bharti airtel user base in africa crosses 50-m

8/3/2019 Bharti Airtel User Base in Africa Crosses 50-m

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Bharti Airtel Limited

User Base in Africa Crosses 50 - Million mark



o Largest Private Integrated Telecom Company in India

o LARGEST WIRELESS service provider in India bysubscribers

o 5th LARGEST MOBILE telecom operator in the world

o 3 LARGEST in-country wireless service operator in world

o Amongst the LARGEST providers of passive infra (by tow

ers)

Strengths

Internal

o Decline in Customer market Share

o Decline in ARPU’s ( Average Revenue per Minute)

o Not much of presence in Rural India.

Factors

Weaknesses



o Airtel essentially has two large businesses, India (mature

asset) and Africa (growth).

o Untapped Landscape – Rural Indiao New Technologies and Paradigms – 2G & 3G

o Growing overseas – Srilanka, Bangladesh and Africa (

presence in 16 African countries )

o Strong Strategic Partnerships

External

Opportunities

o MNP – can be double edged sword -

o Increased Competition - by new (green field operators )

and current players.

o Regulatory Environment (TRAI & others)- uncertain

regulatory environment in India even globally

Factors

Threats



Prepare for BPR

o Build Cross Functional Team

o Identify Customer driven objective

o Develop Strategic Purpose

External

Opportunities

Factors

Threats



Affordability

Drive affordability– more users– more usage

Business Model – “Minutes Factory”

PositiveElasticity

Increase inUsage

Economies of Scale (CostEfficiency)

ImprovedProfitability

Strategy

High usage environment, while building customer

base profitably…..



In India, the major investments have been

made; the revenues are large and growing,

and the high competition is expected toease up. (But when you consider the near

Significant

Synergies

Bharti Airtel buying the African assets of

Zain, a Kuwaiti operator, in June 2010 for

$10.7bn was with an objectives of

long term strategic benefits

Opinion

Airtel essentially has two large businesses,

India (mature asset) and Africa (growth).

saturation point being reached in the

Indian market –it is easy to see why Bharti

is pumping money into the rest of its

business.

It is easy to see why Bharti has switchedfocus to the African market. Not only is the

company practiced at providing a low-cost,

high-volume model in its home market; it

is also acutely aware of the growth

potential in exploding Africa’s middle

class



Opinion

Bharti Airtel has a leadership position in a large

number of the 16 African countries with 3G

spectrum across 10 countries

and enjoys limited competition

Has its eyes firmly trained on Africa where it

has bumped its investment up by some $491m

– that’s 586 per cent – over the past year.

Product Type India Africa

Mobile Penetration 68% 51%

Average Number of Competitors 10-14 + 3-5

Business ModelHigh usage, low

tariff modelLow usage high

tariff model

Minutes of Usage per sub 423 128

ARPU (US$) $4.0 $7.3

ARPM (US cents ¢) < 1.0¢ 5.7¢

ompar son o n a an r can e ecom ar e s



Bharti Airtel Limited

User Base in Africa Crosses 50 - Million mark



o Largest Private Integrated Telecom Company in India

o LARGEST WIRELESS service provider in India by

subscriberso 5th LARGEST MOBILE telecom operator in the world

o 3 LARGEST in-country wireless service operator in world

o Amongst the LARGEST providers of passive infra

(by towers)

Strengths

Internal

o Decline in Customer market Share

o Decline in ARPU’s ( Average Revenue per Minute)

o Not much of presence in Rural India.

Factors

Weaknesses



o Airtel essentially has two large businesses, India (mature

asset) and Africa (growth).

o Untapped Landscape – Rural Indiao New Technologies and Paradigms – 2G & 3G

o Growing overseas – Srilanka, Bangladesh and Africa (

presence in 16 African countries )

o Strong Strategic Partnerships

External

Opportunities

o MNP (Mobile number portability) – can be double

edged sword -o Increased Competition - by new (green field operators )

and current players.

o Regulatory Environment (TRAI & others)- uncertain

regulatory environment in India even globally

Factors

Threats



External

Opportunities

Factors

Threats



Affordability

Drive affordability– more users– more usage

Business Model – “Minutes Factory”

PositiveElasticity

Increase inUsage

Economies of Scale (CostEfficiency)

ImprovedProfitability

Strategy

High usage environment, while building customer

base profitably…..



In India, the major investments have been

made; the revenues are large and growing,

and the high competition is expected toease up. (But when you consider the near

Significant

Synergies

Bharti Airtel buying the African assets of

Zain, a Kuwaiti operator, in June 2010 for

$10.7bn was with an objectives of

long term strategic benefits

Opinion

Airtel essentially has two large businesses,

India (mature asset) and Africa (growth).

saturation point being reached in the

Indian market –it is easy to see why Bharti

is pumping money into the rest of its

business.

It is easy to see why Bharti has switchedfocus to the African market. Not only is the

company practiced at providing a low-cost,

high-volume model in its home market; it

is also acutely aware of the growth

potential in exploding Africa’s middle

class



Opinion

Bharti Airtel has a leadership position in a large

number of the 16 African countries with 3G

spectrum across 10 countries

and enjoys limited competition

Has its eyes firmly trained on Africa where it

has bumped its investment up by some $491m

– that’s 586 per cent – over the past year.

Product Type India Africa

Mobile Penetration 68% 51%

Average Number of Competitors 10-14 + 3-5

Business ModelHigh usage, low

tariff modelLow usage high

tariff model

Minutes of Usage per sub 423 128

ARPU (US$) $4.0 $7.3

ARPM (US cents ¢) < 1.0¢ 5.7¢

ompar son o n a an r can e ecom ar e s

bharti airtel user base in africa crosses 50-m

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