1. get closer to what you love
Group - 2

2. Summary
 India’s leading private telecom provider.
 Launched first cellular service in ‘95.
 Slow takeoff as fixed lines were preferred.
 NTP issued in ’99 and introduced tariff rebalancing.
 Replaced license fee with revenue sharing plan.
 Increase in subscriber growth and decrease in
ARPU.

3. Summary
 A joint venture with Seimens.
 Partnership with Emtel, MSI for license bidding.
 Provided service at Rs7.50, lesser than govt. ceiling
 @ Rs 8.40
 Expanding distribution channels through
supermarkets
 In ‘98, declared first profit.

4. Summary
 Derived advantage for low and high profit areas.
 In ‘02 provided national and international long
distance services.
 Acquired fixed line license in ‘95
 Foreign support by BT, SingTel & Warburg
Pincus.
 Bharti tele-ventures went public in ‘02.

5. Issues / Challenges
Slow take off with low volume users and low
usage
Emergence of WLL-M technology.
Emergence of Competitors
Focus on operational efficiency
Lack of funds

6. Analysis
Introduction Of NTP reduced barrier to entry
 Better connectivity & wider distribution
channels
 Brand Equity
 Thin profit margins  reduction in admin costs
 Advantage as switching costs were high

7. Recommendation
Revise price plans to capture more market
Enter WLL-M market
Enter the CDMA segment
 Focus on advertising

8. Research based Findings
 Structured into four strategic business units
( Mobile, Tele-media, Enterprise and Digital TV)
 Operates in 19 countries across Asia and Africa
The company offers mobile services, fixed line,
Broadband etc
 Airtel has 200 million customers across its operation

9. Research based Findings
 Airtel is the fifth largest telecom operator in the world
 Outsource everything except marketing, sales &
finance
 Bharti has recently roped in a strategic partner
Alcatel-Lucent
 Provides end-to-end telecom solutions to corporate
customers

10. Learning from the Case
 Relied on speed and instincts to win the first
round.
 Adapt new ways to compete in the market.
 Single minded devotion to the product.

11. Learning from the Case
 Cost per minute comes down rapidly with scale
economies.
 They wanted to cater to all strata’s of society.
 Employed direct sales strategies for pre-paid &
post-paid revenues