1. Strategic Management
Presentation
Telecom Industry
By,
Chenthil Kumaran
Arvind Kannan
Anand Parameswaran

2. Major Players in Industry
- Airtel
- Vodafone
- Idea
- Reliance
- Tata Docomo
- BSNL

4. Bharti Airtel
Bharti Airtel Limited commonly known as is an Indian
Telecommunication services company headquartered at New Delhi
World’s 3rd Largest Mobile Telecommunications Company
Largest Cellular service provider in India with 251.80 million subscribers
as of September
Overall customer base stands at 262.60 million, across 20 countries and
becomes the 4th largest global mobile operator
Bharti Airtel is the first Indian telecom service provider to achieve
“Cisco Gold Certification”
It offers its telecom services under the airtel brand and is headed by
Mr. Sunil Bharti Mittal

6. Vision & Promise
" Enriching lives means putting the
Customer Need : Customer at the heart of everything we do
Product / Service : We will meet their needs based on our deep understanding
of their ambitions, wherever they are.
Profitable Growth : By having this focus we will enrich our own lives and
those of our other key stakeholders
Public Image : Only then will we be thought of as exciting
Technology : Innovation
Self-Concept : Truly World Class Company

7. The Company – Bharti Airtel
Offering end to end solutions and entering new geographies

8. Organizational Structure

9. Customer Business Unit
It has two distinct Customer Business Units (CBU) with clear focus on :
“Airtel Business”
Business to Customer (B2C) Business to Business (B2B)
Retail Consumers, Homes Services to the Businesses across Vertical
And Including IT, ITES, Government,
Small Offices FMCG, BFSI and Media
Network Infrastructure,
Mobile, Telemedia, Local connectivity,
Digital TV and other Ethernet, Internet Service
emerging business Provider solutions
spanning voice and data

10. Integrated Telecom Company
Passive Infrastructure
- Bharti Infratel
- Indus Tower
Enterprise Services Telemedia Services
- Carrier - Fixed Line
- Corporate - Broadband
- DTH
Wireless Services
- 2G
- 3G
- 4G

11. Porter’s 5 Force

12. 1. Threat from Competition
Customer Market Share
(%) High

13. 2. Customer Bargaining Power
- Cut Throat Competition
High
- Low Switching Costs
- Mobile Number Portability

14. Low
3. Suppliers Bargaining Power
Outsourcing
Vendors Features Advantages
Deals
Ease in Network Planning
Network
Payments linked to
Outsourcing &
- Usage and Network Quality
Maintenance
- Service Level Agreements (SLA’s)
- Pricing & Payment as a % of revenues
Information
- Service Delivery Platform enabling
Technology
delivery of content to end
- Increased focus on sharing passive
Passive -Bharti Infratel
infrastructure
Infrastructure -Indus Towers
- Reduce Capital Expenditure Spend
- IBM Daksh - Enhanced & Consistent customer
Call Center - Mphasis experience
Outsoucing - Hinduja - Common platform across the group
Aegis BPO

15. 4.Threat of Substitutes
- Landline High
Diminishing Market
- CDMA
- Video Conferencing
- VOIP – Skype, Gtalk, Broadband Services
Yahoo Messenger,
way2sms.com, whatsapp

16. 5. Threat of New Entrants
- Huge License Fees to be paid upfront High
& High Gestation Period
- Spectrum Availability and Regulatory
Issues
- Rapidly Changing Technology
- Infrastructure Setup Cost

17. SWOT Analysis
Strengths Weakness
- Largest Telecom Player with
a customer base stands at
262.60 million as on Sep,2012
- Outsourcing of Core Systems
- Strategic Alliance with other
- Low Broadband Penetration even
stakeholders in Bharti Airtel
includes Ericsson, Nokia and
in cities
Indus Tower
- World Presence
- Strong Financials

18. SWOT Analysis
Opportunities
- Bharti Infratel – Cutting down Threats
cost in Rural area
- India Centric – Major Revenues
- Match Box Strategy – Scale of
from India
Penetration level
- Current Tele Density (M-Check, - Falling ARPU & AMOU
M-Commerce & E-Commerce) - Intense Competition & Shortage
- Android Market – Launch of of Bandwidth
Beetel Tablet
- Wide Scope in Broadband & 4G
LTE Penetration ARPU - Average Revenue per user
(First Mover Advantage) AMOU - Minutes of Usage

19. BCG Matrix for Bharti Airtel
High
Stars ?
Market Growth Rate
Cows Dogs
Low
High Market Share Low

20. Statement of Income as per International
Financials Snapshot Financial Reporting Standards
(IFRS)
Though there was a massive increase in terms of Revenue, the EBITDA between
the year 2007- 2012 increased due to acquisition & strategic alliances with leading
local and international telecom players (Zain Telecom, Seychelles, 3G services
agreement with Idea (Gujarat Circle) in the year 2010 which influenced the
increase in Debt - Interest Payment and depreciation amortization consequently
there is shortfall in Net Profit throughout the succeeding years
Source: http://www.airtel.in/QuarterlyResult/Press_release_Q4_12N.pdf

21. Statement from CFO - Airtel
"Dividend distribution tax on account of our tower company Indus
Towers, additional capital investments, interest costs and forex loss are
the key reasons for the dip in net profit," said Sarvjit Dhillon, Group
Chief Financial Officer at Bharti.
Bharti faces profit pressure but still the Market Leader :
Bharti Airtel’s (Bharti) revenue came marginally higher during the year
2012, however on the PAT front, the company underperformed the
expectations (-30%), due to the increase in the service tax rates(12.5%) and
payouts to the tune of thousands of crores in regulatory fees when
government imposed a one time spectrum charge on mobile operators and
for renewing its mobile permits from next year, but during 2012, airtel has
still demonstrated a strong resilience even in the midst of such a hyper-
competitive.
Source: http://articles.economictimes.indiatimes.com/2012-11-08/news/34992539_1_depreciation-and-amortisation-costs-net-profit-interest-outgo

22. Bharti Airtel - Strategy
Strategy :
Focus on Core Competencies
and Outsource the rest

23. Strategy
- Airtel partnered with leading players in telecommunication
players across the globe (Indus Towers & Zain Telecom)
- Agreement with Idea which gives presence in 15 out of 22 circles
in India
- Contracts given to Ericsson India, Nokia Siemens Networks and
Huawei Technologies to setup for providing 3G services in India
in its 13 telecom circles where the company won 3G licenses
- Ericsson India – 7 Circles
- Nokia Siemens Network – 3 Circles
- Huawei Technologies – 3 Circles

24. Operational Strategies
- Higher emphasis on ARPU/Min – stark contrast with other
operators who concentrate on ARPU only
- Aim to become a one stop shop for all telecommunication
services under the Bharti Umbrella
- Exploring Opportunities in International Markets after acquisition
of Zain Mobile Operations in 15 African Countries on March, 2010
and Seychelles on August 2010
- Hived off tower infrastructure into a separate entity - Bharti
Infratel

25. Future Strategies
- Translate its expertise in Indian Markets to other emerging
economies
- Acquisitions Globally
- Indian Market in spite of being the world’s largest is still not
matured, lot of opportunities in bringing new technologies
- Launch of Android Tablets from its unit Beetel Teletech Ltd

26. Airtel’s Performance
- Bharti Airtel has enjoyed an excellent run over since the telecom
Sector opened
- It managed to hold on to its leadership position right from the
inception in spite of the presence of Global Leaders such as
Reliance, Tata’s, Birla’s and Vodafone
- Airtel coped well with the regulatory changes from TRAI
- “One Network” – world’s first free intercontinental incoming
roaming service
- Continue to attract and delight customers with its new signature
tunes and a change in logo recently to emerge into world

27. Green Initiative
- Green Towers P7 program
- Only Telecom tower Company installed almost 3MWT of solar
capacity generating more than 5 million units of electricity every
year
- Green Initiative reduce 66 million liters per year with a significant
carbon dioxide reduction of around 150,000 MT per year
- Bharti remains the First company in the world to introduce the
practice of sharing of passive infrastructure (Indus Towers,
Vodafone and Idea) by collaborating with their competition to
share mobile towers and to reduce the collective carbon footprint
of the industry

28. Industry & Airtel Lifecycle
Landlines
Wireless
Services
Industry Output
DTH &
Airtel Business
Time

29. References
http://en.wikipedia.org/wiki/Airtel
http://www.airtel.in/QuarterlyResult/Press_release_Q4_12N.pdf
http://www.airtel.in/AnnualResults/Bharti_Airtel_annual_report
_full_2010-2011.pdf
http://articles.economictimes.indiatimes.com/2012-11-
08/news/34992539_1_depreciation-and-amortisation-costs-net-
profit-interest-outgo

30. Thank You !