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    47977333 airtel-presentation1 47977333 airtel-presentation1 Presentation Transcript

    • get closer to what you love Group - 2
    • Summary India’s leading private telecom provider. Launched first cellular service in ‘95. Slow takeoff as fixed lines were preferred. NTP issued in ’99 and introduced tariff rebalancing. Replaced license fee with revenue sharing plan. Increase in subscriber growth and decrease inARPU.
    • Summary A joint venture with Seimens. Partnership with Emtel, MSI for license bidding. Provided service at Rs7.50, lesser than govt. ceiling @ Rs 8.40 Expanding distribution channels through supermarkets In ‘98, declared first profit.
    • Summary Derived advantage for low and high profit areas. In ‘02 provided national and international longdistance services. Acquired fixed line license in ‘95 Foreign support by BT, SingTel & WarburgPincus. Bharti tele-ventures went public in ‘02.
    • Issues / Challenges Slow take off with low volume users and low usage Emergence of WLL-M technology. Emergence of Competitors Focus on operational efficiency Lack of funds
    • AnalysisIntroduction Of NTP reduced barrier to entry Better connectivity & wider distributionchannels Brand Equity Thin profit margins  reduction in admin costs Advantage as switching costs were high
    • Recommendation Revise price plans to capture more market Enter WLL-M market Enter the CDMA segment  Focus on advertising
    • Research based Findings Structured into four strategic business units ( Mobile, Tele-media, Enterprise and Digital TV) Operates in 19 countries across Asia and AfricaThe company offers mobile services, fixed line, Broadband etc Airtel has 200 million customers across its operation
    • Research based Findings Airtel is the fifth largest telecom operator in the world Outsource everything except marketing, sales & finance Bharti has recently roped in a strategic partner Alcatel-Lucent Provides end-to-end telecom solutions to corporate customers
    • Learning from the Case  Relied on speed and instincts to win the first round.  Adapt new ways to compete in the market.  Single minded devotion to the product.
    • Learning from the Case  Cost per minute comes down rapidly with scale economies.  They wanted to cater to all strata’s of society.  Employed direct sales strategies for pre-paid & post-paid revenues