobile Etiquette
• Saturation Point
• Technological
• Strong connect
Technological:-
• Equipped with new technology

• Fastest to launch new Services
• Serves high quality Fixed line and Broadband services
• Strong NLD optical fiber network
• E-commerce portal
• Efficient customer care service
SWOT Analysis
OPPORTUNITIES
➢ Low Broadband Penetration, Rural

➢ Telephony
➢ Huge market
➢ Current Tele-Density – 30.6 is still low among developing countries
➢ Untapped rural market
THREATS
➢ Falling ARPU (Avg Rev per user)

➢ Intense Competition & Shortage of Bandwidth
➢ New Players coming in India
➢ Uncertain Economic Condition
STRENGTHS
➢ Market Leader
➢ Recognized Globally
➢ Strong Brand Image
➢ Strong New Business Development team
➢ Strong Financials
➢ Pan India presence
➢ Pan India presence
WEAKNESSES
➢ Outsourcing of core system

➢ Network Coverage
➢ Untapped Rural market
STEEP Analysis
Social Factors
➢ Demand for VAS & Broadband services Among Youth
➢ 28 % Urban Population
➢ Rapid Urbanization
➢ Rising Income level
➢ Out of town employment
➢ Outstation trips
Technology
➢ CDMA – Already there are big players in this segment Reliance , Tata
➢ 3G – Value added services potential still to be tapped fully
➢ 2G/3G – GSM Currently commands 70% of mobile subscribers in India
➢ Threat from VOIP
➢ Next Generation Network
➢ Infrastructure sharing
Economic Factors
➢ GDP growth rate - Averaged around 7.9 % from 2002-2008
➢ Growing per capita income/disposable Income
○ Rs 18,885 in 2002 to Rs 38,084 in 2008
➢ Falling Handset Prices (ASP= INR 3150)
➢ Falling Tariffs
Regulatory Framework
➢ TRAI, DoT, TDSAT
➢ 74% FDI Investment
➢ High taxes etc in the telecom industry : 17-26%
➢ Lack of Transparency in Spectrum & License Allocation
➢ 3G Policy & MNP still Pending
EXTRERNAL WEIGHT RATING WEIGHTED COMMENTS
SCORE
FACTORS ( 1-5)
OPPORTUNITIES
O1 Low Broadband 0.10 4 0.40 It is already penetrating

Penetration
O2 Telephony 0.05 2 0.10 There is less scope for

telephony
O3 Huge market 0.10 4 0.40 There is huge untapped

market yet to targeted
O4 Current Tele- 0.05 4 0.20 It is still in developing

Density – 30.6 is still stage so there is a chance
low among developing
countries of improvement
O5 Untapped rural 0.30 4 1.20 It is already penetrated but

market still 82% of rural market is
yet to be captured
THREATS
T1 Intense Competition 0.25 3 0.75 There are stiff competition

& Shortage of between the competitors
Bandwidth
T2 New Players coming 0.10 2 0.20 There is entrance of new

in India players with new plans
which will have threat on
Airtel
T3 Uncertain Economic 0.05 3 0.15 There is uncertain

Condition economic condition which
will have indirect effect on
Co
TOTAL SCORES 1 3.40

EXTERNAL FACTORS ANALYSIS SUMMARY
INTERNAL FACTOR ANALYSIS SUMMARY
INTERNAL WEIGHT RATING WEIGHTED COMMENTS
SCORE
FACTORS ( 1-5)
STRENGTHS
S1 Market Leader 0.25 5 1.25 It is the main strength as it

has more market share
S2 Recognized Globally 0.20 3 0.60 It is recognized globally by

tie up between different
foreign companies
S3 Strong Brand Image 0.25 4 1.00 The Airtel stands 2nd

position in brand, so it has
well positioned
S4 Strong Financials 0.10 3 0.30 Due to increased market

share it has able to
maintain revenue, which
shows Strong Financials
S5 Pan India presence 0.05 2 0.10 Airtel offers the most

expansive roaming network
with its Pan-India presence
and across the globe with
International Roaming
spread in over 240
networks.
WEAKNESSES
W1 Outsourcing of core 0.10 3 0.30 They are going for

system outsourcing of core system
which built internally
W2 Network Coverage 0.05 3 0.15 Due to increased market

share & subscription there
is need of more network
towers
TOTAL SCORES 1 3.70
Note:
➢ Weights are assigned: Factors probable impact on company’s current strategies.
➢ Ratings are assigned: How well company’s management is currently dealing with each
external factors.
➢ Ratings: 5 for most important & 1 for least important
➢ From the above table both EFAS & IFAS the Airtel is in the favorable condition in the
market (i.e. 4.05 & 3.70 is greater than 3)
STRATEGIC FACTOR ANALYSIS SUMMARY
EXTRERNAL WEIGHT RATING WEIGHTED COMMENTS

SCORE
FACTORS ( 1-5)
O1 Low Broadband 0.05 4 0.20 It is already penetrating

Penetration
O2 Untapped rural 0.20 4 0.80 It is already penetrated but

market still 82% of rural market is
yet to be captured
T1 Intense Competition 0.15 4 0.60 There are stiff competition

& Shortage of between the competitors
Bandwidth
T2 New Players coming 0.05 3 0.15 There is entrance of new

in India players with new plans
which will have threat on
Airtel
S1 Market Leader 0.20 4 0.80 It is the main strength as

it has more market share
S2 Strong Brand Image 0.20 4 0.80 The Airtel stands 2nd

position in brand, so it has
well positioned
W1 Outsourcing of core 0.10 3 0.30 They are going for

system outsourcing of core system
which built internally
W2 Network Coverage 0.05 3 0.15 Due to increased market

share & subscription there
is need of more network
towers
TOTAL SCORES 1 3.80
TOWS Matrix
Strengths (S) Weaknesses (W)

Internal
S1 Market Leader W1 Outsourcing of core
Factors
system
S2 Recognized Globally
W2 Network Coverage
S3 Strong Brand Image
External S4 Strong Financials
Factors
S5 Pan India presence
Opportunities (O)
• With Strong financials &
O1 Low Broadband
Penetration Brand image there is a • Construction of
chance of capturing the towers
O2 Huge market urban & rural market.
O3 Current Tele-Density - • Reducing the
30.6 is still low among • It can also go for outsourcing &
developing countries diversification of product producing it in
O4 Untapped rural market house
Threats (T) • Providing different forms

of scheme to different
T1 Intense Competition &
targeted customers • Going for tie up
Shortage of Bandwidth
• Giving better offers & with telecom
T2 New Players coming in companies
prices than the
India
competitors
T3 Uncertain Economic • Providing VAS to attract
Condition customers
Airtel – Strategy
“MANTRA: Focus on Core Competencies and outsource the rest!”
Strategy
• Partner with leading players in telecommunication across the globe.

• Managed to work with the best of domain specialists globally and emerge as a world
class entity.
• Operational contracts with marquee vendors and strategic investors ranging from private
equity investors to global telecom giants.
Operational Strategies
• Higher emphasis on ARPU/min – stark contrast with other operators who concentrate on
ARPU only.
• Aim to be become a one stop shop for all telecommunication services under the Bharti
umbrella.
• Exploring opportunities in international markets.
• Hived off tower infrastructure into a separate entity.
Strategic partnerships/ Shareholders – Technology
• Warburg Pincus – a celebrated PE investor held a stake for a substantial period of time
and was instrumental in providing Airtel support in its early stages.
• Vodafone was a strategic investor in Airtel.
• Temasek – the Singapore based investor holds a considerable stake in it.
• Was also affiliated with Singapore Telecom.
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 in spite of being the world’s largest is still not matured. Opportunities
abound in the hinterland which must be exploited.
Factors & Strategies Responsible For Market Success of Airtel:-
• According to my analysis, the Airtel is very keen with their marketing strategy in the
competitive world.
• There r certain parameters which tell us about that how Airtel became the market
leader
1. First mover advantage:

• In the initial days due to high tariff rates cellular players had to impose high call
charges on their customers and the handsets were costly.
• Naturally, they targeted the elite, up market professionals and entrepreneurs as
customers. Airtel was positioned as an asp rational and lifestyle brand.
• It was pitched not merely as a mobile service, but as something that gave consumer a
badge value. The Brand was developed to connote leadership in network, innovations,
offerings and services.
• The taglines like "Airtel celebrates the spirit of leadership" and "The first choice
of the corporate leaders" emphasized that stance.
• The Leadership campaign was reportedly successful and resulted in a marginal
improvement in Airtel performance.
1. Highly Focused On Telecom

Bharti Airtel is largely focused on the telecom; around 93% of the total revenue comes from
telecom (Total telecom revenue Rs 3,326).
2. Leadership in Fast Growing Cellular Segment

Airtel is holding leadership position in cellular market.. Bharti Airtel is one of India's leading
private sector providers of telecommunications services based on an aggregate of 27,239,757
customers as on August 31, 2006, consisting of 25,648,686 GSM mobile and 1,591,071
broadband & telephone customers.
3. Pan India Footprint

• Airtel offers the most expansive roaming network. Letting you roam anywhere in
India with its Pan-India presence, and trot across the globe with International
Roaming spread in over 240 networks.
• The mobile services group provides GSM mobile services across India in 23 telecom
circles, while the B&T business group provides broadband & telephone services in 92
cities.
1. Heavy Brand Promotion Strategy

• Hence Bharti decided to humanize the brand Airtel to gain competitive advantage.
• In august 2000 Bharti launched its new “Touch Tomorrow” campaign which aimed
at strengthening its relationship with its customers and make the brand „softer‟ to
cater a wide variety of people across the society.
• Promotional Effectiveness: Most of the respondents said that Promotional campaign
influenced their decision to shift to the Airtel
➢ Airtel basically uses two appeal to connect to the users

○ Emotional
○ Humorous
○ Attracting
➢ Brands stray when they try to be different for the sake of being different. The
desire to be different is pretty common in advertising.
➢ In 2002, Airtel signed on music composer A.R.Rehman and changed its tune to
"live every moment": rah man’s signature tune for Airtel is the most
downloaded ringbone in India. But that was just part of the ongoing
communication.
➢ The following year Airtel adopted the "express yourself" positioning, which is
also its current tagline.
➢ Youth icons like Shahrukh khan and Sachin Tendulakar were brought in as
brand ambassadors to attract youngsters
➢ Add campaign with an eye on the rural market
1. Huge Network Coverage:-

A combination of the following 4-key performance indicators largely determines the overall
service quality: system coverage; call blockage; voice quality; and dropped call rate.
➢ System coverage
➢ Call blockage
➢ Voice quality
➢ Dropped call rate
Source: - According to the national survey report Airtel minimum complaints of all of these
above stated problems were found to be minimum in case of Airtel. So we can say that Airtel
is providing comparatively far better service to the users.
1. Proactive and Innovative Services:-

According to the responses obtained the most critical factor in this regards is the fresh
experience which Airtel provides to its consumers time to time.
➢ Black berry
➢ Start or stop service at any time
➢ Facilities provided
➢ News services
➢ Car insurance
➢ Fund transfer
➢ Bill payment system
➢ Payment for ticket
➢ Payment of electricity bills
➢ Bharti Airtel Launches “Special Five” to Empower Its Customers*
*NOTE: - Bharti Airtel, Asia’s leading integrated telecom services provider announced a
new add-on feature called “Special 5” for all its 100 million customers. The consumer usage
analysis indicates that our customers make majority of their calls to a very few numbers
which are the most special, near & dear in their lives.
1. Mission of Airtel
Mission of the company very well states that it caters to meet the need of its customers by
providing error free service delivery, innovative products and cost efficiency.
2. Vision of Airtel
“To be the most admired brand by 2010”
3. Value Added Services
Airtel provides various value added services like instant balance enquiry, 24 hr recharge
facility, caller line identification, call divert, call hold, Airtel Live Portal, Hello Tunes & ring
tones, Voice mail service, GPRS.
4. Schemes
Airtel has been promoting various schemes to attract various segments consumers by
launching various plans, which offer discounts and reduced rates.
5. Pricing
The pricing strategy of Airtel is customer based, there are various tariff plans being
introduced to cater to flexible pricing requirements
6. Airtel's strategy for getting into new areas

The company is focusing its attention towards youth, women, and senior citizens by
introducing new prepaid and post paid plans which offer lower call rates and more value
added services with affordable payment plans.
Company’s “Friendz” prepaid plan is focused on younger generation the two post paid plans
among which by name “Ladies Special” are meant for women would allow more women to
talk for longer hours as there are some attractive discounts being given and the next for
senior citizens by name “Senior”, discount will be allowed for one STD no and one Airtel
local no.
Conclusion
In the next two years, India is expected to become the 3rd largest mobile market in the world,
after the US and China and soon be in a position to overtake the US as well. The number of
service provider might come down to around five from the present six to seven as the next
phase of consolidation will take place shortly. I see a buoyant and strong Indian telecom
sector in the coming years and every major player in the world in the telecom space trying to
take his share in this pie.
Some businesses think it is best to get on with their own plans and ignore the competition.
Others become obsessed with tracking the actions of competitors (often using underhand or
illegal methods). Many businesses are happy simply to track the competition, copying their
moves and reacting to changes. Competitor analysis plays an important role in strategic
planning. It is helpful for the management to understand their competitive
advantages/disadvantages relative to competitors and to generate understanding of
competitors past, present and future strategies. So competitive move decides your position in
the market.

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Indian Telecom Industry

1851 • Introduction of Telegraph services

Industry Revenue (2002-2010)

According to a Frost & Sullivan industry

Year Revenue(US$ billion)

Tata TeleservicesInstitute of Excellence in

Handset Manufacturers (Market share)

Type Public (BSE: 532454)

Name: Bharti Airtel Limited.

Business Description: Provides GSM mobile services in all the 22

Established: July 07, 1995, as a Public Limited Company

Shares in Issue: 1,898,373,280 as at June 30, 2009

Listings: The Stock Exchange, Mumbai (BSE) The

Customer Base: 102,367,881 GSM mobile and 2,827,881

Operational Network: Provides GSM mobile services in all the 22

8. Airtel Customers to enjoy substantial advantage while roaming anywhere

➢ Loved by more customers

“We at Airtel always think in fresh and

➢ Provides Customer Specific Software Solution

➢ Continues Improvement in Software Quality

➢ To empower stakeholders in services and inventories to deal with associated

Products and Services

• Madhya Pradesh - 7,690,609

• Andhra Pradesh - 8,892,353

• Tamil Nadu - 6,003,040

• Uttar Pradesh (West) - 2,256,862 & (East) - 5,722,386

• West Bengal & Andaman and Nicobar Islands - 3,501,560

• Himachal Pradesh - 951,121

• Other North Eastern States - 890,054

a) Bharti’s contribution to society is structured through two channels, namely,

• Bharti Airtel’s response to Tsunami Disaster: Bharti Airtel undertook the

• Created 29 Airtel Crisis Communications centres in Tamil Nadu.

d) Bharti Airtel’s response to Kashmir earthquake: Bharti Airtel’s ‘Rapid Response

Awards And Recognition

• 3rd Largest Wireless Operator In The World

• Largest Private Integrated Telecom Company In India

• Largest Wireless Operator In India

• Largest Private Fixed Line Operator In India

• Largest Telecom Company Listed On Indian Stock

• Sunil Bharti Mittal - Gsm Association Chairman’s Award 2008

• Sunil Bharti Mittal - Chosen For Padma Bhushan Awards In 2007

 Blackberry Wireless Handheld

 Value Added Services (VAS)

The different value added services provided by Airtel are-

 Instant Balance Enquiry

 24Hr recharge Facility

 Caller line identification

 Call divert, Call wait & Call Hold

 Multimedia messaging service (MMS)

 Airtel Live Portal

 SMS based Information Service

 Hello Tunes & Ring Tones

 Voice Mail Service

 Easy Post-paid bill collection

 Gifting of Ring Tones & Hello Tunes

 Customer based pricing strategies.

 Flexible pricing mechanism

 It has wide and extensive presence even in the remotest areas

 Airtel Customer Care Touch Points

 Large scale print and video advertising.

Some promotional activities

 Dedicate and passionate workforce.

 One of the best customer supports.