Airtel

Company Overview
Company Overview

•India’s largest integrated and the first private telecom

services provider with a footprint in all the 23 telecom
circles.
•Broadband & telephone services in 94 cities
•About 79,988,675 customers
•Bharti Infratel owns 42% of Indus Towers Limited.
•These two top providers of passive infrastructure services in
India
• Approx. revenue (for the financial year 2007-08) – Rs
270,000 million
 Product
ProductMix
Mix

•Prepaid mobile services

•Postpaid mobile services
•Broadband connection
•Landline phone connection
•Airtel Digital TV
•Calling Cards
•Wireless Internet
Airtel DTH
Airtel DTH
134 channels , customized
packages

Prices : Rs 2000 to Rs 3,500 as

initial installation charges.
Packages differ from Rs 150 to Rs
350, per month.

USP: Interactive services, eg.

iMatinee, iCity, iTravel, World
Space Radio etc.

Image source:www.saveondisk.com
 Customer Care AUGMENTED
PRODUCT

ACTUAL Product & Service

PRODUCT Quality

DigitalTV CORE PRODUCT

Feature
Brand
Name

Market Offering
Product Line
Packages launched in initial phase

Cost Channels Interactive

(p.a.) Included Session
South 3,500 134 10
platinum
Platinum 3,500 126 10
South gold 2,500 108 9
Gold 2,500 104 9
South silver 2,000 74 5
 Interactive Services

The new service provides new exclusive

applications such as

•iMatinee (to book cinema tickets),

•iLearn: is being powered by Edurite,
and developed by Infosys (screencap)
•iTravel (to browse and book travel
packages),
•iShop (to shop on TV for your favorite
brands),
•iCity (to get your city’s information)
•iAstro: daily predictions
•Widgets (to update yourself on latest
stock news).
•World Space Radio
 Games RADIO

Beat the stress with
exhaustive range of games.
All kinds of games-for
teenagers to all ages games.
Rest your eyes and relax with good
music from the various Radio
stations
Wide range of Radio channels from
WorldSpace radio.
 Major competitors

Dish TV
168 channels,7 movie channels,21
audio channels

Price between Rs 2,490-3,990 (initial

payment), Rs 100 for up to 85 channels,
Rs 300 for 140 channels

USP: Free gaming portal, multilingual

voice-overs coupled with astrological
services and customized sports.
Major competitors

TATA Sky
150 channels

Price Rs 2,499 for initial installation;

Rs 175 for 65 channels, Rs 310 for
123 channels

USP : Interactive offering like quiz,

story telling, broadcast like shrines
and cooking portals among other
offerings
 Major competitors

BIG TV

202 channels, 32 movie channels and

10 interactive channels

Price Rs 2,499 for initial installation,

Rs 100 for bouquet of 44 channels,
Rs 175 for a pack of 101 channels

USP: Movie channels on a monthly

subscription, niche channels at low
add-on charges, USB port in the set-
top box
Major Competitors
SUN DIRECT
110 Channels(initially no Hindi
channel)

Initial instalment of Rs.1999 with

one year free subscription,Rs.75 per
month
Add-ons such as the Hindi package,
the kids’ package, or the English
movie package, which cost Rs 20-
140 more.

USP: It’s not a rich man’s product.

Low cost makes it easily available.
 Major Competitor

Prasar Bharti owned DTH

service which is free to air
service which just need an
initial installment to buy set
top box.
Market Share of Various Players
Tata Sky, 2.2 Sun Direct, 1.3
Big Tv, 0.5

Dish TV, 4.4

Cable Tv, 80
 PRICING STRATEGY
• No. of channels in the packages and value added
services.
• Competitors prices in the market.
• Technology used in the digitalTV service.
• As per the current policy, the total foreign equity
including FDI/NRI/OCB/FII cannot exceed 49% and
within this FDI component not more than 20%,so price
has to be kept high for overcoming cost of expansion
and thus price.
• Usage based.
• ARPU is increasing unlike the telecom sectors.
 Threat of New Entrants

DTH market is always

crowded with 5 players

Bargaining power of Inter firm rivalry

supplier very high Bargaining power of
very high Buyers high

Transponders-very high
Price war Lots of options and
CPE suppliers-low Substitutes Price
litigation sensitive buyers
Content-very high

Threat of substitutes
very high

Cable TV-Very High

IPTV-High
Terrestrial-very low
ARPU in DTH services
 A
Co-branding

For Airtel-digital TV Airtel has

collaborated with companies like
world space radio and Infosys.
•‘See You At Home Soon’ - with a dozen celebrities, the ad has been
reported to be amongst the most watched ads on youtube.com,
recently.
•Teasers : Animated characters , viz. Masai (infotainment), Cowboy
(movies), Band (music) and Meercats (kids).
•DTH Services – costliest product category, these days. Estimated
expenditure : Rs 8 – 10 crore per month, with a total of over Rs 40 crore
spent on DTH advertising by the prominent players in the market.
•The three biggest players claims that they are not competing with each
other.
•Marketing penetration is only 3 %, with a total of 7.5 million DTH
users.
The Red Sofa
 Ways To Choose A Package

•Browse ‘n’ Buy

•Compare ‘n’n
Buy
•Package Wizard
 After Sales Services
•Recharge options are available for the digital TV which can
be obtained online and from dealers.

•Customer care is available as both telephonic and e-mail

help.

•Assistance is provided to operate the set top box(by

installation team).
Thank You