2. Contents
• Overview of telecom industry.
• Structure of telecom industry.
• Players of Telecom industry.
• SWOT analysis of telecom Industry.
• Vodafone overview and SWOT analysis.
• Airtel overview mission and vision.
• Conclusion and Recommendation.
3. Fast facts
• Indian telecom market is one of the fastest growing markets in
the world.
• With its 806 million telephone connections as on 28th Feb
2011, it is the second largest network in the world after China.
• It is the second largest wireless network in the world.
• Over 15 million connections are being added every month.
• The target of 600 million telephones by the end of 11th five
year plan has been achieved in February 2012 itself.
4. Fast facts
• Wireless telephones are increasing at faster rate. The share of
wireless telephones as on 31st December 2012 is 95.54% of
the total phones.
• The share of private sector in total telephone is 84.6%.
• Overall tele-density has reached 66.17%. Urban tele-density is
about 148%, whereas rural tele-density is at 31.22%, which is
also steadily increasing.
• Broadband connections increased to 10.74 million by
November, 2010.
Souce: Cellular operators association of India, TRAI, DoT
5. Overview
Services offered by the telecom industry
Telecom
services
Basic
services
Mobile
services
Internet
services
VSATsGMPCS
Radio
paging
PMRTS
6. Structure of Indian telecom industry
Telecom Industry
Public sector
MTNL BSNL
Private sector
Indian
companies
Tata
communications
Reliance
communications
Idea
cellular
Bharti Airtel
Foreign invested
companies
Vodafone Uninor MTS Virgin Aircel
7. Indian Consumer gets the worlds
lowest mobile tarrifs
0.23
0.22
0.19
0.17
0.16
0.11 0.11 0.11
0.09
0.05 0.05
0.04
0.03
0.02
0
0.05
0.1
0.15
0.2
0.25
Belgium
Italy
UK
France
Brazil
Philippines
Taiwan
Argentina
Malayasia
HongKong
Thailand
Pakistan
China
India
8. Highest minutes of usage
84
159
179
315 320 323 326
461
Russia M alaysia Australia Korea Singapore China Thailand India
12. Strengths
• High Customer Potential
Tele-density grew from 48% in 2005 to 64% in 2012.
Significant growth of broadband subscriber.
• High Growth Rate
Wireless subscriber growing at the rate 60% per annum.
• Allow FDI limit ranging from 74% to 100%.
The total FDI equity inflow in telecom sector have been US$2223 million
during 2012.
• High Return on Investment.
Easier to create economies of scales thereby increasing the return on
investment.
• Liberalization of Government.
The share of the private sector in the telecom sector is 88.6% and
• Lower capital expenditure.
The Indian Telecom Industry is a high density area, which means more
population per tower. This means less capital expenditure.
13. Weakness
• Poor Telecom Infrastructure.
Resulting in large call drops.
• Late Adopters of New Technology.
India is among the last countries to adopt 3G technology. Recent reports
suggests that already 132 countries in the world has already adopted 3G.
• Most competitive market.
10 to 12 companies offer mobile services in most parts of India.
• A market strongly regulated by Government.
• Difficult to enter because of huge financial
resources.
Auction of 3G license has reached Rs 15814.15 crores
14. Opportunity
• 3G Telecom service and 4G service.
• More quality service.
• Value added service.
SMS, ringtones, mobile tv, video streaming, mobile banking, mobile ticketing
etc.
• Boost to Telecom manufacturing companies.
Production of telecom equipments from Rs 4,12,700 million (2007-08) to Rs
6,75,000 million (2010-2012).
• Horizontal integration.
Entry into other consumer segments . For example Reliance BIG TV, TataSky, Airtel
Digital TV
• Providing fibres connectivity to 2,50,000 village
panchayats by 2015.
15. Threats
• Telecommunication Policies.
Renewal of 2G license on the basis of market rate of 3G
TRAI’s telecom regulatory authority intention of rolling out 4G
technology, known as the ultra-broadband in 2-3 years raising fears
rendering 3G services somewhat obsolete.
• Declining ARPU(Average Revenue per
user).
Price wars like per second billing which is deflating revenues and
making sure the survival of the fittest.
• Partiality on the part of Government.
E.g Allowing 3G services in a PSU(MTNL,BSNL) before auctioning to
private sector.
16.
17.
18. HISTORY
• The company was founded in 1982 as a
joint venture in England.
• the name was derived from the company's
goal of establishing both voice (VO) and
data (DA) services over a mobile telephone
network.
• Vodafone owns and operates networks in
over 30 countries and has partner networks
in over 40 additional countries
19. CNTD….
•It is the largest telecommunications network
in the world
•Vodafone came in India by acquiring
HUTCHISON ESSAR LTD.
•Launched officially on 21sep 2007.
20. CNTD…..
• Vodafone India has been awarded the Most
Admired Telecom Operator and Best 3G
Operator at the recent Telecom Operator
Awards 2012.
24. STRENGT
H
1.One of the most popular
cellular service provider in
India
2.One of the largest Telecom
operator in the world
3.Only Indian operator, with
VSNL, that has an
international submarine
cable
4.High brand visibility
5.Strong advertising with Zoo
ZoozOo concept
6.Tieup with international
sports like Formula One.
25. WEAKNESS
• Price competition from
BSNL and MTNL
• Untapped Rural Market
• US business not nearly as
strong as European/rest of
the world operation
26. OPPORTUNITY
• Fast expanding cellular
market
• Latest and low cost
technology
• Untapped rural market
• Research and development
of new mobile technologies
• Good Tariff package
27. THREAT
• New entrant's low price
offering
• Saturation point in Basic
telephony service
• Mobile Number Portability
28.
29. INTRODUCTION
Owner- Sunil Bharti Mittal.
Bharti Airtel formerly known as Bharti Tele-
Ventures Limited (BTVL).
India’s largest cellular service provider.
Known for its service.
First cellular operator to set up cellular
showrooms ‘Airtel Connect’.
First cellular company to install a second mobile
switching centre.
30. HISTORY
1985- entered in telecom business.
1985-Technical collaboration with
Siemens, Takacom corporation.
1990- entered in telecommunication industry.
1992- launching services in Delhi.
1995- opened its first cellular showroom.
2000- invested in acquisitions and alliances to
expand its business.
Won ‘Techies Award’ for four consecutive
years (1997-2000).
31. VISION
Vision 2013
By 2013 Airtel will be the most admired brand in India:
Loved by more customers
Targeted by top talent
Benchmarked by more businesses
Vision 2020
To build India's finest business conglomerate by 2020
Supporting education of underprivileged children
through Bharti Foundation
Strategic Intent:
To create a conglomerate of the future by bringing
about “Big Transformations through Brave Actions.”
32. MISSION
“ 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”
33. CORE VALUES
Core Values Empowering People - to do their best
Being Flexible - to adapt to the changing
environment and evolving customer needs
Making it Happen - by striving to change the status
quo, innovate and energize new ideas with a strong
passion and entrepreneurial spirit
Openness and transparency - with an innate desire to
do good
Creating Positive Impact – with a desire to create a
meaningful difference in society.
34. OBJECTIVES
To undertake transformational projects that have a
positive impact on the society and contribute to the
nation building process.
To Diversify into new businesses in
agriculture, financial services and retail business with
world-class partners
To lay the foundation for building a “conglomerate”
of future
36. Strengths
1. Largest cellular service provider in India, with over 164.61
million subscribers at the end of April 2012.
2. Largest Telecom operator in the world with 207.8 million
subscribers across 19 countries at the end of 2012
3. Only Indian operator, with VSNL, that has an international
submarine cable.
4. High brand visibility
5. Strong advertising with celebrity brand ambassadors
37. Weakness
1. Price Competition from BSNL and MTNL.
Airtel is tough competition from the operators like BSNL
and MTNL as these two operators are offering services at a
low rate.
1. Untapped Rural Market, Although Airtel have strong
Presence throughout the country but still they are far
away from the Indian rural part and generally this part is
covered by BSNL so indirectly Airtel is loosing revenue
from the rural sector
2. Service centre issues
38. Opportunity
1.Fast expanding cellular market
2.Latest and low cost technology
3.Untapped rural market
Threats
1.New entrant's low price offering
2.Saturation point in Basic telephony service
3.Mobile Number Portability
39. Conclusion & Recommendation
In this cut throat competition the winner will be
that company that understands consumer needs
focusing on usability and giving control to the users
The losers are ones that focus on technical
differentiation that majority of consumers do not
understand.
Future strategy which can make one to be a
leader are competitive tariff plans ,VAS and focus
on rural markets.
