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

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 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

license was granted to The Oriental Telephone Company Limited of England for opening telephone exchanges at Kolkata. 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. Chennai and Ahmedabad. it is the fastest growing market in the world and represents unique opportunities for U. the Government denied the permission as it wanted to exercise its monopoly power over the promising industry once it emerged. the telecom sector was opened up by the Government for private investment as a part of Liberalization-Privatization-Globalization Policy. the introduction of mobile communication is undeniably the biggest success story scripted by the telecom industry.000.1. 2000. Government of India aims at 9 million broadband connections and 18 million internet connections by 2007.S.According to Broadband Policy 2004. which has grown by 40% in 2005. Mumbai.1882.The formation of Mahanagar Telephone Nigam Limited (MTNL) out of DoT to provide telecom services exclusively to Delhi and Mumbai. The wireless subscriber base has jumped from 33. In the 1990s. Today. However. This sluggish rate of growth continued till 1991 when the number of telephones was 5. while telephones were introduced in the major towns and cities across the country during the British period. The opening of exchanges was followed by further innovations and improvements in all sections of the telecom industry . On 1st October.2 History of Indian Telecom Industry In 1880. To top it all. 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. By the following year. the Government corporatized its operations wing under the name of Bharat Sanchar Nigam Limited (BSNL). total number of telephones in India in 1948 was merely 80. The total subscriber base.01 million connections is the fifth largest in the world and the second largest among the emerging economies of Asia. The Indian Telecommunications network with 110. 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.07 million. is expected to reach 250 million in 2007. Initially. it changed its decision and finally on 28th January. companies in the stagnant global scenario.69 .

as compared to only 40% in 2003. Spice Communications)BSNL .6% of the total telephone subscriber base. Telephone and Telegraph (PTT). There are primarily 9 GSM and 5 CDMA operators providing mobile services in 19 telecom circles and 4 metro cities. In the last 3 years. The wireless technologies currently in use are Global System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA).1997 Telecom Regulatory Authority of India created.5 million new subscribers per month by 2007.57 million in FY 2004-2005. two out of every three new telephone subscribers were wireless subscribers. covering 2000 towns across the country. Tata Teleservices. BPL Mobile. Wireless subscriber growth is expected to bypass 2.2000 DoT becomes a corporation. Idea Cellular.million in 2004 to 62.1999 Cellular Services are launched in India. wireless now accounts for 54. Consequently. Bharti Tele-Ventures. Escorted. 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. a monopoly run by the government's Ministry of Communications 1985 Department of Telecommunications (DOT) established. 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. BSNL Major Players There are three types of players in telecom services: • • • • State owned companies (BSNL and MTNL) Private Indian owned companies (Reliance Infocomm. New National Telecom Policy is adopted.) Foreign invested companies (Hutchison-Essar.

the high prices of handsets and allied services hindered the growth of the telecom market in India.31 million subscribers across the country. 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. Reliance. Tata.has reached 209.including GSM. 1995. Although in the initial years.1.08 million.GIL is focusing on this opportunity and would practice the model of sharing infrastructure amongst various telecom operators. Of this the wireless segment will largely drive the growth.The total number of wireless subscribers in the country .4 Indian Telecom Industry The telecom industry is one of the fastest growing industries in India. four years ahead of the schedule. created a competitive market which further reduced operational costs.3 India's Telecom Market Mobile services were commercially launched in India in August. the New Telecom Policy in 1999 introduced several consumer-friendly initiatives. CDMA and fixed mobile . With 156. Idea etc. the growth of India's mobile market has surpassed that of the basic telephones by a huge margin. An effective though not very popular means of cutting costs is infrastructure sharing. Truly. The number of new mobile subscribers rose from 16 million in 2003 to 65 million in 2006. The NTP 1999 aimed at achieving a tele-density of 15% by 2010 but the same was achieved in September 2006. .85%. the number of mobile subscribers began to rise in leaps and bounds. The tele-density as on September 2007 is 21. India has become one of the fastest growing mobile markets in the world. 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. 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. BPL. The entry of private operators like Airtel. In India there are few players providing such services at a very small scale. Hutch. Nevertheless it is the Indian Telecom Market which is having the last laugh. 1. Since then.

data. In mobile.000 km of optical fiber cables across the country. ranging from being the first mobile service in Delhi.45 million. first private basic telephone service provider in the country. Bharti has been a pioneering force in the telecom sector with many firsts and innovations to its credit.000 fixed line customers. the political capital. The group has a total customer base of 6. fixed line. 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’s footprint extends across 15 circles. 1995 for promoting investments in telecommunications services.1 BHARTI AIRTEL Established in 1985.4. In the past 17 years. 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.86 million are mobile and 588. of which 5. Together they have so far deployed around 23.500 nodes. the business capital. and presence in around 200 locations. coupled with approximately 1. which handles the mobile services in 16 circles out of a total 23 circles across the country. 1.2 MTNL MTNL was set up on 1st April 1986 by the Government of India to upgrade the quality of telecom services. and the Infotel group. with a focus on providing mobile services”. and Mumbai. ILD. as of January 31. and satellite-based services. Bharti Tele-Ventures Limited was incorporated on July 7. Bharti’s operations are broadly handled by two companies: the Mobility group. broadband. which handles the NLD. 2004.1.4. expand the telecom network and introduce new services and to raise revenue for telecom development needs of India’s key metros – Delhi. the company as taken rapid strides to emerge as India’s leading and one of Asia’s largest telecom operating companies. Its subsidiaries operate telecom services across India. The company has also .

2002. entering into national long distance operation. Hutchison and Idea Cellular. It now wants to increase its market share and has recently launched pre-paid services. While the market for fixed wire line phones is in the forefront of technology induction by converting 100% of its telephone exchange network into the state-of-the.4. 60. 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. setting up internet and allied services on an all India basis MTNL has over 5 million subscribers and 329. fixed. It is also an integrated telecom service provider with licenses for mobile. it has now acquired a unified access license for 18 circles that permits it to provide the full range of mobile services. covering mobile and fixed line telephony including broadband. The Govt. it intends to attack the broadband market.374 mobile subscribers. Reliance India Mobile. Reliance Infocomm plans to extend its efforts beyond the traditional value chain to develop and deploy telecom solutions for India's farmers. . the first of Infocomm's initiatives was launched on December 28. MTNL faces intense competition from the private players—Bharti. Having captured the voice market. In the year 2003-04. data services and a wide range of value added services and applications. national and international long distance digital mode.38 billion) in the year 2002-03. 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 offers a complete range of telecom services.3 RELIANCE INFOCOMM Reliance is a $16 billion integrated oil exploration to refinery to power and textiles conglomerate (Source: http://www.8 per cent over the previous year’s annual turnover of Rs.63.92 billion. a decline of 5.2 billion ($1. hospitals.html). 1. widening the cellular and CDMA-based WLL customer base. government and public sector organizations.25% stake in the company. of India currently holds 56. MTNL recorded sales of Rs. domestic long distance and international services. However. businesses. Until recently. 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. Reliance Infocomm—inmobile services. Reliance was permitted to provide only “limited mobility” services through its basic services

and has paid Rs. and Karnataka. VSNL's main gateway centers are located at Mumbai.4. Rajasthan. coupled with the six circles in which it already operates. The company operates a network of earth stations. Himachal Pradesh.000 employees and more than 2. Tamil Nadu.000 subscribers. which has 93 companies. The new licenses. Kolkata. Punjab. The international telecommunication circuits are derived via Intelsat and Inmarsat satellites and wide band submarine cable systems e. 1986. The company hopes to start off services in these 11 new circles by August 2004. by paying a Rs. Gujarat.1. SEA-ME-WE-2 and SEA-ME-WE-3. These circles include Bihar.g. It has now migrated to unified access licenses.4. 5. New Delhi.3 million shareholders.45 billion ($120 million) fee. Tata Teleservices provides basic (fixed line services).17 billion ($90million) to DoT for 11 new licenses under the IUC (interconnect usage charges) regime.5 VSNL On April 1.a wholly Government owned corporation . Haryana. 4. FLAG. New Delhi. Andhra Pradesh. The company is also expanding its footprint.The company's ADRs are listed on the New York Stock Exchange and its shares are listed on major Stock Exchanges in India. It has over 800. over 200. The Indian Government owns approximately 26 per cent equity. submarine cable systems. Kolkata and Chennai.was born as successor to OCS. Orissa.4 TATA TELESERVICES Tata Teleservices is a part of the $12 billion Tata Group. switches. the Videsh Sanchar Nigam Limited (VSNL) . Uttar Pradesh (East) & West and West Bengal. virtually gives the CDMA mobile operator a national footprint that is almost on par with BSNL and Reliance Infocomm. 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. M/s . using CDMA technology in six circles: Maharashtra (including Mumbai). which enables it to provide fully mobile services as well. Kerala. 1.

IDEA operates in eight telecom “circles. the company is investing in Tata Teleservices and is likely to acquire Tata Broadband. 48. 70. 1. Foreign Banks) is approximately 13 per cent and the rest is owned by Indian institutions and the public.1 billion) in 2002-03.7 IDEA Indian regional operator IDEA Cellular Ltd. Hutch acquired further operator equity interests or operating licences.62 billion) in 2001-02 to Rs.4.89 billion ($1.ADRs. when they worked with local partners to establish a company licensed to provide mobile telecommunications services in Mumbai. 1. Commercial operations began in November 1995.” or regions. The company provides international and Internet services as well as a host of value-added services. it now provides mobile services in 16 of the 23 defined license areas across the country. Between 2000 and March 2004.12 billion ($1. For this.6 HUTCH Hutch’s presence in India dates back to late 1992. To reverse the falling revenue trend. but in doing so is likely to become a thorn in the side of Reliance Communications Ltd.4. Its revenues have declined from Rs. VSNL has also started offering domestic long distance services and is launching broadband services. and has received additional GSM licenses to expand its network into three circles in .Panatone Finevest Limited as investing vehicle of Tata Group owns 45 per cent equity and the overseas holding (inclusive of FIIs. Hutch India has benefited from rapid and profitable growth in recent years.5 million customers by the end of June 2006. With the completion of the acquisition of BPL Mobile Cellular Limited in January 2006. with voice revenues being the mainstay. it had over 17. in Western India. has a new ownership structure and grand designs to become a national player.

already among the most competitive markets in the world.1 1.4 1.9 0. according to parent company Aditya BirlaGroup. Indian telecommunications. With the recent resolution of a major dispute between cellular and fixed operators (see below). While telecom liberalization is usually associated with the post-1991 era. .5 COMPANY MARKET SHARES Company BSNL Reliance Bharti MTNL Hutchison Idea Cellular BPL Tata Teleservices Spice Escotel Fascel Aircel Hexacom Shyam Telelink Million Sub (Nov 2003) % 40. sometimes considered the “poster-boy for economic reforms. the Telecom Regulatory Authority of India (TRAI).7 4.1 1.3 0.3 6.Eastern India -.3 7. where reforms have been stalled. Market oriented reforms have also been facilitated by lobbying from India’s booming technology sector.1 1.4 0.8 0.9 8. The sector.2 4. has earned a reputation for transparency and competence.1 share 58. the independent regulator.9 1.2 3.8 0.9 2. whose continued success of course depends on the quality of communications infrastructure.0 0.1 1. for example.” and thus less subject to electoral calculations.1 5.4 1. 1. Despite several hiccups along the way. the seeds of reform were actually planted in the 1980s.9 2. Unlike electricity. and arguably in the world.0 2. appears set to continue growing rapidly.2 0.3 1. telecommunications has generally been seen as removed from “mass concerns.2 Telecom Policy Environment Indian telecommunications today benefits from among the most enlightened regulation in the region.the first phase of a major expansion plan that it intends to fund through an IPO.” has been among the chief beneficiaries of the post-1991 liberalization.8 8.

Gandhi created two DOT-owned corporations: Mahanagar Telephone Nigam Limited (MTNL). Still. the nation’s first independent telecom regulator. It was not until the early 1990s. perhaps even more significant. As ground-breaking as NTP-94 was. Another. each of which would contain two fixed operators (including the incumbent). to operate international telecom services.At that time. before succumbing to union pressure. Under the government’s new policy. Private operators complained that the licensor – the DOT – was also the incumbent operator. 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). to serve Delhi and Bombay. 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%. Over the years. India continues to derive substantial revenue from license fees ($800 million in 2001-2002). This figure has subsequently been lowered (to10%-12%). He also introduced private capital into the manufacturing of telecommunication equipment. It was in response to such concerns that the government in 1997 set up the Telecom Regulatory Authority of India (TRAI). problem with India’s initial attempts to introduce competition was the lack of regulatory clarity. pulled out of the country. A number of operators were unable to live up to their profligate bids and. confronted with far less lucrative networks than they had supposed. India was divided into 20 circles roughly corresponding to state boundaries. and two mobile operators. its implementation was unfortunately marred by regulatory uncertainty and over-bidding. In 1994. when the political situation stabilized. As a result. which had previously been a DOT monopoly. leading some critics to suggest that the government has abrogated its responsibilities as a regulator to those as a seller. In a compromise. Rajiv Gandhi proclaimed his intention of “leading India into the 21st century. and with the general momentum for economic reforms. These and other reforms were limited by the unstable coalition politics of the late 1980s. the government released its National Telecommunications Policy (NTP-94). The many stringent conditions attached to licenses were thus seen by many as the DOT’s attempt to limit competition. and Videsh Sanchar Nigam Limited (VSNL). TRAI has earned a growing reputation for . that telecommunications liberalization really took off.” and carved the Department of Telecommunications (DOT) out of the Department of Posts and Telegraph. and is expected to be reduced even further over the coming years. For a time he also even considered corporatizing the DOT.

TRAI’s authority was steadily whittled away in a number of cases. allowing a greater number of operators in each circle. • The gradual easing of the original duopoly licensing policy.independence. It set the stage for several key events that have enabled the vigorous competition witnessed today. the regulator was beleaguered on all fronts. Coming just a year after NTP-99. with the passing of the TRAI Amendment Act. with the Tata group assuming a 25% stake and management control. in 2000. which feared the consequences on its international monopoly). however. • And. Some of these events include: • The corporatization of the DOT and the creation of a new state-owned telecom company.The introduction in 2003 of a Calling Party Pays (CPP) system for cell phones. . more generally. of IP telephony (a move that many believe was held up due to lobbying by VSNL. and accusations of ineptitude by private players. when the courts repeatedly held that regulatory power lay with the central government. in 2002.and the partial privatization of the company that same year. and the subsequent drop in long-distance rates as part of TRAI’s tariff rebalancing exercise. despite considerable opposition (including litigation) by fixed operators. It had to contend with political interference. It was not until 2000. • The termination of VSNL’s monopoly over international traffic in 2002. 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. • The legalization. the commencement of more stringent interconnection regulation by TRAI. that the regulatory body really came into its own. the incumbent’s many challenges to its authority. the act marks something of a watershed moment in the history of India telecom liberalization. Early on. transparency and an increasing level of competence. Throughout the late 1990s. Bharat Sanchar Nigam Ltd (BSNL). • The opening up of India’s internal long-distance market in 2000.

have come up. multimedia games. video generators. The much-awaited 3G mobile technology is soon going to enter the Indian telecom market. Sony Ericsson's W-series. Traditional telephones have been replaced by the codeless and the wireless instruments. multimedia applications. etc. Camera's. long distance calls and the international calls. with the provision of broadband services in the fixed line segment and GPRS in the mobile arena. and mobile-commerce.6 Market shares of public and Private Players Both fixed line and mobile segments serve the basic needs of local calls. In the beginning. Radio services have also been incorporated in the mobile handsets. CDMA. Mobile phone providers have also come up with GPRS-enabled multimedia messaging. etc. Motorola's PDA phones. Internet surfing. MP3 Players. Touch screen and advanced technological handsets are gaining popularity. there were only the Siemens handsets in India but now a whole series of new handsets. Along with improvement in telecom services. WLL service providers are all upgrading them to provide 3G mobile services. The GSM. along with other applications like high storage memory. such as Nokia's latest N-series. The value added . there is also an improvement in manufacturing.1.

many customers are returning their wire-line phones to their service providers as mobile provides a more attractive and competitive solution. infrastructure and handset vendors. This report discusses key trends in the Indian telecom industry. the wire-line subscriber base growth rate is negligible during the same period. 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). talking SMS. 1. cable. broadband (both wireless and fixed). provided by the mobile service operators contribute more than 10% of the total revenue. The main drivers for this trend are quick service delivery for mobile connections. which is evident from the fact that while the wireless subscriber base has increased at 75 percent CAGR from 2001 to 2006. handset features. . soft switches. In fact. and managed services to the local manufacturing and supply chain. their drivers and the major impacts of such trends affecting mobile operators. IPTV.7 MAJOR MARKET TREND The telecoms trends in India will have a great impact on everything from the humble PC. They prefer wireless services compared to wire-line services.

who will gain from this trend. meioses (a brief video programmer episode designed for mobile phone viewing) etc.76 lakhs . This is good news for anti-virus solution providers. there is an increased threat of virus – spread through mobile data connections and Bluetooth technology – in mobile phones. colored ring back tones. The other impact is that while the operators have only limited options to generate additional revenues through value-added services from wire-line services.75 crores 1. location based services etc. of GSM Subscribers 38. of CDMA Subscribers 2. According to a study. percent of mobile users are willing to change their handsets every year to newer models with more features. However it must also be noted that this may very well never happen on account of low telecom penetration. On the negative side. 1. Some examples of value-added services are ring tones download. talking SMS.37 crores No.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. The leading cellular service providers have the following number of subscribers: Service Provider Reliance Tata Airtel No.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. which is good news for the handset vendors.07 crores 3. making them unusable at times. Some of the positive impacts of this trend are as follows. Moreover. the mobile operators have numerous options to generate non-voice revenues from their customers. there exists great opportunity for content developers to develop applications suitable for mobile users like mobile gaming.

365 2.322 Vendor LG Electronics Nortel TCS ITI Infosys Revenue (in Rs cr) 2.621 3.MTNL BSNL Hutch Idea Spice BPL Aircel 24. Overall. GSM contributed 84 per cent of growth whereas CDMA contributed around 16 per cent.44 crores 2. GSM contributed around 79.595 1.The second volume for 2004-05. which will focus on telecom services and service providers.e.56 lakhs 10.528 2. around 3.314 1.505 1319 6 7 8 9 10 . CDMA saw a decline of around 44 per cent.5 per cent.. i. While GSM grew around 49 per cent.2 million handsets whereas CDMA contributed around 20. Top ten vendors (FY 2004-05) Rank 1 2 3 4 5 Vendor Nokia Ericsson Cisco Wipro Motorola Revenue Rank (in Rs cr) 7. India witnessed a total addition of around 15.615 1.05.62 lakhs 48 lakhs 1.9 Mobile Handsets In volume terms.98 lakhs 2.456 2.44 crores 1.16 million. the market grew by around 13 per cent. is slated for release in the first week of July 2005. with 12.5 per cent.3 crores 25.4 million handsets in 2004 .

radio paging and cellular mobile The TRAI was established an independent regulatory body pertaining to telecom sector. The TRAI was endowed with more power. 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 manufacturing of equipments pertaining to telecom sector was decentralized and several value added services were introduced into the market. During the 1990s this sector faced fierce challenges due to the development in the technological sector. The concept of revenue sharing was introduced to replace the fixed license fee. Technological advancements and innovations contributed largely towards the reformation of the telecom sector in India. The competition increased in the telecom sector. The telecommunication reforms in India started in the eighties with the mission better communication. The government of India introduced the New Telecom Policy 1999. The Telecommunication reforms in India were development and growth oriented. The telecom services were divided into basic telephony. This is regarded as the first phase of the reformation process. The sector was privatized and with the abolition of the monopoly new player entered the consumer market. The third phase of the telecommunication reforms in India took place in the period of the late nineties.10 Milestone of Indian telecommunication industry Telecommunication Reforms in India revolutionized the telecom industries sector in India. The sector of telecom was a monopoly under the Central Government of India. The growth of the private sector increased. Several private manufacturers of tailor made equipments entered the market. 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.1. 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 National . the rates were slashed in order to grab the share of the market and the customers were provided with better services. There were private developer for indigenous technologies and the franchisee for STD/ISD and PCO increased.

Impact of Telecommunication Reforms in India. followed by the introduction of the Internet to the Indian market. • • • • 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 .Long Distance was introduced with free entrance. a corporate body of the telecom service sector was formed. Moreover. The Bharat Sanchar Nigam Limited (BSNL). there was introduction of International Long Distance schemes.

Company shares are listed on The Stock Exchange. In case of the telephone services and long distance networks. 2.370. equipment suppliers include Siemens. The mobile services group provides GSM mobile services across India in 23 telecom services. All these services are provided under the Airtel brand.943 customers as on April 30. Profile of the organization Bharti Airtel is one of India's leading private sector providers of telecommunications services based on an aggregate of 66. consisting of 64. Equipment suppliers for our mobile networks include Ericsson. which has enabled us to further enhance and expand our telecommunications networks in India to provide quality service to our customers.689. Nokia and Huawei. while the ATS business group provides broadband & telephone services in 94 cities.carriers (long distance services) and services to corporate. Mumbai (BSE) and The National Stock Exchange of India Limited (NSE).1 Partners Strategic Equity Partners We have a strategic alliance with SingTel. 2008. The businesses at Bharti Airtel have been structured into three individual strategic business units (SBU’s) .319.509 Bharti Telemedia subscribers.434 GSM mobile and 2. Nortel. The enterprise services group has two sub-units .BHARTI AIRTEL 2. . telemedia services (ATS) & enterprise services. 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.

We have an information technology alliance with IBM for our group . History of Bharti Airtel Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. Bharti has recently forayed into retail business as Bharti Retail Pvt. under a MoU with Wal-Mart for the cash & carry business. world leader in financial protection and wealth management.Airtel comes to you from . Ltd.Corning. The Bharti Group has a diverse business portfolio and has created global brands in the telecommunication sector.wide information technology requirements. 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. 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. CISCO and WIPRO among others.

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. roaming and value added services. 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. Telemedia Services. Broadband & Telephone (B&T) services and Enterprise services. Bharti Airtel Limited. 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. Bharti Airtel has been rated among the best performing companies in the world in the Business Week IT 100 list The businesses at Bharti Airtel have been structured into three individual strategic business units (SBU’s) .i2i to Singapore and SEA-ME-WE-4 to Europe.Mobile services. The company has two international landing stations in Chennai that connects two submarine cable systems .Mobile Services. The Enterprise services provide end-to-end telecom solutions to corporate customers and national & international long distance services to carriers. Enterprise Services Carriers and Enterprise Services Corporate. Carrier business unit provides long distance wholesale voice and data services to . The Company has four business units: Mobile Services. Mobile Services offers mobile and fixed wireless services (FWP) using global system for mobile communications (GSM) technology on 900 megahertz and 1800 megahertz. Airtel’s high-speed optic fibre network currently spans over 53. All these services are provided under the Airtel brand. Airtel Telemedia Services & Enterprise Services. visit www.Bharti Airtel Limited. The Company offers post-paid. is India’s leading integrated telecom services provider with an aggregate of 50 million customers.Bharti Airtel Limited (Bharti Airtel). Enterprise Services provides a broad portfolio of services to large enterprise and carrier customers. The mobile business provides mobile & fixed wireless services using GSM technology across 23 telecom circles.bhartiairtel. pre-paid. India’s largest integrated and the first private telecom services provider with a footprint in all the 23 telecom circles. The Company provides broadband (DSL) and telephone services (fixed line) in 15 circles spanning over 94 cities across India. is an Indian telecom services provider. All these services are provided under the Airtel brand. For more information.Bharti Airtel is structured into three strategic business units . a group company of Bharti Enterprises.000 kms covering all the major cities in the country.

Bharti AXA. agri business. On September 28. The Bharti Group. Bharti Airtel. The Enterprise services provide end-to-end telecom solutions to corporate customers and national & international long distance services to carriers. to name a few. world leader in financial protection and wealth management.Singapore Telecom. Warburg Pincus. Bharti has recently forayed into the retail sector with its subsidiary Bharti Retail. 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. It has also entered into a joint venture with Wal-Mart for setting up the supply chain.carrier customers. The other businesses in the group are Beetel. and British Telecom.Telecom giant Bharti Airtel is the flagship company of Bharti services. Vodafone. communication and media devices. a joint venture with Del Monte to offer fresh and processed fruits and vegetables in the domestic as well as international markets. logistics and cash and carry to support the burgeoning retail market in India. the Company completed the acquisition of Network i2i Ltd. Bharti has grown successfully in partnership with various leading companies of the world . insurance and retail. 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. .Bharti Airtel Limited is India’s largest integrated and the first private telecom services provider with a footprint in all the 23 telecom circles. has a diverse business portfolio and has created global brands in the telecommunication sector. 2007. Corporate business unit provides total telecom solutions through a single window. as well as to other business units of Airtel.Bharti Enterprises is one of India’s leading business groups with interests in telecom. broadband & telephone services (B&T) & enterprise services. 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. Bharti has been a pioneering force in the telecom sector and today enjoys a strong nationwide presence. The businesses at Bharti Airtel have been structured into three individual strategic business units (SBU’s) . All these services are provided under the Airtel brand. 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. and Bharti Del Monte India. a financial services JV with AXA of France.

Besides. who are instrumental in creating branded customer experience for Airtel. 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. the Company is a member of the South East Asia-Middle East-Western Europe – 4 (SEA-ME-WE4) consortium along with 15 other global telecom operators . competency development. reducing attrition.3. It has over 35. BASL is a wholly owned subsidiary and strategic business partner of Bharti Airtel Limited in the Customer Experience domain.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. performance management and employee engagement. For international connectivity to the west. it not only enhances productivity of over 20. based on the number of customers. increasing productivity and enhancing customer delight.BASL impacts business performance by sourcing world-class frontline talent. therefore addresses the entire value chain in the customer experience domain with its vast repertoire of solutions in areas such as talent acquisition. based on the number of customers. 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. For international connectivity to east.1 Bharti Airtel Services Limited.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. 3. Enterprise Services (Carrier Services): The Company compliments its mobile and broadband & telephone services with national and international long distance services. BASL. it has a submarine cable landing station at. and thus. It is a specialist organization which is creating a world-class front line customer-interfacing ecosystem for Airtel.016 route kilometers of optic fibre on its national long distance network.

We also connect Indians living in USA with our call home service.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. small and medium scale enterprise 3. Telemedia services.3 Our Brand Airtel was born free. has risen to the pinnacle of achievement. broadband & telephone. a force unleashed into the market with a relentless and unwavering determination to succeed. 3.Enterprise Services (Corporate): The group focuses on delivering telecommunications services as an integrated offering including mobile. We deliver what we promise and go out of our way to delight the customer with a little bit more . As India's leading telecommunications company Airtel brand has played the role as a major catalyst in India's reforms. national and international long distance and data connectivity services to corporate. creativity and a team driven “to seize the day” with an ambition to become the most globally admired telecom service. A spirit charged with energy. to connecting India's leading 1000+ corporate. contributing to its economic resurgence. Today we touch people’s lives with our Mobile services. Airtel. after just ten years.

which stem from its deepest held beliefs. Each department and employee strives to be sensitive to the stakeholders and environment within their work context.3. The essence of Bharti’s commitment to Corporate Social Responsibility is embedded in the ‘Corporate Values’. Corporate Social Responsibility (CSR) in Bharti encompasses much more than only social outreach programs. Bharti encourages employees to take decisions and design business-linked processes that are sensitive to communities and environment. and Nurturing the environment We practice our CSR beliefs and commitments through a three-pronged approach: Engaging with stakeholders . CSR is a way of life. keeping in mind the following: • • • • • • Ethics. 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.5 Corporate Responsibility at Bharti Airtel At Bharti. It is an integral part of the way Bharti conducts its business. fairness and being correct Meeting and going beyond compliances and legal requirements Showing respect and sensitivity towards stakeholders and communities.

landline telephony is likely to remain popular. For example. followed by Hutch and BSNL with each holding 22% market share. This firstmover advantage allowed Sunil Mittal to expand his manufacturing capacity elsewhere in the telecommunications market.• • Ensuring stakeholder sensitive policies and practices Undertaking programs for our employees. and with slashing down the roaming rentals. Confidence Plan for hearing impaired people. 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. too. MTNL. community and environment Bharti Airtel sensitizes its employees towards CSR issues at various forums. 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. This is likely to lead to even more people going for cellular services and more and more use of the value added services.Bharti Airtel has the largest customer base with 31% market share. At Bharti. Sunil Mittal won a bid to build a . the largest landline service provider. if possible. each employee is sensitized towards CSR issues and thus operations at the ground level are influenced. However. Founder of Bharti Group is Sunil Mittal. covers noise-making DG sets at extra cost. In 1992. both local and long distance. In 1986. in the foreseeable future. investing in consumer awareness campaigns to ensure safe use of mobile are some examples of the above. Sunil Mittal entered into an agreement with Germany's Siemens to manufacture the company's push-button telephone models for the Indian market. expand it. We feel that it is important that each employee should understand the importance of environmental. Sunil Bharti Mittal incorporated Bharti Telecom Limited (BTL) and his company became the first in India to offer push-button telephones. social and economical aspects while taking business decisions. establishing the basis of Bharti Enterprises. has recently taken some bold initiatives to retain its market share and. Such sensitization exercises have resulted in many socially and environmentally sensitive decisions on the ground. The 2007 budget has brought further relief to the customers with the reduction in the tariffs. Sunil Mittal had also launched the country's first fax machines and its first cordless telephones. By the early 1990s. In 1983. Bharti Enterprises has created a vantage position for itself in the global telecommunications sector.

and Set Top Boxes. the cellular phone operations were rebranded under the single AirTel brand. Sunil Mittal incorporated the cellular operations as Bharti Tele-Ventures and launched service in Delhi. cellular service was extended to Himachal Pradesh.: Bharti TeleTech manufactures and exports world-class telecom equipment under the brand Beetel'. Today. PSTN (Fixed Lines). DECT 1. Airtel is the largest cellular service provider in India. In 2000. The company's product range include Basic Telephones. Bharti extended its network to Andaman and Nicobar. Cordless Phones. and the company was listed on Mumbai Stock Exchange and National Stock Exchange of India.6 Companies of Bharti Enterprises Bharti Airtel: Bharti Airtel is India's leading provider of telecommunications services. It is the only Indian telephone company to be present in 30 countries mapping 5 continents. In 2003. In 2004. Telecom Seychelles Ltd: Telecom Seychelles Ltd provides comprehensive telecom services including GSM Cellular. Fax and Data. In 1995. Bharti Telesoft Ltd: Bharti Telesoft Ltd provides value added services and solutions to wireless and wire line carriers worldwide. Caller ID Boxes. connectivity to Internet Services. and extended cellular operations to Karnataka and Andhra Pradesh.4 GHz Digital Cordless Phones. In 1996.cellular phone network in Delhi. In 1999. The company provides GSM mobile services across India in 23 telecom circles and broadband & telephone service in 90 cities. Bharti acquired control of Sky cell Communications. In 2001. Bharti acquired control of Hexacom and entered Rajasthan. under the brand 'Airtel. Maritime Telecom Services (INMARSAT) and International Collect and Credit Card calling. Bharti Teletech Ltd. in Chennai.8 GHz Phones. In 2005. Bharti Enterprises went public in 2002. 2. International Roaming. Bharti Telesoft Ltd ha deployed products and solutions in 25 . the company acquired control of Spice Cell in Calcutta. in Seychelles. 3. Caller ID Phones. Bharti Enterprises acquired control of JT Holdings.

Inc. The company provides premium quality fresh produce to the markets worldwide and promotes world class standards for agricultural practices. application processing.. is a 100% subsidiary of Bharti Enterprises.). document management etc. sales and marketing (including database marketing. The Company brings market-leading products and services to its customers under Airtel-Vodafone brand.countries to over 100 networks. TeleTech Services (India) Ltd: TeleTech Services (India) Ltd is a joint venture between TeleTech Holdings. Bharti Retail Pvt Ltd: Bharti Retail Pvt Ltd. claims processing. asset management. Field Fresh Foods Pvt Ltd: Field Fresh Foods (P) Ltd is an equal partnership venture between Bharti Enterprises and ELRo Holdings India Ltd. web sales and marketing etc. an investment company of the Rothschild family. world's leading full-service provider of business process outsourcing and Bharti TeleTech Ltd. Jersey Airtel Ltd: Jersey Airtel. world leader in financial protection and wealth . a subsidiary of Bharti. back office administration (including credit and collections. marketing support. progressive farming techniques & identification and adoption of appropriate technologies. Bharti AXA General Insurance Company: Bharti AXA General Insurance is a joint venture between Bharti Enterprises and AXA.) to global customers. 3G and HSDPA enhanced network. “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. 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. offers world-class mobile services in Jersey (Channel Islands) over its full 2G. account maintenance. The company offers offer the entire spectrum of front-to-back-office business processes ranging from voice and non-voice customer support. and has a customer base of 150 million across 5 continents.

The company added the next 10 million customers across mobile. which is backed by wide national distribution. The company’s strategic focus will be on further strengthening the Airtel brand through best-in-class customer service." Bharti Airtel is amongst the fastest growing telecom companies in the world. Bharti Airtel. Bharti Airtel said. Manoj Kohli. 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. The company crossed the 50 million customer mark in October 2007. The company had crossed the 10 million customer mark in January 2005 and in July 2006 it crossed the 25 million customer mark. . We are fully committed to taking our network deeper into rural India. thereby covering 95% of the country’s total population. 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. Mr.” Added Mr. "This is a major milestone in our journey towards the 100 million customers mark and gives the company a truly global scale. 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. Over the last few months. India’s leading telecommunication provider company. Bharti Airtel plans to make considerable investments in Network expansion to establish presence in all census towns and over 500. In the mobile Chairman and Managing Director. “To be amongst the top global Telco is a significant achievement not only for us but also for the Indian telecom industry. President & CEO. fixed line and broadband in just over 4 months. 4 Recent Achievements and Millstone Bharti Airtel Limited. This landmark has catapulted Bharti Airtel into the club of top mobile operator in the world in terms of subscriber base. Commenting on this major global landmark. today said that it has achieved the 60 million customer mark. Sunil Bharti Mittal.000 villages across India by 2010. The 60 million customer base covers mobile as well as fixed line and broadband customers.

17 crore.09 lakh customers in a single quarter. Bharti Airtel crosses the 50 million customer mark Becomes the fastest private telecom company in the world to achieve this milestone. Bharti Airtel will invest substantially in the long distance business to achieve the scale of a global carrier within next 2-3 years. Total Revenues of Rs.339 crore (up 27% Y-o-Y).522 crore (up 44% Y-o-Y).025 crore (up 34% Y-o-Y). It is readying to offer triple play to its customers with the launch of its IPTV service. 3. 2.00. accelerates towards the 100 million customer mark .000 villages – covering over 95% of the population. • Adds last 25 Million in just 14 months. • Enters into the league of the world’s top telecom companies. It is also strengthening the corporate business towards becoming a preferred managed services partner for the top 2000 corporations.2%. Highest ever-net addition of 75.In the Enterprise business. Bharti Airtel will initiate large-scale deployments of broadband network infrastructure in 94 towns. EBITDA of Rs. 3.483 crore (up 44% Y-o-Y). The company is also looking at commencing national DTH operations by the end of the current fiscal. moves towards top 5 global mobile companies . with a sharp focus on the home and SME segments. 8. • • • • • • • • Overall customer base crosses 7. In Broadband & Telephone SBU. Cash Profit of Rs. . Net Income of Rs. Market leader with a market share of all India wireless subscribers at 24. to roll out across all census towns and over 5. • Rapidly expands network.

2008.The Company also deploys. 2008 of which 35. We offer post-paid.• Villages – covering over 95% of the population. The strategy of our Telemedia business is to focus on the Cities with high revenue potential. We also offer an integrated suite of telecom solutions to our enterprise customers. national and international long-distance voice connectivity and broadband Internet access through DSL. Our product offering in this segment includes supply and installation of fixed-line telephones providing local. excepting for DTH which will be an all India offering. .777.393. All these services are rendered under a unified brand “Airtel” .732 use our Telemedia Services either for voice and/or broadband access delivered through DSL. near Delhi.448 customers as of June 30.383.287 non-census towns and villages in India. Bharti Ingrates owns 42% of Indus Towers Limited. which monitor the health of our mobile network are located in Gurgaon.383. of whom 69. pre-paid. We had 2.393.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.716 subscribe to our GSM services and 2. Our network operating centers. 2008.6% were subscribing to broadband /internet services. thus covering approximately 74% of the country’s population. based on the number of customers.472 outlets. in addition to providing long distance connectivity both nationally and internationally. as on June 30.716 mobile customers accounted for a market share of 24. Our 69. 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 are the largest wireless service provider in the country. based on the number of subscribers as of June 30. and Chennai.2% of wireless market. 2008.Bharti Infratel and Indus Towers are the two top providers of passive infrastructure services in India 4.732 customers as on June 30. owns and manages passive infrastructure pertaining to telecom operations under its subsidiary Bharti Ingrates Limited.048 census towns and 364.1 Mobile Services We offer mobile and fixed wireless services (FWP) using GSM technology on 900MHz and1800MHz bands. We served an aggregate of 71. roaming and value added services through our extensive sales and distribution channel covering 923. Our network is present in 5. and are the largest wireless service provider in the country.

viz. Enterprise Services . & EIG (Europe India Gateway). 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. 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. 4. The international infrastructure includes ownership of the i2isubmarine cable system connecting Chennai to Singapore.Enterprise Services provides a broad Portfolio of services to large Enterprise and Carrier customers.The business also provides value added services such as intelligent network based advanced management services. Telecom.Communications partner to India's leading organizations.540 Rkms of optical fiber.ITeS. Government and PSUs and retail among others. 4. ring back tones and Call forwarding among others. toll free numbers. Backed by the alliances with leading technology companies worldwide and . It specializes in providing customized solutions to address unique requirements of different industry verticals. voice and managed services. The national long distance infrastructure comprises of 78.2 Carriers Carrier business unit provides long distance wholesale voice and data services to carrier customers as well as to other business units of Airtel. media. Enterprise Services is regarded as the trusted .3 Corporate This business unit delivers end to end telecom solutions to India’s large corporate as well as small and medium enterprises. over 1500 MPLS and SDH POPs and over 900 POIs with the local exchanges. 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. Manufacturing and distribution. India Middle East and Western Europe (IMEWE). virtual private automatic branch exchange networks. IT. BFSI. helping them to meet the challenges of growth. It also offers virtual calling card services in the overseas markets. In recent past it has announced investments in new cable systems such as Asia America Gateway (AAG). education. Unity North. providing a pan India reach. This division comprises of the Carrier and Corporate business unit.

Vodafone & Idea Cellular) for 16 circles.5 Bharti Enterprises announces new Apex level Strategic Organization Structure • Bharti Enterprise to invest in. Managed network services. 4. it offers complete range of telecom solutions. The company had over 58.Centrex. . Satellite services (VSAT). 2008. EPBX. Data centre services. These services include. out of which approx 30. build and grow businesses that make a positive difference to the lives of people and partner India’s economic growth.000 towers would be transferred to Indus Towers Ltd (a Joint Venture between Bharti Infratel. Internet. Bharti Infratel deploys. These solutions enable corporate to network their offices within India and across the globe. owns and manages passive infrastructure on an all India basis. Contact centre solutions.4 Passive Infrastructure Services Bharti Infratel provides passive infrastructure services on a non-discriminatory basis to all telecom operators in India. MPLS -VPN. vendors and employees.state of the art infrastructure.000 towers as on June 30.Audio & Video conferencing. corporate value added services. 4. provide them infrastructure to run business critical applications and provide them means to connect with their customers. domestic and international private leased circuits.

Communication & media devices. Bharti Enterprises will set overall direction. it impacts productivity of over 20. build new businesses and reinforce its best in class governance model. Rajan B Mittal & Akhil Gupta will be Managing Directors.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. • Strengthens empowerment & accountability for business leaders and further enhances professionalism. software / BPO & Bharti Foundation. Sunil Bharti Mittal to lead Bharti Enterprises as the Chairman and Group CEO. Rakesh B Mittal will be Vice Chairman. who are instrumental in creating branded customer experience for Airtel Increased Customer Satisfaction Enhanced Employee Satisfaction Increased Productivity Effective Attrition Management Enhanced Organizational Development . focus on macro strategies & business reviews and ensure a continued senior leadership pipeline. Realty.• Reinforces Bharti Enterprises strategic intent to continue to lead in the market.000 professionals employed with BASL. 4. The new apex level structure takes this vision & strategy forward. Agri business. Retail & Wholesale. Group Lead Directors. Group/Corporate Directors to form core of the Bharti Enterprises team. Insurance & Financial services. Besides. • Bharti Enterprises will be the strategic architect for all businesses of Bharti – Telecom.

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

Bharti Enterprises .Organization Structure .

Recharge coupon. mobile recharge. Ring tone . Calling cards. Wireless Internet. prepaid. Nokia and Huawei mobile with Life 7 Performance of the company over the last few years Annual results in brief (Rs crore) 8 Financial status of the organization .Internat banking. Email on the go.24 hour customer care. Mobile banking.6 Product range of Company Mobile: Home phones. Voice Solutions. conferencing. Digital TV Services: Data and IP solutions. life time prepaid . Black Berry. I Phone 3 G. Broadband and Internet.IPR Sim. Easy recharge.

341.43 125.475.90 266.895.762.00 19.36 16.635.67 5.76 26.12 -2.63 334.35 9.085.22 31.67 8.64 9. 778.439.379.922.85 7.86 994.30 19.29 7.863.07 580.42 1. 2008) Approx.017.959.809.139.044.26 18533.76 1.751.92 26.71 Uses of funds Fixed assets Gross block Less : revaluation reserve Less : accumulated depreciation Net block Capital work-in-progress Investments Current assets.71 Notes: 9.971.30 5.72 2.688.22 1.34 18938.115.66 16.762.93 2.525.37 2.31 4.13 5.38 14.13 7.272.59 18979.509.00 5.028.13 3.95 3.95 0.70 13.93 30.72 2.04 18959.283.809.80 -3.21 1.751.951.874.515.004.83 472.59 1.675.853.13 4.486.88 7.406.897.Balance sheet Mar ' 08 Sources of funds Owner's fund Equity share capital Share application money Preference share capital Reserves & surplus Secured loans Unsecured loans Total 1.36 625.82 17.24 4.85 Net current assets 8.86 2.65 2.75 2.36 15.375.751.95 2.708.52 2.51 2.034.893.20 26.88 12.45 5.70 .92 12.139.434.41 9.29 14.49 1.94 12.Rs.042.42 6.82 Loan funds 52.1.00 9.33 -5.34 476.38 Mar ' 07 Mar ' 06 Mar ' 05 (Rs crore) Mar ' 04 1.72 3.91 57.25 719.37 2.362.853.52 243.77 3.74 2.303.451.932.933.740.140.84 17.62 1.46 931.63 18. loans & advances Less : current liabilities & provisions Total net current assets Miscellaneous expenses not written Total Book value of unquoted investments Market value of quoted investments Contingent liabilities Number of equity sharesoutstanding (Lacs) 28.952.240.478billion Closing BSE share price = Rs.81 11.672.615.10 1.56 0.86 13.99 18533.63 2.1 Market Capitalization (As on September 12.437.338.944.525.08 10.99 4.13 9.221.92 7.204.574.451.37 1.517.67 3.82 705.88 1.79 460.80 58.71 3.67 -5.

00 744. Tate Indicom.Stock Exchg.2 Key Players in the Indian Telecom Sector: The scope of telecom sector in India is large .70 0.00 792.32 8.vergin mobile.00 778. Date Open High Low Current %Change BSE 12/09/08 790. MTNL Reliance Infocomm. TaTa teleservices Idea etc 9 Future prospects . Dolphin.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.

there is comfort in numbers. but at the same time. 200 crores. although subject to a 2 year contract in the States. the first iPhone app development venture to be funded) to position it based on local services rather than only price cuts. software and technologies. Apple’s revised pricing has given my previous post a shining black eye. 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. after having paid twice the amount for a fatter 16GB 2G version. 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.the future prospect of Airtel to achieved the above 100 million customer mark.2 Bharti launches 200 crores fund to promote innovation in telecom Bharti Airtel has launched telecom innovation fund with an initial corpus of Rs. . Besides. Meanwhile. • • By 2010 Airtel will be the most admired brand in India: Bharti Airtel Limited. Both the operators haven’t shared pricing details.3 Airtel to launch 3G iPhone In October Airtel and Vodafone (NYSE: VOD) will launch the iPhone 3G in India this year. Vodafone however has refused to comment. India’s leading telecommunication provider company . Thankfully. buyers remorse has robbed me of life. The objective of the fund is to provide opportunities to the entrepreneurs to undertake innovation in the field of telecom with regard to content. If 3G policy shapes up by year-end and the 3iPhone is able to land at a similar price point. This is definitely a great initiative for Airtel to tap on increasing entrepreneurial efforts in Telecom Industry. being location aware would help operators like RComm (Reliance Technology Ventures has funded Whrrl. I am not the only one to have bitten that Apple (NSDQ: AAPL). We had earlier predicted the average pricing of the 2G phones to be Rs 21k (8GB) and around 25k (16GB). it could turn out to be a great entry buy and sell for both consumers and operators.9. The 3G versions will be Rs 8k (8GB) and Rs 12k (16GB). Airtel President and CEO Manoj Kohli is quoted by stating the device will available by midOctober. a move that would bring in much required competition in the DTH segment. appetite and sleep.

no new investments have been recorded for the year ending 2008. operating income and income before taxes generated over the years. The company is able to instill confidence in its stake holders by showing a marginal increase in the goodwill. . There has been an increase in the current assets due to additions in inventory and deferred taxes on income. However. There has been a considerable increase in revenues. There has been increase in accrued expenses and unearned income which may raise a suspicion about company’s affairs.• • • 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. No entry has been shown under due to other parties which reflect in increased confidence in company’s affairs. 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.



and practicing skills of getting the best out of people. you will gain a clear focus on achieving relevant results. which featured successful men and women with their deluxe cars. the growth was still much below the company’s expectations. carrying laptops and using cell phones. Bharti had become the leading cellular player in Delhi (its major market) with a subscriber base of over 0. By 1999. The surveys conducted after the launch revealed that people began associating three core benefits with the Airtel brand – Leadership. more direct and effective communication.11 Suggestion for improvement Performance Management Training Raise the level of performance in the organization. Other supportive values associated with the brand-included courtesy. Performance and Dynamism. However. Managers will learn how to enhance the performance of their reports. politeness and efficiency. A company source said that the campaign was aimed at positioning Airtel as an aspirational brand. 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. • • Introduce the philosophy of Enhancing Performance Learn about and practice ways to have ‘courageous conversations’ with staff. With improved giving and receiving of feedback. The campaign was reportedly successful and resulted in a marginal improvement in Airtel’s performance. • .38 million. using the Solutions Focus approach in this two-day workshop. which was meant for leaders and celebrities. by raising their awareness of who is responsible for what.

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