Changes in

the telecom
industry

Jio 4G
Explosion
Idea
Vodafone
Merger
Airtel
The survival in the telecom industry of India is a marathon and not a sprint

Voice vs
Data

Expansion
Opportunities
and
Challenges
Group - 09
 Vodafone - Idea Reliance Jio
Continue with both brands to focus on their strongholds,
Vodafone in urban cities and Idea in tier II and rural areas Tapping the 500 million subscribers left out of
the digital revolution by its 4G LTE Jio Phone

Combination of mobile businesses, towers, payment

banks , wallets and broadband services
High speed fixed line broadband services
through its optical fibers

Reduced advertising costs and back-end costs as a

result of the merger, thereby lowering costs
Jio Phone TV cable for viewers to connect
to all TVs
Competitive spectrum portfolio and broadband
coverage with premium 900 MHz in 17 circles

Expanding the distribution network and low

Synergy benefits to drive margins (each operating at ~30% cost of data and voice services to consumers
EBITDA) and 3G/4G spectrum share
 Increasing 4G Potential
~160 million 3G customers to convert to 4G in 3 years
3G infrastructure is expensive to maintain Rollout
Market share of 3G continuously declining affordable
Increasing demand 4G
for high speed 4G
Handsets
Market Condition

Retain Better Leverage

Cut down
Benefits customers phone to the widest
on 3G
by carrier lead the 4G
infra cost
lock market capability
 Portfolio Management & Expansion
Broadband Airtel TV Home Automation Smart Cities Analytics
V-Fiber broadband Hybrid STB Internet Ubiquitous Smart decision
Delivers higher Internet TV connected smart connectivity making
bandwidth Online content devices Community Better customer
Reduces the from over-the-top Unbreakable Wi-Fi Wi-Fi experience
interference in the (OTT) platforms connection Smart Homes Clearer insights data
connection visualization
 Horizontal Integration
Market Share Market Share

4 4
6 6

Proposed Strategy
Current Situation 7 29 8
36
8
11

11

19
16 35

Airtel Vodafone Idea Jio Airtel/Aircel Vodafone/Idea Jio

BSNL Aircel Reliance Com Others BSNL Reliance Com Others

Source: www.trai.gov.in
 African Expansion
21% revenue from Mobile Services in Africa in FY 2016-17
Presence in 15 countries and revenue growth of 3% in FY
2016-17
Target 30% revenue share from African expansion to at
least 20 countries over the next 5 years
Acquisition strategy has been successful in the past
Look for suitable acquisition targets in South Africa,
Egypt, Namibia, Mauritius, Morocco, etc.
Expand product offering in existing 15 countries
 Repositioning the Brand
Start a series of advertising campaigns

1) Comparing the domain, strength and coverage of

networks

2) Communicate benefits to customers such as

Data Rollover
Number of network towers

3) Providing superior services such as setting up of

towers in the areas of absence

Thereby positioning Airtel as the most reliable and

consumer friendly telecom service provider
 Takeaways
In the face of rising competition and increasing regulations, Airtel
must implement an integrated strategic approach
In the short term, Airtel should execute the repositioning and 4G
handset strategy to defend its leadership position against imminent
threat
In the long term, Airtel should envisage portfolio management,
horizontal integration and international expansion in order to sustain
top position