CHAPTER-III

INDUSTRY PROFILE
&
COMPANY PROFILE

History
Telecom in the real sense means transfer of information between two distant points
in space. The popular meaning of telecom always involves electrical signals and
nowadays people exclude postal or any other raw telecommunication methods from
its meaning. Therefore, the history of Indian telecom can be started with the
introduction of telegraph.
Introduction of telegraph
The postal and telecom sectors had a slow and uneasy start in India. In 1850, the
first experimental electric telegraph Line was started between Kolkata and Diamond
Harbor. In 1851, it was opened for the British East India Company. The Posts and
Telegraphs department occupied a small corner of the Public Works Department, at
that time. Construction of 4,000 miles (6,400 km) of telegraph lines connecting
Kolkata (Calcutta) and Peshawar in the north along with Agra, Mumbai (Bombay)
through Sindwa Ghats, and Chennai in the south, as well as Ootacamund and
Bangalore was started in November 1853. Dr. William O'Shaughnessy, who
pioneered telegraph and telephone in India, belonged to the Public Works
Department. He tried his level best for the development of telecom throughout this
period. A separate department was opened in 1854 when telegraph facilities were
opened to the public.
Introduction of the telephone
In 1880, two telephone companies namely The Oriental Telephone Company Ltd.
and The Anglo-Indian Telephone Company Ltd. approached the Government of India
to establish telephone exchanges in India. The permission was refused on the
grounds that the establishment of telephones was a Government monopoly and that
the Government itself would undertake the work. By 1881, the Government
changed its earlier decision and a licence was granted to the Oriental Telephone
Company Limited of England for opening telephone exchanges at Kolkata, Mumbai,
Chennai (Madras) and Ahmedabad. 28 January 1882, is a Red Letter Day in the

 1976 . On this day Major E.First PCM system commissioned between Mumbai City and Andheri telephone exchanges.First optical fibre system for local junction commissioned at Pune.  1980 .First subscriber trunk dialing route commissioned between Kanpur and Lucknow.First Central Battery of telephones introduced in Kanpur. Council House Street. inaugurated by Lord Irwin by exchanging greetings with the King of England.First satellite earth station for domestic communications established at Secunderabad. with beam stations at Khadki and Daund. A.  1907 . The Central Telephone Exchange had 93 number of subscribers.First wireless telegraph station established between Saugor Islands and Sandheads.  23 July 1927 . The exchange at Kolkata named "Central Exchange" was opened at third floor of the building at 7. Baring..  1979 .Radiotelephone system inaugurated between the UK and India. Member of the Governor General of India's Council declared open the Telephone Exchange in Kolkata.  1933 .  1913-1914 .  1960 .  1975 .First Automatic Exchange installed in Shimla.Radio-telegraph system between the UK and India. Bombay also witnessed the opening of Telephone Exchange in 1882.First digital microwave junction introduced. .  1953 . Further developments  1902 .history of telephone in India.12 channel carrier system introduced. Chennai and Mumbai.P.

While all the major cities and towns in the country were linked with telephones during the British period. growth was extremely slow. Tata . DoT was responsible for telecom services in entire country until 1985 when Mahanagar Telephone Nigam Limited (MTNL) was carved out of DoT to run the telecom services of Delhi and Mumbai. as for example introduction of the telex service in Mumbai in 1953 and commissioning of the first [subscriber trunk dialing] route between Delhi and Kanpur in 1960. Emergence as a major player In 1975. While certain innovative steps were taken from time to time. The Government of India corporatised the operations wing of DoT on 1 October 2000 and named it as Bharat Sanchar Nigam Limited (BSNL). the first waves of change were set going by Sam Pitroda in the eighties.First mobile telephone service started on non-commercial basis in Delhi. The real transformation in scenario came with the announcement of the National Telecom Policy in 1994.C-DOT established for indigenous development and production of digital exchanges. 2. Therefore. the total number of telephones in 1948 was only around 80. Even after independence. such as Reliance Communications.  1984 . the year economic reforms were initiated in the country. 1983 .First analog Stored Program Control exchange for trunk lines commissioned at Mumbai. The number of telephones grew leisurely to 980. He brought in a whiff of fresh air. it became necessary to separate the Government's policy wing from its operations wing.000 in 1971. Many private operators.15 million in 1981 and 5. the Department of Telecom (DoT) was separated from P&T.000.07 million in 1991.  1985 . In 1990s the telecom sector was opened up by the Government for private investment as a part of Liberalisation-PrivatizationGlobalization policy. The telephone was a status symbol rather than being an instrument of utility.

the number of mobile phone connections have crossed fixed-line connections. Competition has caused prices to drop and calls across India are one of the cheapest in the world. you dial the area code prefixed with a zero (e. intra circle calls are considered local calls while inter circle are considered long distance calls. Telephony Subscribers (Wireless and Landline): 562.. Recent operators also operate in the 1800 MHz band.Indicom. The dominant . The country code for India is 91. only the PSU's BSNL and MTNL were allowed to provide Basic Phone Service through copper wires in India. called circles (roughly along state boundaries). For international calls. Idea etc. Telephone On landlines.21 million (Dec 2009) Projected teledensity: 893 million. MTNL is operating in Delhi and Mumbai only and all other parts are covered by BSNL. 64. In September 2004. Wireless telephones The Mobile telecommunications system in India is the second largest in the world and it was thrown open to private players in the 1990s. Until recently. For calling Delhi. The country is divided into multiple zones. However private operators have now entered the fray. Currently Government is working to integrate the whole country in one telecom circle. For long distance calls. although their focus is largely on the cellular business which is growing rapidly. India primarily follows the GSM mobile system.g. The rates are supposed to go down further with new measures to be taken by the Information Ministry.69% of population by 2012. you would dial 011-XXXX XXXX). Government and several private players run local and long distance telephone services. in the 900 MHz band. Loop Mobile. Vodafone. you would dial "00" and the country code+area code+number. successfully entered the high potential Indian telecom market. Airtel. The mobile service has seen phenomenal growth since 2000.

913 MTS India 3. There are many smaller players.513 26.130 All India 525.208.611.949 51.864.126.613 Vodafone Essar 91.795.460 63.players are Airtel.048 42.147.875.861.214 Idea Cellular 57.649.023. Kolkata and Chennai in their respective states) with largest subscriber base as of September 2009 is given below State Subscriber base Wireless density'" Maharashtra 58.872 Tata Teleservices 57. Vodafone.033.042. The breakup of wireless subscriber base in India as of December 2009 is given below Operator Subscriber base Bharti Airtel 118.449 Aircel 31.96 Uttar Pradesh 57.58 . Reliance Infocomm. with operations in only a few states.789.959 BSNL 62.922 The list of ten states (including the metros Mumbai.66 Andhra Pradesh 37. International roaming agreements exist between most operators and many foreign carriers.730 Uninor 1.741 Loop Mobile India 2.031 Reliance Communications 93.32 Tamil Nadu 45.997 MTNL 4. Idea cellular and BSNL/MTNL.449.401.329.

Landlines are facing stiff competition from mobile telephones.237 Tata Teleservices 1.003.928.152.969 MTNL 3. The breakup of wire line subscriber base in India as of September 2009 is given below Operator Subscriber base BSNL 28. The landline network quality has improved and landline connections are now usually available on demand.454 Bharti Airtel 2.434.71 Wireless density was calculated using projected population of states from the natural growth rates of 1991-2001 and population of 2001 census.395 39.867.04 Madhya Pradesh 24.09 Gujarat 27.205 37.923.585 45.76 Rajasthan 27.049 34. Landlines Landline service in India is primarily run by BSNL/MTNL and Reliance Infocomm though there are several other private players too.742.446.514.475.261 . The competition has forced the landline services to become more efficient.739 33.726.28 Karnataka 28. even in high density urban areas.540. such as Touchtel and Tata Teleservices.896 25.09 All India 471.254 Reliance Communications 1.West Bengal 32.734 46.49 Bihar 27.

225 West Bengal 2.620.306.All India 37.211 Uttar Pradesh 2.534.253 Andhra Pradesh 2.632.755 .751.049 Karnataka 2.729 Kerala 3.803.996.912 Tamil Nadu 3.477.296 Delhi 2.490.334 The list of eight states with largest subscriber base as of September 2009 is State Subscriber base Maharashtra 5.

COMPANY PROFILE .

Highlights 2012 »Bharti Airtel appoints Suren Goonewardene as CEO – Sri Lanka »Bharti Airtel to Observe Silent period from December 31. IPTV. bharti airtel has been ranked among the six best performing technology companies in the world by business week.bharti airtel limited is a leading global telecommunications company with operations in 19 countries across Asia and Africa. The company offers mobile voice & data services. fixed line. 2011 »Airtel Mobitude 2011 reveals data traffic trends on mobile devices in India »Friends on Airtel can now use Gifting Services and ‘Call Me Back’ SMS alerts »Bharti Airtel recognized for the delivery of best network services with customer focus at Telecom Centre of Excellence Awards 2011 »Airtel Mobitude 2011 captures preferences of over 170 million plus mobile users Highlights 2011 »airtel makes its 3G debut »airtel digital TV brings in a la carte offerings for its customers . turnkey telecom solutions for enterprises and national & international long distance services to carriers. DTH. bharti airtel had 200 million customers across its operations. high speed broadband.

2010 Airtel comes to you from Bharti Airtel Limited. The Telemedia business provides broadband. rose to the pinnacle to achievement and continues to lead. Telemedia services. The Enterprise business provides end-to-end telecom solutions to corporate customers and national and international long distance services to telcos. contributing to its economic resurgence. Sri Lanka and Bangladesh. 2010 on Feb 2. in just ten years of operations.»bharti airtel to announce its results for third quarter ended December 31. Enterprise and Digital TV. The Digital TV business provides Direct-to-Home TV services across India. 2011 (Wednesday) »bharti airtel to announce its results for third quarter ended December 31. The mobile business offers services in India. Airtel was born free. creativity and a team driven “to seize the day” with an ambition to become the most globally admired telecom service.Mobile. a force unleashed into the market with a relentless and unwavering determination to succeed. one of Asia’s leading integrated telecom services providers with operations in India. 2011 (Wednesday) »SBI and airtel join hands to usher in a new era of financial inclusion for unbanked India »bharti airtel to observe silent period from december 31. to . Telemedia. Sri Lanka and Bangladesh. A spirit charged with energy. Today we touch people’s lives with our Mobile services. The company is structured into four strategic business units . IPTV and telephone services in 95 Indian cities. Airtel. 2010 on Feb 2. As India's leading telecommunications company Airtel brand has played the role as a major catalyst in India's reforms. Bharti Airtel since its inception has been at the forefront of technology and has pioneered several innovations in the telecom sector.

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.Mobile. We also connect Indians living in USA. IPTV and telephone services in 95 Indian cities. Sri Lanka and Bangladesh.connecting India's leading 1000+ corporate.5 million . UK and Canada with our call home service. Sri Lanka and Bangladesh. We deliver what we promise and go out of our way to delight the customer with a little bit more Airtel comes to you from Bharti Airtel Limited. has been at the forefront of technology and has pioneered several innovations in the telecom sector. Enterprise and Digital TV. The Enterprise business provides end-to-end telecom solutions to corporate customers and national and international long distance services to telcos.clocks over 2. Telemedia. The Telemedia business provides broadband. one of Asia’s leading integrated telecom services providers with operations in India. The mobile business offers services in India. The company is structured into four strategic business units . Highlights » Bharti Airtel and Apple to Bring iPhone 3GS to India » India’s first mobile application store – Airtel App Central . Bharti Airtel since its inception. The Digital TV business provides Direct-to-Home TV services across India.

We served an aggregate of 113. We are the largest wireless service provider in the country. of whom 110. and in Srilanka. based on the number of customers as of September 30. 2009. Partners . in addition to providing long distance connectivity both nationally and internationally. owns and manages passive infrastructure pertaining to telecom operations under its subsidiary Bharti Infratel Limited. We offer an integrated suite of telecom solutions to our enterprise customers. We also offer DTH and IPTV Services.670 customers as of September 30.439.928.511. Bharti Infratel and Indus Towers are the two top providers of passive infrastructure services in India.official Broadband Sponsor of Cricket on YouTube » Bharti Airtel makes its Media & Entertainment debut – launches Digital Media Business » Bharti Airtel Completes Deployment of the Bangalore Traffic Police Enforcement Automation System on BlackBerry Smartphones We are one of Asia’s leading providers of telecommunication services with presence in all the 22 licensed jurisdictions (also known as Telecom Circles) in India. Bharti Infratel owns 42% of Indus Towers Limited. 2009. The company also deploys.416 subscribe to our GSM services and 2.downloads in just 30 days » Dow Jones and Bharti Airtel Partner for Launch of The Wall Street Journal India Mobile » Airtel Broadband . All these services are rendered under a unified brand “Airtel”.254 use our Telemedia Services either for voice and/or broadband access delivered through DSL.

 Awards & Recognitions Laurels recognising Bharti's consistent efforts. Ericsson. Wipro. Firstsource & Aegis Equity Partner {Strategic} Singtel  Factsheet At-a-glance guide to Bharti Airtel  Organization Structure Organisation chart depicting the Senior Management positions  Shareholding Structure Details on the latest shareholding structure and major shareholders. »Bharti Airtel and Apple to Bring iPhone 3GS to India »India’s first mobile application store – Airtel App Central .official Broadband Sponsor of Cricket on YouTube »Bharti Airtel makes its Media & Entertainment debut – launches Digital Media .clocks over 2. Alcatel Distance Services Lucent. Huawei Telemedia & Long Nokia Siemens. Tellabs Network Equipment Information Technology IBM IBM Daksh.Network Equipment Nokia Siemens. Hinduja TMT. Cisco. Call Centre Operations Teleperformance.5 million downloads in just 30 days »Dow Jones and Bharti Airtel Partner for Launch of The Wall Street Journal India Mobile »Airtel Broadband . ECI. Mphasis.

715 million (year ended March 31.678 million (year ended March 31.715 million (year ended March 31. 2008 . 2009-Audited) Revenue Rs. Mumbai (BSE) . and was the first private operator to have an all India presence.615 million (year ended March 31.Audited) As per US GAAP Accounts Shares in 3.796. 113.980 as at Dec 31. as a Public Limited Company Proportionate Rs. 2009 Issue Listings The Stock Exchange.Audited) As per US GAAP Accounts Proportionate Rs. 2009 . Provides telemedia services (fixed line and broadband services through DSL) in 95 cities in India.Audited) EBITDA Rs. Established July 07.Business »Bharti Airtel Completes Deployment of the Bangalore Traffic Police Enforcement Automation System on BlackBerry Smartphones Factsheet Name Bharti Airtel Limited.951. 2008 . 369. 1995. 113. 151. Business Provides GSM mobile services in all the 22 telecom circles in Description India.

and was the first private operator to have an all India presence.864. With effect from March 01.988. 2006.The National Stock Exchange of India Limited (NSE) Market Capitalisation Customer 118. responsibilities and reporting relationships of Bharti’s key team players.: +91 11 4666 6411 Organization Structure As an outcome of a restructuring exercise conducted within the company.031 GSM mobile and 2.545 Telemedia Customers Base (status as on Dec 31. with realigned roles. 1 Nelson Mandela Road. . No. this unified management structure of 'One Airtel' will enable continued improvement in the delivery of the Group’s strategic vision. a new integrated organizational structure has emerged. Registered Office Bharti Airtel Limited (A Bharti Enterprise) Bharti Crescent. Provides telemedia services (fixed line) in 95 cities in India. 2009) Operational Provides GSM mobile services in all the 22 telecom circles in Network India.: +91 11 4666 6100 Fax No.110 070 Tel. Vasant Kunj Phase II New Delhi .

Bharti Airtel .Organization Structure .

Management Profiles »Sunil Bharti Mittal »Manoj Kohli »Sanjay Kapoor »David Nishball »Atul Bindal »K Srinivas .

Germany. Sunil has been recognized with the Padma Bhushan. he heads a successful enterprise which employs over 30. Chairman and Group CEO of Bharti Enterprises.000 people. Sunil has been awarded numerous awards and recognitions including the Global Economy Prize 2009 by The Kiel Institute. one of India’s leading business groups with interests in telecom. The US-India Business Council has also honored him with the ‘Global Vision’ Award 2008. has a market capitalization of approximately US$ 25 billion. Bharti Airtel. He has received the GSM Association Chairman's Award for 2008. one of India’s highest civilian awards. retail. He is a past President of the Confederation of Indian Industry. He is a member of the Leadership Council of The Climate Group. He is also a member of the Board of Trustees of the .»Jyoti Pawar »Shamini Ramalingam »Joachim Horn »S. financial services. He has also received the Lal Bahadur Shastri National Award for Excellence in Public Administration. Sunil was Co-chairman of the World Economic Forum in 2007 at Davos and is a member of its International Business Council. manufacturing and agriculture. the flagship group company. at 52. the premier industry body in India (2007-08). Sunil started his career at 18 after graduating from Punjab University in India in 1976 and founded Bharti. Asokan »Krishnamurthy Shankar »Srikanth Balachander Sunil Bharti Mittal is the Founder. Academics and Management for 2009. realty. Today.

000 consumers. UK and the degree of Doctor of Science (Honoris Causa) by the Govind Ballabh Pant University of Agriculture & Technology. Wellesley. Sunil has been conferred with the degree of Doctor of Laws (Honoris Causa) by the University of Leeds. spanning 19 cities and 16 states in India. He is a member of several premier international bodies –International Advisory Committee to the NYSE Euronext Board of Directors. He is also a member of the Academy of Distinguished Entrepreneurs. the leading UN Agency for Information and Communication Technology. which is committed to providing education to under-privileged children in rural India. This is 6th year in a row that airtel has won the award in this category. Over 3. AWARDS: for the year 2010 . He is also a member of the Indo-US CEOs Forum. USA. the International Business Advisory Council of London and the Advisory Board of the Global Economic Symposium.Carnegie Endowment for International Peace. Babson College. He is an Honorary Fellow of The Institution of Electronics and Telecommunication Engineers. Massachusetts.2011 airtel has won the ‘Most Preferred Cellular Service Provider Brand’ award at the CNBC Awaaz Consumer Awards in Mumbai. This belief has resulted in Bharti Foundation. Sunil is also on the Telecom Board of the International Telecommunication Union. He serves as a member of the Executive Board of the Indian School of Business. This year. the awards were based on an exhaustive consumer survey done by The Nielsen Company. rated brands across different categories to choose brands which . He is an alumnus of Harvard Business School. Sunil believes a responsible corporate has a duty to give back to the community in which it operates.

The FICCI Socio Economic Development Foundation (FICCI-SEDF) and Businessworld CSR award was instituted in 1999 to recognize exemplary responsible business practices by the Indian Industry. bharti airtel has received the prestigious BusinessworldFICCI-SEDF Corporate Social Responsibility Awards 20092010.delivered true value for money. Tariffs Plans NEW »airtel Turbo Plan 2 (airtel/AP/GSM/04) »airtel Turbo Plan 1(airtel/AP/GSM/02) »New Advantage Plan (airtel/AP/GSM/01) »SUK »MNP »HFZ 35(airtel/AP/GSM/14 25(airtel/AP/GSM/03 Pack(airtel/AP/GSM/ ) ) 15) .

) 43 Free Airtime on Pack (Rs.2 p/sec 1.80 / min STD Outgoing (STD airtel to airtel) Rs. Validity is for 1 year.) 0 Incoming Calls (Rs.60 / min ISD Rs.60 min Local Outgoing (Local airtel to Other Mobile & Landline) 0.5 International 5 OTHER DETAILS Special 1 sec Roaming tariff is as following.Airtel Turbo Plan 2 (airtel/AP/GSM/04) Expand All Collapse All   ONE TIME CHARGES Pulse Rate 1 sec pulse Price of Pack (Rs. 0.60 / min STD Outgoing (STD airtel to other Mobile & Landline) 0.) 0 CALL CHARGES Local Rates STD Rates   Airtel GSM/CDMA Landline 1. 0.2 p/sec 1.2 p/sc 1. Local Outgoing (Local airtel to airtel) Rs.80 / min Incoming Rs. 0.5p/sec 1.5 p/sec SMS Local 1 National 1.2 p/sec 1. Standard Rates at 60 sec pulse .

The complainant may be either an observer who is not directly impacted. A person can raise a concern. Any stakeholder (employee. comprehensive processes. either verbally or in writing by giving background of the unprofessional conduct. We adhere to the highest levels of ethical business practices as articulated by our Code of Conduct so as to achieve our performance with integrity. policies and communication. 1) In writing (through hard copy mail) to: . The Office aims to provide a fair and equitable redressal mechanism. reasons for raising the concern. Office of the Ombudsperson The Office of the Ombudsperson is an independent forum for employees and external stakeholders of the company to raise concerns and complaints about improper practices which are in breach of the Bharti Code of Conduct. associate.Ombudsman Office Head Arrow Corporate Governance Bharti Enterprises Limited (including its group and Joint Venture companies) firmly believes in the principles of Corporate Governance and is committed to ensure sustainable. capital-efficient and long-term growth thereby maximizing shareholder value. wherever available. The company’s commitment towards compliance to the highest governance standard is backed by an independent and fully informed board. The Company ensures that various disclosure requirements are complied in ‘letter and spirit’ for effective Corporate Governance. The Ombudsperson will treat all disclosures in a confidential and sensitive manner. strategic partner. The process is designed to offer protection to the complainant provided the disclosure is made in good faith and the alleged action constitutes a genuine and serious breach of Bharti Code of Conduct. or a victim who is directly or indirectly affected by such practices. the identity of the individuals who may be involved and documentary evidence. vendor) who observes unprofessional behaviour can approach the Ombudsperson to voice his or her concerns.

Bharti Crescent 1.The Ombudsperson Bharti Enterprises Ltd. Phase II New Delhi – 110 070. Nelson Mandela Road Vasant Kunj. India. .