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    Bharti Airtel

    Largest Private Integrated Telecom Companyin India

    2nd Largest Wireless Operator in the World

    Largest & Fastest Growing WirelessOperator in India

    Largest Telecom Company listed on IndianStock Exchange

    22

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    Integrated TelecomCompany

    q Wireless Services 2G/3G

    Rural Market

    q Telemedia Services Fixed Line

    Broadband

    DTH

    q Enterprise Services Carrier

    Corporate Video Conferencing

    Intercom

    33

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    Mobile Services include thefollowing:

    GSM High capacity SIMS

    GPRS

    Biz Live SMS Voice Portal

    VAS

    SMS-based Applications Email to SMS

    Information Broadcast

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    Financials Snapshot

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    Details Q4 FY 10

    Customers 79.9 mn

    Revenue $ 2,442 mn

    EBITDA $ 1096 mn

    Cash Profit $ 573 mn

    Net Income $ 741 mn

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    Vision 2015By 2015 Airtel will be themost admired brand in India: Loved by more customers Targeted by top talent

    Benchmarked by more

    businesses

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    Core Values

    Empowering People- to do their best

    Being Flexible - to adapt to thechanging environment and evolvingcustomer needs

    Making it Happen - by striving tochange the status quo, innovate andenergize new ideas with a strongpassion and entrepreneurial spirit`

    Openness and transparency - with aninnate desire to do good

    Creating Positive Impact with a

    desire to create a meaningfuldifference in society.

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    Indian Telecom Sector

    Fastest Growing Sector

    Second Largest Telecom Market Lowest tariff charges in the world

    Wireless Subscribers 615.3 Mn Wireline Subscribers 98.4 Mn

    198 Circles - 4 Categories

    URBAN , RURAL , CITY , TOWN

    Bharti Airtel Largest player with presencein 106 Circles

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    Mission

    We at Airtel always think infresh and innovative ways

    about the needs of ourcustomers and how we wantthem to feel. We deliver what

    we promise and go out of ourway to delight the customerwith a little bit more

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    CDMA Already thereare big players inthis segmentReliance , Tata

    3G Value addedservices potentialstill to be tappedfully

    2G/3G GSM Currentlycommands 70% ofmobile subscribers inIndia

    Technology

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    Largest Telecom Player in India

    Strong Financials

    Largest Cellular Provider in INDIA Best service provider, good call

    center service esp. in local

    languages, good service even inthe remote areas, emphasis onbarriers break when peoplespeak, new initiatives like google

    search on airtellive, downloads

    SWOT

    ANALYSISSTRENGTHS

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    Till recently they didnt own towersand used BSNLs and Otherproviders Towers

    Had to pay high charges

    Also Lost major revenue when asubscriber was in other states.

    Due to unavailability of towers,other Providers gave services whileRoaming

    WEAKNESS

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    APPLES IPHONE LAUNCH WITHONLY TWO PROVIEDERS IN INDIA

    ALLIANCE WITH BLACKBERRY INTOPROVIDING BBM SERVICES AT LOWCOST

    TIE UP WITH GOOGLE FOR ANDROID

    DEVICES HUGE MARKETS

    LATEST TECHNOLOGY

    OPPORTUINITIES

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    India centric Major revenues fromIndia

    Intense Competition & Shortage ofBandwidth

    Presence of Competitors whoprovide same services at low cost

    Vodafones increasing acceptance

    Entry of LOW cost operators FREE CALLING WEBSITES like

    FRINGe, NIMBUZZ, Skype,ROCKETALK etc

    THREATS

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    Porters 5 Forces

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    1. Threat fromCompetition

    Wireless Market Top 4garnering 75% market share

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    Competitor Analysis

    0

    2

    4

    6

    8

    10

    12

    OVERALL PROFIT SHARING

    Best ProfitMargins

    among Peers

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    2. Customer BargainingPower

    Lack of differentiation among Service

    Providers

    Cut throat Competition

    Low Switching Costs

    Number Portability had Ve Impact

    OPTIONS of TARRIF plans

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    3. Threat of Substitutes

    Landline

    CDMA

    Video Conferencing

    VOIP - Skype, Gtalk, Yahoo Messenger

    e-Mail & Social Networking Websites

    BROADBANDSERVICES

    DIMINISHINGMARKET

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    4. Threat of NewEntrants

    Huge License Fees to be paid upfront & High gestation

    period

    Entry of LOW COST operators

    Spectrum Availability & Regulatory Issues

    Infrastructure Setup Cost - High

    Rapidly changing technology

    5 S li B i i

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    5. Supplier BargainingPower

    SUPPLIERS ARE ESSENTIAL FOR THESUCCESS OF AN ORGANIZATION.

    HERE SUPPLIERS ARE SIM CARD VENDORSand SERVICE CENTERS.

    NOWADAYS PROCURING SIM CARDS ISNOT A TOUGH JOB, JUST SHOW SOME I.DAND U CAN GET UR DESIRED PROVIDERS

    SIM CARD. HERE, VENDORS PLAY A MAJOR ROLE IN

    SELLING ANY COMPANYS SIM CARDS.

    THEY ALWAYS PREFER ONES WITH MOREPROFITS. 22

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    BCG Matrix for Bharti Airtel

    Stars ????

    Cows Dogs Fixed Line Services

    Market

    LOWHIGH

    MarketG

    rowth

    Rat

    e

    HIG

    H

    LOW

    MobileServices

    DTH & IPTV

    Broad Band

    RETAIL,

    INSURANCE

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    ANSOFF MATRIX

    1: Market Penetration

    Market Penetration Increase usage byexisting customers

    Encourage increase in frequency of use Attract customers away from rivals /

    Gain market share at expense of rivals

    Devise and encourage new applicationsEncourage non-users to buy

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    ANSOFF MATRIX

    2: PRODUCT DEVELOPMENT

    New product to replace old product New innovative products Productimprovements Product line-extensions

    New products to complement existing

    Products at a different quality level fromexisting product

    Developing totally new offerings.

    Adding different features, sizes, etc. to

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    3:- MARKET-DEVELOPMENT

    This strategy involves Adjusting to the

    market. Analyzing competitors strengths,

    weaknesses, and potential.

    Modifying the basic product offeringUsing different distribution outletsChanging the sales effort or advertising

    ANSOFF MATRIX

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    4:- DIVERSIFICATION:-

    New products sold to new markets

    New products sold to new customers Based on growth prospects which the

    new variables offer that the presentproduct-market does not

    ANSOFF MATRIX

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    ANSOFF MATRIXMARKET PENETRATION: Airtel entered inbroadband and fixed phone line market.

    PRODUCT DEVELOPMENT: IPLC productsMARKET DEVELOPMENT: Airtel is nowlooking for overseas market. Companyhas already make his presence in Nigeria

    and Seychelles

    DIVERSIFICATION : Airtel has nowoutsourcing some of its services like

    customer services with IBM

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    Strategy

    Airtel partnered with leadingplayers in telecommunicationplayers across the globe.

    It has managed to work with thebest of domain specialists globallyand emerge as a world class entity.

    Partnerships include operational

    contracts with marquee vendorsand strategic investors rangingfrom private equity investors to

    global telecom giants.

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    Strategic partnerships,Technology and Capital

    Warburg Pincus a celebratedinvestor held a stake for asubstantial period of time and wasinstrumental in providing Airtelsupport in its early stages.

    Vodafone was a strategic investor

    in Airtel. Temasek the Singapore based

    investor holds a considerable stake

    in it.

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    Outsourcing deals

    Ericsson was given the mandate toprovide, manage and maintain theequipment as well as providequality assurance in Airtels then33 mobile circles.

    IBM was given the mandate to

    handle the back officerequirements of Airtels presencein India

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    Operational Strategies.

    Aim to be become a one stop shopfor all telecommunication servicesunder the Bharti umbrella.

    Exploring opportunities ininternational markets.

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    Performance till date

    Bharti Airtel has enjoyed anexcellent run ever since thetelecom sector opened.

    It has managed to hold on to itsleadership position inspite of thepresence of other players withdeep pockets Ambanis, Tatas,

    Birlas and Vodafone. Has coped well with regulatory

    changes.

    Continues to attract and delight

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    Future Strategies

    Translate its expertise in Indianmarkets to other emergingeconomies.

    This could call for acquisitionsglobally.

    Technology leadership is a must Airtel must ensure that its reliance

    on GSM technology does not renderit obsolete.

    Indian market inspite of being the

    worlds largest is still not matured.

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    Growth Factors

    R d M G th P th

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    Road Map Growth Path

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    DTHSERVICES/

    iPHONE/Blackberry

    Lowcost

    RuralTelephony

    2G/3G

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    THANK YOU !!