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
AnalysisIntroduction 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 AfricaThe 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