College work

3. Mobile GSM and CDMA based

4. Narrow band Voice, Internet, Fax

6. Key Policy Initiatives/milestones New Economic Policy (1991) Opening up of Telecom service sector (Mobile –metros) National Telecom Policy 1994 Telecom, key for development Inadequacy of public resource to meet demand Private sector to supplement Govt. Provide world class telecom service at affordable cost

7. Technology Trend Optical fiber based wirelinenetworks Wireless networks GSM,CDMA based mobile Next Generation Networks: Voice , Data, Video convergence Telecom networks increasingly software intensive

9. Need for Spectrum re-farming & re-allocation

10. Lack of Content in Local Languages

12. Market Structure Jammu & Kashmir Himachal Pradesh Punjab Uttar Pradesh W Haryana DELHI Rajasthan Uttar Pradesh E Bihar West Bengal Madhya Pradesh Gujarat KOLKATA Orissa Maharashtra MUMBAI Andhra Pradesh Karnataka METRO Circles CHENNAI A Circles Tamil Nadu B Circles Kerala C Circles Divided into 23 circles 4 metros 19 circles Further divided into A, B and C category. Division based on economic parameters and revenue potential Each circle has a licenses, which are a saleable. North Eastern States Source :COAI

13. Current Industry Structure Ministry of Communication & Information Technology Licensor Unified License Operators Dept of Telecom Fixed Line Operators Regulator Telecom Regulatory Authority of India National Long Distance Operators CDMA 1800Mhz International Long Distance Operators Judiciary Telecom Dispute Settlement Appellate Tribunal Wireless Operators GSM 900 & 1800 FDI in telecom recently revised to 74%. Government gets 15% of revenues from Unified Licensing

15. Protection of Consumer Interest

16. Nurture Conditions for Growth of Telecom in India

17. Major Activities

18. Reduced levies on Operators.

19. Reduced upper limit in tariff (Local, STD & ISD) and other Inter-operators tariffs.

20. Directives on number of network access service providers.

21. Policy guidelines on new services like 3G, Wi-MAX, Internet Telephony, Radio Paging, VSAT, etc.

23. Market share of telecom companies as on January, 2009

24. Porter five forces model

25. Threat of substitutes- LOW Some Substitutes: VOIP (Skype, Messenger etc.) Online Chat Email Satellite phones None of the above a major threat in current scenario, but a potential threat for near future.

26. Threat of new entrants- LOW Declining Average Revenue Per User. Infrastructure tenancy costs. Brand pull exists to some extent for brands like Airtel / Idea/ Vodafone. Extremely high infrastructure setup costs Spectrum License cost- Lotteries, auctions. Incumbent Advantages: Established brand image, Reliability of network

28. Shared tower infrastructure.

29. Limited pool of skilled managers and engineers especially those well versed in the latest technologies.

30. Medium cost of switching since changing their hardware would lead to additional cost in modifying the architecture.

32. Cut throat competition

33. Customer is price sensitive

34. Low switching costs

36. High Fixed Cost

37. 6-7 players in each region

38. 3 out of 4 BIG, present in each region

39. Very less time to gain advantage by an innovation (Eg. Caller tunes, life time card)

41. SWOT STRENGTHS WEAKNESS Largest Telecom Player in India - ~80Mn, 22.6% Strategic Alliance with other stakeholders in BhartiAirtel include Sony-Ericsson, Nokia - and Sing Tel Pan India Presence Strong Financials Outsourcing of Core Systems Lack of emerging market investment opportunity

43. Match Box Strategy – Scale of Penetration

44. Current Tele-Density – 30.6 is still low among developing countries

45. Low Broadband Penetration, Rural Telephony India centric – Major revenues from India Falling ARPU Intense Competition & Shortage of Bandwidth

46. Airtel – Strategy MANTRA : Focus on Core Competencies and Outsource the rest!

48. It has managed to work with the best of domain specialists globally and emerge as a world class entity.

50. Outsourcing deals in 2004 Ericsson was given the mandate to provide, manage and maintain the equipment as well as provide quality assurance in Airtel IBM was given the mandate to handle the back office requirements of Airtel’s presence in India

52. Aim to become a one stop shop for all telecommunication services under the Bharti umbrella.

53. Exploring opportunities in international markets.