Bharti Airtel is an Indian global telecommunications services company and the third largest mobile network operator in the world. It operates in 20 countries across South Asia and Africa. The company was founded in 1976 and launched its first cellular services in Delhi in 1995. Over the years, Bharti Airtel has expanded through organic growth and acquisitions, becoming one of the world's largest telecom companies with over 325 million customers. However, the company now faces challenges from increasing competition in India, slower than expected adoption of its 3G services, stagnating cash generation, and margin pressure in its African markets.

1. BHARTI AIRTEL
JOINT VENTURE

2. BHARTI
Big Transformations. Brave
Actions.
A story of global telecom
company

3. OUR BEGINNINGS
1976 Founded in 1976 with an initial capital of $
1000. Started as a small scale
manufacturing unit
1985 Began manufacturing telephones in
technical collaboration with Siemens AG,
Tie-up with Takacom.
Formed Consortium with Vivendi and
1992
others to bid for Cellular Licences
Bharti Airtel started operations by launching
1995 mobile services in Delhi

4. OUR BUSINESSES

5. OUR PARTNERS
TELECOM RETAIL /
SERVICES WHOLESALE
FINANCIAL
SERVICES
EMERGING
BUSINESS

6. HISTORY
OF
BHARTI AIRTEL

7. HISTORY
Sunil Bharti Mittal founded the Bharti Group In 1983
In 1986, Mittal incorporated Bharti Telecom Limited (BTL), and
his company became the first in India to offer push-button
telephones.
By the early 1990s, Sunil Mittal had also launched the country's
first fax machines and its first cordless telephones.
In 1992, Mittal won a bid to build a cellular phone network in
Delhi.
In 1995, Mittal incorporated the cellular operations as Bharti
Tele-Ventures and launched service in Delhi.

8. HISTORY
Contd…
In 2003, the cellular phone operations were rebranded under the
single Airtel brand.
In 2004, Bharti acquired control of Hexacom and entered
Rajasthan.
In 2009, Airtel launched its first international mobile network in Sri
Lanka.
In 2010, Airtel acquired the African operations of the Kuwait
based Zain Telecom.
Today, Airtel is the largest cellular service provider in India and
the third largest in the world.

9. BACKGROUND
Incorporation and history
Bharti Airtel Limited formerly ‘Bharti Tele-Ventures
Limited - BTVL’) was incorporated on July 7, 1995
under the laws of India for promoting investments in
telecommunication services.
Bharti Airtel together with its subsidiaries is here after
referred to as ‘the Group’.
The Group is a leading telecom service provider in
India.

10. BACKGROUND Contd…
In February 2002, the Company successfully
completed an Initial Public Offering (‘IPO’) of
185,336,700,
Fully paid equity shares of Rs. 10 each at a premium
of Rs. 35 per equity share, aggregating to Rs.
8,340,152.
With effect from April 24, 2006, the name of the
Company has been changed from Bharti Tele-
Ventures Limited (‘BTVL’) to Bharti Airtel Limited
(‘Bharti Airtel’).

11. VISION
To Be The Largest Emerging Markets Telecom Company in
the World.

13. Bharti Airtel –An Integrated Telco

15. Quest for becoming global –Emerging
markets

16. Bharti Airtel: A Case in Point

17. Bharti Airtel - positioning in the world and India
3rd LARGEST wireless operator in the world1
LARGEST private INTEGRATED telecom company in India
5th LARGEST INTEGRATED telecom operator in the world
LARGEST private FIXED LINE operator in India
LARGEST WIRELESS operator in India
LARGEST operator in NLD, ILD and VSAT business
LARGEST TELECOM company listed on Indian Stock Exchanges

18. NEW SERVICES BY BHARTI AIRTEL
• 3G
• 4G
• Airtel money
• Airtel broadband
• Airtel digital TV

19. “In a country like India, which is so vast, with a very
dismal penetration of fixed line broadband, I think
wireless is the only solution. Like for most Indians
the first call, the voice call, was on a wireless device;
similarly, for most Indians, the first access to
Internet will be also through a wireless device.”
— Sanjay Kapoor, CEO, Bharti Airtel

20. CONTROVERSY
Bharti Airtel (India), along with Loop Mobile, Idea Cellular,
Reliance Communications and Vodafone, was issued notices
by Telecom Regulatory Authority of India (TRAI) for violation
of Mobile number portability (MNP) regulations. According to
TRAI, they had received complaints from customers
regarding unwarranted rejection of porting requests by
telecom operators and 10 had been charged for a message
requesting porting code through
number 1900.
There has been lot of criticism about Airtel for its unauthorised
VAS activation.
Several thousands of users were falsely billed, for example
downloading wallpaper or ringtones.

21. 4 Factors Troubling Bharti Airtel

22. Competition
The recent licenses issued after January 2008 by the
Supreme Court has prompted new players such as Etisalat
and S Tel wind etc.
Despite this, the competition in the 2G segment remains
cutthroat.
Bharti's average revenue per user (ARPU) has fallen by
16% since March 2010 to Rs 185 in the June 2012 quarter.
Even though mobile subscriber base rose by 47% to 18.7
crore.
"Globally, there are 3-5 operators in a single market but in
India, we have NINE Telecos…

23. Slower Adoption of 3G
Telecom operators had bid aggressively two years ago to
obtain licenses for 3G services.
Private operators had paid nearly Rs 51,000 crore through
borrowed money to acquire licenses in the hope that the
data driven nature of 3G services would help in boosting
revenue and profitability.
Though most operators have launched 3G services, these
are yet to acquire necessary traction.
For Bahrti, interest outgo as a percentage of revenue shot
up to 4.2% in the June 2012 quarter from 2% two years
ago.
This has adversely affected profitability of the company.

24. Stagnation in Cash Generation
The efficiency in generating cash from operations is vital for
capital intensive business such as telecom.
Bharti's free cash flow has not grown in tandem with the
growth in its subscriber base.
Free cash flow is the cash available for stakeholders of a
company after paying for working capital and capital
expenditure requirements.
In the June 2012 quarter, it fell sharply by 41% sequentially to
Rs 2,272.9 crore as capex rose by 50% to Rs 3,576 crore.

25. Margin Pressure in Africa
Bharti's decision to enter African markets by acquiring Zain's
operations in 16 countries has met with some challenges.
ARPU of the African operations fell by 23% to $5.7 Crore in
the June 2012.
This has resulted in 170 basis point reduction in operating
margin.
Bharti is expected to reel under pressure in the near term.
Its 3G initiatives will take some more time before they start
contributing significantly to profits.
And, if Bharti decides to participate in the ensuing 2G auction
in select circles, it may result in higher debt burden thereby
further dragging its