Airtel (Vision so far and ahead)

Presented To: Dr. T N Chabra

By: Nandini, Ritesh, Rohit, Rupali & Shruti

Introduction

• Airtel is an offspring of Bharti Airtel Limited, one of Asia’s leading integrated telecom service providers.

• Bharti Airtel since its start, has been at the forefront of technology and has pioneered several innovations in the telecom sector.

• Founder – Sri. Sunil Mittal

Factsheet  Name: Bharti Airtel Limited. Business description: • Provides GSM mobile services in all the 22 telecom circles in India, Srilanka,

Bangladesh and now in 16 Countries of Africa.• Provides tele media services (fixed line and broadband services through DSL) in

88 cities in India. • Also offers suite of Enterprise solutions, DTH and IPTV Services Established: July 07, 1995, as a Public Limited Company Proportionate revenue: • Rs. 157,560 million (ended December 31, 2010-Audited)• Rs. 103,053 million ( ended December 31, 2009-Audited) 

As per IFRS Accounts Shares in issue: 3,797,530,096 as at December 31, 2010

Listings : The Stock Exchange, Mumbai (BSE) The National Stock Exchange of India Limited (NSE)

Market capitalisation  Customer base: • India: 157,485,000 GSM mobile and 3,257,000 Telemedia Customers.(status as on

December 31, 2010)

• Africa: 42,124,000 GSM mobile. (status as on December 31, 2010) Operational network: • Provides GSM mobile services in all the 22 telecom circles in India, Srilanka,

Bangladesh and now in 16 Countries of Africa.• Provides telemedia services (fixed line) in 88 cities in India.• Provides an integrated suite of Enterprise solutions, in addition to providing

long distance connectivity both Nationally and Internationally.• Also offers DTH and IPTV Services. .

Positioning in the world & in India 3rd LARGEST wireless operator in the world

LARGEST private INTEGRATED telecom company in India

5th LARGEST INTEGRATED telecom operator in the world

LARGEST operator in NLD, ILD and VSAT business

LARGEST TELECOM company listed on Indian Stock Exchanges

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Growth trajectory reflected in the numbers

Single Circle Operator + telephone

instrumentsCompany Profile Largest integrated private

telecom

< 25k Customers ~ 137 mn

~ USD 17 mn Revenue ~ USD 9 bn

~ USD 2.5 mn EBITDA ~ USD 4 bn

~ USD 1.4 mn Cash Profit ~ USD 4 bn

~ USD 16 mn Market Capitalization ~ USD 26 bn

Note: 1) 2010 financials are as per FY 2010 results. 2) Exchange rate: Financials as of 31st Mar 10 : Rs 45.14

1996 2010

Airtel - Integrated play

Bharti Airtel

Limited

Enterprise services

Carriers Corporates

Mobile services Broadband

&Telephone services

Passive Infrastructure

Services

DTH

Fully integrated telecom player offering end to end solutions and entering new

geographies

The Starting

Initial Objectives Redefine the way cellular services were being marketed in the

country: Made possible due to its innovative marketing strategies, continuous technological up gradations, new value added service offerings and efficient customer service.

Airtel decided to address the benefit of sensory of the customer and make it as their Business strategy - main selling approach.

The idea was to make a badge value brand

They targeted the elite, up market professionals and entrepreneurs as customers – Premium Sector

AIRTEL-LEADERSHIP CAMPAIGN(LATE 90s)

Year 2000: Shift In focus

ObjectivesExpansion of customer base across all sections

Consolidate its presence and become a permanent, sustainable business player in the market

Consolidation for Growth

• Acquired control of Skycell communication in Chennai in 2000

• Acquired control of Spice Cell In Calcutta in 2001

• Listed on NSE & BSE in 2002: raised $172 million in its initial public offering (IPO)

TOUCH TOMORROW

TOUCH TOMORROW

• Adding emotion to leadership.

• In 2000, Bharti launched its “TOUCH TOMORROW” campaign.

• To strengthen its relationship with customers.

Year 2003: Strategic Inflection Point

Objectives And Conditions

Vision:• To make mobile communications a way of life and on enabling

customers to make their point in the most expressive way anytime, anywhere and in any manner.

Adverse Conditions: Entry of foreign Players in market Need for fast growth in the network infrastructure and people for

retaining its position as market leader. Lack of resources for managing breakneck growth.

Response

• Launch Of “Express Yourself” Campaign

• Outsource Network, IT and Call centre’s through long term partnerships.

• Focus on Brand promotion by adopting matchbox approach

Outsourcing and Partnership approach

Brand promotion and Match Box Approach Sought brand ambassadors who communicate the right

brand equity Launched “Express yourself” Campaign with Sachin

Tendulkar as Brand ambassador, later joined by Shahrukh Khan

Specialized ringtone by A R Rehman Advertising strategy that concentrated more on its brand and

its values than its products and services. Decided to extend to reach every nook and corner wherever

matchbox were sold.

Vision 2010

Vision 2010 & MissionBy 2010 Airtel will be the most admired brand in India:

– Loved by more customers– Targeted by top talent– Benchmarked by more businesses

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”

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Strategic Initiatives for Vision 2010(1)M-Commerce

• Mobile phone now turns into a virtual wallet – a new innovation in mobile commerce. Airtel, ICICI Bank & VISA had joined hands to launch mChq – a revolutionary new service – a credit card on the mobile phone.

• This is the first mobile-to-mobile payment option, which enables Airtel customers and ICICI Bank Visa cardholders to pay for their purchases with their Airtel mobile phones.

Strategic Initiatives for Vision 2010(2) Targeting Rural Masses Targeting 55 million farmers under its fold, Indian Farmers Fertiliser

Cooperative (IFFCO) have agreed upon a joint venture with telecom major Bharti Airtel

Joint venture company, IFFCO Kisan Sanchar Ltd (IKSL)

(3)Value Added Services Focused more on value added services and their quality Airtel exclusive showrooms for demonstrating services and user

experience

Strategic Initiatives for Vision 2010(4)Digital TV, the DTH service from Airtel

The implementation of the initially failed concept of Set Top Box led Airtel to enter this lucrative market to television. Cable connection in India was run by local cable operators who acted largely in form of cartels. With the crackdown from the regulatory bodies in India this sector once again became a gold mine.

(5)Bharti Airtel and Google’s strategic partnership. Airtel will bring Google search to the Airtel Live mobile WAP portal.

Google will also incorporate advertising through its Mobile Ads product on the Airtel Live mobile portal.

Strategic Initiatives for Vision 20105.Hiring the best or attracting the best (poaching or otherwise) Competency based hiring Opportunity to rise in organization Maximum recruitment through internal sources One of the best paymaster in Indian industry

• Shireesh Joshi (previously in PepsiCo) as Director Marketing head.• Recently roped in Joachim Horn, chief technology officer (CTO), T-Mobile, to

help expand its global footprint and interface with strategic partners. • Andre Beyers (Vodacomm) as the company’s Chief Marketing Officer (CMO) for

its operation in Africa• Sriram Jagannathan, Citibank’s e-commerce and m-commerce head in Japan has

been given the role of CEO of its mobile commerce venture in a bid to improve its revenue stream

Strategic Initiatives for Vision 2010(6)Expanding in new market: Has made rapid strides in africa Tried to Acquire MTN, Acquisition Failed Acquired Zain Expanded Operations in Sri lanka & Bangladesh

(7) Strategic relationship with Vmware Collaboration aims to target the enormous market potential for cloud-

based managed compute services in India by offering external IT infrastructure for customers

Bharti Airtel will offer these cloud services based on the VMware vSphere platform.

Vision 2015 & 2020

Vision 2020

• To build India's finest business conglomerate by 2020

• Supporting education of underprivileged children through Bharti Foundation

• Strategic Intent:– To create a conglomerate of the future by bringing

about “Big Transformations through Brave Actions.”

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Future Growth Avenues

Growth

Factors

Infrastructure Sharing

Global Market Opportunities

Technology Leadership

Rural Telephony

A New look

Rural strategy

Technology Leadership: By focusing on 3 G Services Cloud Computing Superior network Coverage and quality

Infrastructure Sharing: Reduced Operating cost Reduced Maintenance Cost

Thank You