This document provides a summary of the Indian telecom industry and Bharti Airtel, the largest telecom company in India. It discusses Airtel's subscriber growth, value chain, financial analysis, marketing strategies, Porter's generic strategy, BCG matrix, five forces model, and SWOT analysis. Key information about Airtel includes over 88 million subscribers, operations in 23 circles, and revenue of $1.983 billion in Q3 FY09. The telecom industry in India has high competition and customer bargaining power.

1. Rakesh Sonar Vikas Sharma RESEARCH PRODUCT Lokesh Gupta Manish Pandey Baijanath Mandal Aditya Mahakulkar

2. Introduction to Indian Telecom Industry. Introduction to Bharti Airtel. Subscriber Growth. Value Chain. SIPOC. Financial Analysis. Marketing Analysis. Porters Generic Strategy. BCG. 5 Force Model. SWOT. Awards. Index

3. INTRODUCTION

4. Indian Telecom Market Source : Telecommunication Services, Indian Industry: A Monthly Review, CMIE – December 2008

5. Subscriber base- 384.79 million as on Jan 2009. Wireless penetration- 33.23 % CAGR (wireless)- 68% Second Largest Telecom Market Wireless Subscribers – 346.09 Mn Wireline Subscribers – 38.7 Mn Teledensity – 33.23 Share in Asia Pacific mobile phone market- 6.4 Mobile subscriber base growth rate- 82.2%, 42% of the population below 20 9 GSM players in 19 circles and 4 metro cities connecting 2000 towns Industry

6. Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. Bharti Airtel , formerly known as Bharti Tele-Ventures Limited (BTVL). India 's largest and world's second largest cellular service provider. More than 88 million subscribers as of 31 December 2008. Airtel brand is headed by Sunil Bharti Mittal . Airtel provides mobile & fixed wireless services using GSM technology across 23 telecom circles . About Bharti Airtel

7. India’s First Telecom Company that provides telecom services in all the circles. The company also has a submarine cable landing station at Chennai, which connects the submarine cable connecting Chennai and Singapore . Company shares are listed on The Stock Exchange, Mumbai (BSE) and The National Stock Exchange of India Limited (NSE) . Per Share price of Airtel in BSE is Rs 601.40( 5 th march 2009)

8. Organization Structure Investor Relations :- http://www.bhartiairtel.in

9. Vision 2010 By 2010 Airtel will be the most admired brand in India: Loved by more customers. Targeted by top talent. Benchmarked by more businesses . “ 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”

10. Bharti Hexacom Bharti Comtel Bharti Aquanet Bharti Broadband Bharti Infratel Bharti Telemedia Bharti Airtel (UK, USA, Canada, Hongkong, USA, Lanka) Subsidiary Companies

11. National Coverage Investor Relations :- http://www.bhartiairtel.in

12. Enterprise Services – Carriers ILD Investor Relations :- http://www.bhartiairtel.in

13. PRESENT COMPETITION National Long Distance BSNL, RELIANCE, VSNL, VODAPHONE, TATA, IDEA International Long Distance VSNL, RELIANCE , BSNL

14. PRODUCTS PRODUCTS

15. Source : Voice & Data

16. Source : Voice & Data

17. METRO CRICLES 83.4 % 91.4 % 93.4 % 92.4 % 92.5 % 90.7 % 91.7 % 95.7 % Source : Voice & Data YEAR 2008

18. A CIRCLE 90.3 % 93.7 % 87.9 % 89.4 % 91.6 % 85.5 % 91.3 % 84.7 % YEAR 2008

19. B & C CIRCLE Source : Voice & Data YEAR 2008

20. SUBSCRIBER TREND MILLION Investor Relations :- http://www.bhartiairtel.in

21. SUBSCRIBER GROWTH Source –Tele.net / jan 2009

22. Prepaid and Postpaid user Source –Tele.net / jan 2009

23. OPERATOR SALIENCE & PERCEPTION Source : Voice & Data

24. CONTINUE Source : Voice & Data Source : Voice & Data TOP OF MIND ADVERTISER

25. CONTINUE Source : Voice & Data Source : Voice & Data PROVIDES THE MOST COST EFFECTIVE TARIFF PLANS

26. 10 Million Net Adds Per Month GROWING WIRELESS MARKET Investor Relations :- http://www.bhartiairtel.in

27. Detailed Value Chain INTEL (ORIGINAL EQUIPMENT MANUFACTURER 1 , CHIP LEVEL) NOKIA-SEMIENS ERRICSON (equipment vendor) CISCO (ORIGINAL EQUIPMENT MANUFACTURER 2, ROUTERs, SWITCH LEVEL) BHARTI INFRATEL IBM (INDEPENDENT SOFTWARE VENDOR) INFY TCS (Application Provider) ON MOBILE, INDIA TIMES HUNGA MOBILE. (CONTENT AGGREGATOR) MAUJ, ONE 97 IMI MOBILE. (CONTENT PROVIDER) AIRTEL (Service Provider) Nil (MVNO) PUBLIC (USER) NI (network integrator) SI (System integrator) AFFLE (THIRD PARTY APPLICATION PROVIDER)

28. Generic Value Chain VENDOR NETWORK INTEGRATOR SERVICE PROVIDER OSS/BSS PRODUCT VENDOR SYSTEM INTEGRATOR BILLING SOLUTION PROVIDER ISV I II III IV V END USER

29. SIPOC Supplier Input Process Output Customer OEM1-NORTEL OEM2-CISCO EV-NOKIA-SEMIENS ERRICSON ISV-IBM 3APP- AFFLE CA- INDIA TIMES ASP-INFY Network Infrastructure Spectrums Technology Finance Licenses GSM Services VAS Fixed Lines Broadband DTH IPTV Public Corporate Businesses SME’s Institutes Customer Importance Technology Competitive Position Capable Supplier Start

30. Telecom Processes Detailed

31. Corporate Customers Hathway – Internet gateway. National Long distance services. EFD Corporation - Raymond Bajaj Allianz Mphasis Wipro IBM Daksh Large Stock Broking Company source:- http://www.bhartiairtel.in

32. FINANCIALS

33. LATEST RESULT Q3 FY08/09 Q3 FY 09 Y-ON-Y CUSTOMERS 88.27 MN 54.0 % REVENUE $1,983 MN 38.3 % EBITDA $ 812 MN 33.12 % CASH PROFIT $ 773 MN 38.07 % NET INCOME $ 444 MN 25.37 % Investor Relations :- http://www.bhartiairtel.in

34. CONTINUED STRING PERFORMANCE Wireless Customer market share leadership at 24.7 %. Total minutes on network carried in Q3 – 143 billion. Total employee strength – 25,553. Balance sheet strength : Assets - $ 12 billion Net Debt - $ 677 million Net Debt to EBITDA – 0.21 times Investor Relations :- http://www.bhartiairtel.in

35. REVENUE USD MILLION 1155 1322 1423 1433 1983 Investor Relations :- http://www.bhartiairtel.in

36. Investor Relations :- http://www.bhartiairtel.in

37. Value Added Services (VAS) VAS Contribution is 10.6 % of total revenue (for 2007-08). VAS revenue is 2844 cr. In 2007-08. Composition of VAS Revenue (2007-08) Source-IMRB Reserch

38. Airtel Revenue in Telecom Sector (07-08) Source- voice and data / jul 2008

39. MARKETING

40. Performance Dynamism Leadership Core Values of Airtel

41. Elite Up market professionals Entrepreneur with business plans Low income mass category Youth Women and senior citizens by post paid connection TARGETING

42. First Mover Advantage / Product Innovations

43. Airtel basically uses two appeal to connect to the users Emotional Humorous AIRTEL ADVERTISEMENT

44. PORTERS GENERIC STRATEGY

45. Porters Generic Strategy Differential Strategy Cost Leadership Narrow Market Scope Broad Market Scope Uniqueness Competency Low Cost Competency

46. BCG Matrix for Bharti Airtel LOW HIGH HIGH LOW Mobile Services DTH & IPTV Broad Band

47. 5 Force Model

48. 5 Force Model

49. 1 .Threat from Competition HIGH Wireless Market – Top 4 garnering 75% market share

50. Lack of differentiation among Service Providers Cut throat Competition Low Switching Costs Number Portability will have –Ve Impact Businesses & Consumers 2.Customer Bargaining Power HIGH

51. 3.Supplier Bargaining Power LOW

52. 4. Threat of Substitutes. HIGH Landline CDMA Video Conferencing VOIP - Skype, Gtalk, Yahoo Messenger e-Mail & Social Networking Websites GROUP 7 BROADBAND SERVICES DIMINISHING MARKET

53. 5. Threat of New Entrant. LOW Huge License Fees to be paid upfront & High gestation period Entry of MVNOs & WiMAX operators Spectrum Availability & Regulatory Issues Infrastructure Setup Cost - High Rapidly changing technology GROUP 7

54. SWOT

55. Strength Market Leader Recognized Globally Strong Brand Image Strong New Business Development team Strong Financials Largest Telecom Player 22.6% Weakness Outsourcing of core system Network Coverage Opportunities Low Broadband Penetration, Rural Telephony Bharti Infratel – Cutting Down cost in Rural area Current Tele-Density – 30.6 is still low among developing countries Threats Falling ARPU Intense Competition & Shortage of Bandwidth New Players coming in India Uncertain Economic Condition

57. Bharti Airtel, Annual Report -2008 http://www.bhartiairtel.in Investors presentation, Bharti Airtel Limited, November 2008 Telecommunication Services, Indian Industry: A Monthly Review, CMIE – November 2008 Analyst Report – Bharti Airtel, Assist C. Mehta Investments Intermediates Ltd. Telecommunication Sector Report – March 2008, CRISIL Capitaline Database http://capitaline.com www.Wikipedia.com/airtel/ “ Next Big Spenders – Indian Middle Class”, Business week REFERENCES

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