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SWOT Matrix for Bharti Airtel (Feb-2010)

STRENGTHS 38% YOY increase in customer base for mobile services Market leader with 22.7% of market share for mobile services Excellent Network Infrastructure with Pan-India Presence Good partners/strategic investors who have prior experience with 3G offerings Strong FCF/Flush with cash (Approx: US$ 180 Million) Strong Partnerships with Technology vendors, Nokia, Alcatel Lucent, Huawei, IBM etc Extensive channel partners & distribution network in India Very High Brand Awareness and recognition Strategic partnership with IFFCO for rural penetration Decent growth @ 4.5% in Internet services. Bharti holds 3rd slot @ 8.24% market share, only behind BSNL and MTNL Very good corporate governance practices Good presence in Tele-media services in India (41.9% market share & 46.1% EBITDA) Increase in Profit margin growth @ 48.8% in Corporate Enterprise Services Very Good Internal Human Resource talent pools WEAKNESSES Decreasing profit margin in mobile services (35% in Q308 Vs 30% in Q309) Very low financial leverage (Company debt almost NIL) Increasing Operational Cost in Mobile Service offerings (81% revenue contribution Vs 62% Profit contribution Decreasing ARPU in mobile services business (@$5.02/user month) Very low penetration or acceptance of Value added services (Revenue contribution is @ 9%) Increasing customer base are primarily from rural tier II circles Less sharing factor in its networks thereby increasing the cost India centric - Over 90% of revenues are from Indian Market OPPORTUNITIES Trai projects the next 100 million subscribers are from rural market. From 2009-2010, 57% of new subscriptions were from Urban markets whereas the rest 43% were from Rural markets The tele-density in India is @ 44.72% with Urban density @ 103.20% whereas Rural density @ 19.95% Total Internet Subscribers @ 15.24 million people with broadband subscribers @ 7.82 million No of DTH subscribers in India is at 19.1 million, a paltry no comparing to 1 billion plus Indian Population Year or Year % increase of Broad band subscribers from 2008-2009 FY stood at 41.7% Increasing usage of Mobile passive networks by other service providers like FM stations, Broadband service providers etc Increasing MOU of internet telephony from 118 million minutes to 120 million minutes and

upcoming 3G & 4G auctions Global recession with certain acquisition targets available at cheaper prices THREATS As per Trai's Recent reports, the ARPU for the GSM industry decreased @ 12.4% from Rs 164/user to 144 Between Sept - Dec 09 quarter, Airtel lost Market share by almost 0.6% to other players Increasing mobile subscriber base are primarily from Pre-paid customers @ 95.18% where ARPU is very low @ Rs 149/user compared to Post paid which stands @ 530/users More Global telecom behemoths given 3G operating licenses in India Intense competition from new entrants triggering Price war in an decreasing ARPU environment Upcoming mobile no portability in a market where 96% of subscribers are Pre-Paid customers