INDEX

1. Overview of the industry

1.1Evolution of Telecom sector in India
1.2 History of Indian Telecom Industry
1.3 India's Telecom Market

1.4 Indian Telecom Industry

1.4.1 BHARTI AIRTEL

1.4.2 MTNL
1.4.3 RELIANCE INFOCOMM
1.4.4 TATA TELESERVICES

1.4.5 VSNL
1.4.6 HUTCH
1.4.7 IDEA
1.5 COMPANY MARKET SHARES
1.6 Market shares of public and Private Players
1.7 MAJOR MARKET TREND

1.8 MERGERS

1.9 Mobile Handsets

1.10 Milestone of Indian telecommunication industry

BHARTI AIRTEL

2. Profile of the organization

2.1 Partners

3. History of Bharti Airtel

3.1 Bharti Airtel Services Limited

3.2 Business Divisions3.3 Our Brand

3.4 Our Vision & promise

3.5 Corporate Responsibility at Bharti Airtel
3.6 Companies of Bharti Enterprises
4 Recent Achievements and Millstone

4.1 Mobile Services

4.2 Carriers 4.3 Corporate

4.4 Passive Infrastructure Services

4.5 Bharti Enterprises announces new Apex level Strategic Organization
Structure
4.6 Impact of Airtel

5 Organization Structure
6 Product range of Company
7 Performance of the company over the last few years

8 Financial status of the organization

Balance sheet
8.1 Market Capitalization
8.2 Key Players in the Indian Telecom Sector:

9 Future prospects

9.1 Bharti Airtel gets DTH license to invest Rs 150 crore

9.2 Bharti launches 200 crores fund to promote innovation in telecom 9.3
Airtel to launch 3G iPhone In October
10 A critical appraisal of the working organization
11 Suggestion for improvement
12 References

1. Overview of the industry

1.1Evolution of Telecom sector in India
The telecom network in India is the fifth largest network in the world meeting upwith
global standards. Presently, the Indian telecom industry is currently slated to an estimated
contribution of nearly 1% to India’s GDP
1.2 History of Indian Telecom Industry
In 1880, two telephone companies namely “The Oriental Telephone Company
Limited” and “The Anglo-Indian Telephone Company Limited” approached the Government of
India with the objective of establishing Telephone Exchanges across the country. Initially, the
Government denied the permission as it wanted to exercise its monopoly power over the
promising industry once it emerged. By the following year, it changed its decision and finally on
28th January,1882, license was granted to The Oriental Telephone Company Limited of England
for opening telephone exchanges at Kolkata, Mumbai, Chennai and Ahmedabad. The opening of
exchanges was followed by further innovations and improvements in all sections of the telecom
industry . However, while telephones were introduced in the major towns and cities across the
country during the British period, total number of telephones in India in 1948 was merely
80,000. The growth was negligible even after independence and the telephone was used as a
status symbol by the rich despite being an extremely essential device of public utility. This
sluggish rate of growth continued till 1991 when the number of telephones was 5.07 million. The
period post 1975 saw an resurgence in the India Telecom Market by virtue of a series of fruitful
decisions initiated by the Government which included: The separation of Department of Telecom
(DoT) from Post and Telegraph (P&T) in 1975.The formation of Mahanagar Telephone Nigam
Limited (MTNL) out of DoT to provide telecom services exclusively to Delhi and Mumbai. In
the 1990s, the telecom sector was opened up by the Government for private investment as a part
of Liberalization-Privatization-Globalization Policy. On 1st October, 2000, the Government
corporatized its operations wing under the name of Bharat Sanchar Nigam Limited (BSNL). To
top it all, the introduction of mobile communication is undeniably the biggest success story
scripted by the telecom industry. The Indian Telecommunications network with 110.01 million
connections is the fifth largest in the world and the second largest among the emerging
economies of Asia. Today, it is the fastest growing market in the world and represents unique
opportunities for U.S. companies in the stagnant global scenario. The total subscriber base,
which has grown by 40% in 2005, is expected to reach 250 million in 2007.According to
Broadband Policy 2004, Government of India aims at 9 million broadband connections and 18
million internet connections by 2007. The wireless subscriber base has jumped from 33.69
million in 2004 to 62.57 million in FY 2004-2005. In the last 3 years, two out of every three new
telephone subscribers were wireless subscribers. Consequently, wireless now accounts for 54.6%
of the total telephone subscriber base, as compared to only 40% in 2003. Wireless subscriber
growth is expected to bypass 2.5 million new subscribers per month by 2007. The wireless
technologies currently in use are Global System for Mobile Communications (GSM) and Code
Division Multiple Access (CDMA). There are primarily 9 GSM and 5 CDMA operators
providing mobile services in 19 telecom circles and 4 metro cities, covering 2000 towns across
the country. Evolution of the industry-Important Milestones History of Indian
Telecommunications Year 1851 First operational land lines were laid by the government near
Calcutta (seat of British power)1881 Telephone service introduced in India 1883 Merger with the
postal system 1923 Formation of Indian Radio Telegraph Company (IRT)1932 Merger of ETC
and IRT into the Indian Radio and Cable Communication Company (IRCC)1947 Nationalization
of all foreign telecommunication companies to form the Posts, Telephone and Telegraph (PTT),
a monopoly run by the government's Ministry of Communications 1985 Department of
Telecommunications (DOT) established, an exclusive provider of domestic and long-distance
service that would be its own regulator (separate from the postal system) 1986 Conversion of
DOT into two wholly government-owned companies: the Videsh Sanchar Nigam Limited
(VSNL) for international telecommunications 3 and Mahanagar Telephone Nigam Limited
(MTNL) for service in metropolitan areas.1997 Telecom Regulatory Authority of India
created.1999 Cellular Services are launched in India. New National Telecom Policy is
adopted.2000 DoT becomes a corporation, BSNL Major Players There are three types of players
in telecom services:

• State owned companies (BSNL and MTNL)

• Private Indian owned companies (Reliance Infocomm, Tata Teleservices,)

• Foreign invested companies (Hutchison-Essar, Bharti Tele-Ventures,

• Escorted, Idea Cellular, BPL Mobile, Spice Communications)BSNL

1.3 India's Telecom Market

Mobile services were commercially launched in India in August, 1995. Although in the
initial years, the high prices of handsets and allied services hindered the growth of the telecom
market in India, the New Telecom Policy in 1999 introduced several consumer-friendly
initiatives. The entry of private operators like Airtel, Hutch, Reliance, Tata, BPL, Idea etc.
created a competitive market which further reduced operational costs. Since then, the number of
mobile subscribers began to rise in leaps and bounds. The number of new mobile subscribers
rose from 16 million in 2003 to 65 million in 2006. With 156.31 million subscribers across the
country, India has become one of the fastest growing mobile markets in the world. Truly, the
growth of India's mobile market has surpassed that of the basic telephones by a huge margin.
Nevertheless it is the Indian Telecom Market which is having the last laugh.

1.4 Indian Telecom Industry

The telecom industry is one of the fastest growing industries in India. The NTP 1999
aimed at achieving a tele-density of 15% by 2010 but the same was achieved in September 2006,
four years ahead of the schedule. The tele-density as on September 2007 is 21.85%.The total
number of wireless subscribers in the country - including GSM, CDMA and fixed mobile - has
reached 209.08 million. The total subscriber number including both wireless and wire line has
already crossed 250mn and is expected to touch 500mn by 2010 or probably much earlier to that.
Of this the wireless segment will largely drive the growth. With the rapid increase in the cellular
base the service providers will be required to set up infrastructure to sustain growth and to offer
services in new circles. With falling revenue the cellular companies are looking at means of
cutting costs. An effective though not very popular means of cutting costs is infrastructure
sharing. In India there are few players providing such services at a very small scale. The growing
CAPEX/ownership cost and the high operating expenses incurred by each Telecom Operator on
a site ownership basis individually, as also prohibitively large CAPEX presents an opportunity
for infrastructure sharing in both these areas.GIL is focusing on this opportunity and would
practice the model of sharing infrastructure amongst various telecom operators.
1.4.1 BHARTI AIRTEL

Established in 1985, Bharti has been a pioneering force in the telecom sector with
many firsts and innovations to its credit, ranging from being the first mobile service in Delhi,
first private basic telephone service provider in the country, first Indian company to provide
comprehensive telecom services outside India in Seychelles and first private sector service
provider to launch National Long Distance Services in India. Bharti Tele-Ventures Limited was
incorporated on July 7, 1995 for promoting investments in telecommunications services. Its
subsidiaries operate telecom services across India. Bharti’s operations are broadly handled by
two companies: the Mobility group, which handles the mobile services in 16 circles out of a total
23 circles across the country; and the Infotel group, which handles the NLD, ILD, fixed line,
broadband, data, and satellite-based services. Together they have so far deployed around 23,000
km of optical fiber cables across the country, coupled with approximately 1,500 nodes, and
presence in around 200 locations. The group has a total customer base of 6.45 million, of which
5.86 million are mobile and 588,000 fixed line customers, as of January 31, 2004. In mobile,
Bharti’s footprint extends across 15 circles. Bharti Tele-Ventures' strategic objective is “to
capitalize on the growth opportunities the company believes are available in the Indian
telecommunications market and consolidate its position to be the leading integrated
telecommunications services provider in key markets in India, with a focus on providing mobile
services”.

1.4.2 MTNL
MTNL was set up on 1st April 1986 by the Government of India to upgrade the
quality of telecom services, expand the telecom network and introduce new services and to raise
revenue for telecom development needs of India’s key metros – Delhi, the political capital, and
Mumbai, the business capital. In the past 17 years, the company as taken rapid strides to emerge
as India’s leading and one of Asia’s largest telecom operating companies. The company has also
been in the forefront of technology induction by converting 100% of its telephone exchange
network into the state-of-the- art digital mode. The Govt. of India currently holds 56.25% stake
in the company. In the year 2003-04, the company's focus would be not only consolidating the
gains but also to focus on new areas of enterprise such as joint ventures for projects outside
India, entering into national long distance operation, widening the cellular and CDMA-based
WLL customer base, setting up internet and allied services on an all India basis MTNL has over
5 million subscribers and 329,374 mobile subscribers. While the market for fixed wire line
phones is stagnating, MTNL faces intense competition from the private players—Bharti,
Hutchison and Idea Cellular, Reliance Infocomm—inmobile services. MTNL recorded sales of
Rs. 60.2 billion ($1.38 billion) in the year 2002-03, a decline of 5.8 per cent over the previous
year’s annual turnover of Rs.63.92 billion.

1.4.3 RELIANCE INFOCOMM

Reliance is a $16 billion integrated oil exploration to refinery to power and textiles
conglomerate (Source: http://www.ril.com/newsitem2.html). It is also an integrated telecom
service provider with licenses for mobile, fixed, domestic long distance and international
services. Reliance Infocomm offers a complete range of telecom services, covering mobile and
fixed line telephony including broadband, national and international long distance services, data
services and a wide range of value added services and applications. Reliance India Mobile, the
first of Infocomm's initiatives was launched on December 28, 2002. This marked the beginning
of Reliance's vision of ushering in a digital revolution in India by becoming a major catalyst in
improving quality of life and changing the face of India. Reliance Infocomm plans to extend its
efforts beyond the traditional value chain to develop and deploy telecom solutions for India's
farmers, businesses, hospitals, government and public sector organizations. Until recently,
Reliance was permitted to provide only “limited mobility” services through its basic services
license. However, it has now acquired a unified access license for 18 circles that permits it to
provide the full range of mobile services. It has rolled out its CDMA mobile network and
enrolled more than 6 million subscribers in one year to become the country’s largest mobile
operator. It now wants to increase its market share and has recently launched pre-paid services.
Having captured the voice market, it intends to attack the broadband market.
1.4.4 TATA TELESERVICES

Tata Teleservices is a part of the $12 billion Tata Group, which has 93 companies,
over 200,000 employees and more than 2.3 million shareholders. Tata Teleservices provides
basic (fixed line services), using CDMA technology in six circles: Maharashtra (including
Mumbai), New Delhi, Andhra Pradesh, Tamil Nadu, Gujarat, and Karnataka. It has over 800,000
subscribers. It has now migrated to unified access licenses, by paying a Rs. 5.45 billion ($120
million) fee, which enables it to provide fully mobile services as well. The company is also
expanding its footprint, and has paid Rs. 4.17 billion ($90million) to DoT for 11 new licenses
under the IUC (interconnect usage charges) regime. The new licenses, coupled with the six
circles in which it already operates, virtually gives the CDMA mobile operator a national
footprint that is almost on par with BSNL and Reliance Infocomm. The company hopes to start
off services in these 11 new circles by August 2004. These circles include Bihar, Haryana,
Himachal Pradesh, Kerala, Kolkata, Orissa, Punjab, Rajasthan, Uttar Pradesh (East) & West and
West Bengal.

1.4.5 VSNL
On April 1, 1986, the Videsh Sanchar Nigam Limited (VSNL) - a wholly Government
owned corporation - was born as successor to OCS. The company operates a network of earth
stations, switches, submarine cable systems, and value added service nodes to provide a range of
basic and value added services and has a dedicated work force of about 2000 employees. VSNL's
main gateway centers are located at Mumbai, New Delhi, Kolkata and Chennai. The
international telecommunication circuits are derived via Intelsat and Inmarsat satellites and wide
band submarine cable systems e.g. FLAG, SEA-ME-WE-2 and SEA-ME-WE-3.The company's
ADRs are listed on the New York Stock Exchange and its shares are listed on major Stock
Exchanges in India. The Indian Government owns approximately 26 per cent equity, M/s
Panatone Finevest Limited as investing vehicle of Tata Group owns 45 per cent equity and the
overseas holding (inclusive of FIIs,ADRs, Foreign Banks) is approximately 13 per cent and the
rest is owned by Indian institutions and the public. The company provides international and
Internet services as well as a host of value-added services. Its revenues have declined from Rs.
70.89 billion ($1.62 billion) in 2001-02 to Rs. 48.12 billion ($1.1 billion) in 2002-03, with voice
revenues being the mainstay. To reverse the falling revenue trend, VSNL has also started
offering domestic long distance services and is launching broadband services. For this, the
company is investing in Tata Teleservices and is likely to acquire Tata Broadband.

1.4.6 HUTCH
Hutch’s presence in India dates back to late 1992, when they worked with local
partners to establish a company licensed to provide mobile telecommunications services in
Mumbai. Commercial operations began in November 1995. Between 2000 and March 2004,
Hutch acquired further operator equity interests or operating licences. With the completion of the
acquisition of BPL Mobile Cellular Limited in January 2006, it now provides mobile services in
16 of the 23 defined license areas across the country. Hutch India has benefited from rapid and
profitable growth in recent years. it had over 17.5 million customers by the end of June 2006.

1.4.7 IDEA
Indian regional operator IDEA Cellular Ltd. has a new ownership structure and grand
designs to become a national player, but in doing so is likely to become a thorn in the side of
Reliance Communications Ltd. IDEA operates in eight telecom “circles,” or regions, in Western
India, and has received additional GSM licenses to expand its network into three circles in
Eastern India -- the first phase of a major expansion plan that it intends to fund through an IPO,
according to parent company Aditya BirlaGroup.

1.5 COMPANY MARKET SHARES

Company Million Sub (Nov 2003) % share

BSNL 40.3 58.8

Reliance 6.1 8.9
Bharti 5.7 8.3
MTNL 4.9 7.2
Hutchison 2.9 4.2
Idea Cellular 2.1 3.0
BPL 1.4 2.1
Tata Teleservices 1.3 1.9
Spice 1.0 1.4
Escotel 0.8 1.1
Fascel 0.8 1.1
Aircel 0.9 1.4
Hexacom 0.2 0.3
Shyam Telelink 0.1 0.2

Telecom Policy Environment Indian telecommunications today benefits from among the
most enlightened regulation in the region, and arguably in the world. The sector, sometimes
considered the “poster-boy for economic reforms,” has been among the chief beneficiaries of the
post-1991 liberalization. Unlike electricity, for example, where reforms have been stalled,
telecommunications has generally been seen as removed from “mass concerns,” and thus less
subject to electoral calculations. Market oriented reforms have also been facilitated by lobbying
from India’s booming technology sector, whose continued success of course depends on the
quality of communications infrastructure. Despite several hiccups along the way, the Telecom
Regulatory Authority of India (TRAI), the independent regulator, has earned a reputation for
transparency and competence. With the recent resolution of a major dispute between cellular and
fixed operators (see below), Indian telecommunications, already among the most competitive
markets in the world, appears set to continue growing rapidly. While telecom liberalization is
usually associated with the post-1991 era, the seeds of reform were actually planted in the 1980s.
At that time, Rajiv Gandhi proclaimed his intention of “leading India into the 21st century,” and
carved the Department of Telecommunications (DOT) out of the Department of Posts and
Telegraph. For a time he also even considered corporatizing the DOT, before succumbing to
union pressure. In a compromise, Gandhi created two DOT-owned corporations: Mahanagar
Telephone Nigam Limited (MTNL), to serve Delhi and Bombay, and Videsh Sanchar Nigam
Limited (VSNL), to operate international telecom services. He also introduced private capital
into the manufacturing of telecommunication equipment, which had previously been a DOT
monopoly. These and other reforms were limited by the unstable coalition politics of the late
1980s. It was not until the early 1990s, when the political situation stabilized, and with the
general momentum for economic reforms, that telecommunications liberalization really took off.
In 1994, the government released its National Telecommunications Policy (NTP-94), which
allowed private fixed operators to take part in the Indian market for the first time (cellular
operators had been allowed into the four largest metropolitan centers in 1992). Under the
government’s new policy, India was divided into 20 circles roughly corresponding to state
boundaries, each of which would contain two fixed operators (including the incumbent), and two
mobile operators. As ground-breaking as NTP-94 was, its implementation was unfortunately
marred by regulatory uncertainty and over-bidding. A number of operators were unable to live
up to their profligate bids and, confronted with far less lucrative networks than they had
supposed, pulled out of the country. As a result, competition in India’s telecom sector did not
really become a reality until 1999. At that time the government’s New Telecommunications
Policy (NTP-99) switched from a fixed fee license to a revenue sharing regime of approximately
15%. This figure has subsequently been lowered (to10%-12%), and is expected to be reduced
even further over the coming years. Still, India continues to derive substantial revenue from
license fees ($800 million in 2001-2002), leading some critics to suggest that the government has
abrogated its responsibilities as a regulator to those as a seller. Another, perhaps even more
significant, problem with India’s initial attempts to introduce competition was the lack of
regulatory clarity. Private operators complained that the licensor – the DOT – was also the
incumbent operator. The many stringent conditions attached to licenses were thus seen by many
as the DOT’s attempt to limit competition. It was in response to such concerns that the
government in 1997 set up the Telecom Regulatory Authority of India (TRAI), the nation’s first
independent telecom regulator. Over the years, TRAI has earned a growing reputation for
independence, transparency and an increasing level of competence. Early on, however, the
regulator was beleaguered on all fronts. It had to contend with political interference, the
incumbent’s many challenges to its authority, and accusations of ineptitude by private players.
Throughout the late 1990s, TRAI’s authority was steadily whittled away in a number of cases,
when the courts repeatedly held that regulatory power lay with the central government. It was not
until 2000, with the passing of the TRAI Amendment Act, that the regulatory body really came
into its own. Coming just a year after NTP-99, the act marks something of a watershed moment
in the history of India telecom liberalization. It set the stage for several key events that have
enabled the vigorous competition witnessed today. Some of these events include:

• The corporatization of the DOT and the creation of a new state-owned telecom company,
Bharat Sanchar Nigam Ltd (BSNL), in 2000;

• The opening up of India’s internal long-distance market in 2000, and the subsequent drop
in long-distance rates as part of TRAI’s tariff rebalancing exercise;

• The termination of VSNL’s monopoly over international traffic in 2002,and the partial
privatization of the company that same year, with the Tata group assuming a 25% stake
and management control;

• The gradual easing of the original duopoly licensing policy, allowing a greater number of
operators in each circle;

• The legalization, in 2002, of IP telephony (a move that many believe was held up due to
lobbying by VSNL, which feared the consequences on its international monopoly);The
introduction in 2003 of a Calling Party Pays (CPP) system for cell phones, despite
considerable opposition (including litigation) by fixed operators;

• And, more generally, the commencement of more stringent interconnection regulation by

TRAI, which has moved from an interoperated “negotiations-based” approach (often
used by the stronger operator to negotiate ad infinitum) to a more rules-based approach.
1.6 Market shares of public and Private Players
Both fixed line and mobile segments serve the basic needs of local calls, long distance calls and
the international calls, with the provision of broadband services in the fixed line segment and
GPRS in the mobile arena. Traditional telephones have been replaced by the codeless and the
wireless instruments. Mobile phone providers have also come up with GPRS-enabled multimedia
messaging, Internet surfing, and mobile-commerce. The much-awaited 3G mobile technology is
soon going to enter the Indian telecom market. The GSM, CDMA, WLL service providers are all
upgrading them to provide 3G mobile services. Along with improvement in telecom services,
there is also an improvement in manufacturing. In the beginning, there were only the Siemens
handsets in India but now a whole series of new handsets, such as Nokia's latest N-series, Sony
Ericsson's W-series, Motorola's PDA phones, etc. have come up. Touch screen and advanced
technological handsets are gaining popularity. Radio services have also been incorporated in the
mobile handsets, along with other applications like high storage memory, multimedia
applications, multimedia games, MP3 Players, video generators, Camera's, etc. The value added
services provided by the mobile service operators contribute more than 10% of the total revenue.

1.7 MAJOR MARKET TREND

The telecoms trends in India will have a great impact on everything from the humble PC,
internet, broadband (both wireless and fixed), cable, handset features, talking SMS, IPTV, soft
switches, and managed services to the local manufacturing and supply chain. This report
discusses key trends in the Indian telecom industry, their drivers and the major impacts of such
trends affecting mobile operators, infrastructure and handset vendors. Higher acceptance for
wireless services Indian customers are embracing mobile technology in a big way (an average of
four million subscribers added every month for the past six months itself). They prefer wireless
services compared to wire-line services, which is evident from the fact that while the wireless
subscriber base has increased at 75 percent CAGR from 2001 to 2006, the wire-line subscriber
base growth rate is negligible during the same period. In fact, many customers are returning their
wire-line phones to their service providers as mobile provides a more attractive and competitive
solution. The main drivers for this trend are quick service delivery for mobile connections,
affordable pricing plans in the form of pre-paid cards and increased purchasing power among the
18 to 40 years age group as well as sizeable middle class – a prime market for this service. Some
of the positive impacts of this trend are as follows. According to a study, percent of mobile users
are willing to change their handsets every year to newer models with more features, which is
good news for the handset vendors. The other impact is that while the operators have only
limited options to generate additional revenues through value-added services from wire-line
services, the mobile operators have numerous options to generate non-voice revenues from their
customers. Some examples of value-added services are ring tones download, colored ring back
tones, talking SMS, meioses (a brief video programmer episode designed for mobile phone
viewing) etc. Moreover, there exists great opportunity for content developers to develop
applications suitable for mobile users like mobile gaming, location based services etc. On the
negative side, there is an increased threat of virus – spread through mobile data connections and
Bluetooth technology – in mobile phones, making them unusable at times. This is good news for
anti-virus solution providers, who will gain from this trend.

1.8 MERGERS

Demand for new spectrum as the industry grows and the fact the spectrum allocation in done on
the basis of number of subscribers will force companies to merge so as to claim large number of
subscribers to gain more spectrum as a precursor to the launch of larger and expanded services.
However it must also be noted that this may very well never happen on account of low telecom
penetration.

The leading cellular service providers have the following number of

subscribers:

Service Provider No. of CDMA Subscribers No. of GSM Subscribers

Reliance 2.75 crores 38.76 lakhs

Tata 1.07 crores

Airtel 3.37 crores

 MTNL 24.98 lakhs

BSNL 2.44 crores

Hutch 2.44 crores

Idea 1.3 crores

Spice 25.56 lakhs

BPL 10.62 lakhs

Aircel 48 lakhs

1.9 Mobile Handsets

In volume terms, India witnessed a total addition of around 15.4 million handsets in
2004 - 05. GSM contributed around 79.5 per cent, with 12.2 million handsets whereas CDMA
contributed around 20.5 per cent, i.e., around 3.16 million. While GSM grew around 49 per cent,
CDMA saw a decline of around 44 per cent. Overall, the market grew by around 13 per cent.
GSM contributed 84 per cent of growth whereas CDMA contributed around 16 per cent.The
second volume for 2004-05, which will focus on telecom services and service providers, is slated
for release in the first week of July 2005.

Top ten vendors (FY 2004-05)

Rank Vendor Revenue Rank Vendor Revenue (in Rs

(in Rs cr) cr)
1 Nokia 7,621 6 LG Electronics 2,314
2 Ericsson 3,528 7 Nortel 1,615
3 Cisco 2,456 8 TCS 1,595
4 Wipro 2,365 9 ITI 1,505
5 Motorola 2,322 10 Infosys 1319
1.10 Milestone of Indian telecommunication industry
Telecommunication Reforms in India revolutionized the telecom industries sector in
India, which is an important factor for the growth of the Indian telecom sector and in turn helped
the Indian economy to perform well for the past few years. The Telecommunication reforms in
India were development and growth oriented. Technological advancements and innovations
contributed largely towards the reformation of the telecom sector in India. The sector of telecom
was a monopoly under the Central Government of India. During the 1990s this sector faced
fierce challenges due to the development in the technological sector. The sector was privatized
and with the abolition of the monopoly new player entered the consumer market. The
competition increased in the telecom sector, the rates were slashed in order to grab the share of
the market and the customers were provided with better services. The telecommunication
reforms in India started in the eighties with the mission better communication. This is regarded
as the first phase of the reformation process. Several private manufacturers of tailor made
equipments entered the market. There were private developer for indigenous technologies and
the franchisee for STD/ISD and PCO increased. The Videsh Sanchar Nigam Limited (VSNL)
and Mahanagar Telephone Nigam Limited (MTNL) were set up under the Government of India's
Department of Telecommunication. The second phase of telecommunication reforms in India
came in the early nineties. The introduction of the New Economic Policy (NEP) in the year 1991
was a landmark in the history of telecom industry sector in India. The manufacturing of
equipments pertaining to telecom sector was decentralized and several value added services were
introduced into the market. The telecom services were divided into basic telephony, radio paging
and cellular mobile The TRAI was established an independent regulatory body pertaining to
telecom sector. The growth of the private sector increased. The third phase of the
telecommunication reforms in India took place in the period of the late nineties. The government
of India introduced the New Telecom Policy 1999. The TRAI was endowed with more power.
The concept of revenue sharing was introduced to replace the fixed license fee. The National
Long Distance was introduced with free entrance. Moreover, there was introduction of
International Long Distance schemes. The Bharat Sanchar Nigam Limited (BSNL), a corporate
body of the telecom service sector was formed, followed by the introduction of the Internet to the
Indian market. Impact of Telecommunication Reforms in India.

• The rates of the National Long Distance were cut down by 60%

• The prices of the hand sets and telephone equipments were reduced

• The charges on calls were reduced by 8 times

• The introduction of the cellular mobile phone

 BHARTI AIRTEL

2. Profile of the organization

Bharti Airtel is one of India's leading private sector providers of telecommunications
services based on an aggregate of 66,689,943 customers as on April 30, 2008, consisting of
64,370,434 GSM mobile and 2,319,509 Bharti Telemedia subscribers.

The businesses at Bharti Airtel have been structured into three individual strategic business units
(SBU’s) - mobile services, telemedia services (ATS) & enterprise services. The mobile services
group provides GSM mobile services across India in 23 telecom circles, while the ATS business
group provides broadband & telephone services in 94 cities. The enterprise services group has
two sub-units - carriers (long distance services) and services to corporate. All these services are
provided under the Airtel brand.

Company shares are listed on The Stock Exchange, Mumbai (BSE) and The National Stock
Exchange of India Limited (NSE).

2.1 Partners

Strategic Equity Partners

We have a strategic alliance with SingTel, which has enabled us to further enhance and expand
our telecommunications networks in India to provide quality service to our customers. The
investment made by SingTel in Bharti is one of their largest investments made in the world
outside Singapore.

Equipment and Technology Partners

We believe in deploying the finest technology and operating state-of-the-art networks.

Equipment suppliers for our mobile networks include Ericsson, Nokia and Huawei. In case of the
telephone services and long distance networks, equipment suppliers include Siemens, Nortel,
Corning, CISCO and WIPRO among others. We have an information technology alliance with
IBM for our group - wide information technology requirements. We also have a technology
alliance with Nortel for call center technology requirements.

» Bharti Airtel
» Bharti Teletech
» Telecom Seychelles
» Bharti Telesoft
» Bharti Del Monte India
» Bharti Retail
» Bharti AXA General Insurance
» Bharti AXA Life Insurance
» Bharti AXA Investment Managers
» Bharti Resources
» Jersey Airtel
» Guernsey Airtel
» Bharti Foundation

3. History of Bharti Airtel

Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. The Bharti
Group has a diverse business portfolio and has created global brands in the telecommunication
sector. Bharti has recently forayed into retail business as Bharti Retail Pvt. Ltd. under a MoU
with Wal-Mart for the cash & carry business. It has successfully launched an international
venture with EL Rothschild Group to export fresh agri products exclusively to markets in Europe
and USA and has launched Bharti AXA Life Insurance Company Ltd under a joint venture with
AXA, world leader in financial protection and wealth management.Airtel comes to you from
Bharti Airtel Limited, India’s largest integrated and the first private telecom services provider
with a footprint in all the 23 telecom circles. Bharti Airtel since its inception has been at the
forefront of technology and has steered the course of the telecom sector in the country with its
world class products and services. The businesses at Bharti Airtel have been structured into three
individual strategic business units (SBU’s) - Mobile Services, Airtel Telemedia Services &
Enterprise Services. The mobile business provides mobile & fixed wireless services using GSM
technology across 23 telecom circles while the Airtel Telemedia Services business offers
broadband & telephone services in 94 cities. The Enterprise services provide end-to-end telecom
solutions to corporate customers and national & international long distance services to carriers.
All these services are provided under the Airtel brand. Bharti Airtel Limited, a group company of
Bharti Enterprises, is India’s leading integrated telecom services provider with an aggregate of
50 million customers. Bharti Airtel has been rated among the best performing companies in the
world in the Business Week IT 100 list 2007.Bharti Airtel is structured into three strategic
business units - Mobile services, Broadband & Telephone (B&T) services and Enterprise
services. The mobile business provides mobile & fixed wireless services using GSM technology
across 23 telecom circles. The B&T business provides broadband & telephone services in 94
cities. The Enterprise services provide end-to-end telecom solutions to corporate customers and
national & international long distance services to carriers. All these services are provided under
the Airtel brand. Airtel’s high-speed optic fibre network currently spans over 53,000 kms
covering all the major cities in the country. The company has two international landing stations
in Chennai that connects two submarine cable systems - i2i to Singapore and

SEA-ME-WE-4 to Europe. For more information, visit www.bhartiairtel.in.Bharti Airtel Limited

(Bharti Airtel), is an Indian telecom services provider. The Company has four business units:
Mobile Services, Telemedia Services, Enterprise Services Carriers and Enterprise Services
Corporate. Mobile Services offers mobile and fixed wireless services (FWP) using global system
for mobile communications (GSM) technology on 900 megahertz and 1800 megahertz. The
Company offers post-paid, pre-paid, roaming and value added services. The Company provides
broadband (DSL) and telephone services (fixed line) in 15 circles spanning over 94 cities across
India. Enterprise Services provides a broad portfolio of services to large enterprise and carrier
customers. Carrier business unit provides long distance wholesale voice and data services to
carrier customers, as well as to other business units of Airtel. Corporate business unit provides
total telecom solutions through a single window. On September 28, 2007, the Company
completed the acquisition of Network i2i Ltd.Telecom giant Bharti Airtel is the flagship
company of Bharti Enterprises. The Bharti Group, has a diverse business portfolio and has
created global brands in the telecommunication sector. It has successfully launched an
international venture with EL Rothschild Group to export fresh agri products exclusively to
markets in Europe and USA and has launched Bharti AXA Life Insurance Company Ltd under a
joint venture with AXA, world leader in financial protection and wealth management.Bharti
Airtel Limited is India’s largest integrated and the first private telecom services provider with a
footprint in all the 23 telecom circles. Bharti Airtel since its inception has been at the forefront of
technology and has steered the course of the telecom sector in the country with its world class
products and services. The businesses at Bharti Airtel have been structured into three individual
strategic business units (SBU’s) - mobile services, broadband & telephone services (B&T) &
enterprise services. The mobile business provides mobile & fixed wireless services using GSM
technology across 23 telecom circles while the B&T business offers broadband & telephone
services in 94 cities. The Enterprise services provide end-to-end telecom solutions to corporate
customers and national & international long distance services to carriers. All these services are
provided under the Airtel brand.Bharti Enterprises is one of India’s leading business groups with
interests in telecom, agri business, insurance and retail. Bharti Airtel, India’s leading integrated
telecom company has been at the forefront of the telecom revolution and has transformed the
telecom sector with its world-class services built on leading edge technologies. Bharti has been a
pioneering force in the telecom sector and today enjoys a strong nationwide presence. Bharti has
grown successfully in partnership with various leading companies of the world - Singapore
Telecom, Vodafone, Warburg Pincus, and British Telecom, to name a few. The other businesses
in the group are Beetel, communication and media devices, Bharti AXA, a financial services JV
with AXA of France, and Bharti Del Monte India, a joint venture with Del Monte to offer fresh
and processed fruits and vegetables in the domestic as well as international markets. Bharti has
recently forayed into the retail sector with its subsidiary Bharti Retail. It has also entered into a
joint venture with Wal-Mart for setting up the supply chain, logistics and cash and carry to
support the burgeoning retail market in India.
3.1 Bharti Airtel Services Limited.

BASL is a wholly owned subsidiary and strategic business partner of Bharti Airtel
Limited in the Customer Experience domain. It is a specialist organization which is creating a
world-class front line customer-interfacing ecosystem for Airtel, and thus, would play a critical
role in realizing Airtel’s vision of being the most admired brand in India by 2010Augmenting
customer experience by enhancing performance and delivering greater efficiencies is the key
focus area at Bharti Airtel. BASL, therefore addresses the entire value chain in the customer
experience domain with its vast repertoire of solutions in areas such as talent acquisition,
competency development, performance management and employee engagement.BASL impacts
business performance by sourcing world-class frontline talent, reducing attrition, increasing
productivity and enhancing customer delight. Besides, it not only enhances productivity of over
20,000 frontline employees on its rolls but also designs and implements learning and
development solutions for a large number of people employed with Airtel’s associates or channel
partners, who are instrumental in creating branded customer experience for Airtel.

3.2 Business Divisions

Mobile services: Bharti Airtel offers GSM mobile services in all the 23-telecom circles of India
and is the largest mobile service provider in the country, based on the number of customers.

Airtel Telemedia Services: Bharti Airtel offers GSM mobile services in all the 23-telecom
circles of India and is the largest mobile service provider in the country, based on the number of
customers.

Enterprise Services (Carrier Services): The Company compliments its mobile and broadband &
telephone services with national and international long distance services. It has over 35,016 route
kilometers of optic fibre on its national long distance network. For international connectivity to
east, it has a submarine cable landing station at. For international connectivity to the west, the
Company is a member of the South East Asia-Middle East-Western Europe – 4 (SEA-ME-WE-
4) consortium along with 15 other global telecom operators
Enterprise Services (Corporate): The group focuses on delivering telecommunications services
as an integrated offering including mobile, broadband & telephone, national and international
long distance and data connectivity services to corporate, small and medium scale enterprise

3.3 Our Brand

Airtel was born free, a force unleashed into the market with a relentless and
unwavering determination to succeed. A spirit charged with energy, creativity and a team driven
“to seize the day” with an ambition to become the most globally admired telecom service. Airtel,
after just ten years, has risen to the pinnacle of achievement. As India's leading
telecommunications company Airtel brand has played the role as a major catalyst in India's
reforms, contributing to its economic resurgence. Today we touch people’s lives with our Mobile
services, Telemedia services, to connecting India's leading 1000+ corporate. We also connect
Indians living in USA with our call home service.

3.4 Our Vision & promise

By 2010 Airtel will be the most admired brand in India:

• Loved by more customers

• Targeted by top talent

• Benchmarked by more businesses

We at Airtel always think in fresh and innovative ways about the needs of our customers and
how we want them to feel. We deliver what we promise and go out of our way to delight the

customer with a little bit more

3.5 Corporate Responsibility at Bharti Airtel

At Bharti, CSR is a way of life. Each department and employee strives to be

sensitive to the stakeholders and environment within their work context. Bharti encourages
employees to take decisions and design business-linked processes that are sensitive to
communities and environment. Corporate Social Responsibility (CSR) in Bharti encompasses
much more than only social outreach programs. It is an integral part of the way Bharti conducts
its business. The essence of Bharti’s commitment to Corporate Social Responsibility is
embedded in the ‘Corporate Values’, which stem from its deepest held beliefs. These Values are:

• To be responsive to the needs of our customers

• To trust and respect our employees

• To continuously improve our services – innovatively and expeditiously

• To be transparent and sensitive in our dealings with all stakeholders

• We encourage our employees to take decisions and design business processes, keeping in
mind the following:

• Ethics, fairness and being correct

• Meeting and going beyond compliances and legal requirements

• Showing respect and sensitivity towards stakeholders and communities, and

• Nurturing the environment

• We practice our CSR beliefs and commitments through a three-pronged approach:

• Engaging with stakeholders

 • Ensuring stakeholder sensitive policies and practices

• Undertaking programs for our employees, community and environment

Bharti Airtel sensitizes its employees towards CSR issues at various forums. We feel that it is
important that each employee should understand the importance of environmental, social and
economical aspects while taking business decisions. At Bharti, each employee is sensitized
towards CSR issues and thus operations at the ground level are influenced. Such sensitization
exercises have resulted in many socially and environmentally sensitive decisions on the ground.
For example, Confidence Plan for hearing impaired people, covers noise-making DG sets at
extra cost, investing in consumer awareness campaigns to ensure safe use of mobile are some
examples of the above.Bharti Airtel has the largest customer base with 31% market share,
followed by Hutch and BSNL with each holding 22% market share. The 2007 budget has
brought further relief to the customers with the reduction in the tariffs, both local and long
distance, and with slashing down the roaming rentals. This is likely to lead to even more people
going for cellular services and more and more use of the value added services. However, landline
telephony is likely to remain popular, too, in the foreseeable future. MTNL, the largest landline
service provider, has recently taken some bold initiatives to retain its market share and, if
possible, expand it. Bharti Enterprises is a pioneer in telecom sector and the group is widening its
horizons by entering new business areas such as insurance and retail. Bharti Enterprises has
created a vantage position for itself in the global telecommunications sector. Bharti Airtel
Limited occupies numero uno status in mobile telephony in India while its brand 'Beetel' is the
largest manufacturer and exporter of world class telecom terminals. Founder of Bharti Group is
Sunil Mittal. In 1983, Sunil Mittal entered into an agreement with Germany's Siemens to
manufacture the company's push-button telephone models for the Indian market. In 1986, Sunil
Bharti Mittal incorporated Bharti Telecom Limited (BTL) and his company became the first in
India to offer push-button telephones, establishing the basis of Bharti Enterprises. This first-
mover advantage allowed Sunil Mittal to expand his manufacturing capacity elsewhere in the
telecommunications market. By the early 1990s, Sunil Mittal had also launched the country's
first fax machines and its first cordless telephones. In 1992, Sunil Mittal won a bid to build a
cellular phone network in Delhi. In 1995, Sunil Mittal incorporated the cellular operations as
Bharti Tele-Ventures and launched service in Delhi. In 1996, cellular service was extended to
Himachal Pradesh. In 1999, Bharti Enterprises acquired control of JT Holdings, and extended
cellular operations to Karnataka and Andhra Pradesh. In 2000, Bharti acquired control of Sky
cell Communications, in Chennai. In 2001, the company acquired control of Spice Cell in
Calcutta. Bharti Enterprises went public in 2002, and the company was listed on Mumbai Stock
Exchange and National Stock Exchange of India. In 2003, the cellular phone operations were
rebranded under the single AirTel brand. In 2004, Bharti acquired control of Hexacom and
entered Rajasthan. In 2005, Bharti extended its network to Andaman and Nicobar. Today, Airtel
is the largest cellular service provider in India.

3.6 Companies of Bharti Enterprises

Bharti Airtel: Bharti Airtel is India's leading provider of telecommunications services. The
company provides GSM mobile services across India in 23 telecom circles and broadband &
telephone service in 90 cities.

Bharti Teletech Ltd.: Bharti TeleTech manufactures and exports world-class telecom
equipment under the brand Beetel'. It is the only Indian telephone company to be present in 30
countries mapping 5 continents. The company's product range include Basic Telephones, Caller
ID Phones, Caller ID Boxes, Cordless Phones, 2.4 GHz Digital Cordless Phones, DECT 1.8 GHz
Phones, and Set Top Boxes.

Telecom Seychelles Ltd: Telecom Seychelles Ltd provides comprehensive telecom services
including GSM Cellular, PSTN (Fixed Lines), Fax and Data, International Roaming,
connectivity to Internet Services, Maritime Telecom Services (INMARSAT) and International
Collect and Credit Card calling, in Seychelles, under the brand 'Airtel.

Bharti Telesoft Ltd: Bharti Telesoft Ltd provides value added services and solutions to wireless
and wire line carriers worldwide. Bharti Telesoft Ltd ha deployed products and solutions in 25
countries to over 100 networks, and has a customer base of 150 million across 5 continents.

TeleTech Services (India) Ltd: TeleTech Services (India) Ltd is a joint venture between
TeleTech Holdings, Inc., world's leading full-service provider of business process outsourcing
and Bharti TeleTech Ltd. The company offers offer the entire spectrum of front-to-back-office
business processes ranging from voice and non-voice customer support, back office
administration (including credit and collections, account maintenance, application processing,
claims processing, asset management, document management etc.), sales and marketing
(including database marketing, marketing support, web sales and marketing etc.) to global
customers.

Field Fresh Foods Pvt Ltd: Field Fresh Foods (P) Ltd is an equal partnership venture between
Bharti Enterprises and ELRo Holdings India Ltd, an investment company of the Rothschild
family. The company provides premium quality fresh produce to the markets worldwide and
promotes world class standards for agricultural practices, progressive farming techniques &
identification and adoption of appropriate technologies.

Bharti Retail Pvt Ltd: Bharti Retail Pvt Ltd. is a 100% subsidiary of Bharti Enterprises. Bharti
Retail is planning to launch its retail outlets in multiple consumer friendly formats in several
cities across India

Bharti Foundation: Bharti Foundation was set up in 2000, with the vision, “To help
underprivileged children and young people of our country realize their potential”. It aims to
create and support programs that bring about sustainable changes through education and the use
of technology and information.

Jersey Airtel Ltd: Jersey Airtel, a subsidiary of Bharti, offers world-class mobile services in
Jersey (Channel Islands) over its full 2G, 3G and HSDPA enhanced network. The Company
brings market-leading products and services to its customers under Airtel-Vodafone brand.

Bharti AXA General Insurance Company: Bharti AXA General Insurance is a joint
venture between Bharti Enterprises and AXA, world leader in financial protection and wealth
management. The company was incorporated in July 2007 and will bring to the Indian market a
full suite of general insurance solutions to meet the needs of businesses and individuals alike.

4 Recent Achievements and Millstone

Bharti Airtel Limited, India’s leading telecommunication provider company, today
said that it has achieved the 60 million customer mark. This landmark has catapulted Bharti
Airtel into the club of top mobile operator in the world in terms of subscriber base. The 60
million customer base covers mobile as well as fixed line and broadband customers.
Commenting on this major global landmark, Mr. Sunil Bharti Mittal, Chairman and Managing
Director, Bharti Airtel said, “To be amongst the top global Telco is a significant achievement not
only for us but also for the Indian telecom industry. This landmark once again underlines the
strength of India’s telecom story and Bharti Airtel is proud to have played a pioneering role in
providing affordable telecom services to millions of people across every corner of the country.”
Added Mr. Manoj Kohli, President & CEO, Bharti Airtel, "This is a major milestone in our
journey towards the 100 million customers mark and gives the company a truly global scale.
Over the last few months, we have recorded phenomenal customer growth and this is a testimony
to the depth and width of our network as well as our focus on providing affordable services to
all. We are fully committed to taking our network deeper into rural India." Bharti Airtel is
amongst the fastest growing telecom companies in the world. The company crossed the 50
million customer mark in October 2007. The company added the next 10 million customers
across mobile, fixed line and broadband in just over 4 months. The company had crossed the 10
million customer mark in January 2005 and in July 2006 it crossed the 25 million customer
mark.

In the mobile business, Bharti Airtel plans to make considerable investments in Network
expansion to establish presence in all census towns and over 500,000 villages across India by
2010, thereby covering 95% of the country’s total population. The company’s strategic focus
will be on further strengthening the Airtel brand through best-in-class customer service, which is
backed by wide national distribution.
In the Enterprise business, Bharti Airtel will invest substantially in the long distance business
to achieve the scale of a global carrier within next 2-3 years. It is also strengthening the corporate
business towards becoming a preferred managed services partner for the top 2000 corporations.
In Broadband & Telephone SBU, Bharti Airtel will initiate large-scale deployments of
broadband network infrastructure in 94 towns, with a sharp focus on the home and SME
segments. It is readying to offer triple play to its customers with the launch of its IPTV service.
The company is also looking at commencing national DTH operations by the end of the current
fiscal.

• Overall customer base crosses 7.17 crore.

• Highest ever-net addition of 75.09 lakh customers in a single quarter.

• Market leader with a market share of all India wireless subscribers at 24.2%.

• Total Revenues of Rs. 8,483 crore (up 44% Y-o-Y).

• EBITDA of Rs. 3,522 crore (up 44% Y-o-Y).

• Cash Profit of Rs. 3,339 crore (up 27% Y-o-Y).

• Net Income of Rs. 2,025 crore (up 34% Y-o-Y).

• Bharti Airtel crosses the 50 million customer mark Becomes the fastest private telecom
company in the world to achieve this milestone.

• Enters into the league of the world’s top telecom companies, moves towards top 5 global
mobile companies .

• Adds last 25 Million in just 14 months, accelerates towards the 100 million customer
mark .

• Rapidly expands network, to roll out across all census towns and over 5,00,000 villages –
covering over 95% of the population.
 • Villages – covering over 95% of the population.

We are one of India’s leading providers of telecommunication services with a nationwide

presence in all the 23 licensed jurisdictions (also known as Telecom Circles). We served an
aggregate of 71,777,448 customers as of June 30, 2008; of whom 69,383,716 subscribe to our
GSM services and 2,393,732 use our Telemedia Services either for voice and/or broadband
access delivered through DSL. We are the largest wireless service provider in the country, based
on the number of subscribers as of June 30, 2008. We also offer an integrated suite of telecom
solutions to our enterprise customers, in addition to providing long distance connectivity both
nationally and internationally. All these services are rendered under a unified brand “Airtel” .The
Company also deploys, owns and manages passive infrastructure pertaining to telecom
operations under its subsidiary Bharti Ingrates Limited. Bharti Ingrates owns 42% of Indus
Towers Limited.Bharti Infratel and Indus Towers are the two top providers of passive
infrastructure services in India

4.1 Mobile Services

We offer mobile and fixed wireless services (FWP) using GSM technology on
900MHz and1800MHz bands, and are the largest wireless service provider in the country, based
on the number of customers. Our 69,383,716 mobile customers accounted for a market share of
24.2% of wireless market, as on June 30, 2008. We offer post-paid, pre-paid, roaming and value
added services through our extensive sales and distribution channel covering 923,472 outlets.
Our network is present in 5,048 census towns and 364,287 non-census towns and villages in
India, thus covering approximately 74% of the country’s population. Our network operating
centers, which monitor the health of our mobile network are located in Gurgaon, near Delhi, and
Chennai.Telemedia Services – We provide broadband (DSL) & telephone services (fixed line) in
94 cities with growing focus on new media solutions and foray into IPTV and DTH businesses.
We had 2,393,732 customers as on June 30, 2008 of which 35.6% were subscribing to broadband
/internet services. The strategy of our Telemedia business is to focus on the Cities with high
revenue potential, excepting for DTH which will be an all India offering. Our product offering in
this segment includes supply and installation of fixed-line telephones providing local, national
and international long-distance voice connectivity and broadband Internet access through DSL.
The business also provides value added services such as intelligent network based advanced
management services, viz. toll free numbers, virtual private automatic branch exchange
networks, ring back tones and Call forwarding among others. Enterprise Services - Enterprise
Services provides a broad Portfolio of services to large Enterprise and Carrier customers. This
division comprises of the Carrier and Corporate business unit. Enterprise Services is regarded as
the trusted .Communications partner to India's leading organizations, helping them to meet the
challenges of growth.

4.2 Carriers

Carrier business unit provides long distance wholesale voice and data services to
carrier customers as well as to other business units of Airtel. It also offers virtual calling card
services in the overseas markets. The business unit owns a state of the art national and
international long distance network infrastructure enabling it to provide connectivity services
both within India and connecting India to the world. The national long distance infrastructure
comprises of 78,540 Rkms of optical fiber, over 1500 MPLS and SDH POPs and over 900 POIs
with the local exchanges, providing a pan India reach. The international infrastructure includes
ownership of the i2isubmarine cable system connecting Chennai to Singapore, consortium
ownership of the SMW4 submarine cable system and investment in capacities across a number
of diverse submarine cable systems across transatlantic and transpacific routes. In recent past it
has announced investments in new cable systems such as Asia America Gateway (AAG), India
Middle East and Western Europe (IMEWE), Unity North, & EIG (Europe India Gateway).

4.3 Corporate

This business unit delivers end to end telecom solutions to India’s large corporate
as well as small and medium enterprises. It serves as the single point of contact for all
telecommunication needs for corporate customers in India by providing full suite of
communication services across data, voice and managed services. It specializes in providing
customized solutions to address unique requirements of different industry verticals; BFSI,
IT,ITeS, Manufacturing and distribution, media, education, Telecom, Government and PSUs and
retail among others. Backed by the alliances with leading technology companies worldwide and
state of the art infrastructure, it offers complete range of telecom solutions. These solutions
enable corporate to network their offices within India and across the globe, provide them
infrastructure to run business critical applications and provide them means to connect with their
customers, vendors and employees. These services include; Internet, MPLS -VPN, domestic and
international private leased circuits, Satellite services (VSAT),Audio & Video conferencing,
Data centre services, Managed network services, corporate value added services, EPBX,Centrex,
Contact centre solutions.

4.4 Passive Infrastructure Services

Bharti Infratel provides passive infrastructure services on a non-discriminatory

basis to all telecom operators in India. Bharti Infratel deploys, owns and manages passive
infrastructure on an all India basis. The company had over 58,000 towers as on June 30, 2008,
out of which approx 30,000 towers would be transferred to Indus Towers Ltd (a Joint Venture
between Bharti Infratel, Vodafone & Idea Cellular) for 16 circles.

4.5 Bharti Enterprises announces new Apex level Strategic Organization

Structure

• Bharti Enterprise to invest in, build and grow businesses that make a positive difference
to the lives of people and partner India’s economic growth.
 • Reinforces Bharti Enterprises strategic intent to continue to lead in the market, build new
businesses and reinforce its best in class governance model. The new apex level structure
takes this vision & strategy forward.

• Bharti Enterprises will be the strategic architect for all businesses of Bharti – Telecom,
Retail & Wholesale, Communication & media devices, Insurance & Financial services,
Agri business, Realty, software / BPO & Bharti Foundation.

• Strengthens empowerment & accountability for business leaders and further enhances
professionalism. Bharti Enterprises will set overall direction, focus on macro strategies &
business reviews and ensure a continued senior leadership pipeline.

Sunil Bharti Mittal to lead Bharti Enterprises as the Chairman and Group CEO. Rakesh B Mittal
will be Vice Chairman, Rajan B Mittal & Akhil Gupta will be Managing Directors. Group Lead
Directors, Group/Corporate Directors to form core of the Bharti Enterprises team.

4.6 Impact of Airtel

Bharti Airtel Services Limited is committed to be a valuable business partner of Bharti Airtel in
achieving its vision of being the most admired brand in India by 2010. Besides, it impacts
productivity of over 20,000 professionals employed with BASL, who are instrumental in creating
branded customer experience for Airtel

Increased Customer Satisfaction

Enhanced Employee Satisfaction

Increased Productivity

Effective Attrition Management

Enhanced Organizational Development

5 Organization Structure
As an outcome of a restructuring exercise conducted within the company; a
new integrated organizational structure has emerged; with realigned roles, responsibilities and
reporting relationships of Bharti’s key team players. With effect from March 01, 2006, this
unified management structure of 'One Airtel' will enable continued improvement in the delivery
of the Group’s strategic vision.

Bharti Airtel - Organization Structure

Bharti Enterprises - Organization Structure
 6 Product range of Company
Mobile: Home phones, Broadband and Internet, Black Berry, Email on the go, Calling cards, I
Phone 3 G, Wireless Internet.IPR Sim, life time prepaid , Nokia and Huawei mobile with Life
prepaid. Recharge coupon, Easy recharge, Digital TV

Services: Data and IP solutions, Voice Solutions, conferencing, Mobile banking, mobile
recharge,Internat banking, Ring tone ,24 hour customer care.

7 Performance of the company over the last few years

Annual results in brief (Rs crore)

8 Financial status of the organization

 (Rs
Balance sheet crore)
Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04
Sources of funds
Owner's fund
Equity share capital 1,897.91 1,895.93 1,893.88 1,853.37 1,853.37
Share application money 57.63 30.00 12.13 2.72 -
Preference share capital - - - - -
Reserves & surplus 18,283.82 9,515.21 5,437.42 2,675.38 2,971.49
Loan funds
Secured loans 52.42 266.45 2,863.37 3,959.88 1.36
Unsecured loans 6,517.92 5,044.36 1,932.92 1,034.41 625.00
Total 26,809.71 16,751.95 12,139.72 9,525.76 5,451.22
Uses of funds
Fixed assets
Gross block 28,115.65 26,509.93 17,951.74 13,240.63 31.84
Less : revaluation reserve 2.13 2.13 2.13 2.13 -
Less : accumulated depreciation 9,085.00 7,204.30 4,944.86 3,475.64 17.29
Net block 19,028.52 19,303.51 13,004.75 9,762.86 14.56
Capital work-in-progress 2,751.08 2,375.82 2,341.25 994.46 0.10
Investments 10,952.85 705.82 719.70 931.90 1,762.67
Net current assets
Current assets, loans & advances 8,439.38 5,406.81 3,338.88 2,486.31 3,688.36
Less : current liabilities & provisions 14,362.33 11,042.67 7,272.80 4,708.12 15.77
Total net current assets -5,922.95 -5,635.86 -3,933.92 -2,221.80 3,672.59
Miscellaneous expenses not written 0.20 2.66 7.94 58.35 1.30
Total 26,809.71 16,751.95 12,139.72 9,525.76 5,451.22
Notes:
Book value of unquoted investments 9,379.62 580.43 476.52 460.83 1,434.63
Market value of quoted investments 1,574.29 125.85 243.99 472.71 334.24
Contingent liabilities 7,140.59 7,615.04 4,740.34 3,017.26 4,874.99
Number of equity sharesoutstanding (Lacs) 18979.07 18959.34 18938.79 18533.67 18533.67

8.1 Market Capitalization

(As on September 12, 2008)
Approx.Rs.1,478billion Closing BSE share price = Rs. 778.70
 Stock
Exchg. BSE

Date 12/09/08

Open 790.00

High 792.00

Low 744.00

Current 778.70

%Change 0.32

8.2 Key Players in the Indian Telecom Sector:

The scope of telecom sector in India is large .It has attracted the multinational
company to inter into this very fast growing sector and lot of opportunities. in this sector major
key players like Vodaphone ,Spice, Dolphin, Tate Indicom,vergin mobile, MTNL Reliance
Infocomm, TaTa teleservices Idea etc

9 Future prospects
9.1 Bharti Airtel gets DTH license to invest Rs 150 crore

Bharti Airtel today said it has got license to start Direct-To-Home (DTH) services in the
country and announced an investment of Rs 150 crore in the first phase to launch nation-wide
operations, a move that would bring in much required competition in the DTH segment.

9.2 Bharti launches 200 crores fund to promote innovation in telecom

Bharti Airtel has launched telecom innovation fund with an initial corpus
of Rs. 200 crores. The objective of the fund is to provide opportunities to the entrepreneurs
to undertake innovation in the field of telecom with regard to content, software and
technologies. This is definitely a great initiative for Airtel to tap on increasing entrepreneurial
efforts in Telecom Industry, but at the same time, it would be great if Indian telecom
operators ‘also’ goes easy on money sucking deals with startups/smaller players (ask any
VAS content player for details)

9.3 Airtel to launch 3G iPhone In October

Airtel and Vodafone (NYSE: VOD) will launch the iPhone 3G in India this year.
Airtel President and CEO Manoj Kohli is quoted by stating the device will available by mid-
October. Vodafone however has refused to comment. Both the operators haven’t shared
pricing details. Apple’s revised pricing has given my previous post a shining black eye. We
had earlier predicted the average pricing of the 2G phones to be Rs 21k (8GB) and around
25k (16GB). The 3G versions will be Rs 8k (8GB) and Rs 12k (16GB), although subject to a
2 year contract in the States. If 3G policy shapes up by year-end and the 3iPhone is able to
land at a similar price point, it could turn out to be a great entry buy and sell for both
consumers and operators. Besides, being location aware would help operators like RComm
(Reliance Technology Ventures has funded Whrrl, the first iPhone app development venture
to be funded) to position it based on local services rather than only price cuts. Meanwhile,
after having paid twice the amount for a fatter 16GB 2G version, buyers remorse has robbed
me of life, appetite and sleep. Thankfully, there is comfort in numbers, I am not the only one
to have bitten that Apple (NSDQ: AAPL).

• By 2010 Airtel will be the most admired brand in India:

• Bharti Airtel Limited, India’s leading telecommunication provider company ,the future
prospect of Airtel to achieved the above 100 million customer mark.
 • Loved by more customers

• Targeted by top talent

• Benchmarked by more businesses

10 A critical appraisal of the working organization

Analysis of Bharti Airtel Limited Consolidated Balance Sheets

(Amounts in thousands of Indian Rupees, except per share data and as stated otherwise)

There has been a decrease in cash and cash assets for the company due to diversification and
other incentives for the organization. There has been an increase in the current assets due to
additions in inventory and deferred taxes on income. The company is able to instill confidence in
its stake holders by showing a marginal increase in the goodwill. However, no new investments
have been recorded for the year ending 2008.

No entry has been shown under due to other parties which reflect in increased confidence
in company’s affairs. There has been increase in accrued expenses and unearned income which
may raise a suspicion about company’s affairs.
There has been a considerable increase in revenues, operating income and income before
taxes generated over the years.
11 Suggestion for improvement
Performance Management Training

Raise the level of performance in the organization, using the Solutions Focus approach in this
two-day workshop. Managers will learn how to enhance the performance of their reports, by
raising their awareness of who is responsible for what, and practicing skills of getting the best
out of people. With improved giving and receiving of feedback, more direct and effective
communication, you will gain a clear focus on achieving relevant results.

• Introduce the philosophy of Enhancing Performance

• Learn about and practice ways to have ‘courageous conversations’ with staff,
leading to improved performance
• Build questioning skills to raise people’s awareness while maintaining their own
responsibility
• Practice helping define future expectations and helping people build on their
successes and strengths
• Practice handling challenging performance issues

• The above realization led to the launch of the ‘Leadership Series’ campaign, which
featured successful men and women with their deluxe cars, carrying laptops and using
cell phones. A company source said that the campaign was aimed at positioning Airtel as
an aspirational brand, which was meant for leaders and celebrities. The surveys
conducted after the launch revealed that people began associating three core benefits with
the Airtel brand – Leadership, Performance and Dynamism. Other supportive values
associated with the brand-included courtesy, politeness and efficiency.

• The campaign was reportedly successful and resulted in a marginal improvement in

Airtel’s performance. By 1999, Bharti had become the leading cellular player in Delhi
(its major market) with a subscriber base of over 0.38 million. However, the growth was
still much below the company’s expectations.
References

1.2 http://www.google.co.in/search?
hl=en&cr=countryIN&q=History+of+Telicom+industry&start=0&sa=N

http://www.google.co.in/search?q=land+mark+of++
+Telecom+industry&btnG=Search&hl=en&cr=countryIN&sa=2

1.4.7 http://www.google.co.in/search?q=land+mark+of++
+Telecom+industry&btnG=Search&hl=en&cr=countryIN&sa=2

1.5 http://www.google.co.in/search?q=land+mark+of++
+Telecom+industry&btnG=Search&hl=en&cr=countryIN&sa=2

2.1

http://www.bhartiairtel.in/index.php?id=company_profile

3. http://www.bhartiairtel.in/index.php?
id=372&tx_ttnews[tt_news]=708&tx_ttnews[backPid]=14&cHash=247f8cdaa4

3.2
http://www.bhartiairtel.in

3.4
http://www.moneycontrol.com/india/news/pressmarket/bharti-airtel-crosses-60mn-customer-
mark/13/08/326012

3.6
http://www.moneycontrol.com/india/news/pressmarket/bharti-airtel-crosses-60mn-customer-
mark/13/08/326012

4
http://www.moneycontrol.com/india/news/pressmarket/bharti-airtel-crosses-60mn-customer-
mark/13/08/326012

5
http://www.bhartiairtel.in/index.php?id=organisation_struct1

6
http://www.moneycontrol.com/india/news/pressmarket/bharti-airtel-crosses-60mn-customer-
mark/13/08/326012

7
http://money.rediff.com/money/jsp/co_results_annual.jsp?companyCode=15200022

9.1
http://www.tribuneindia.com/2007/20070924/biz.htm#1

9.2

http://www.pluggd.in/2008/09/bharti-launches-200-crores-fund-to-promote-innovation-in-
telecom

9.3
http://www.contentsutra.com/entry/419-airtel-to-launch-3g-iphone-in-october/