fm17-feb
TRANSCRIPT
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Umang Jain
VS Kanchanamala
Tarunima Bharadwaj
Amit Goyal
Ankit Jain
Akshit Patel
BIMHRD MGT 1 ,2011-13
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Flow of presentation About Bharti Airtel Owner and management
Services offered
New initiatives in services
Financial snapshots Indian telecom sector
Telecom ecosystem
Porters five force model
Swot Analysis
Strategies Recent events
Question answer round
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Bharti Airtel Limited Registered & Corporate OfficeBharti Airtel Limited,
Bharti Crescent,
1, Nelson Mandela Road,
Vasant Kunj, Phase
II,New Delhi 110 070,
India
Website
http://www.airtel.com
Listed
During the year, there was no change in the authorised,issued,subscribed and paid-up equity share capital of the Companywhich stood at `Rs 18,987,650,480 divided into Rs.3,797,530,096
equity shares of ` 5 each as at March 31, 2011.
http://www.airtel.com/http://www.airtel.com/ -
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Owner and ManagementBoard of directors: Mr. Sunil Bharti Mittal
Chairman & Managing Director
Mr. Manoj Kohli
CEO (International) & Joint Managing Director
Mr. Sanjay Kapoor
CEO (India & South Asia)
The Company won the 2010 Gallup Great Workplace Award onceagain
and featured amongst the top 10 companies in Business Today BestCompany to Work for survey.
The great place to work study ratedAirtel amongst Top 4 Largecompanies. The Outlook Business - Aon
Hewitt survey rated Airtel amongst the Top 5 companies in India.
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Services offered
Wireless Services 2G/3G
Rural Market
Telemedia Services Fixed Line
Broadband
DTH
Enterprise Services Carrier
Corporate
PassiveInfrastructure
Bharti Infratel
Indus Tower
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New services initiatives in 2010-
11
3G Services in 9 of 13circles with 3Gspectrum
airtel money - Indiasfirst mobile walletservice by a telecomoperator
airtel call manager, aservice that enables acustomer to keephis/her callers
informed
airtel voice blog,worlds first voice
blogging service
airtel world SIM forinternationaltravellers
Live Aarti on mobile
LearnNext an e-Learning website forthe Companys
broadband users
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IPTV services inBangalore, the 2ndcity after Delhi
airtel broadband TV,allows the broadbandcustomers to watchlive TV on theircomputers or laptops
Unified ServiceManagement Centre
(uSMC), i-Care was deployed
across all countries ofoperation
Global Data Servicesin Thailand andMalaysia
Indias first High
Definition (HD) boxwith Dolby digital plus
offering 7.1 MAMO (My Airtel My
Offer) is Africa's firstmarketing tool
offering segmentedand personalisedoffers to both activeand
inactive customers.
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Financials Snapshot
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Financial Snapshots
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Indian Telecom Sector Financial year 2011 saw the continuance of
strong customer growth for the Indian telecommarket, which witnessed a 36% increase in itscustomer base during the 12-month period.
While wireless customers decreased by 6% thegrowth of telecom sector was fuelled by thewireless segment. The wireless segment crossed
the 800 Mn customer mark with 812 Mncustomers as at end of March 31, 2011.
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Growth in broadband services has been very low
with 12 Mn broadband customers representing abroadband penetration of just 1%
With the advent of 3g services in India , Telecomsector is all set to witness a new wave of mobileapplications ushering the growth of data servicesincluding internet browsing, entertainment
services,application stores, video calling, enterpriseservices, m-Heath,m-Education, m-Commerce, e-governance, etc. This is expectedto provide thetrigger for the next phase of growth of the
telecomindustry.
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Telecom Ecosystem
Indian Telecom Industry Framework
Indian Government Bodies Independent Bodies
Wireless Planning
and Coordination
(WPC)
Department of
Telecommunications
Telecom
Commission
Group on Telecomand IT (GoT-IT)
Telecom Regulatory
Authority of India (TRAI)
Telecom Disputes
Settlement and Appellate
Tribunal (TDSAT)
Handles spectrum allocation
and management
DoT Licensee and
frequency management
for telecom
Exclusive policy making body
of DoT
Handles ad hoc issues of
the telecom industry
Independent regulatory body
Telecom disputes settlement
body
They formulate various policies and pass
laws to regulate the telecom industry in
India.
They undertake various research activities and
monitor the quality of service provided in the Indian
telecom industry. They also provide various
recommendations to improve the status of telecom
operations in India.
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Porters 5 Forces
Threat fromCompetition
CustomerBargaining
Power
Threat ofSubstitutes
SupplierBargaining
Power
Threat ofNew
Entrants
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1. Threat from CompetitionWireless Market
Top 4 garnering 75% market share
HIGH
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2. Customer Bargaining Power
Lack of differentiation among Service
Providers
Cut throat Competition
Low Switching Costs
Number Portability will have Ve Impact
Businesses & Consumers
HIGH
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3. Suppliers Bargaining PowerLOW
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4. Threat of Substitutes
Landline
CDMA
Video Conferencing
VOIP - Skype, Gtalk, Yahoo Messenger
e-Mail & Social Networking Websites
BROADBAND
SERVICES
DIMINISHING MARKET HIGH
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5. Threat of New Entrants
Huge License Fees to be paid upfront & High gestation
period
Spectrum Availability & Regulatory Issues
Infrastructure Setup Cost - High
Rapidly changing technology
LOW
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SWOT
Strengths Weakness
Largest TelecomPlayer in India -
~80Mn, 22.6% Strategic Alliance with
other stakeholders inBharti Airtel include
Sony-Ericsson, Nokia- and Sing Tel
Pan India Presence
Strong Financials
Outsourcing of CoreSystems
Lack of emergingmarket investmentopportunity
Source: CMIE Report NOV 08
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SWOT
Opportunities Threats
Bharti Infratel CuttingDown cost in Rural area
Match Box Strategy
Scale of Penetration Current Tele-Density
rural teledensity still at33.8%;
Low Broadband
Penetration, RuralTelephoney .
In Africa, the mobilepenetration level acrossmost of the countries ofoperation is very low.
India centric Majorrevenues from India
Falling ARPU &AMOU
Intense Competition &Shortage ofBandwidth
Regulatory
Environment
Increased
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Airtel Strategy
MANTRA : Focus on Core Competencies andOutsource the rest!
CoreCompetencies
Product
Innovation
VAS
Marketingand
Branding
Pricing
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Operational Strategies.
Higher emphasis on ARPU/min stark contrastwith other operators who concentrate on ARPUonly.
Aim to become a one stop shop for all
telecommunication services under the Bhartiumbrella.
Exploring opportunities in international markets.
Hived off tower infrastructure into a separateentity.
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Future Strategies
Translate its expertise in Indian markets to otheremerging economies.
This could call for acquisitions globally.
Technology leadership is a must Airtel mustensure that its reliance on GSM technology doesnot render it obsolete.
Indian market inspite of being the worlds largest
is still not matured. Opportunities abound in thehinterland which must be exploited.
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Recent events Mobile Number Portability (MNP):MNP was launched on a pan India basis on January
20,2011.
Sri Lanka, Bangladesh and Africa offer exciting potential
for Airtel
and the Company is using its experience in the Indiantelecom
market to build a low cost business model for thesemarkets as well.
Airtel became Indias first online self care service forpre paid mobile customers.
It has outsourced all its advertising ,inventory
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References
Bharti Airtel, Annual Report -2011 Investors presentation, Bharti Airtel Limited,
November 2011
Capitaline Database http://capitaline.com
Indian Telecommunication Sector - August 2007,IBEF Report
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THANK YOU !!