Airtel Cheat Sheet

MDI | Prep Team|2015 Page 1

COMPANY OVERVIEW

Bharti Airtel Limited (Bharti Airtel or "the company") is one of the leading global

telecommunications companies, offering second generation (2G,) third generation (3G) and fourth

generation (4G) wireless services, mobile commerce, fixed line services, high speed digital subscriber

line (DSL) broadband, internet protocol television (IPTV), direct-to-home (DTH), enterprise

services including national and international long distance services to carriers. The company operates

in 20 countries across Asia and Africa. It is headquartered in New Delhi, India and employed

approximately 14,645 people as of March 31, 2014.

The company recorded revenues of INR857,461 million ($14,233.9 million) during the financial year

ended March 2014 (FY2014), an increase of 11.5% over FY2013.The operating profit of the

company was INR121,274 million ($2,013.1 million) in FY2014, an increase of 43.6% over FY2013.

The net profit of the company was INR27,727 million ($460.3 million) in FY2014, an increase of

21.8% overFY2013.

BUSINESS DESCRIPTION

Bharti Airtel Limited is a provider of telecommunication services with presence in India, Sri Lanka,

Bangladesh and 17 countries in the African continent. The company's network covers over 5,100

census towns and over 460,000 non - census towns and villages in India. The company offers digital

TV and IPTV services in India. All of the services are offered under the Airtel brand.

The company operates through seven business segments: mobile services India and South Asia,

mobile services Africa, tower infrastructure services, Airtel, telemedia services, digital TV services

and others.

The mobile services India and South Asia segment includes voice and data telecom services

provided through a global system for mobile communications (GSM) technology in the geographies

of India and South Asia (SA). This includes the captive national long distance networks which

primarily provide connectivity to the mobile services business in India. In India, the segment offers

post-paid, pre-paid, roaming, internet, m-commerce and other value added services through sales

and distribution network. Airtel Sri Lanka had 1.7 m illion customers with presence in all 25

administrative districts of Sri Lanka. The company offers 3G services in major towns in the country

and created a nationwide distribution network comprising over 40,000 retailers. In FY2013, the

company had 6.2 million customers in Bangladesh with a presence across 64 districts and its

distribution network covers 96,000 pan- Bangladesh retailers.

The mobile services Africa segment offers voice and data telecom services to retail customers in the

African Continent. The company has businesses in 17 countries in Africa. In FY2013, Bharti Airtel

had a subscriber base of 63.7 million in Africa. Bharti Airtel has been expanding the 3G services

networks and at the end of FY2013, the company offered 3G network in 5,676 sites across 14

Airtel Cheat Sheet

MDI | Prep Team|2015 Page 2

countries in Africa. Further, 'Airtel money' services were offered in 16 countries by the end of

FY2013 and the company also partnered with major device manufacturers to offer data enabled

handsets such as 3G and tablets.

Tower infrastructure services include setting up, operating and maintaining wireless communication

towers in India. These services are offered through its subsidiary Bharti Infratel. Bharti Infratel

deploys, owns and manages telecom towers and communications structures in 11 circles of India

and also holds 42% share in Indus Towers (a joint venture between Bharti Infratel, Vodafone and

Idea Cellular). Bharti Infratel had 35,119 towers in 11 telecommunication circles at the end of March

31, 2013. Bharti Infratel's towers, including installations of its 42% interest in Indus, comprised of

82,083 towers in India, as on March 31, 2013.

Telemedia services include voice and data communications based on fixed network and broadband

technology. The company provides fixed-telephone, broadband digital subscriber line (DSL) services

for homes as well as enterprises across 87 pan-India cities. It had 3.3 million customers as of March

31, 2013 of which 1.4 million subscribed to broadband/internet services. The product portfolio of

the Telemedia home division includes high-speed broadband rising upto 100 mbps for home

division as well as local, national and international long-distance voice connectivity. For the

enterprises the segment offers fixed-line voice (PRIs), mobile, data and other connectivity solutions;

collaborative solutions including audio, video and web conferencing; and cloud solutions.

The Airtel business segment offers information and communications technology (ICT) solutions in

India. These solutions include voice, data, video, network integration, data center services, managed

services, enterprise mobility applications and digital media. The segment also offers both voice and

data global services.

Digital TV services encompass the company's digital broadcasting services provided under the direct

to home (DTH) platform. The company served a customer base of 8.1 million on its DTH platform.

Bharti Airtel also offers high definition (HD) set top boxes and digital TV recorders with three

dimensional (3D) capabilities. The company curren tly offers a total of 373 channels including 15

HD channels and six interactive services. Key Metrics The company recorded revenues of $8,535

million in the fiscal year ending March 2014, an increase of 6.6% compared to fiscal 2013. Its net

income was $1,129 million in fiscal 2014, compared to a net income of $871 million in the preceding

year.

Key Metrics

The company recorded revenues of $8,535 million in the fiscal year ending March 2014, an increase

of 6.6% compared to fiscal 2013. Its net income was $1,129 million in fiscal 2014, compared to a net

income of $871 million in the preceding year

Airtel Cheat Sheet

MDI | Prep Team|2015 Page 3

Spectrum Allocation:

Recent News:

BhartiAirtel in talks with Axiata to merge telecom units in Bangladesh - A merger of the two

entities would make the resultant entity a strong number two operator with almost 37

million subscribers

Airtel is the second most valuable brand in India, according to rankings done by

BrandZ. With a brand value of nearly 11,000 million USD

BhartiAirtel Limited is in a partnership with Uber, allowing its riders to pay using Airtel’s

mobile wallet service ‘Airtel Money’

Flipkart logs out of Airtel Zero after social media backlash - Airtel also issues statement

saying it ‘fully supports’ net neutrality

Questions to be asked:

Consumers where Airtel has launched its 4G services, are already claiming compensation as

speeds are not uniform across the country. How Airtel is going to manage that challenge?

African business has a negative return on invested capital (ROIC) of 2%, which has played a

large role in dragging down the company’s overall ROIC. How Airtel is planning to manage

this situation?