Mission and vision statement

Business Policy and Strategic Management

Presented By: -
Alok Srivastava
INDIAN TELECOM SECTOR
• Fastest Growing Sector – CAGR 22% (2002-08)

• Second Largest Telecom Market

– Lowest tariff charges in the world
– Wireless Subscribers – 315.3 Mn
– Wireline Subscribers – 38.4 Mn
– Teledensity – 30.6

• 23 Circles - 4 Categories ( Metro, A, B & C)

• Bharti Airtel – Largest player with presence in

23 Circles 2
WHY MAD RUSH FOR TELECOM ??
Large number of Low teledensity Telecom
additions in telecom (depicting large Advantage
subscribers untapped potential)

40.4%
250
CAGR 24

Teledensity (in percent)

Subscribers (in million)

18.3 19.9 20
200
12.8 16
150
9.1 12
225.21
100 7.0
206 8
5.1 140.3
50 98.4 4
53 76
0 0
2002–03 2003–04 2004–05 2005–06 2006–07 2007–08 (as
of June
2007)
Telecom Subscriber Base Teledensity

3
Evolution of Telecom In India
Department of Telecommunication (DoT) is the main body
formulating laws and various regulations for the Indian telecom
industry.

ILD services was

BSNL was Number portability
Independent opened to Intra-circle
established was proposed
Private regulator, competition merger
by DoT Calling Party (pending)
players were TRAI, was guidelines were
Attempted
Pays (CPP) was
allowed in established Go-ahead to established to boost
implemented
Value Added the CDMA Rural
Services technology telephony
1994 1999 2007
INDIA

2002 2003 2004 2005

1992 2000 Internet Unified 2006

1997
telephony Access
initiated Licensing Broadband
(UASL) policy 2004
National Decision on 3G
NTP-99 led to Reduction regime was was
Telecom FDI limit was services
migration from of licence Reference
introduced formulated—
Policy (NTP) increased (awaited)
high-cost fixed fees Interconnec targeting 20
was from 49 to 74
license fee to low- t order was million
formulated percent
cost revenue issued subscribers
sharing regime by 2010

ILD – International Long Distance

TELECOM ECOSYSTEM
Indian Telecom Industry Framework

Indian Government Independent Bodies

Bodies

They formulate various policies and

pass laws to regulate the telecom They undertake various research
industry in India. activities and monitor the quality of
service provided in the Indian telecom
Wireless
Planning and Handles spectrum industry. They also provide various
Coordination allocation and recommendations to improve the status
(WPC) management of telecom operations in India.
Telecom
Department of DoT – Licensee and Regulatory
Telecommunica Authority of India Independent regulatory
frequency
tions (TRAI) body
management for
telecom
Telecom Telecom Disputes
Commissi Exclusive policy making Settlement and Telecom disputes
on body of DoT Appellate Tribunal settlement body
(TDSAT)
Group on Handles ad hoc
Telecom and IT
(GoT-IT) issues of the 5
telecom industry
BHARTI AIRTEL
• Largest Private Integrated Telecom Company in
India

• 3rd Largest Wireless Operator in the World

• Largest & Fastest Growing Wireless Operator in

India

• Largest Telecom Company listed on Indian

Stock Exchange
6
VISION 2010
 By 2010 Airtel will be the most admired
brand in India:
 Loved by more customers
 Targeted by top talent
 Benchmarked by more businesses

7
VISION 2020
 To build India's finest business conglomerate
by 2020
 Supporting education of underprivileged
children through Bharti Foundation
 Strategic Intent:
 Tocreate a conglomerate of the future by
bringing about “Big Transformations through
Brave Actions.”

8
MISSION
 “ We at Airtel always think in fresh and
innovative ways about the needs of our
customers and how we want them to feel. We
deliver what we promise and go out of our
way to delight the customer with a little bit
more”

9
 Changing Demographics

Demand for VAS &

Broadband services Among
Youth

28 % Urban Population

Rapid Urbanization

Rising Income level

Source: Mckinsey Report

10
Technology
CDMA – Already there are
big players in this
segment Reliance ,
Tata

3G – Value added services

potential still to be
tapped fully

2G/3G – GSM Currently

commands 70% of
mobile subscribers in
India
11
INTEGRATED TELECOM
COMPANY(PRODUCT PORTFOLIO)

 Wireless Services  Enterprise

– 2G/3G Services
– Rural Market – Carrier
– Corporate
 Telemedia
Services  Passive
– Fixed Line Infrastructure
– Broadband
– DTH
– Bharti Infratel
– Indus Tower
12
WIRELESS MARKET SHARE - INDIA

13
MARKET SCENARIO

Postpaid Vs Prepaid Customers & Market Share

14
AIRTEL – STRATEGY
MANTRA : Focus on Core Competencies and
Outsource the rest!

15
GROWTH FACTORS

16
ROAD MAP – GROWTH PATH

VPN &
VoIP

WiMAX

3G

2G/2.5G

17
 THANK YOU !!
18