Bharti Airtel Limited and the Telecom Sector

• Amrita
Written by • Kamran
Adapa Srinivasa Rao • Priyasha
• Subhamay
Case Facts

• Bharti Airtel entered telecom industry in 1995

• Telecom business was run by BTV.
• First store named ‘Airtel Connect’ in Delhi.
• Major Acquisition (IT mobile, Sky cell and Spice
cell)
• Fixed line services under the brand “touchtel”
• Long distance services under the brand “India
one”

Page - 2
Case Facts

• Internet services under the brand “mantra”

• Wireless internet for corporate users (GPRS)
• All services under one brand “AIRTEL”
• BTV was renamed BAL in 2006
• BAL crossed 60 million customers in February
2008
• BAL became market leader (31.88% share)

Page - 3
Case Facts

• Telecom sector was adding 8 million customers/

month
• 5th largest telecommunication company in the
world
• India overtook China as fastest growing mobile
market
• ARPU/ month for GSM operator – ` 275 Jan
• ARPU/ month for CDMA operator –` 173 2008

Page - 4
Problems

• Acquisition of Hutch by Vodafone

• US $ 2 billion investment by Vodafone
• GOI policies regarding Telecom industry
• US $ 500 million plan of BSNL
• Tariff Plans by Reliance for GSM mobile
• Entry of youth specific brand “Virgin Mobile”

Page - 5
Strategies by BAL
• Network expansion (US$ 2 billion within 3
years)
• 30,000 new base stations for the year 2007
• MOU with NSN
• Targeting all segments (VAS like payment and
money transfer)
• M-commerce (services like online purchase of
handsets)
• Tie up with Nokia in 2007

Page - 6
Strategies by BAL

• Categorization of customers (based on ARPU &

VAS)
• FUNSTER
• Tie up with HTC

Page - 7
How situation has been handled
according to us

• To target the untapped market

• Establish more customer-care centers across the
country
• Service innovation
• Heavy investment on Network, Technology and
Marketing

Page - 8
Recommendation

MANTRA: Focus on Core Competencies and

Outsource the rest! Product
Innovation

Pricing
Core VAS
Competencies

Marketing
and
Branding

Page - 9
Recommendation

• Partnership with leading players in

telecommunication across the globe.
• Higher emphasis on ARPU/min in contrast with
other operators who concentrate on ARPU only.
• Exploring opportunities in international markets.

Page - 10
Research finding
• Airtel leads with over 20% of Indian Telecom
market
• Followed by Reliance (16.71%) and Vodafone
(16.52%)
• Airtel is the fifth largest telecom operator in the
world
• It has over 207.8 million subscribers across 19
countries at the end of 2010
• First to achieve Cisco Gold Certification
• Europe India gateway

Page - 11
Market share of different telecom
companies

Page - 12
Case Learning
• Booming Telecom Sector in India
• How BAL tapped opportunities in the Indian
Telecom Sector
• Challenges faced by organization operating in
emerging markets
• Strategies followed by different companies to
gain competitive advantage

Page - 13
Thank You