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BUSINESS STRATEGY OF AIRTE L

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INDE X
1. Industry Overview---------------------------------------------------------------------------2 2. Industry to Airtel-----------------------------------------------------------------------------5 3. THE PESTEL A AL!SIS-----------------------------------------------------------------------" #. PO$TE$%S &I'E &O$(ES A AL!SIS-------------------------------------------------------13 5. S)OT Analysis--------------------------------------------------------------------------------15 *. +(, -atri.------------------------------------------------------------------------------------1* ". Anso// -atri.----------------------------------------------------------------------------------1" 0. SE$'I(E ,AP A AL!SIS---------------------------------------------------------------------11 1. TO)S -AT$I2 A AL!SIS------------------------------------------------------------------2* 13.4ey Areas t5at di//erentiate Airtel------------------------------------------------------2" 11.-A$4ET 6E'ELOP-E T I A&$I(A A 6 A&TE$ E&&E(T--------------------------31 12.THE P$O+LE-S )ITH +HA$TI AI$TEL--------------------------------------------------33 13.ST$ATE,! &O$ PE ET$ATIO I $7$AL -A$4ET----------------------------------35 1#.$E(E T 6E'ELOP-E TS-------------------------------------------------------------------3" 15.$e/eren8es------------------------------------------------------------------------------------31

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INDUSTRY OVERVIEW
1. Introduction &he Indian tele%ommuni%ation industry is one o3 the lar!est & 3astest !ro4in! in the 4orld* #o5ernment re!ulatory 3rame4or$ and 6oli%ies im6lemented by &ele%om Re!ulatory Authority o3 India 7&RAI8 ha5e 6ro5ided a %ondu%i5e en5ironment 3or ser5i%e 6ro5iders* &his has in%reased the %om6etition in the se%tor9 4hile enhan%in! the a%%essibility o3 tele%ommuni%ation ser5i%es at a33ordable tari33s to the %onsumers* In the last t4o de%ades9 the Indian &ele%om Se%tor and mobile tele6hony in 6arti%ular has %au!ht the ima!ination o3 India by re5olutioni:in! the 4ay 4e %ommuni%ate9 share in3ormation; and throu!h its sta!!erin! !ro4th hel6ed millions stay %onne%ted* &his !ro4th has %ome at si!ni3i%ant and !ro4in! loss to the state e<%he=uer9 raisin! 3undamental =uestions on the 3uture business and o6eration model o3 the &ele%om se%tor* &he industry has 4itnessed a si!ni3i%ant !ro4th in subs%riber base o5er the last de%ade9 4ith in%reasin! net4or$ %o5era!e and a %om6etition>indu%ed de%line in tari33s a%tin! as %atalysts 3or the !ro4th in subs%riber base* &he !ro4th story and the 6otential ha5e also ser5ed to attra%t ne4er 6layers in the industry9 4ith the result that the intensity o3 %om6etition has $e6t in%reasin!* &he se%tor e<6e%ted to 4itness u6 to US? +.*/ billion in5estments and the mar$et 4ill %ross the US? 020 billion mar$ in 3i5e years*

Current Scenario &oday9 the Indian tele%om net4or$ is the se%ond lar!est in the 4orld a3ter @hina* A liberal 6oli%y re!ime and in5ol5ement o3 the 6ri5ate se%tor ha5e 6layed an im6ortant role in trans3ormin! this se%tor* &he total number o3 tele6hones has in%reased 3rom -1)*(/ million on /0 Mar%h 122) to )1.*++ million on /0'e%ember 1200*&he !ro4th story and the 6otential ha5e also ser5ed to attra%t ne4er 6layers in the industry9 4ith the result that the intensity o3 %om6etition has $e6t in%reasin!* Also9 broadband se!ment has seen si!ni3i%ant !ro4th 4ith total internet subs%ribers rea%hin! 12*)) million in Se6tember 12009 4hi%h in%ludes 0/*/2 broadband subs%ribers* (ir8le wise overall Tele-density 9:une 2312; All India Assam Bihar ()*+, -,*./ Madhya Pradesh -,*0. ++*++ J&K UP Odisha +(*(0 .1*-, Northeast Rajasthan .+*,( .,*.) Andhra Pradesh est Ben!al (-*0) "aryana ,0*/) ,0*/+ #ujarat Maharashtra Karnata$a )0*02 Kerala Punjab )1*().*)( Aiberali:ation o3 the se%tor has not only led to ra6id !ro4th "ima%hal Pradesh ),*-) but also hel6ed a !reat deal to4ards ma<imi:ation o3 02,*() %onsumer bene3its9 e5ident 3rom a hu!e 3all in tari33s* &amil Nadu 02)*(0 &ele%om se%tor has 4itnessed a %ontinuous risin! trend in 001*(2 'elhi the total number o3 tele6hone subs%ribers and hen%e the 00)*2+ tele>density* In sim6le terms9 B&ele>densityC is the number 1/,*.2 o3 landline tele6hones in use 3or e5ery 022 indi5iduals li5in! 4ithin an area* A tele>density !reater than 022 means there are more tele6hones than 6eo6le* &ele>density is also an im6ortant indi%ator o3 tele%om 6enetration in the %ountry* &ele>density has in%reased 3rom 0,*1 6er %ent in Mar%h 122( to (.*,. 6er %ent in 'e%ember 1200* &ele>density 5aries a%ross %ir%les and there is si!ni3i%ant urban>rural di5ide*

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&he 4ireless se!ment %an broadly %lassi3ied into t4o9 #SM and @'MA se!ments based on the underlyin! te%hnolo!y* &he #SM se!ment holds the majority o3 subs%ribers 4ith (,+*)( million at the end o3 'e% 1200* &he remainin! 02(*,, million subs%ribers use @'MA based ser5i%es* hile the #SM se!ment is seein! a %onsistent in%rease in the number o3 subs%ribers9 the @'MA se!ment is seein! a redu%tion* &he @'MA 4ireless se!ment sa4 a de%rease 3rom 001*-1 million at end o3 Se6t 1200 to 02(*,, million at the end o3 'e% 1200* In %ontrast the 3i!ures 3or #SM are (.0*12 million and (,+*)( million 3or Se6t and 'e% 1200 res6e%ti5ely*

&he o5erall 4ireless mar$et and %onse=uently the #SM mar$et is led by Bharti Airtel 4hi%h held 0)*.1D at the end o3 Eeb 1201* It is 3ollo4ed by Relian%e @ommuni%ations9 4hi%h holds 0.*.,D o3 the mar$et and also the leader in the @'MA se!ment* In the #SM se!ment9 Foda3one and Idea %losely 3ollo4 Bharti Airtel 4hile &ata and Sistema 3ollo4 Relian%e @ommuni%ations in the @'MA se!ment 2. Growth in Teleco Growth Dri!er" Key 3a%tors9 4hi%h 4ill 3uel the !ro4th o3 the se%tor in%lude in%reased a%%ess to ser5i%es o4in! to laun%h o3 ne4er tele%om te%hnolo!ies li$e /#9-# and B A9 im6ro5ed and inno5ation in de5i%es9 %han!in! %onsumer beha5iour and the emer!en%e o3 %loud te%hnolo!ies* A majority o3 the in5estments 4ill !o into the %a6ital e<6enditure 3or settin! u6 ne4er net4or$s li$e /# and de5elo6in! the ba%$haul9 amon! other thin!s* Su#"cri#er $a"e

&he mobile subs%riber base in India is estimated rise by ) 6er %ent to .). million %onne%tions this year9 a%%ordin! to te%hnolo!y resear%her #artner* &he mobile ser5i%e 6enetration in the %ountry is %urrently at +0 6er %ent and is e<6e%ted to !ro4 to (1 6er %ent by 120.* %o#ile Nu #er &orta#ilit' (%N&)

Mobile Number Portability re=uests in%reased 3rom -0*,, million subs%ribers at the end o3 Mar%h 1201 to -+*,) million at the end o3 A6ril 1201* In the month o3 A6ril 1201 alone9 -*20 million re=uests ha5e been made 3or MNP* %o#ile Value *dded Ser!ice" (%V*S)

IndiaGs %urrent MFAS industry has an estimated si:e o3 US? 1*( billion* &he industry deri5es its re5enues majorly 3rom the to6 3i5e to si< 6rodu%ts su%h as !ame based a66li%ations9 musi% do4nloads9 et%9 4hi%h %ontinue to 3orm %lose to ,2 6er %ent o3 FAS re5enues* &he Indian MFAS industry estimated to !ro4 to

US? 02*, billion by 120+9 4ith the ne<t 4a5e o3 !ro4th in subs%ri6tions e<6e%ted to %ome 3rom semi>urban and rural areas*

+and"et"

&he mobile handset mar$etGs re5enues in India 4ill !ro4 3rom US? +*( billion in 1202 to US?(*, billion in 120.9 a%%ordin! to the study* India is the se%ond lar!est mobile handset mar$et in the 4orld and is set to be%ome an e5en lar!er mar$et 4ith unit shi6ment o3 12,*- million in 120. at a @A#R o3 00*, 6er %ent 3rom 1202 to 120.* &he Indian handset mar$et 4itnessed a 0-*0 6er %ent !ro4th in 1200 to tou%h a total 5olume o3 0,1 million handsets* &he mar$et %ontinues to be dominated by No$ia 4ith a share o3 /(*1 6er %ent9 3ollo4ed by Samsun! 4ith 0-*) 6er %ent9 #GEi5e 4ith (*+ 6er %ent9 and Mi%roma< 4ith +*, 6er %ent*

,. %ar-et &la'er" ith ne4 6layers %omin! in9 the intensity o3 %om6etition in the industry has in%reased9 es6e%ially o5er the last 3our years* &he mar$et share o3 tele%om o6erators o3 the tele%om %om6anies re3le%ts the 3ra!mented nature o3 the industry9 4ith as many as 0+ 6layers* As o3 A6ril /29 12019 Bharti tele%om led the mar$et 4ith 0)*)- 6er %ent share9 Relian%e 70.*+, 6er %ent89 Foda3one 70.*-0 6er %ent89 Idea 701*- 6er %ent89 BSNA 702*+0 6er %ent89 &ata 7,*(( 6er %ent89 Air%el 7.*)/ 6er %ent89 4ith the remainin! share bein! held by other smaller o6erators*

Bharti is 3ar ahead 4ith %lose 12D mar$et share in India9 Relian%e 70.*+,D8 and Foda3one 70.*-0D8 are ha5in! a %lose battle* Relian%e %urrently has 0+- million subs%ribers as %om6ared to 0+1*+ million o3 Foda3one* Uninor9 4ho is one o3 the late entrants in Indian &ele%om mar$et no4 has o5er -+ million subs%ribers and a%%ounts 3or %lose to +D o3 Indian mobile mar$et share* 4|Page

INTRODUCTION TO *IRTE.
Bharti Airtel Atd9 %ommonly $no4n as Airtel9 is an Indian tele%ommuni%ation ser5i%es %om6any* It o6erates in about 12 %ountries a%ross South Asia9 A3ri%a and the @hannel Islands* Airtel has #SM net4or$ in all %ountries9 6ro5idin! 1#9 /# and u6%omin! -# ser5i%es de6endin! u6on the %ountry o3 o6eration* Airtel is rd the 4orldGs / lar!est mobile tele%ommuni%ations %om6any 4ith o5er 1.0 million subs%ribers a%ross 12 %ountries as o3 Au!ust 1201* It is the lar!est %ellular ser5i%e 6ro5ider in India9 4ith 1/0.1 illion subs%ribers rd at the end o3 Au!ust 1201* Airtel is the / lar!est in>%ountry mobile o6erator by subs%riber base9 behind @hina Mobile and @hina Uni%om* Airtel also o33ers 3i<ed line ser5i%es and broadband ser5i%es* It o33ers its tele%om ser5i%es under the Airtel brand and is headed by Sunil Bharti Mittal* Bharti Airtel is the 3irst Indian tele%om ser5i%e 6ro5ider to a%hie5e this @is%o #old @erti3i%ation* &o earn #old @erti3i%ation9 Bharti Airtel had to meet ri!orous standards 3or net4or$in! %om6eten%y9 ser5i%e9 su66ort and %ustomer satis3a%tion set 3orth by @is%o* &he %om6any also 6ro5ides land>line tele6hone ser5i%es and broadband Internet a%%ess 7'SA8 in o5er ). %ities in India* It also a%ts as a %arrier 3or national and international lon! distan%e %ommuni%ation ser5i%es* &he %om6any has a submarine %able landin! station at @hennai9 4hi%h %onne%ts the submarine %able %onne%tin! @hennai and Sin!a6ore* Airtel is $no4n 3or bein! the 0 mobile 6hone %om6any in the 4orld to outsour%e all o3 its business o6erations e<%e6t mar$etin!9 sales and 3inan%e* Its net4or$>base stations9 mi%ro4a5e lin$s9 et%* is maintained by Hri%sson9 No$ia Siemens Net4or$ and "ua4ei9 and business su66ort is 6ro5ided by IBM9 and transmission to4ers are maintained by another %om6any 7Bharti In3ratel Aimited* in India8* Hri%sson a!reed 3or the 3irst time to be 6aid by the minute 3or installation and maintenan%e o3 their e=ui6ment rather than bein! 6aid u6 3ront9 4hi%h allo4ed Airtel to 6ro5ide lo4 %all rates o3 0Iminute 7US?2*21Iminute8*'urin! the last 3inan%ial year 7122)J0289 Bharti ne!otiated 3or its strate!i% 6artner Al%atel>Au%ent to mana!e the net4or$ in3rastru%ture 3or the tele>media business* In 12029 Airtel a%=uired the A3ri%an o6erations o3 the Ku4ait based Kain &ele%om* In Mar%h 12019 Airtel laun%hed a mobile o6eration in R4anda* On /0 May 12019 Bharti Airtel a4arded the three year %ontra%t to Al%atel>Au%ent 3or settin! u6 an Internet Proto%ol a%%ess net4or$ 7mobile ba%$haul8 a%ross the %ountry* &his 4ould hel6 %onsumerCs a%%ess internet at 3aster s6eed and hi!h =uality internet bro4sin! on mobile handsets*
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Number of GSM Subscribers as of Apr 2012 (in Millions)


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Airtel

$+*RTI *IRTE. SU$SCRI$ER 2IGURES CIRC.E WISE *S O2 %*RC+ 2311

W+*T %*DE *IRTE. SUCCESS2U.4 0* Airtel 4as an early entrant 4hi%h it to understand the mar$et and ma$e mista$es 4hi%h other4ise 4ould not ha5e been 6ossible* 1* Airtel 4as able to 3oresee the 3uture and in5ested hu!ely in o6ti%al 3ibre in3rastru%ture mu%h be3ore other 6layers* &his 6aid o33 4ell and it 4as able to !et many %ustomers due to its 4ide rea%h o3 net4or$* /* Airtel ado6ted its uni=ue outsour%in! model under 4hi%h it outsour%ed all those o6erations 4hi%h it belie5ed 4ere not the %ore %om6eten%ies o3 the %om6any* &his strate!y made sure that 4ho so e5er is handlin! a 6arti%ular 6ro%ess is the one 4ho %an do it most e33e%ti5ely & e33i%iently* -* In5estment in Brandin! and in%reasin! @onsumer @onne%t* +* @onstant 3o%us on %ustomer ser5i%e e5en at the times o3 6ri%e %om6etition* Other %om6anies thou!ht that redu%in! 6ri%e 4ill be enou!h but only Airtel $ne4 that redu%in! 6ri%e in a 6ri%e %om6etition en5ironment is just a basi% ne%essity and not a %om6etiti5e stren!th* So9 it 6ro5ided e<%ellent %ustomer ser5i%e alon! 4ith lo4 6ri%es*

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%*CRO ENVIRON%ENT*. IN2.UENCES 5 T+E &ESTE. *N*.YSIS

&O.ITIC*. 2*CTORS Politi%al en5ironment is one o3 the most im6ortant ma%ro 3a%tors a33e%tin! a business* &he 5arious %om6onents o3 the 6oliti%al en5ironment ha5e been dis%ussed belo4:

i.

Go!ern ent Sta#ilit'6 India is the 4orldCs lar!est demo%ra%y and has the 6erils asso%iated 4ith any demo%rati%ally ele%ted !o5ernment* &he s%enario is dominated by small re!ional 6arties 4ho had been brou!ht to!ether into t4o major %oalitions led by @on!ress 7UPA8 and BJP 7N'A8* &he 3irst de%ade o3 the %entury has seen a 3airly stable !o5ernment under @on!ress as %om6ared to the 0))2s 4hi%h sa4 !eneral ele%tions in =ui%$ su%%ession* &he ris$ o3 instability is hi!h due to the 5aried 6oliti%al ideolo!ues o3 6arties in the %oalitions*

ii.

Ta7ation &olic'6 &he &a< Poli%y o3 India has e5ol5ed o5er the last t4o de%ades yet it is one o3 the most %om6li%ated* &he @enter and State &a<es 4ith di33erent stru%tures ma$es it e<tremely di33i%ult 3or %om6anies to o6erate* &he im6lementation o3 #S& A%t by ne<t year 4ill !o in a lon! 4ay to un%om6li%ated thin!s*

iii.

2orei8n Trade Re8ulation6 &he Indian e%onomy 4as o6ened>u6 in 0))0 and sin%e then the su%%essi5e !o5ernments ha5e en%oura!ed 3orei!n in5estments in India* 'es6ite this there is still a limit on E'I in some $ey industries*

i!.

Go!ern ent Inter9erence6 &here is minimal !o5ernment inter3eren%e in the 4or$in! o3 businesses althou!h the industries are 4ell re!ulated by autonomous bodies li$e SHBI and &RAI* &hese bodies 4ill %ontinue to ensure the ri!ht mi< o3 3reedom and re!ulation*

!.

Corru:tion India is one o3 the most %orru6t %ountries in the 4orld 4ith money and 6oliti%al in3luen%es 6layin! an im6ortant as6e%t o3 !ettin! a66ro5als and startin! a business*

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A s6ate o3 anti>!ra3t re!ulations and !ro4in! a%%ountability is e<6e%ted to redu%e the %orru6tion o5er the ne<t 3e4 years*

ECONO%IC 2*CTORS &he H%onomi% Ea%tors that in3luen%es the industry on a 4hole in%lude the Business %y%les9 #'PI#NP trends9 Interest rates9 Money Su66ly9 In3lation9 Unem6loyment and 'is6osable In%ome* Some o3 the abo5e 3a%tors 4hi%h a33e%t the &ele%om Industry ha5e been dis%ussed belo4:

i.

Econo ic $ene9it" o9 Teleco

Indu"tr'

'ire%t Bene3its: In%rease #'P9 #o5ernment re5enues and Hm6loyment in the @ountry* Indire%t Bene3its: Ao4er &ransa%tion @osts9 Better a%%ess to In3ormation9 "ealth%are and Hdu%ational Ser5i%es9 In%reases Produ%ti5ity o3 Business throu!h 5oi%e and data ser5i%es*

ii.

Contri#ution to GD& A%%ordin! to the UN@&A'9 there is a dire%t %orrelation bet4een the !ro4th in mobile tele>density and the !ro4th in #'P 6er %a6ita in de5elo6in! %ountries9 4hi%h tend to ha5e a hi!h 6er%enta!e o3 rural 6o6ulation* &he share o3 the tele%om ser5i%es industry in the total #'P has been risin! o5er the 6ast 3e4 years 7the tele%om se%tor %ontribution in #'P 4ent u6 3rom 1*+1D in EL2+ to ,*,/D in EL008*

iii.

E :lo' ent6 &he Indian tele%ommuni%ation industry em6loys o5er -229222 dire%t em6loyees and about ,+D o3 these em6loyees are 3rom !o5ernment>o4ned %om6anies* &he ratio o3 number o3 subs%ribers to em6loyees9 an indi%ation o3 e33i%ien%y and 6ro3itability9 mu%h hi!her 3or 6ri5ate %om6anies than 3or !o5ernment %om6anies* is

i!.

.i#erali;ation6

&he rela<ation o3 tele%om re!ulations has 6layed a major role in the de5elo6ment o3 the Indian tele%om industry* &he liberali:ation 6oli%ies o3 0))0 and the %onse=uent in3lu< o3 6ri5ate 6layers ha5e led the industry on a hi!h !ro4th traje%tory and ha5e in%reased the le5el o3 %om6etition* Post >liberali:ation9 the tele%om industry has re%ei5ed more in5estments and has im6lemented hi!her te%hnolo!y*

!.

2orei8n Direct In!e"t ent (2DI)6

Eorei!n dire%t in5estment has been one o3 the major %ontributors in the !ro4th o3 the Indian e%onomy9 and there3ore9 the need 3or hi!her E'I is 3elt a%ross se%tors in the Indian e%onomy* 8|Page

In!e"t ent"6 &he tele%om se%tor re=uires hu!e in5estments 3or its e<6ansion as it is %a6ital> intensi5e and E'I 6lays a 5ital role in meetin! the 3und re=uirements 3or e<6ansion o3 the tele%om se%tor* 2DI In9low6 Eorei!n dire%t in5estment 7E'I8 in tele%om se%tor 7in%ludin! radio 6a!in!9 %ellular mobile9 and basi% tele6hone ser5i%es8 durin! A6ril>Mar%h 1200>01 stood at US? 09))( million9 as 6er the 'e6artment o3 Industrial Poli%y & Promotion 7'IPP8 data* .i#erali;ation o9 2DI &olicie"6 &he !o5ernmentCs liberali:ed E'I 6oli%ies ha5e resulted in se5eral 3orei!n %om6anies enterin! into the Indian mar$ets* &he in3lu< o3 3orei!n 6layers in the Indian tele%om industry has led to %a6a%ity %reation9 and better in3rastru%ture9 4hi%h in turn has bettered the net4or$ =uality* &he rise in E'I has also enabled te%hnolo!y trans3er9 mar$et a%%ess and has im6ro5ed or!ani:ational s$ills; !oin! 3or4ard9 E'I %ould be used 3or 6ro5idin! tele%om ser5i%es to rural areas9 4here tele>density is still 5ery lo4* IT<ITeS Sector6 &he N&P>)) 4as 6arti%ularly hel63ul 3or the I&eS>BPO industry as it ended the !o5ernment mono6oly in international %allin! by introdu%in! IP tele6hony* A3ter the introdu%tion o3 IP tele6hony9 there 4as ra6id !ro4th in the number o3 data 6ro%essin! %entres and inboundIoutbound %all %entres9 4hi%h ultimately led to the outsour%in! re5olution in India* &he tele%om se%tor has been instrumental in %reatin! jobs 3or a 5ast 6ool o3 talented and $no4led!e 6ro3essionals in the I& and I&eS>BPO industry9 4hi%h thri5es on reliable tele%ommuni%ation in3rastru%ture* India has be%ome an im6ortant outsour%in! destination 3or the 4orld and the boom in this se%tor also has trans3ormed IndiaCs e%onomi% dynami%s* 2inancial Ser!ice"6

!i.

!ii.

Ban$in! in India has be%ome ser5i%e>oriented9 and has matured !reatly 3rom the days o3 4al$>in %ustomers to the 6resent situation 4hen ban$s ha5e mi!rated to a1->hour ban$in! 6lat3orm to attra%t %ustomers; ho4e5er9 this disintermediation in the business has led ban$s to be e<tremely 6rudent in terms o3 their internal o6erations and has led them to ado6t ne4er 6rodu%ts and deli5ery %hannels* Eurther9 4ith introdu%tion o3 internet & mobile ban$in! the lon! =ueues at the ban$s are slo4ly be%omin! a thin! o3 the 6ast* SOCIOCU.TUR*. 2*CTORS 1. Inco e Di"tri#ution6 One o3 the stri$in! 3indin!s o3 the 6a6er is the in%rease in ine=uality in both rural as 4ell as urban India* &he last de%ade 4as one o3 hi!h e%onomi% !ro4th that is e<6e%ted to %ontinue9 4hi%h 4ill %ertainly brin! 3urther stru%tural %han!es in the e%onomy* &a$in! NNP !ro4th at ,*(+D durin! 1202>0+9 the to6 12D households are seen !ainin! the most9 3rom /(D share in total in%ome in 0))/>)- to +,D in 120->0+* &he e5iden%e 3rom the NS"IH on 6o5erty and ine=uality ho4e5er sho4s that one o3 the im6ortant reasons 3or the de%eleration o3 the rate o3 6o5erty de%line a66ears to be the e<isten%e o3 a hi!h le5el o3 ine=uality9 4hi%h is %om6arable to the ine=uality le5els 6re5alent in the de5elo6ed %ountries* &he 4orrisome 3eature o3 ine=uality is that it has in%reased si!ni3i%antly durin! the last de%ade 701*)D in rural areas and 0-*)D in urban areas8* Increa"in8 *99orda#ilit' o9 +and"et"6 &he 6henomenal !ro4th in the Indian tele%om industry 4as 6redominantly aided by the meteori% rise in 4ireless subs%ribers9 4hi%h en%oura!ed mobile handset

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manu3a%turers to enter the mar$et and to %ater to the !ro4in! demand* Eurther9 the manu3a%turers introdu%ed lo4er> 6ri%ed handsets 4ith add>on 3a%ilities to %ater to the in%reasin! number o3 subs%ribers 3rom di33erent strata o3 the so%iety* No4 e5en entry>le5el handsets %ome 4ith 3eatures li$e %olour dis6lay and EM radio* &hus9 the 3allin! handset 6ri%es and the add>on 3eatures ha5e tri!!ered !ro4th o3 the Indian tele%om industry* Rural Tele:hon' 5 Connectin8 the Real India6 ith the urban mar$ets 3ast rea%hin! their saturation 6oints 3or tele%om ser5i%es9 es6e%ially the 5oi%e tele6hony ser5i%es9 the 5ast rural mar$et holds a hu!e 6otential to dri5e the 3uture !ro4th o3 the tele%om %om6anies* In 3a%t9 the tele>density in rural areas is just about 0+D9 4hi%h re3le%ts the e<tent o3 o66ortunity le3t unta66ed 3or tele%om %om6anies9 !oin! 3or4ard* Eurther9 the !o5ernment initiati5es 3or in%reasin! tele%om %onne%ti5ity in rural areas are also li$ely to aid the tele%om ser5i%e 6ro5iders to e<tend their ser5i%es in the un%onne%ted rural areas* Initiati5es su%h as USO Eund and in3rastru%ture sharin! 4ould be instrumental in in%reasin! the %o5era!e o3 tele%om ser5i%es in the 3ar>3lun! areas* Penetration in rural areas 4ill not only su66ort the !ro4th o3 tele%om ser5i%e 6ro5iders but also boost demand 3or e=ui6ment and tele%om in3rastru%ture*

2. Chan8in8 De o8ra:hic &ro9ile6 &he %han!in! demo!ra6hi% 6ro3ile o3 India has also 6layed an im6ortant role in subs%riber !ro4th* &he %han!ed 6ro3ile is %hara%teri:ed by a lar!e youn! 6o6ulation9 a bur!eonin! middle %lass 4ith !ro4in! dis6osable in%ome9 urbani:ation9 in%reasin! litera%y le5els and hi!her ada6tability to te%hnolo!y* &hese ne4 3eatures ha5e multi6lied the need to be %onne%ted al4ays and to o4n a 4ireless 6hone and there3ore9 in 6resent times mobiles are 6er%ei5ed as a utility rather than a lu<ury*

Indian Population Breakup on the ba i o! "#e $roup


3-1#yrs >*3yrs "? 35? 50? 1#-*3yrs

$ising In8o=e Level In8rease in 8onsu=er s<ending

In8reasin g (onsu=eris =

,rowing Availa@ility o/ retail 8redit

1% | P a g e

ENVIRON%ENT*. 2*CTORS In the 4a$e o3 the heated dis%ussion about !lobal 4armin!9 en5ironmental analysis has been brou!ht to the 3ore3ront o3 the media9 a 6la%e it usually only o%%u6ies in times o3 disaster9 li$e the tsunami in South Hast Asia or the "aitian Harth=ua$e* It a33e%ts industries su%h as tourism9 3armin!9 and insuran%e more than an industry li$e tele%ommuni%ation* Hn5ironmental analysis in5ol5es a!!re!atin! and analysin! 4eather 6atterns and %limate %y%les* It mainly deals 4ith: eather @limate @limate @han!e

Hn5ironmental issues in &ele%om Industry: Aayin! o3 %ommuni%ation lines Settin! u6 o3 to4ers and usa!e o3 4ireless te%hnolo!y in en5ironmentally a33e%ted areas 4here en5ironments 5ary drasti%ally* In di33erent areas o3 the !lobe de6endin! on the biome or e%osystem o3 the re!ion the e33e%ts and issues di33er drasti%ally and e5ery time may lead to 3indin! o3 ne4 solution* hile not a %om6rehensi5e list9 some e<am6les are tundra9 3orests9 deserts9 !rasslands9 earth=ua$e 6rone areas and 4etlands* Eurthermore9 !ro4in! a4areness o3 the 6otential im6a%ts o3 %limate %han!e is a33e%tin! ho4 tele%ommuni%ation industry o6erates and the 6rodu%ts they o33er9 both %reatin! ne4 mar$ets and diminishin! or destroyin! e<istin! ones*

TEC+NO.OGIC*. 2*CTORS &he le5el o3 te%hnolo!i%al ad5an%ement in a re!ion %an 6ositi5ely or ne!ati5ely a33e%t the o66ortunities a5ailable 3or a business* &he 6roli3eration o3 mobile te%hnolo!y9 4ireless internet9 a%%ess to ele%tri%ity9 internet a%%ess and trans6ortation net4or$s all in3luen%e the ease o3 doin! business* A re!ion 4ith a stron! te%hnolo!i%al 3oundation enables %om6anies to le5era!e multi6le tools li$e mobile te%hnolo!y and Hnter6rise methodolo!ies to streamline o6erations9 eliminate bottlene%$s and 6ro5ide their 4or$3or%e 4ith %ollaborati5e $no4led!e mana!ement systems* In order to learn more about the te%hnolo!i%al en5ironment o3 an area and a re!ionCs 6ro6ensity to ado6t ne4 te%hnolo!ies9 one may loo$ to a bass di33usion model 4hi%h uses histori%al %onsumer 6ur%hase data in order to 3ind the rate o3 6rodu%t ado6tion amon! 6otential %onsumers* In tele%ommuni%ation industry te%hnolo!y is de3ined by the 3ollo4in!: 'e!ree o3 Automation Hmer!in! &e%hnolo!ies Im6a%t o3 Internet Redu%ed @ommuni%ation @osts Rate o3 &e%hnolo!i%al @han!e R&' A%ti5ity 7SHKs8 &e%hnolo!y In%enti5es 11 | P a g e

&e%hnolo!y &rans3er &he 6ur6ose o3 the &ele%ommuni%ation today are 6rimarily intended 3or the 6ur6oses o3 s6ee%h and are there3ore not 6arti%ularly reno4ned 3or its ability to deli5er data* Hnhan%ements ha5e been made to the e<istin! 1nd !eneration systems 7so %alled 1*+#89 4hi%h 4ill enable the data to be %arried mu%h more easily at hi!her rates 7ty6i%ally bet4een 1,*,$b6s and .-$b6s9 thou!h hi!her rates are 6ossible89 and interestin!ly 4here re=uired9 as 6a%$ets rather than %ir%uit s4it%hed* No49 the ne<t !eneration o3 %ellular tele6hony 7/#8 $no4n !lobally as IM& 1222 and in Huro6e as UM&9 has been uni=uely desi!ned to %arry 6a%$et data* S6ee%h is sim6ly treated as a 6arti%ular data a66li%ation* /# systems 4ill allo4 the end user 3le<ibility in the tra33i% %hannel9 deli5erin! multi6le ser5i%es 4ith di33erin! band4idth re=uirements9 and simultaneously i3 needed* 'ata rates o3 u6 to se5eral hundred $b6s 4ill be readily a5ailable to the terminal 74ith so mu%h bein! done9 the end user de5i%e is no lon!er just a mobile 6hone8* &he 1*+# de5elo6ments are e<6e%ted to be a5ailable in the short term9 and %ertainly 4ithin the same 6eriod that Bluetooth 4ill ma$e its entran%e* Bluetooth 4ill su66ort enhan%ed 1nd !eneration as 4ell as /# systems in the deli5ery o3 a 4ide ran!e o3 ser5i%es* ith the de5elo6ment o3 su%h broad %a6abilities9 it 4ill be rather tem6tin! to ma$e use o3 the 1*+ and /#s systems to su66ort e5ery ne4 a66li%ation and e5en some o3 the old ones too*

.EG*. 2*CTORS &he le!al en5ironment ta$es into %onsideration 3a%tors that in%lude dis%rimination la49 em6loyment la49 and health and sa3ety la4s* &he le!al as6e%t o3 PHS&HA analysis is o3 !reat im6ortan%e as it a33e%ts the %om6any in terms o3 o6eratin! %osts and demand 3or its 6rodu%ts* @onsiderin! the &ele%om Industry9 Eollo4in! are some 6oints 4orth mentionin! 0* Co :etition law6 Aiberali:ation be!an 4ith the Ne4 H%onomi% Poli%y in July 0))0* Falue added ser5i%es 4ere de%lared o6en to the 6ri5ate se%tor in 0))1 National &ele%ommuni%ations Poli%y 7N&P8 in 0))- brou!ht %han!es in o4nershi69 ser5i%e and re!ulation o3 tele%ommuni%ations se%tor* 12 tele%ommuni%ation %ir%les 3or the basi% tele6hony and 0, %ir%les 3or mobile tele6hony

2. Re8ulator' 2ra ewor-6 Set u6 in Mar%h 0))(9 &ele%om Re!ulatory Authority o3 India 7&RAI8 a%ts as a re!ulator 3or the &ele%om Se%tor* &he &RAICs 3un%tions are re!ulatory9 re%ommendatory and tari33 settin! in the tele%om se%tor* /* The New Teleco &olic'= 1111 (NT&<11)6 &he Poli%y be%ame e33e%ti5e 3rom 0st A6ril 0)))* N&P>)) %learly lay do4n that all the se!ments o3 the tele%om se%tor 4ould be eli!ible 3or 6ri5ate se%tor 6arti%i6ation* -* International .on8 Di"tance6 Under this s%heme there is no limit on the number o3 ser5i%e 6ro5iders in this se%tor* O6en %om6etition 4as e33e%ti5e 3rom A6ril 1220* &he li%ensee 3or IA' is issued 3or a 6eriod o3 12 years 4ith an automati% e<tension o3 + years* +* Tari99 Chan8e"6 &here are major %han!es in the tari33 stru%ture 4ith the redu%tion in the tari33s 3or International Aon! distan%e and mobile tari33 3or lo%al %alls 4ith e33e%t 3rom 0stO%tober 122,* 12 | P a g e

&ORTER>S 2IVE 2ORCES *N*.YSIS

" pe&t o! 'i(alr) *ithin +o,petitor o! Indian -ele&o, .e&tor H gh ( i


Su@s8ri@er +ase Pri8ingATari// Plans 'alue Added Servi8es Pro/ita@ility $e8overy o/ &i.ed (ost

-hreat o! .ub titute Produ&t (Medium)


+road@and Servi8es 'OIP 9SBy<eC -essenger et8.; E=ail Online (5at

-hreat o! Ne* Entrant (Low)


Owners5i< o/ a tele8o= li8ense 6e8lining Average $evenue Per 7ser In/rastru8ture setu<Atenan8y 8osts

1/ | P a g e

Bar#ainin# Po*er o! +u to,er (High)


La8B o/ di//erentiation a=ong t5e servi8e <roviders Low swit85ing 8osts /or 8usto=ers -o@ile u=@er Porta@ility adds to @argaining <ower o/ 8usto=ers

Bar#ainin# Po*er o! .upplier (Medium)


Large nu=@er o/ su<<liers S5ared tower in/rastru8ture Li=ited <ool o/ sBilled =an <ower availa@le

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SWOT *nal'"i"
Stren8th" Mar$et leader 4ith 12D o3 mar$et share 3or mobile ser5i%es* H<%ellent Net4or$ In3rastru%ture 4ith Pan> India Presen%e* Stron! Partnershi6s 4ith &e%hnolo!y 5endors9 No$ia9 Al%atel Au%ent9 "ua4ei9 IBM et%* H<tensi5e %hannel 6artners & distribution net4or$ in India* Fery "i!h re%o!nition* Brand A4areness and Wea-ne"" In%reasin! O6erational @ost in Mobile Ser5i%e o33erin!s 7,0D re5enue %ontribution 5s* .1D Pro3it %ontribution* Fery lo4 6enetration or a%%e6tan%e o3 Falue added ser5i%es 7Re5enue %ontribution is M )D8 'e%reasin! ARPU in mobile business 7M?+*21Iuser month8 ser5i%es

Aess sharin! 3a%tor in its net4or$s thereby in%reasin! the %ost* India %entri% > O5er )2D o3 re5enues are 3rom Indian Mar$et

/,D LOL in%rease in %ustomer base 3or mobile ser5i%es* Strate!i% 6artnershi6 4ith IEE@O 3or rural 6enetration*

O::ortunitie" H<6ansion into tele%om se%tors o3 other %ountries* No o3 '&" subs%ribers in India is at 0)*0 million9 a 6altry no %om6arin! to 0 billion 6lus Indian Po6ulation* "i!h o66ortunity in the internet subs%riber7total 0+*1- million 6eo6le 4ith broadband subs%ribers M (*,1 million8 Lear or Lear D in%rease o3 Broad band subs%ribers 3rom 12202>1200 EL stood at -0*(D* In%reasin! usa!e o3 Mobile 6assi5e net4or$s by other ser5i%e 6ro5iders li$e EM stations9 Broadband ser5i%e 6ro5iders et%* Re6la%in! Re5enue>Per @ustomer model 4ith Re5enue>Per minute model better suited to India

Threat" More #lobal tele%om behemoths are !i5en /# o6eratin! li%enses in India* Intense %om6etition 3rom ne4 entrants tri!!erin! Pri%e 4ar in an de%reasin! ARPU en5ironment* Mobile no 6ortability in a mar$et 4here ).D o3 subs%ribers are Pre>Paid %ustomers* As 6er &raiGs Re%ent re6orts9 the ARPU 3or the #SM industry de%reased M 01*-D 3rom Rs* 0.-Iuser to 0--* @ontro5ersy o5er noti%e issued to Airtel by &RAI 3or 5iolation o3 Mobile number 6ortability re!ulations* Strate!i% 6artners tyin! u6 4ith %om6etitors 7iPhone - 4ith Foda3one9 et%*8

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$CG %atri7

*irtel lie" in the ST*R cate8or' a" the ar-et 8rowth rate i" hi8h and it i" leadin8 with relati!el' the hi8he"t ar-et "hare.

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*NSO22 %*TRI?
&o 6ortray alternati5e %or6orate !ro4th strate!ies9 I!or Anso33 %on%e6tuali:ed a matri< that 3o%used on the 3irmCs 6resent and 6otential 6rodu%ts and mar$ets I%ustomers* "e %alled the 3our 6rodu%t>mar$et strate!i% alternati5es* Mar$et 6enetration Ne<istin! mar$et O e<istin! 6rodu%tP Mar$et de5elo6ment Ne<istin! 6rodu%t O ne4 mar$etP Produ%t de5elo6ment Ne<istin! mar$et O ne4 6rodu%tP and 'i5ersi3i%ation Nne4 6rodu%t O ne4 mar$etP

&he %om6any should 3ollo4 all 3our strate!ies de6endin! on the demand and 6rodu%t as indi%ated in the matri<* &he %om6any 6erha6s needs to 3o%us more on the %om6arati5ely ne!le%ted area o3 di5ersi3i%ation*

0arket Penetration
Entered in @road@and and /i.ed line =arBet

Produ&t de(elop,e nt IPL( Produ8ts Airtel -o@ile T'

0arket De(elop,en t LooBing /or Overseas -arBet

Di(er i!i&atio n Outsour8in g

%*R@ET &ENETR*TION: Airtel entered in broadband9 3i<ed 6hone line mar$et9 '&" ser5i%es and Airtel Money 7mobile H%ommer%e8 &RODUCT DEVE.O&%ENT: IPA@ 6rodu%ts %*R@ET DEVE.O&%ENT: Airtel is no4 loo$in! 3or o5erseas mar$et* @om6any has already ma$e his 6resen%e in Ni!eria and Sey%helles and other 0( A3ri%an %ountries DIVERSI2IC*TION: Airtel has no4 outsour%in! sum o3 its ser5i%es li$e %ustomer ser5i%es 4ith IBM9 data Analyti%s by #ramener9 auditin! by 'elloite

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Threat" to *irtel
Bharti9 as one o3 the three 3irst>mo5ers in the business 7the other t4o are Foda3one and Idea89 re%ei5ed s6e%trum in the )22 M": band* @om6anies that %ame in later 4ere allotted s6e%trum in the 09,22 M": band9 4hi%h is hal3 as e33i%ient and entails +2D hi!her %a6ital and o6erational e<6enditure than the )22 M": band* As India mo5es to au%tion>based 6ri%in! 3or all s6e%trum9 the !o5ernment has 6ro6osed to redistribute the )22 M": s6e%trum a%ross %om6anies* I3 this ha66ens9 Bharti 4ill ha5e to !i5e u6 its e33i%ient )22 M": s6e%trum* the im6a%t o3 s6e%trum re3armin! on them 4ould be u64ards o3 Rs 090+9222 %rore* Bharti9 bein! the lar!est and the oldest9 4ould ta$e the bi!!est hit o3 the three* Bharti also holds Ge<%essG s6e%trum in 0/ %ir%les and its mobile 6ermits %ome u6 3or rene4al 3rom 120- on4ards9 both o3 4hi%h %ould mean additional 6ayouts o3 se5eral thousand %rore* Aoomin! entry o3 Mu$eshAmbani in AirtelCs businesses: 'ata 3or sure9 but re%ently mu$eshambani said it 4as to bid 3or 5oi%e li%en%es too* &he last time the t4o s=uared o339 in 12219 Relian%e almost 6ut Bharti out o3 business* And this 4ill ha66en at a time 4hen subs%riber numbers 3or bharti and other %om6anies 3ell 3or the 3irst time in 01 years 4hi%h sho4s the mar$et is not !ro4in!* &his means there 4ill be hu!e %om6etition bet4een 6layers 3or mar$et share* Ae!al tan!les re!ardin! its 6an India roamin! 6a%ts that !a5e it 6an India /# %o5era!e* It %ould also be %har!ed in e<tended 1# s%am 6robe* Saturatin! mar$et: Subs%riber numbers 3or Airtel9 Foda3one and idea 3ell 3or the 3irst time in 01 years* A3ri%an ad5enture: Ai$ely to miss 1201>0/ re5enue tar!ets in A3ri%a* Also it is 3a%in! 6ri%e 4ards and a need to in5est more*

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SERVICE G*& *N*.YSIS

Understandin! @ustomer H<6e%tations o3 Ser5i%e Quality* Understandin! @ustomer Per%e6tions o3 Ser5i%e*

&ROVIDER G*& 1 (The .i"tenin8 Ga:)6 2actor" leadin8 to &ROVIDER G*& 16 Inade=uate Mar$etin! Resear%h Orientation Aa%$ o3 U64ard @ommuni%ation Insu33i%ient Relationshi6 Eo%us Inade=uate Ser5i%e Re%o5ery

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$+*RTI *IRTE.>" *::roach to %*R@ETING RESE*RC+6 AIRTEL MOBITUDE 2010 &he only sur5ey to ma6 onto mobile 6hone usa!e trends a%ross the %ountry* Based on a detailed analysis o3 data %a6turin! all do4nloaded %ontent by Airtel mobile users in 12029 this sur5ey is %om6iled at the end o3 e5ery %alendar year > thus brin!in! out the IndiaCs 6re3eren%es and 3a5ourites a%ross 5arious %ate!ories* @a6tures 6re3eren%es o3 o5er 0+2 million mobile users a%ross the %ountry In%ludes annual analysis o3 musi%9 ima!es9 5ideo do4nloads9 and data tra33i%

Highlights: 'i4ali deli!hts India most: Out o3 total SMS tra33i% o3 o5er )2 billion in the year > more than 0*1 billion SMSes 4ere e<%han!ed on 'i4ali* Katrina Kai3 and Salman Khan Rule: O3 1+ million ima!es and 4all6a6ers do4nloaded9 both stars s%ored numerouno 6osition in res6e%ti5e %ate!ories* &he 3indin!s o3 Airtel Mobitude 1202 are a true mani3estation o3 4hat a66eals to the Indian masses* &his 3indin!s hel6 in an industry %onne%tin! millions9 brin!in! ali5e AirtelCs brand 6ro6osition o3 G%loser to 4hat you lo5eG 3or the %ustomers

$+*RTI *IRTE.>" *::roach to RE.*TIONS+I& 2OCUS6

CR% INITI*TIVES6 As a 6art o3 the %om6anyCs 5ision9 this is to 6ro5ide ser5i%es any4here and at any time* A %ustomer should !et the same =uality o3 ser5i%e no matter 4hi%h o3 the %all %entres heIshe %onta%ts* &his has been their 5ision 4hi%h is 4hy they ha5e !one to a %entrali:ed a66li%ation li$e @RM* Modules used at AIRTEL: Mar$etin!9 Plannin!9 @am6ai!n mana!ement and Aead Mana!ement9 Sales and A%ti5ity mana!ement9 Kno4led!e mana!ement9 @all @entre su66ort and O66ortunity mana!ement*

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BENEFITS: @ustomer se!mentation @ross sellin! and u6 sellin! o3 rele5ant s%hemes Mar$et analyti%s li$e re%ordin! %ustomer in3o #eneration o3 a%%urate leads and sms bursts to the ri!ht %ustomer se!ment @ustomi:ed and sim6li3ied bill 3ormats9 6ayment %olle%tion %entres9 better 5alue added ser5i%es Kno4led!e sharin! amon! em6loyees e>billin! %ustomi:ed o33ers based on user 6ro3iles same le5el o3 ser5i%e all a%ross India redu%ed %ost i3 %ustomer hi!hly s%alable as the number o3 subs%ribers in%rease automati% 6roblem es%alation 4hen timeline is brea%hed automati%ally su!!estin! 6rodu%ts 4hen %ustomers lea5e Airtel

&ROVIDER G*& 2 (The Ser!ice De"i8n and Standard" Ga:)6 2actor" leadin8 to &ROVIDER G*& 26 Aa%$ o3 Systemati% Ser5i%e 'esi!n Absen%e o3 @ustomer 'e3ined Standards* Ina66ro6riate Physi%al H5iden%e and Ser5i%es %a6e*

$+*RTI *IRTE.>" *::roach to SERVICE DESIGN6 Ma<imi:ed its 3uture 3le<ibility and !ro4th 6otential by ado6tin! a business>dri5en 3rame4or$ 3or inte!ration9 allo4in! it to im6lement and deli5er ne4 ser5i%es ra6idly* ith %om6etition intensi3yin! in the Indian tele%om ser5i%es mar$et9 Bharti Airtel needed to 3ind a 4ay to 3o%us on de5elo6in! ne4 ser5i%es that %ould set it a6art 3rom the %om6etition and stren!then its %ustomer relationshi6s* A REEMENT !ITH IBM: Bharti Airtel entered into a %om6rehensi5e 02>year a!reement 4ith IBM to trans3orm its 6ro%esses and ta$e on the mana!ement o3 its I& in3rastru%ture* Its ne4 6lat3orm 6ro5ides a standardi:ed 3rame4or$ 3or Bharti Airtel to inte!rate its %hannels and %ustomer>3a%in! 6ro%esses J enablin! a more seamless %ustomer e<6erien%e9 hi!her %ustomer satis3a%tion and more 6ro3itable !ro4th* &he ne4 strate!y is all about deli5erin! a truly di33erentiated e<6erien%e9 and ha5in! the 3le<ibility to %ontinually im6ro5e the %ustomer e<6erien%e* A 3le<ible 3rame4or$ 3or inte!ratin! the systems and 21 | P a g e

%ustomer>3a%in! 6ro%esses 4as essential to enablin! this J and that IBMs stren!th in this area 4ould 6ro5e to be a !reat 3it*R @e' $ene9it"6 Ability to 6ro%ess 0*+ million ne4 %ustomers 6er month Outsour%in! o3 te%hnolo!y enables Bharti Airtel to 3o%us resour%es on !ro4in! the business Im6ro5ed %ross>sellin! and tar!etin! and a more seamless9 e33i%ient total %ustomer e<6erien%e throu!h end>to>end inte!ration o3 %ustomer>3a%in! 6ro%esses O6timi:ation o3 business 6ro%esses and in3rastru%ture throu!h 3le<ible9 standardi:ed inte!ration 3rame4or$ Ele<ible 6ri%in! model enables Bharti Airtel to a5oid major in%reases in %a6ital e<6enditures Ability to inte!rate its di5erse systems and 6ro%esses 4as essential* Bharti Airtel sa4 the 3le<ibility o3 IBMs inte!ration a66roa%h J and re%o!ni:ed the a66li%ation o3 IBMs e<tensi5e 6ort3olio o3 middle4are 6rodu%ts and e<6ertise in ser5i%e>oriented ar%hite%ture 7SOA8 J as an ideal mat%h 3or its inte!ration re=uirements*

@e' Dri!er"6 A $ey dri5er o3 Bharti AirtelCs de%ision to outsour%e its I& a%ti5ities to IBM 4as the desire to %hannel its internal ener!ies and resour%es into %a6itali:in! on a s6e%ta%ular mar$et o66ortunity rather than on the enablin! 6lat3orms needed to do so* &he s%or%hin! !ro4th o3 Bharti AirtelCs %ustomer base9 and the ability o3 its business 6ro%esses to $ee6 u6 4ith this !ro4th9 illustrates the su%%ess o3 this strate!y* It 4as also dri5en by the desire to ma<imi:e the e33i%ien%y o3 its o6erations by entrustin! IBM 4ith the o4nershi6 and mana!ement o3 its I& resour%es9 and9 in the 6ro%ess9 ma$in! its I& %osts more 6redi%table and mana!eable* IBM Strate!i% Outsour%in! 6ro5ides installation ser5i%es9 hel6 des$ ser5i%es and the on!oin! mana!ement o3 Bharti AirtelCs I& en5ironment*

Re"ult"6 &4o years into the a!reement9 Bharti AirtelCs inno5ation e33orts ha5e resulted in mu%h e<ternal re%o!nition9 a hi!hli!ht o3 4hi%h 4as re%ei5in! the 122. NASS@OM I& & Inno5ation A4ard 3rom the "onourable Prime Minister o3 India* In the 3a%e o3 de%linin! a5era!e re5enue 6er %ustomer in India9 Bharti Airtel has been able to 6ost an o6eratin! %ash 3lo4 mar!in o3 -2 6er%ent9 a 3ull 3i5e 6er%enta!e 6oints hi!her than the rest o3 the industry*

22 | P a g e

TELLABS " A #ALUED SU$$LIER: Ability to brin! a%ti5ation 3rom 3our days to t4o hours9 and our billin! %y%les 3rom 0+ days to t4o hours Aon! distan%e band4idth ser5i%es ha5e been 4itnessin! healthy !ro4th in the last 3e4 years* &he !ro4th in 4ireless o6erators brin!s in hu!e o66ortunity 3or Airtel as many o3 the ne4 o6erators do not ha5e their o4n o6ti%al net4or$ in3rastru%ture* &hese o6erators ha5e re%ently been a4arded li%enses and are under !o5ernment>im6osed deadlines to roll out their ser5i%es* &he net4or$ 4as initially 6ro5isioned 4ith t4o 4a5elen!ths o3 02 #b6s ea%h9 but today it 6ro5ides more than 0, %hannels o3 02#b6s ser5i%es9 thereby in%reasin! the number o3 $ilometres de6loyed si!ni3i%antly9 4hile at the same time %ontinuously im6ro5in! ser5i%e =uality and reliability* Ma<imum U6time: Airtel and &ellabs 6lannin! teams ha5e 4or$ed to!ether to ma$e ar%hite%tural %han!es in the o6ti%al net4or$ to a%hie5e enhan%ed net4or$ resilien%y* RH&HN&ION PAANS9 AOLAA&L PAANS9 #UARAN&HH9 OEEHR OE &"H 'AL S&RA&H#IHS* @US&OMHR 'HEINH' SHRFI@H S&AN'AR'S 022D BIAA A@@URA@L

&ROVIDER G*& , (The Ser!ice De"i8n and Standard" Ga:)6 2actor" leadin8 to &ROVIDER G*& ,6 Ine33e%ti5e "uman Resour%e Mana!ement Ine33e%ti5e Role 3ul3ilment by %ustomers H33e%ti5e ali!nment 4ith Ser5i%e Intermediaries* $+*RTI *IRTE.>" *::roach to +R6 Resour%e Mana!ement Tale%t A&'uisitio%: Buildin! Su66ly @hain o3 talented 4or$3or%e In sour%in! lar!e number o3 em6loyees 4ith Airtel %hannel 6artners and asso%iates* Hstablishin! and im6lementin! obje%ti5e re%ruitment tools su%h as online tests based on 6sy%hometri% 6ro3ile9 attitude and s$ills assessment*

E()lo*ee E%gage(e%t a%d De+elo)(e%t O33erin! SStudy 4hile or$R Pro!rams Settin! ben%hmar$s in Hm6loyee re4ard and re%o!nitions 'e5elo6in! Role @om6eten%y Matri<* Att,itio% Ma%age(e%t Buildin! a stron! SBharti Airtel Ser5i%esR %ommunity* @reatin! and im6lementin! e33e%ti5e 6ro%esses 3or in%reasin! 6rodu%ti5ity 'e3ine a %lear !ro4th 6ath 3or the em6loyees

2/ | P a g e

Eollo4 a multi 6ron!ed a66roa%h 3or addressin! the attrition rates*

E()lo*ee Se,+i&e Assu,a%&e Hdu%atin! em6loyees on or!ani:ation "R 6oli%ies @ondu%tin! Hm6loyee Satis3a%tion sur5eys* &ROVIDER G*& A (The Co unication Ga:)6

2actor" leadin8 to &ROVIDER G*& A6 Ine33e%ti5e @ommuni%ation to %ustomers* Pri%in!

$+*RTI *IRTE.>" *::roach to CO%%UNIC*TION6 E7ternal Co unication"6

&o"itionin8 throu8h Slo8an"6 Po4er to $ee6 in tou%h: instant %ommuni%ation &ou%h tomorro4: %a6turin! lar!e mar$et9 tal$in! to a bi!!er audien%e9 4ith more entries to the mar$et* Ai5e e5ery moment : tou%hin! the ima!ination o3 the %ustomer H<6ress yoursel3: Hner!eti% and youn!er loo$9 hi!hli!htin! 6er3orman%e and %o5era!e Airtel Ao!o 7 a5e8

%a""i!e *d!erti"in86 #oo!le Adsense Bid5ertisers S6onsor online !ames at :a$6a$*%om Sale" :ro otion Eriends 6re6aid 6lan Aadies s6e%ial 6lan Senior %iti:en 6lan &u#licit' and e!ent"6 'elhi marathon9 !ol3 tournaments &F sho4s li$e Bi! Boss9 KB@ and IN'IAN I'OA Interacti!e Co unication"6 Cu"to er Ser!ice Centre"

$+*RTI *IRTE.>" *::roach to &RICING6 @ustomer based 6ri%in! strate!ies Ele<ible 6ri%in! me%hanism @ontrolled by &RAI

24 | P a g e

TOWS %*TRI? *N*.YSIS

O::ortunitie" (O) H<ternal Ea%tors

Threat" (T)

0* H<6ansion into tele%om se%tors o3 0* More domesti% 6layers emer!in! in other %ountries the mar$et9 leadin! to 6ri%e 4ars

1* &ar!etin! 5illa!es 4ith its Internal TMat%hbo< Strate!yT

1* Ine<6li%it !o5ernment 6oli%ies on the tele%om se%tor

Stren8th" (S)

SO Strate!ies

S& Strate!ies

0* ith the A3ri%an nations !ettin!0* #oin! abroad 4ith stren!then into the de5elo6in! nations lea!ue9brand 5alue at home and ensure 0* H<tensi5e and establishedBharti Airtel has hu!e 6otentialstron! brand 6resen%e and loyalty* I3 distribution net4or$ a%ross the!i5en the deals it %an stri$e 4ith the!o5ernment 6oli%ies %han!e9 they %ountry and abroad %urrent ser5i%e 6ro5iders there* may !et a %han%e to ta$e>o5er ne49 small time 6layers as 4ell* 1* ith an already 4ell established net4or$ in the rural 6arts o3 India9 it1* Eo%us on its stren!ths in the rural 1* Strate!i% Allian%e 4ith Sony %an 4or$ 4ith its allies and %ome u6mar$ets to retain and im6ro5e mar$et Hri%sson9 No$ia & Sin!&el enables 4ith s6e%ial o33er 6hones et%9 toshare by introdu%in! better 6lans9 $no4led!e and te%hnolo!y sharin! boost %ustomer numbers andre%har!es et%* re5enues* /* #et into an a!!ressi5e /* Bharti Airtel also su66lies/* Promote the brand internationally mar$etin! mode and stress broadband and tele6hone ser5i%es >at lo4 %ost* as 4ell as many other On the Mar$et Aeader &a!* tele%ommuni%ations ser5i%es to both domesti% and %or6orate %ustomers*

25 | P a g e

Wea-ne""e" (W)

WO Strate8ie"

WT Strate8ie" 0* Use the o66ortunity to tie u6 4ith lo%al tele%om 6ro5iders and %ome u6 4ith o4n to4ers and in3rastru%ture J 4ill %ut %osts and raise 6ro3its*

0* Out>sour%ed &o4ers until 1. Use re5enues 3rom re%ently 7!i5in! %om6etitors li$e abroad to im6ro5e and Foda3one an ed!e8 1* Unta66ed Rural mar$et /* Pri%e %om6etition 3rom FSNA9 BSNA et% install ne4 te%hnolo!y 1* Use brand name and

1* #o solo as 6er #o5t* re!ulations and establish S6e%ial ta%ti%s and strate!ies to 6enetrate 3urther in to the rural distribution %hannels* mar$ets /* &ie>u6 4ith other 5endors /* Pro5idin! better ser5i%e and o3 So3t4are and %ome out 4ith su6erior e<6erien%e 4ill ensure %hea6er 6rodu%ts 3or rural se%tor* %ustomer retention*

@e' *rea" that di99erentiate *irtel 9ro 1. &a""i!e In9ra"tructure Solution"

it" Co :etitor"

Bharti In3ratel9 a major subsidiary o3 Bharti Airtel9 is a 6ro5ider o3 to4er and related in3rastru%ture and on a %onsolidated basis9 they are one o3 the lar!est to4er in3rastru%ture 6ro5iders in India9 based on the number o3 to4ers that Bharti In3ratel o4ns and o6erates and the number o3 to4ers o4ned or o6erated by Indus9 that are re6resented by Bharti In3ratelCs -1D e=uity interest in Indus*

26 | P a g e

Its major %lients in%lude Airtel9 Foda3one9 Idea9 &ata &eleser5i%es9 BSNA9 Relian%e Mobile9 Uninor9 M&S9 Air%el and Fideo%on Mobile Ser5i%es* Bharti Airtel9 4hi%h o4ns ,. 6er%ent o3 the Bharti In3ratel unit9 thus earns money 3rom all o3 its %om6etitors and uses that money 3or %urrent and 3uture %a6ital e<6enditure re=uirements* Bharti In3ratel has re%ently 3iled 3or an initial 6ubli% o33erin! to raise nearly ?0 billion in the %ountryGs bi!!est IPO in more than t4o years* Bharti In3ratelGs IPO 4ould be the bi!!est sin%e state>run @oal India raised ?/*+ billion in an initial 6ubli% o33erin! in 1202* Bharti In3ratel has not only hel6ed in%rease &ele%om 6enetration in se5eral 6arts o3 rural India9 but is also seen as a Gde6endable 6artnerG to im6lement &ele%om ser5i%es in Ghostile en5ironmentsG* &heir to4ers ha5e been de6loyed in areas 4here %i5ilian %on3li%t9 ina%%essible terrains and hostile %limati% %onditions ha5e deterred other %ommuni%ation 6ro5iders 3rom enterin!* Be it 6ro5idin! %onne%ti5ity in e<treme areas 4here the Indian Army o6erates9 or the remotest areas o3 Bihar and the North Hastern States 4here road %onne%ti5ity is 6oor9 mobile %ommuni%ation de6ends on these to4ers* By 6ro5idin! %ost>e33e%ti5e %ommuni%ation 4hen and 4here itGs re=uired9In3ratel has made a si!ni3i%ant di33eren%e to the G=uality o3 li3eG9 in the %ommunities it ser5es* In India9 Bharti In3ratel has a 5ast 3oot6rint o3 o5er //9222O to4ers a%ross 0, states o3 the Union o3 India* Both the an%hor o6erator and the %o>o6erator %an share the same in3rastru%ture* &his in%ludes the &o4er and Shelter 3or housin! the Base &rans%ei5er Stations9 the onsite Po4er Su66ly e=ui6ments li$e 'iesel #enerators9 Battery Ban$s9 &ransmission Room9 as 4ell as ser5i%es related to Installation9 Maintenan%e9 Re6air9 O5erhaulin! and U6!radation o3 the abo5e* &he o6erators need to in5est only in the GA%ti5e H=ui6ment 4hi%h in%ludes antennas9 trans%ei5ers and asso%iated e=ui6ment* &he to4ers or 6oles %ome in 1 5arieties: !round>based 7#B&8 and roo3>to6 7R&&8; and all o3 them meet the sa3ety and en5ironmental re!ulations sti6ulated by the #o5ernment and 5arious a!en%ies* 1.1 $ene9it" o9 Shared In9ra"tructure Reduced Ca:e7

&ele%om business is hea5y on @a6e<9 and as mu%h as -2>.2D o3 the @a6e< is utili:ed 3or settin! u6 and mana!in! the &ele%om in3rastru%ture* ith ARPU and Re5enue 6er to4er de%linin! o5er time9 sharin! o3 &o4er and other in3rastru%ture is imminent* By sharin! in3rastru%ture9 O6erators %an o6timi:e their @a6e<9 and 3o%us on 6ro5idin! ne4 and inno5ati5e ser5i%es to their subs%ribers* In the lon! run9 this is 4hat 4ill di33erentiate them 3rom the %om6etition Reduced O:e7

By outsour%in! the day>to>day mana!ement o3 your &ele%om in3rastru%ture to In3ratel9 your O6e< %osts are hu!ely redu%ed* &he %ost>sa5in!s %an be used to in%rease %lient rea%h9 6ro5ide inno5ati5e ser5i%es9 and im6ro5e %ustomer satis3a%tion9 all o3 4hi%h 4ill result in hi!her ARPUs Reduced Ti e to %ar-et

By le5era!in! e<istin! In3rastru%ture that are de6loyed in a%ti5e &ele%om %ir%les9 a ne4 o6erator %an drasti%ally %ut do4n the time ta$en to be!in o6erations* &he resultin! sa5in!s in @a6e< %an then be di5erted to4ards Mar$etin! and 6romotional a%ti5ities 4hi%h are %ru%ial in the initial months* Increa"ed Connecti!it'

Bharti In3ratel has de6loyed 6assi5e in3rastru%ture in 0, states o3 India a%ross 00 &ele%om %ir%les* &heir %o5era!e in%ludes rural and remote lo%ations 4hi%h are %hara%teri:ed by errati% 6o4er su66ly9 6oor a%%ess9 27 | P a g e

di33i%ult terrain and la%$ o3 ade=uate ba%$u6* So9 4hen %lients !o 4ith Bharti In3ratel9 not only are they sa5ed the hassle o3 o6eratin! in su%h %onditions9 but are also able to 6enetrate ne4 mar$ets 4ith ease* +i8he"t u:ti e

&he s6eed 4ith 4hi%h it rolls>out our ser5i%es ensures =ui%$ %ommen%ement o3 o6erations* Subse=uently9 the use o3 e33i%ient 6ro%esses and su6erior monitorin! ensures minimum do4ntime 3or you* All these means9 its %lients ha5e almost 022D u6time 4hen they !o 4ith Bharti In3ratel*

1.2 Goin8 Green Bharti In3ratel belie5es that a healthy en5ironment is a 6rere=uisite 3or 6ro!ress9 %ontributin! to the 4ell bein! o3 so%iety9 our 6eo6le and our business* &heir business model 6romotes to4er sharin! 4hi%h hel6s brin! do4n the %arbon 3oot6rint 3or tele%om net4or$s and 4or$s to4ards a sustainable e%onomy* Eurther9 Bharti In3ratel %ontinues to de6loy 6eo6le9 ideas and %a6ital to 3ind e33e%ti5e solutions to address en5ironmental %hallen!es* In this dire%tion9 they ha5e initiated #reen &o4ers P( 6ro!ram based on ( inno5ati5e ideas aimed at minimisin! de6enden%y on diesel and thereby9 %arbon 3oot6rint redu%tion* &his 6ro!ram 6romotes 7a8 im6ro5in! ener!y e33i%ien%y o3 to4er in3rastru%ture e=ui6ments9 7b8 use o3 rene4able ener!y resour%es9 and 7%8 redu%tion o3 e=ui6ment load on to4er in3rastru%ture e=ui6ments* As 6art o3 the #reen &o4ers P( 6ro!ram9 Bharti In3ratel has %ommissioned: 091++ Solar 6o4ered to4ers 4ith a total installed %a6a%ity o3 more than .M Fariable s6eed '@ 6o4ered '# sets Inte!rated Po4er Mana!ement Systems 7IPMS89 and Eree @oolin! Units 7E@U8 #reen sites eliminatin! use o3 '# sets Bharti In3ratelCs #reen &o4ers P( 6ro!ram has been 4idely re%o!ni:ed a%ross the industry* Bharti In3ratel 4on the 6resti!ious B#reen Mobile A4ardC at the 1200 #SMA #lobal Mobile A4ards o3 dri5in! one o3 the lar!est !reen 6o4er initiati5es 3or mobile to4ers* &he @on3ederation o3 Indian Industry 7@II8 also %on3erred u6on Bharti In3ratel9 the National A4ard 3or H<%ellen%e in Hner!y Mana!ement 1200 re%o!ni:in! #reen &o4ers P( 6ro!ram as the BMost Inno5ati5e Hner!y Sa5in! Produ%tISer5i%eC* Bharti In3ratel has si!ned a Memorandum o3 Understandin! 4ith #SMA9 earlier in Mar%h 12019 to de5elo6 and 6romote !reen te%hnolo!ies 3or tele%om to4er in3rastru%ture in India* &he %ollaboration 4ill entail 4or$in! to!ether to %on5ert 09222 Bharti In3ratel to4ers into !reen sites9 4hi%h 4ill redu%e !reenhouse !as %arbon emissions by almost 009222 tonnes as a result o3 the redu%ed usa!e o3 diesel* Eurther9 Bharti In3ratel is 6artnerin! 4ith Rene4able Hner!y Ser5i%e @om6anies 7RHS@OCs8 in its e33orts to4ards %ommunity 6o4er de5elo6ment alon! 4ith 6o4erin! its to4ers usin! rene4able ener!y in rural areas* Bharti In3ratel re%o!ni:es that the journey to a %leaner and !reener en5ironment has just started* Bharti In3ratelCs te%hni%al team is 4or$in! relentlessly on e<6andin! !reen ener!y 6ort3olio by embra%in! 5arious other ne4 te%hnolo!ies li$e 4ind ener!y9 biomass9 and :ero emission batteries* Co"t and ener8' e99iciencie" 28 | P a g e

By ma$in! use o3 %leaner9 !reener sour%es o3 ener!y li$e solar 6o4er that are more ener!y e33i%ient9 4e are able to si!ni3i%antly redu%e o6eratin! %osts9 the bene3its o3 4hi%h are 6assed onto the %ustomer* Our P( 6ro!ram is aimed 6re%isely at su%h 6ath>brea$in! obje%ti5es* Our G#reen&o4ersG ha5e been at the 3ore3ront in usin! solar 6o4er !eneration9 and e=ui6ment su%h as dire%t %urrent diesel !enerators and 3uel %ells in order to lo4er %arbon emissions* &oday9 4e ha5e %urrently 01++ G#reen&o4ersG installed a%ross the %ountry9 4hi%h is the lar!est su%h base9 3ar ahead o3 any other 6layer in this business* $etter %ana8e ent o9 S.*" Bharti In3ratel9 li$e other Bharti #rou6 %om6anies9 ma$es e<tensi5e use o3 hi!h>te%h e=ui6ments and In3ormation &e%hnolo!y based solutions li$e @ustomer Relationshi6 Mana!ement 7@RM89 Su66ly @hain Mana!ement 7S@M8 and 'ata arehousin! 7' "8 so3t4areCs to dri5e do4n %osts9 mana!e in3ormation better9 and redu%e rea%tion times* &his brin!s about %ost and o6erational e33i%ien%ies9 and hel6s mana!e the SAAs better* 2. *irtel AG .TE *irtel i" the 1"t and onl' "er!ice :ro!ider to launch AG in India and 'ou will #e ha::' to -now that *irtel AG .TE i" launched in @ol-ata and $en8aluru. A&H stands 3or SAon! &erm H5olutionR J it is a radio a%%ess te%hnolo!y to deli5er Fery hi!h s6eeds>u6 to 022Mb6s 7te%hni%ally8 in an ideal en5ironment* -# is a Standard in Mobile Net4or$ &e%hnolo!y and stands 3or SEourth #enerationR>the latest a3ter 1# and /#* Bein! the latest 6lat3orm o3 mobile %ommuni%ations -# > A&H %an enable real mobile 74ireless8 broadband e<6erien%e* &he te%hnolo!y su66orts theoreti%al do4nload s6eeds u6 to 022 Mb6s and u6load s6eeds u6 to +2 Mb6s* It has a 5ery lo4 laten%y rate 7U +>/2 ms8 ma$in! it suitable 3or all ty6e o3 hi!h s6eed a66li%ations and ser5i%es* Airtel -# A&H %an be used at home or at o33i%e 3or: a8 b8 ireless internet a%%ess A%%ess ri%h %ontent and multimedia a66li%ations e!: e>learnin!9 "' %ontent>mo5ies et%V

%8 Multi6le do4nloads o3 hea5y 3iles; hi!h de3inition multimedia %ontent at the same time 4ill be 6ossible d8 e8 38 !8 "i!her u6lin$ and do4nlin$ s6eeds Seamless online streamin! J 4ithout bu33erin! "i!h de3inition online !amin! A%%ess business a66li%ations that re=uire hi!her s6eeds and last mile %onne%ti5ity

Users 4ill need a ne4 number 3or Airtel -# A&H 9 they 4ill also need a USIM to be on the Airtel -# net4or$* USIM stands 3or Uni5ersal Subs%riber Identi3i%ation Module; it is di33erent than your %urrent SIM sin%e it is a 01, KB SIM* A Uni5ersal subs%riber identity module or Uni5ersal subs%riber identi3i%ation module 7SIM8 is an inte!rated %ir%uit that se%urely stores the International Mobile Subs%riber Identity 7IMSI8 and the related $ey used to identi3y and authenti%ate subs%ribers on mobile tele6hony de5i%es 29 | P a g e

Normal SIM su66orts 1# & /# Net4or$9 but USIM Su66orts 1#9 /#9 -# Net4or$s as 4ell as JAFA A66li%ations* Memory o3 normal SIM is .-KB 4hereas memory o3 USIM is 01,KB* ,. *irtel initiati!e 9or #etter cu"to er "u::ort ith this9 Airtel 6roa%ti5ely %orre%ts de5i%e settin!s 4ithout any inter5ention 3rom the %ustomer %are or the user* Bharti Airtel has im6lemented a @ustomer H<6erien%e Mana!ement 7@HM8 6lat3orm into its net4or$ to o6timi:e and enri%h user e<6erien%e o3 its %ustomers* &he o6erator has %hosen No$ia Siemens Net4or$s to 6ro5ide and de6loy its @HM 6lat3orm and ser5i%es a%ross India* &he @HM 6lat3orm maintains and stores real>time e<6erien%e metri%s 3or e5ery subs%riber in the net4or$ enablin! Bharti Airtel to 6roa%ti5ely %ater to %ustomer needs* TIt enables us to identi3y the root %ause o3 a 6roblem and re%ti3y the same be3ore the subs%riber e<6erien%es any im6airment in ser5i%e deli5ery9T said Ja!bir Sin!h9 dire%tor net4or$ !rou6 at Bharti Airtel* TOur @HM solution 4ill enable Bharti Airtel to enhan%e its ser5i%e e<6erien%e* Eor instan%e9 it %an 6roa%ti5ely %orre%t de5i%e settin!s 4ithout any inter5ention 3rom the %ustomer %are9T added Sandee6#irotra9 head o3 India re!ion at No$ia Siemens Net4or$s* "e added TIn addition9 it %an assist the mar$etin! teams by 6ro5idin! ne4 insi!hts about subs%ribersG usa!e and 6re3eren%es9 and hen%e enhan%e Bharti AirtelGs %a6abilities to %reate %ustomer deli!ht*T

A. 2ree anti<!iru" with *irtel don8le Sin%e %om6etitors as 4ell as Airtel are on the same 6lat3orm based on /# 6ri%in! and Modem Pri%in!9 Airtel is o33erin! trial 5ersion o3 its P@ Se%ure se%urity so3t4are 3or a month to its don!le users to di33erentiate itsel3 3rom %om6etitors* Airtel /# data %ard users %an no4 use Airtel P@ Se%ure Se%urity solution 3ree 3or a month* Eollo4in! the /2>days trial 6eriod9 %ustomers 4ill ha5e the o6tion to buy a monthly or yearly subs%ri6tion o3 the anti>5irus* &he basi% 6a%$ o3 Airtel P@ Se%ure in%ludes anti5irus and antis6y4are 6rote%tion 3or Rs ,+ 6er month or Rs (+2 6er annum* hile9 the Ad5an%e 6a%$9 4hi%h also in%ludes Eire4all 6rote%tion9 is 6ri%ed at Rs 022 3or a month or %an be brou!ht 3or Rs ,+2 3or a year* On the other hand9 the 6remium 6a%$ o3 Airtel P@ Se%ure %omes 4ith 6arental %ontrol and s6am %ontrol a6art 3rom 4hat the ad5an%e 6a%$ 6ro5ides* &he 6remium 6a%$ %osts Rs 01+ 6er month and Rs ))) 6er annum* Airtel P@ Se%ure is 6o4ered by E>Se%ure9 4hi%h is desi!ned to 6rote%t the %om6uter 3rom all $inds o3 mali%ious so3t4are 7in%ludin! s6y4are9 4orms9 trojans9 root$its and :ero>hour atta%$s8 and 6rote%t %ustomersG 6ersonal in3ormation 7su%h as ban$ details9 6ass4ords et%*8 in the online domain* FenuPala$irti9 %ountry mana!er9 India and SAAR@ at E>Se%ure said: T e are 5ery 6leased to e<tend our se%urity ser5i%es 3rom 4ire line %ustomers to /# don!le %ustomers on Airtel* &he ser5i%e 4ill ensure 3ully 6rote%ted P@ e<6erien%e 3or internet users* ith this9 4e rein3or%e our leadershi6 as a 6ro5ider o3 se%urity and %ontent>related ser5i%es throu!h o6erator 6artners around the 4orld*T

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%*R@ET DEVE.O&%ENT IN *2RIC* *ND *2TER E22ECT

ith Indian mar$et !ettin! hi!hly %om6etiti5e 4ith ne4 entrants resultin! 6ri%e>4ars9 lo4er ARPU and un%lear !o5ernment 6oli%y on 5ariety o3 issues li$e the 3ees on e<istin! s6e%trum9 the terms on 4hi%h old li%enses are rene4ed and %orru6tly a4arded ones relin=uished 7i3 at all89 ne4 s6e%trum !rants and the rules on mer!ers and a%=uisitions ma$es it im6erati5e 3or Bharti Airtel to loo$ at ne4 mar$ets to sustain and !ro4* *9rica6 The Ne7t Growth En8ine A3ri%a had a late start in the tele%om 3ield9 4ith lo4 6ositionin! indi%atin! lar!e 6otential o3 A3ri%an tele%om mar$et* Mobile si!nals only %o5er .2D o3 A3ri%a South o3 the Sahara9 the A3ri%an 6o6ulation e<%eeds 0 billion9 and the mobile %ommuni%ations 6enetration rate is about -0*-D* @om6ared 4ith other re!ions9 A3ri%an tele%om mar$et has broad 6ros6e%ts* 'ue to the !eo!ra6hi%al %limate and 6oliti%al 6attern o3 A3ri%a9 the 3i<ed>line business is 3ar less de5elo6ed than the mobile business in A3ri%a* In 12029 the mobile subs%ribers in A3ri%a in%reased by 01*)D to /// million; 4hile the internet subs%ribers a66ro<imated (( million* 'es6ite the 3ast !ro4th in re%ent years 4hi%h sa4 total mobile subs%ribers in%reasin! at a @A#R o3 a66ro<imately 11*1 6er%ent durin! the last si< years9 the teledensity is still +1D 4ith hu!e 5ariation in the re!ion* E99ect o9 Thi" Strate8' On The 2unctional De:art ent" W Mar$etin!: Airtel is a home !ro4n %om6any 4ith the e<6erien%e o3 mar$etin! only 4ithin India* As it tries to e<6and into mar$ets beyond Indian borders it 4ill ha5e to e5ol5e into a true MN@* &his means the %om6any 4ill ha5e to reloo$ its entire mar$etin! strate!y to not only ada6t to the ne4 mar$ets but also to ensure it is able to 6resent itsel3 a !lobal brand* &he learnin! %ur5e has to be really =ui%$ i3 it 4ants to %om6ete 4ith !lobal 6layers li$e Foda3one and lo%al %ham6ions li$e M&N in the A3ri%an mar$et* W "R: A !lobalised 3irm brin!s 4ith itsel3 %hallen!es o3 human resour%es* &he "R o3 the %om6any 4ill ha5e to start de5elo6in! %a6abilities 3or handlin! a multi>%ultural and multi>ethni% 4or$3or%e s6read o5er di33erent %ountries* &he trainin! resour%es 4ill ha5e to ensure the %ore 5alues o3 the %om6any are en!rained into the ne4 em6loyees* W Einan%e: &he 3inan%e 3un%tion 4ill !et more %om6le< as more re5enue start %omin! 3rom other %ountries* &he %om6any 4ill ha5e to de5elo6 treasury mana!ement ser5i%es to hed!e 3orei!n e<%han!e ris$s* At the same time the re!ulatory %om6lian%e 4ill be%ome more %om6le< o4in! to di33erent rules in %ountries* Bharti Airtel entered into a %om6rehensi5e 02>year a!reement 4ith IBM to trans3orm its 6ro%esses and ta$e on the mana!ement o3 its I& in3rastru%ture* Its ne4 6lat3orm 6ro5ides a standardi:ed 3rame4or$ 3or Bharti Airtel to inte!rate its %hannels and %ustomer>3a%in! 6ro%esses enablin! a more seamless %ustomer e<6erien%e9 hi!her %ustomer satis3a%tion and more 6ro3itable !ro4th* @e' $ene9it" with Thi" Tie U:6 W Ability to 6ro%ess 0*+ million ne4 %ustomers 6er month* W Outsour%in! o3 te%hnolo!y enables Bharti Airtel to 3o%us resour%es on !ro4in! the business* In the !lobal tele%ommuni%ations mar$et9 itCs hard to ima!ine a more 3ertile en5ironment 3or e<6losi5e !ro4th than India* ith a lar!e9 youn! and te%h>sa55y 6o6ulation9 an e%onomy 4hose !ro4th rate is se%ond /1 | P a g e

only to @hina and tele6hone 6enetration o3 just se5en 6er%ent9 India stands as a te<tboo$ e<am6le o3 ho4 demand 3or %ommuni%ations ser5i%es %an be e<6losi5e i3 the %onditions are ri!ht* A 3e4 years a!o9 4hen 3ore%asters 6redi%ted a 3our3old in%rease in subs%ribers in three yearsJto 122 millionJit seemed im6ossible* Sin%e then9 ho4e5er9 mar$et !ro4th has outstri66ed the unli$ely 3ore%ast9 and no o6erator has been better 6oised to %a6itali:e on this o66ortunity than Bharti Airtel* Bharti AirtelCs other bi! %hallen!e 4as the need to ma$e the major in5estments in I& in3rastru%ture re=uired to ser5i%e its ra6idly !ro4in! base o3 subs%ribers* As a %a6ital e<6enditure9 these in5estments are ty6i%ally o33set by the 3uture ser5i%e re5enues that they enable* "o4e5er9 in addition to the inherent ris$s o3 a lar!e 3i<ed in5estment9 Bharti Airtel 3a%ed an added 3inan%ial ris$ 3rom a steady de%line in IndiaGs a5era!e re5enue 6er user 7ARPU8 3or mobile tele%om ser5i%es9 the result o3 !o5ernment>mandated 6ri%in! %han!es that %reatedJat rou!hly ei!ht dollars a monthJone o3 the lo4est ARPUs o3 the re!ion* &hus9 4hile Bharti Airtel reali:ed that it 4as absolutely essential to in5est in its 3uture !ro4th9 3a%tors uni=ue to the Indian mar$et substantially in%reased the ris$s o3 ma$in! these %a6ital in5estments* &o address these uni=ue o66ortunities and %hallen!es9 Bharti Airtel established a 3ar>rea%hin! outsour%in! relationshi6 4ith IBM that substantially miti!ates its I& in5estment ris$s by !i5in! IBM 3ull %ontrol and o4nershi6 o3 Bharti AirtelCs I& in3rastru%ture and asso%iated 6ro%esses* By substitutin! 6redi%table o6eratin! e<6enses 3or ris$y9 u63ront %a6ital in5estments9 this strate!y 3undamentally trans3orms the 3inan%ial under6innin!s o3 its business model* An e=ually im6ortant aim o3 this strate!y is to enable Bharti Airtel to 3o%us its ener!ies on !ro4in!9 ser5in! and retainin! its %ustomer baseJand thus 3ully %a6itali:e on IndiaCs astoundin! !ro4th sur!e*

&he a3ter e33e%t o3 a%=uisition is that the %om6anies 6ro3it is %onsistently 3allin!* Its sho4in! a do4n4ard trend*

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Eollo4in! a shar6 dro6 in re5enues9 Bharti in Au!ust last year had announ%ed restru%turin! o3 its Indian and South Asian o6erations to streamline its businesses and redu%e %osts* &he $ey e<e%uti5e o3 the !lobal %onsultan%y 3irm said that Bharti 4as ad5ised in the be!innin! o3 1200 3or a restru%turin! and 4as su!!ested a t4o>6ron!ed a66roa%h* One9 to %onsolidate the business units9 and t4o9 to restru%ture the to6 mana!ement* &he Au!ust trans3ormed or!ani:ation stru%ture no4 ha5e t4o distin%t @ustomer Business Units 7@BUs8 4ith %lear 3o%us on B1@ 7business to %ustomer8 and B1B 7business to business8 se!ments* &he %om6anyGs B1@ business unit 4ill ser5i%e the retail %onsumers9 homes and small o33i%es by %ombinin! the erst4hile business units>mobile9 telemedia9 di!ital &F9 and other emer!in! businesses 7li$e m>%ommer%e9 m>health9 m>ad5ertisin!89 the %om6any said*

T+E &RO$.E%S WIT+ $+*RTI *IRTE.


B 2inancial O!er<e7:o"ure6 ith entry to A3ri%a and on a%%ount o3 /# and B A li%ense a%=uisition9 Bharti is o5er e<6osed 3inan%ially* It had ta$en a loan o3 ?, bn 3rom a %onsortium o3 ban$s led by Standard @hartered ban$ 3or Kain a%=uisition 4orth ?02*( bn* As o3 'e%ember /09 12009 Bharti Airtel has a net debt o3 ?01*(1 bin 4hi%h im6a%tin! BhartiGsbottom>line* B .eader"hi: Cri"i"6 &he 3irm that 4as held as an e<am6le 3or its leadershi6 =ualities a %ou6le o3 years ba%$ is suddenly 3elt to be in the middle o3 a leadershi6 %risis* &he dynamism o3 Sunil Mittal is bein! missed* &he dynamism9 man>mana!ement =ualities and te%hni%al s$ills o3 Kohli are bein! missed in a bi! 4ay* H<6erts belie5e9 that the leadershi6 3o%us has some4hat shi3ted to A3ri%a9 lea5in! India 5ulnerable to losin! mar$et share* H5en Bharti has not been able to %ome to terms 4ith restru%turin! e5en a3ter ( months* &he %on3iden%e and the 5isibility o3 the to6 mana!ement is at the lo4est* B .ac- o9 Inno!ation6 Bharti 4as the 3irst %om6any to ta$e u6 outsour%in! as a strate!i% business model in net4or$9 I&9 %all %enters9 and sa4 hu!e su%%ess* No49 industry 4at%hers belie5e in the ne4 !ame that has to be dominated by data %entri% ser5i%es9 4here Bharti la%$s inno5ation* Analysts belie5e the 3irm is s4a66in! =uality 4ith %ost by not tyin! u6 4ith inno5ati5e 6artners but 4ith lo4 %ost %ounter6arts* B .eader"hi: Cri"i"6 Analysts belie5e Bharti has some4hat missed the bus* &he leader has to be a 5isionary* ith %han!in! dynami%s in the tele%om s6a%e and in a di33i%ult e%onomi% s%enario9 one has to ada6t to the %han!in! needs* &he 3irm is still a66roa%hin! the same strate!ies that it used to ha5e 3or 5oi%e %entri% business9 but data business and enter6rise ser5i%es are di33erent ball !ames9 and Bharti needs to 3o%us in it in a bi! 4ay What $harti Need" To Do6 Restru%turin! not ali!nin! 4ith %om6any !oals: Eollo4in! a shar6 dro6 in re5enues9 Bharti in Au!ust last year had announ%ed restru%turin! o3 its Indian and South Asian o6erations to streamline its businesses and redu%e %osts* "o4e5er9 industry tra%$ers 3eel the restru%turin! 4as not in line the %om6anyGs !oal* Also9 this restru%turin! has !athered some mi<ed res6onses amon! the em6loyees* &hou!h itCs not al4ays 6ossible to satis3y e5eryone in a business de%ision9 t4o $ey members o3 the %om6any 4ere the most dissatis3ied* One o3 them 4as made a 6art o3 the team that he used to lead* TItCs li$e as$in! the %a6tain to be a team member9T the Bharti e<e%uti5e said on %ondition o3 not to be =uoted* "e also said that he is mullin! =uittin! the 3irm to 6ursue other interests* A senior e<e%uti5e o3 one o3 BhartiGs oldest net4or$in! 6artner said that there is a stron! need o3 a dynami% leader in bharti to loo$ at India o6erations* TBharti %annot i!nore India9 and i3 the %ase may re=uire9 it needs to brin! ba%$ Manoj Kohli9T he added* &a$e lead in /# and B A ser5i%es: Its almost t4o years sin%e Bharti !ot the /# li%ense but the u6ta$e has been 6oor so 3ar and ARPU is u6 to the mar$s* A!ain9 the la%$ o3 inno5ation in o33erin! /# ser5i%es9 both in // | P a g e

terms o3 tari33 and attra%ti5e a66li%ations9 rendered the 3irm 4ith just 1 million /# subs%ribers* It has also a%=uired B A li%ense to o33er ser5i%es in . %ir%les but the %om6any is yet to laun%h ser5i%e* &hou!h none o3 the B A li%ense holders ha5e laun%hed the ser5i%e so 3ar9 to ta$e the 3irst mo5er ad5anta!e and retain your 6otent %ustomers Bharti has to ta$e the lead in laun%hin! the ser5i%e and brin! a ne4 re5enue stream* Also9 the 3irm has to %omeu6 4ith inno5ati5e models to laun%h the -# ser5i%es so that it does not !o the /# 4ay* It should ha5e =uality o33erin!s and need to 3o%us on enter6rise %ustomers and %onsumers e=ually to ta$e the lead* 'ata re5enue need to be in%reased: In order to be ba%$ in the !ame9 the rules o3 the !ame ha5e to be %han!ed* &he 5oi%e mar$et in India is almost saturated 4ith around ,2D teledensity and %all tari33 at abysmally lo4* &he o66ortunity no4 is 4ith data ser5i%es and the data dri5en business is at in3an%y no4* A leader li$e Bharti has to ta6 this o66ortunity 4ith lots o3 inno5ati5e business models and 4ithin no time* &hou!h the %om6any has started 3o%usin! enter6rise ser5i%es in a bi! 4ay9 it has no di33erentiators than its %om6etitors* &hou!h e5eryone is ta$in! about %loud ser5i%es and the SMHs are the most 6otent %ustomers o3 this9 Bharti has yet to ha5e dedi%ated %loud ser5i%es to %ater to the + million stron! SMHs in India* &ra%tion in M>%ommer%e and M>ban$in!IM>health: Bharti has more than 0(+ million mobile subs%ribers and India has more than (22 million 6o6ulations 4ithout e<6osure to ban$in! 3a%ilities* But these 6eo6le ha5e mobile 6hones* &hou!h Bharti has started o33erin! mobile money ser5i%es o3 late9 the 3irm has to ta$e lead in sim6li3yin! the ser5i%e and ta$e the lead in it to rea6 the bene3its* &hou!h BhartiGs slu!!ish !ro4th has be%ome a hu!e area o3 %on%ern9 there is no denyin! that so 3ar its the mar$et leader and %ommands a mar$et share o3 around /2D in a 0->o6erator mar$et* &he %om6anyGs last 3e4 =uarter results 4ere also a33e%ted due to the hu!e %ash out3lo4 3or its international o6erations and on a%%ount o3 /# & B A li%ense a%=uisition* But e<6erts belie5e9 o5erloo$in! all dam6enin! 3a%tors9 the 3irm needs to a!!ressi5ely loo$ at %han!in! its business strate!ies* T&here 4as nothin! 4ron! 4ith Bharti at this sta!e9 but the times ha5e %han!ed and the 3irm has to res6ond a%%ordin!ly9T &ri5edi o3 Mon$ @onsultin! su!!ests*

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STR*TEGY 2OR &ENETR*TION IN RUR*. %*R@ET


SShi3tin! %om6lete 3o%us 3rom 6rodu%t orientation to %ustomer orientation by identi3yin! the needs o3 the rural mar$et and ),o+idi%g solutio% ,athe, tha% the ),odu&t- is the idea behind the strate!y* Bharti Airtel 4as 3a%ed 4ith the challen8e o3 6ro3itably ser5in! the rural areas o3 India* It is an e<tremely dauntin! tas$ due to a 5ariety o3 3a%tors li$e rural usersC lo4 in%omes9 a 4idely dis6ersed 6o6ulation9 and a less than ideal 6ubli% in3rastru%ture 7i*e*9 roads9 ele%tri%ity9 et%*8* S6e%i3i%ally9 Bharti Airtel had to address the 3ollo4in! %onditions: &he in%omes o3 Indian rural residents are si!ni3i%antly lo4er than urban residents* &he a5era!e re5enue 6er user 7ARPU8 3or rural residents 4as ty6i%ally less than US?1 6er month* Besides de6loyin! a s%alable net4or$9 Bharti Airtel also needed to establish a %ost>e33e%ti5e mar$etin!9 sales9 and distribution %hannel to 6ro5ide ser5i%e 6romotion and %ustomer su66ort*

In s6ite o3 these %hallen!es9 Indian rural mar$et also 6ro5ides si!ni3i%ant o::ortunitie" 3or Bharti Airtel to 6enetrate:> &he 3uture !ro4th o3 the Indian mobile mar$et is e<6e%ted to be dri5en by rural %ustomers9 4hi%h a%%ount 3or about (2 6er %ent o3 the %ountryCs total 6o6ulation 70*0 billion 6eo6le8 4ith a tele>density o3 only 0,*+ 6er %ent as o3 Se6tember 122)* Indian urban mobile 6enetration is already o5er 022 6er %ent* Rural d4ellers 6la%e a hi!h 5alue on %ommuni%ations* @onta%tin! urbanIo5erseas relati5es and 3riends o3ten re=uires a lon! and sometimes trea%herous tri6 to the nearest to4n to rea%h a 6ay6hone* Farious studies 7e*!*9 3ishermen in the Indian state o3 Kerala and !rain 6rodu%ers in Ni!er8 ha5e sho4n that in%reased mobile ser5i%e 6enetration in rural areas %ould ha5e tremendous so%io> e%onomi% bene3its 3or the rural 6o6ulation* ith its stron! 6resen%e in the relati5ely unta66ed rural mar$et 7o5er 1( 6er %ent mar$et share as o3 Se6tember 122)89 Bharti Airtel is 4ell>6la%ed to %ontinue !ro4th 4ith its 3o%us on under>6enetrated Indian re!ions 4ith ne4 re5enue streams su%h /#>enabled data ser5i%es and 6ay>t5* eanin89ul "trate8'

2or the a#o!e rea"on" *irtel "hould 8o 9or alliance" and :artner"hi:" and de!i"e a to addre"" the need" o9 the Rural %ar-et".

&o e<tend its rea%h in IndiaCs rural mar$ets9 Bharti Airtel is 3o%usin! on inno5ati5e initiati5es9 in%ludin! e33i%ient in3rastru%ture de6loyments9 e<6andin! its distribution net4or$ 5ia 6artnershi6s9 and %ustomi:ed %ontent and tari33s* Bharti Airtel has laun%hed mi%ro 3inan%in! a!reements in %ollaboration 4ith No$ia and SKS Mi%ro> 3inan%e* Under these 6artnershi6s9 Bharti 6ro5ides subsidi:ed tari33s and subs%riber identity module 7SIM8 %ards to rural users9 No$ia 6ro5ides subsidi:ed handsets9 and SKS o33ers mi%ro 3inan%in!* &o e<6and %o5era!e into rural re!ions9 Bharti Airtel is sharin! 6assi5e in3rastru%ture ser5i%es 4ith Foda3one 7-1 6er %ent o4nershi68 and Idea 70. 6er %ent o4nershi68 throu!h its joint 5enture9 Indus

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&o4ers* Sharin! the in3rastru%ture %ost and usa!e bet4een multi6le o6erators has hel6ed Bharti Airtel to redu%e its o6eratin! and %a6ital e<6enses* Bharti Airtel also 3ormed a joint 5enture 4ith the Indian Earmers Eertili:er @oo6erati5e Aimited 7IEE@O8* Its joint 5enture9 IEE@O Kisan San%har9 uses IEE@OCs 4ide rural 6resen%e 76resent in ,2 6er %ent o3 Indian 5illa!es8 and a66eals amon! the rural a!ri%ultural %ommunity to mar$et and distribute BhartiCs 6rodu%ts* IEE@O Kisan San%har 6ro5ides subsidi:ed handsets and %onne%tions at %om6etiti5e rates in rural areas* It also hel6s Bharti Airtel to identi3y and a%=uire suitable lo%ations 3or de6loyin! its %ell sites* In addition9 it o33ers tailored ser5i%es in%ludin! 5oi%e>based u6dates on %ro6 6ri%es9 3armin! te%hni=ues9 rural health initiati5es9 and Shel6 lineR ser5i%es*

Strate8'6
Bharti Airtel 3irst studies the %ommer%ial 5iability o3 a rural %ommunity 7and the surroundin! 5illa!es8 based on 6arameters su%h as sour%e o3 li5elihood9 a5era!e in%ome9 and in5ol5ement in 3re=uent %ommer%ial transa%tions or tra5els* &he %om6any has de5elo6ed a 6rioriti:ed de6loyment strate!y based on the s6e%i3ied %riteria* Quali3yin! 5illa!es are 3irst to re%ei5e a base station9 4hi%h also %aters to nearby %ommunities* &o hel6 ensure e33i%ient usa!e and 6ro3itability 3or ea%h o3 these base stations9 Bharti Airtel tra%$s the re5enue !enerated 6er base station 7instead o3 ARPU9 4hi%h is %onsidered less rele5ant in a rural %onte<t8* &he 3ollo4in! best 6ra%ti%es ha5e also been established: Bharti Airtel has ado6ted the strate!y o3 dire%t %ommuni%ations to mar$et its 5alue 6ro6osition to rural %ustomers* &o ma$e its ser5i%es a%%essible9 the %om6any 6ro5ides all o3 its mar$etin! %ontent in lo%al lan!ua!es* Fans are used to %o5er rural areas 4ith sta33 4ho edu%ate lo%als about mobile ser5i%es and usa!e* &he %om6any has de5elo6ed a shared 6hone ser5i%e %alled Publi% @all O33i%es 7P@Os8 in rural re!ions to in%rease a4areness about its brand and ser5i%es* Bharti Airtel Ser5i%e @entres ha5e been set u6 in 5illa!es to address %ustomer =ueries and %om6laints as 4ell as a%t as sales and distribution 6oints* &hese %entres em6loy lo%al 6eo6le and o33er sales and %ustomer ser5i%es usin! lo%al diale%ts* Bharti Airtel has already established o5er 0,9222 ser5i%e %entres in rural India9 %o5erin! o5er -22 lan!ua!es and lo%al diale%ts* &he %om6any 6lans to e<6and this net4or$*

E99ect" o9 "trate8' on 9inancial :er9or ance Bharti Airtel does not 6ro5ide se6arate rural $ey 6er3orman%e indi%ators9 but the 3ollo4in! results sho4 si!ni3i%ant im6a%t on 3inan%ial 6er3orman%e:> As o3 A6ril 12029 Bharti AirtelCs net4or$ %o5ered --29222 5illa!es in India9 4hi%h9 to!ether 4ith its urban ser5i%es9 a%%ounted 3or %o5era!e o3 a66ro<imately ,- 6er %ent o3 IndiaCs total 6o6ulation*

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As o3 Mar%h /09 12029 Bharti Airtel had added ) million ne4 %ustomers to rea%h a total o3 01, million %onne%tions* A%%ordin! to estimates9 rural users a%%ounted 3or .2 6er %ent o3 the %om6anyCs net subs%riber adds in that =uarter* 'es6ite Bharti AirtelCs o5erall ARPU o3 just under ?+9 its mobile di5isionCs earnin!s be3ore interest9 ta<es9 de6re%iation9 and amorti:ation 7HBI&'A8 mar!in 4as a66ro<imately /2 6er %ent9 and its earnin!s be3ore interest and ta<es 7HBI&8 mar!in 4as a66ro<imately 0) 6er %ent9 4hi%h indi%ate a healthy return on o5erall 7in%ludin! si!ni3i%ant rural8 in5estments*

RECENT DEVE.O&%ENTS

Or8ani;ational Re"tructurin86 Or!ani:ational restru%turin! 6lan 4as rolled out on 0st Au!ust 1200 and 3inished on 0st Au!ust 1201* 70 Lear duration8* Need 3or restru%turin!: 0* Harlier %om6anyCs or!ani:ational stru%ture 4as based on its internal 6ro%esses and businesses but not around its %ustomers* So9 %om6any restru%tured itsel3 by 3o%usin! on %ustomers* 1* It 4anted the %om6any to %han!e 3rom 5oi%e led to data led* Re"tructurin8 e7:lained6 Harlier AirtelCs or!ani:ational stru%ture 4as built around business 5erti%als Xmobile9 3i<ed>line broadband9 mobile broadband9 '&"9 and so on* By restru%turin! Airtel o6erationally dismantled its or!ani:ational stru%ture 4here all business 5erti%als 4ere ha5in! a se6arate team9 4ith its o4n 3un%tional lines li$e mar$etin! and "R* Airtel then loo$ed at e5erythin! 3rom the %onsumer stand6oint* It reor!ani:ed all businesses and 3un%tions under t4o %onsumer heads: indi5iduals and enter6rises* So9 one team 4ould sell e5erythin!X mobile9 broadband9 '&"9 et%Xto an indi5idual %onsumer* Ai$e4ise9 to enter6rises Di99icultie" 9aced durin8 re"tructurin86 0* Its %om6etitors slashed %all rates9 e<6anded to ne4 mar$ets et%* But Airtel did not hit ba%$ be%ause it 4anted to just de3end its tur3 and not atta%$ its %om6etitors* 1* Restru%turin! 4as bein! done durin! a 6eriod 4hen AirtelCs 6ro3it sa4 %ontinuous de%line 3or ten =uarters* &here 4as lot o3 6ressure 3rom 3inan%ial analysts and media to 6er3orm in the short run and in%rease bottom line* But Airtel sho4ed %ommitment to its strate!y and did not de5iate due to these 6roblems* Reason 3or not hittin! its %om6etitors ba%$: Airtel did not hit ba%$ be%ause they 4anted to !enerate %ash 3or the year* &hey %ouldnCt a33ord to atta%$ the %om6etitors and !enerate %ash at the same time* Airtel had s6ent hu!e amount o3 %ash 3or bi! a%=uisition in A3ri%a9 a smaller one in Ban!ladesh and to buy air4a5es to 6ro5ide s6eedy data ser5i%es* /7 | P a g e

$rand

a-eo!er6

W Airtel also had a brand ma$eo5er 3rom mature to youn! be%ause major 6ortion o3 Indian 6o6ulation %onsists o3 youth* &he to6 0(2 Bharti e<e%uti5es are 6art o3 a Tre5erse mentorin!T 6ro!ramme* Ha%h is atta%hed to an e<e%uti5e in the a!e bra%$et o3 12>1/ years to understand the youn! %onsumer* 2UTURE &.*NS 0* Airtel 6lans to in%rease its in5estment in A3ri%an o6erations* 1* Airtel 6lans to 3o%us on buildin! %a6ability 3or o33erin! data ser5i%es in India at mass s%ale* &hus Airtel aims at shi3tin! the 3o%us 3rom 5oi%e to data* /* &o %ome u6 4ith a ne4 model to ride on data ser5i%es9 similar to the lo4 %ost model that 4as de5elo6ed by Airtel* -* &ry and in%rease its rural 6enetration throu!h FAS*

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Re9erence"
www.airtel.in/annual-report-11/annualreport11.html www.en.wikipedia.org/wiki/Bharti_Airtel www.airtel.in/AnnualResults/Bharti_Airtel_annual_report_full_2010-2011 5tt<DAAwww.8is8o.8o=AenA7SAsolutionsA8ollateralAns3#1Ans525Ans53"Ans"35Ans1350A(is8oE+5artiAirt elE( S.5t=l 5tt<DAAwww.a/ri8a.airtel.8o=Aw<sAw8=A8onne8tAa/ri8aairtelAa/ri8aAHo=eA(S$AStrategy www.cci.in/pdf/surveys_reports/indias_telecom_sector.pdf www.dot.gov.in/osp/Brochure/Brochure.htm

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