BHARTI AIRTEL LIMITED

By Chaitali Karate
Roll no 50
CONTENTS

 Introduction
 Description
 Strategies and Alliances
 SWOT Analysis
 Financial Performance
 Competitors
 Achievements and Recognitions
 Company Review
 Core Competency
 Marketing Capabilities
 Product Review
 Competitive Review
 Distribution
 Pricing
 Trends
INTRODUCTION

 Bharti Airtel Limited formerly ‘Bharti Tele-Ventures Limited – BTVL was

incorporated on July 7, 1995

 With effect from April 24, 2006, the name of the Company was changed from
Bharti Tele-Ventures Limited (BTVL) to Bharti Airtel Limited

 Bharti Airtel Limited is a group company of Bharti Enterprises

 Mr.Sunil Bharti Mittal who heads the Bharti Enterprise, is the Chairman &
Managing Director of Bharti Airtel Ltd

 Manoj Kohli is the President and the CEO.

CONTD …
 It is head quartered at New Delhi, India

 Total Telecom Base is 23 Crore and is *3rd largest in the world

 Vision : By 2010 Airtel will be the most admired brand in India

( * = source is
http://www.bhartiairtel.in/fileadmin/srijan/events_conferences/AGM_Pre
sentation.pdf
)
DESCRIPTION

 Bharti Airtel is structured into three strategic business units:

 Mobile services:
 mobile & fixed wireless services using GSM technology
across 23 telecom circles

 Broadband & Telephone (B&T) services:

 The B&T business provides broadband & telephone services
in 94 cities.

 Enterprise services:
 provides end-to-end telecom solutions to corporate customers
and national & international long distance services to carriers.
STRATEGIES & ALLIANCES

 Microsoft:

 allows the Airtel users access to a host of Microsoft Office

applications on their mobile phones.

 Sony Ericsson:

 network expansion contract

 Wayfinder Systems AB of Sweden:

 the largest Next Generation Network (NGN) deal

 1.8 million subscriber lines for national long distance and
international long distance network making Nokia Siemens
CONTD…
 SingTel:

 strategic alliance
 one of the largest investments made in the world outside
Singapore, in the company
SWOT ANALYSIS

 Strengths:

 Various alliances and strategies of the company

 Its strategic business units - Mobile Services, Broadband &

Telephone (B&T) Services and Enterprise Service.

 The company's unique strategic outsourcing model

 only company to provide mobile services in all 23 telecom circles

in India.
SWOT ANALYSIS CONTD…

 Weaknesses:

 There are many telecommunication giants in the Indian market today like
BSNL, MTNL, Hutch and so on. This has let to scarce spectrum and hence
reduction in the margins.

 Opportunities:

 With its alliances it can expand its network further to capture the entire
market.

 Introduce more offers at lower rates to attract more customers e.g. Popular
television show voting offer.
SWOT ANALYSIS CONTD…

 Threats:

 There is threat and tough competition from the competitors like Hutch, BSNL,
MTNL, Tata Indicom.
FINANCIAL PERFORMANCE

 Over Rs 18,400 crores of revenue

 Over Rs. 4,000 crores of profit, up by 100% over last year
 added 2,641 employees during the quarter, taking the manpower strength to
22,955 as on June 30th 2007
 Over Rs 24,500 crores of investments made by the companies
 Rs 1,69,000 crores of market capitalization.
 It has become 3rd largest in India 2nd largest private sector company in India

The figures in this slide are taken from :

http://www.bhartiairtel.in/fileadmin/srijan/events_conferences/AGM_Present
ation.pdf
COMPETITORS

There is a cut throat competition for Bharti Airtel. Major competitors present in the
market today are:
 Hutch
 Mobile services
 GSM technology
 No of Operational circles :16
 Shares 17.6% of the total wireless technology market

 Government Owned. BSNL + MTNL

 Integrated services
 GSM, CDMA technology
 No of Operational circles : 23
 Shares 17.2% of the total wireless technology market
ACHEIVEMENTS & RECOGNITION

 Ranked 3rd globally for best returns to the shareholders by the BusinessWeek
Magazine

 in ‘The Infotech 100’list in July 2007 Airtel was chosen as the second most
trusted service brand in India in the prestigious

 ‘Most Trusted Brands 2007 Survey’conducted by the Economic Times Brand

Equity

 Bharti Airtel won the Forbes Global IT Excellence award for its Outsourcing
arrangement with Nortel in May 2007
CONTD……

 Adjudged ‘Most Customer Responsive Telecom Company’ in India in

2006 by Avaya Economic Times Global Connect Awards

 Conferred with the “Best Emerging Market Carrier Award” at the

Telecom Asia Awards 2007

 Sunil Bharti Mittal, Chairman & Group CEO chosen for :

 Padma Bhushan Awards in 2007

 ‘Asia Businessman of the Year 2006’ by Fortune magazine
 ‘CEO of the Year’ -Frost and Sullivan’ 2006
COMPANY REVIEW

Bharti Airtel Limited owns following subsidaries:

1.Bharti Comtel Limited (BCOL): BCOL provides administrative

support to Bharti Airtel’s operations and trades in VSATs and
related equipment.

2. Bharti Aquanet Limited (BAQL): builds, operates and maintains a

cable landing station for the fibre optic submarine cable system
linking India and Singapore.

3. Bharti Hexacom Limited (Hexacom): Hexacom provides CMTS in

the circles of Rajasthan and North East.

4. Satcom Broadband Internet Limited(SBEL) & Bharti Broadband

Limited (BBL): for enterprise services
CONTD

5. Bharti Infratel Limited (BIL):Bharti Infratel Limited with its principal business of
providing passive infrastructure for mobile services.
6. Bharti Telemedia Limited : Direct to Home venture

For International calling cards:

8. Bharti Airtel U.S.A Limited
9. Bharti Airtel U.K Limited
10. Bharti Airtel Canada Limited
11. Bharti Airtel Hongkong Limited
12. Bharti Airtel Lanka (Private) Limited
Core Competency

Bharti Airtel is structured into three major SBUs.The brand AIRTEL provides following three
services:

Mobile services:
These services cover telecom services provided through cellular mobile
technology wherein a subscriber is connected to the network through wireless equipment.
The subscriber can freely roam around anywhere and stay connected wherever the wireless
network coverage is available.

Broadband & Telephone (B&T) services:

These services cover telecom services provided through cellular mobile
technology wherein a subscriber is connected to the network through wireless equipment.
The subscriber can freely roam around anywhere and stay connected wherever the wireless
network coverage is available.
CONTD….

 Enterprise Services Carriers:

The domestic and international long distance services are intermediary
services provided to the service providers of cellular or fixed line
services. Using these services, these other service providers route their
long distance calls i.e. outside local boundaries of a city area.

 Enterprise Services Corporate:

These services include internet services, broadband services,
providing bandwidth and other network solutions to corporate
customers.
MARKETING CAPABILITIES

 Progressive roll-out across 4000 towns and villages in India

 Attractive Postpaid & Prepaid plans backed by a robust distribution network
 Service at the customer’s doorstep - for the first time in India
 Exciting launch offer with free ‘home to mobile calling’ and other special
features.

Some of the customer attracting marketing strategies implemented by this

telecom giant :
 Free 150 minutes (50 pulses, 3 minutes pulse) of calling every month to one
Airtel mobile/Airtel Landline! Offer valid for a full year from the date of
installation.
 Free 50 local & national SMS in the first month of subscription
 Free Hello Tunes subscription in the first month plus one Hello Tunes free
 Lower entry cost for existing Airtel postpaid customers
PRODUCT REVIEW (CONTD….)

Products & Services offerings for business by Airtel:

1. Mobile : Different price plans that works for business along with a range of
features or services to meet the business needs. e.g. corporate plans

2. Voice : Provides voice services to suit the needs of small, medium and large
enterprises. This include Airtel Landline, Fixed wireless phone and wholesale
voice.

3. Office Solutions : This includes Airtel’s Office Solutions, Easy Mail and Data
Card. Office Solutions inc

4. Data & Internet : Here it offers enhanced Voice & Data and Video Conferencing
via our ISDN services, Airtel Broadband Services which provides high-speed
Internet service.

5. E-Business Services: Airtel offers Web Hosting Services, a complete disaster

management solution covering all the dynamics of risk to a business and
colocation services.
CONTD.…

Product and services offered for personal use

1. Mobile: Provides both prepaid and post paid services

2. Home Phones: Here airtel offers fixed line and fixed wireless phones

3. Broadband Internet : This broadband service is powered by the DSL

technology and is secured internet connection

4. BlackBerry :This airtel product can be used to send and receive e-

mails instantly and read e-mail attachments

5. Calling Cards: Both international calling cards and home cards are
available, with which the caller can make std/isd calls even if the mobile
is std/isd disabled.
COMPETITIVE REVIEW

There is a cut throat competition for Bharti Airtel. Major competitors present in
the market today are:
 Hutch
 Mobile services

 GSM technology

 No of Operational circles :16

 Shares 17.6% of the total wireless technology market

 Products : Prepaid, Postpaid, calling cards, Hutch PCOs.

 Services : News, Updates, Finance, Entertainment, Tunes, Astrology, Bill

info, Phone backup

 Products & services for business: Mobile Email solutions, data access,

Business Applications, voice solutions

COMPETITIVE REVIEW (CONTD….)

 Government Owned. BSNL + MTNL

 Integrated services
 GSM, CDMA technology
 No of Operational circles : 23
 Shares 17.2% of the total wireless technology market
 Services offered : Telephone, mobile phone, WLL mobile phone, internet,
broadband, ISDN, IN, video conferencing, audio conferencing, enterprise
solutions, I-Net,
DISTRIBUTION

 Bharti Airtel already has a sales and distribution network of over 4.9 lakh outlets
across the country
 Bharti Airtel plans to spend $2 billion to expand its network in 2007-08, starting
April 1.

 Bharti Airtel will expand coverage in towns and villages where mobile
penetration is still very low. The Indian telco major said it aims to extend
services to about 5,000 towns by March 31, compared to 4,000, as of July last
year.

 Bharti Airtel has awarded Ericsson an estimated $2 billion expansion contract,

including expansion of its GSM/EDGE network and providing capacity
management. The deal will allow Bharti Airtel to expand its reach into rural
areas.
PRICING

 Price war in prepaid cards

 Bharti's Airtel brand has responded to Reliance Infocomm's massive price cut in
its prepaid card by a similar price cut. AirTel has announced the launch of pre-
paid starter kit for Rs199. With this launch, AirTel has lowered the entry cost into
the category by 33 per cent from the existing Rs299 to Rs199.

 In addition, new AirTel pre-paid users will get free airtime worth Rs50 on the first
recharge. The recharge will, however, have to be for a minimum of Rs324 and
will have to be availed within a period of 96 hours of purchase.
TRENDS

Revenue
TRENDS (CONTD…)

Profits
 Summing it up, we have observed that the both the revenue and the profit is
following an increasing trend over the last few years. With its tie up with various
foreign alliances like microsoft, sony ericsson, singtel, etc, airtel is quickly
moving towards its 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
THANK YOU!!