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TRAI is established
NTP-1999, high cost fixed license fee to low cost revenue sharing
100 million mobile subscribers Fastest 500 million growing subscriber market
MNP introduced
1994
0.8 % Teledensity 8 mn Total Phone, 2.5 mn waiting
1997
1999
2000
2001
2002
2003
2005
2006
2009
2010
2011
Source: TRAI
Growth of Teledensity
Source: TRAI Annual Report Source: TRAI Annual Report Telecom penetration rate from less than 3% in 1999 to over 78% as of Mar 2012
Social
Lifestyle changes- people have become more connected Younger generations are more tech savvy and more informed Consumer Activism- Consumers have become more aware about their rights Internet is seen as a knowledge repository
Bargaining power of supplier High switching cost for suppliers Backward integration by telecom companies
High initial capital investment Brand identity Low switching costs Huge untapped rural market(40%pen etration)
6-8 service providers in every circle Over capacityleading to price wars Average revenue per user is low Almost no differentiation High exit costs
Threats
Entered in HP
1995
1996
19992000
2002
2005
2006
2007
2008
2010
2011
2012
Bharti Airtel
Businesses as % in Revenue Ownership
Promoters Group Bharti Telecom Limited Pastel Limited Indian Continent Investment Limited Viridan Limited Total Promoters Share Public holding more than 1% shares LIC ICICI Prudential Life Insurance National Westminster Bank % Holdings 45.70 % 15.57% 7.00% 0.22% 68.49% % Holdings 4.98 % 1.68% 1.07%
Mobile Services
Telemedia Services
Airtel Business
Poor Infrastructure
Price Wars
2G Spectrum Scandal
Poor Infrastructure
Price Wars
2G Spectrum Scandal
CAGR of 17%
Poor Infrastructure
Price Wars
2G Spectrum Scandal
Infrastructure
Owns tower business Shares towers with other operators
CAGR of 17%
Poor Infrastructure
Price Wars
2G Spectrum Scandal
Lack of Integrity
Financials
Wider Distribution
Corporate Strategy Diversification Business Strategy Innovative Business Model Building on strengths Focus on high growth areas Improving weakness Leveraging core competencies to succeed in new sectors Currently operating in 5 Sectors
Acquisitions
Zain Warid
Improved Services
New Technologies
3G 4G
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