28577802 bharti airtel pptx7

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Bharti Airtel

Largest Private Integrated Telecom Company inIndia

3rd Largest Wireless Operator in the World

Largest & Fastest Growing Wireless Operator inIndia

Largest Telecom Company listed on Indian StockExchange

GROUP 9



Integrated Telecom Company

Wireless Services

± 2G/3G

± Rural Market

Telemedia Services

± Fixed Line

± Broadband

± DTH

Enterprise Services

± Carrier

± Corporate

Passive Infrastructure

± Bharti Infratel

±Indus Tower

GROUP 9



Telecom Ecosystem

GROUP 9

Indian Telecom Industry Framework

Indian Government Bodies Independent Bodies

Wireless Planning

and Coordination

(WPC)

Department of

Telecommunications

Telecom

Commission

Group on Telecom

and IT (GoT-IT)

Telecom Regulatory

Authority of India (TRAI)

Telecom Disputes

Settlement and Appellate

Tribunal (TDSAT)

Handles spectrum allocation

and management

DoT Licensee and

frequency management

for telecom

Exclusive policy making body

of DoT

Handles ad hoc issues of

the telecom industry

Independent regulatory body

Telecom disputes settlement

body

They formulate various policies and pass

laws to regulate the telecom industry inIndia.

They undertake various research activities and monitor the quality of service provided in the Indian

telecom industry. They also provide various

recommendations to improve the status of telecom

operations in India.



Regulatory Framework

Regulation

ADC

USOUASL

74% FDI Investment

Lack of Transparency in

Spectrum & License

Allocation

3G Policy & MNP stillPending

GROUP 9



GDP growth rate - Averaged around 7.9 % from 2002-2008

Rising Tele-density Target of 45% by 2010

Growing per capita income/disposable Income

Rs 12000 in 2002 to Rs 33000 in 2008)

Falling Handset Prices

Moderate inflation levels which were prevalent during the past 7

years around 5-6%

Economic Factors

GROUP 9



Demand for VAS & Broadband

services Among Youth

28 % Urban Population

Rapid Urbanization

Rising Income level

Changing Demographics

Source: Mckinsey Report

GROUP 9



CDMA Already there are big

players in this segment

Reliance , Tata

3G Value added services

potential still to be tappedfully

2G/3G GSM Currently

commands 70% of mobile

subscribers in India

Technology

2G/3G

CDMA

WIMAX

VoIP

Technology

GROUP 9



GROUP 9

Porter·s Generic Strategy



Porters 5 Forces

Threat fromCompetition

CustomerBargaining

Power

Threat of Substitutes

SupplierBargaining

Power

Threat of New

Entrants

GROUP 9



1. Threat from Competition

GROUP 9

Wireless Market Top 4 garnering 75% market share

HIGH



Competitor Analysis

GROUP 9

0.00%

20.00%

40.00%

Bharti Rcom IDEA MTNL

Competitor Analysis

OP Margin Net Margin

Company Sep-07 Sep-08 Sep-072 Sep-083

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%

Best OP Margins &

Net Profit Margins

among Peers

Source: CMIE November 2008



2. Customer Bargaining Power

Lack of differentiation among Service

Providers

Cut throat Competition

Low Switching Costs

Number Portability will have Ve Impact

Businesses & Consumers

GROUP 9

HIGH



Market Scenario

GROUP 9

Postpaid Vs Prepaid Customers & Market Share



3. Suppliers Bargaining Power

GROUP 9

LOW



4. Threat of Substitutes

Landline

CDMA

Video Conferencing

VOIP - Skype, Gtalk, Yahoo Messenger

e-Mail & Social Networking Websites

GROUP 9

BROADBAND

SERVICES

DIMINISHING MARKET HIGH



5. Threat of New Entrants

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

GROUP 9

LOW



SWOT

Strengths

Largest Telecom Player in

India - ~80Mn, 22.6%

Strategic Alliance with otherstakeholders in Bharti Airtel

include Sony-Ericsson,

Nokia - and Sing Tel

Pan India Presence Strong Financials

Weakness

Outsourcing of CoreSystems

Lack of emerging marketinvestment opportunity

GROUP 9

Source: CMIE Report NOV 08



SWOT

Opportunities

Bharti Infratel CuttingDown cost in Rural area

Match Box Strategy Scaleof Penetration

Current Tele-Density 30.6is still low amongdeveloping countries

Low BroadbandPenetration, RuralTelephony

Threats

India centric Major

revenues from India

Falling ARPU & AMOU

Intense Competition &

Shortage of Bandwidth

GROUP 9



BCG Matrix for Bharti Airtel

Stars ?Retail

Insurance

Cows Dogs

Fixed Line Services

GROUP 9

LOWHIGH L O W

Mobile Services

DTH & IPTV

Broad Band



Current market share

Brand image

Brand equity

Production capacity

Corporate image

Profit margins relative to competitors

R & D performance

Managerial personal

Promotional effectivenessGROUP 9

Business Strength



Factors Weight Rating

(1 5)

Value =

(Weight * Rating)

Resource availability 0.20 3.5 0.7

Overall market size 0.15 4 0.6

Annual Market growth rate 0.20 4 0.8

Profitability 0.15 4 0.6

Competitive intensity 0.10 4 0.4

Technological requirements 0.20 4.5 0.9

Total 1.0 4.0

Factors Underlying Market Attractiveness

GROUP 9



Factors Weight Rating(1 5)

Value =(Weight * Rating)

Market share 0.15 5 0.75

New product development 0.10 3.5 0.35

Brand Image 0.10 4 0.40

Sales force 0.15 3 0.45

Pricing 0.15 3 0.45

Distribution capacity 0.10

4.50

.45

Product quality 0.10 4.5 0.45

R&D Performance 0.15 3 0.45

Total 1.0 3.75

GROUP 9

Factors Underlying Market/Biz Strength



GROUP 9

Airtel·s GE Matrix

Business Strengths

M a r k e t

A t t r a c t i v e n

e s s

Low

High

LowHigh

Attractive

Moderate

Attractive

Unattractive

MobileAirtel

TeleMedia

5.00 1.002.333.67

5.00

3.67

2.33

Enterprise



7 Ps of Airtel

GROUP 9



Product

Airtel Pre-paid

Airtel Post-paid

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 ServiceGROUP 9



Price

Customer based pricing strategies.

Flexible pricing mechanism

Controlled by TRAI.

GROUP 9



Place

It has wide and extensive presence even in the

remotest areas

Airtel Customer Care Touch Points Distributors like

E.g. Paan shops, grocery stores, chemists,

outlet etc.

GROUP 9



Promotion

Large scale print and video advertising.

Big celebrities like SRK and Sachin are ropedin to endorse the product .

In 2002 Airtel got its Signature tune from A.R.Rahman, this signature tune is the mostdownloaded tune in India.

Provides innovations such as Bollywoodmovie premiers, music services such as ring back tones & many more.

GROUP 9



People

Total Employees 25616( Bharti Airtel

consolidated) as per Q3 08.

Dedicate and passionate workforce.

One of the best customer support.

Have won 2nd Best employer award in 2004.

GROUP 9



Process

Process for services is very easy and customer

can avail it very easily.

121 is the customer support no.

which can bedialed from anywhere in India.

GROUP 9



Physical Environment

GROUP 9



References

Bharti Airtel, Annual Report -2008

Investors presentation, Bharti Airtel Limited, November2008

Telecommunication Services, Indian Industry: AMonthly Review, CMIE November 2008

Analyst Report Bharti Airtel, Asit C. Mehta InvesmentIntermediates Ltd.

Telecommunication Sector Report March 2008, CRISIL

Capitaline Database http://capitaline.com Indian Telecommunication Sector - August 2007, IBEF

Report

Next Big Spenders Indian Middle Class,Businessweek

GROUP 9



GROUP 9

28577802 bharti airtel pptx7

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