AMITY UNIVERSITY

UTTAR PRADESH

AMITY BUSINESS SCHOOL SUBJECT: BPSM
COMPANY: BHARTI AIRTEL LTD.

SUBMITTED TO: DR. HIMANI SHARMA

SUBMITTED BY: HIMANSHU AGARWAL (108H38) GROUP 6 MBA (GEN) CLASS OF 2010

Airtel Telemedia Services & Enterprise Services. 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. 2009-Audited) 1. The company has two international landing stations in Chennai that connects two submarine cable systems .239. Airtel’s high-speed optic fibre network currently spans over 101.Mobile Services. Bharti Airtel Limited is Asia’s leading integrated telecom services provider with operations in India and Sri Lanka. 369.BHARTI AIRTEL Established: Proportionate Revenue: Shares in Issue: Listings: July 07. The Enterprise services provide end-to-end telecom solutions to corporate customers and national & international long distance services to carriers.898.337 Rkms covering all the major cities in the country. Mumbai National Stock Exchange (NSE). 1995. . 2009 Bombay Stock Exchange (BSE). with an aggregate of 100 million customers. All these services are provided under the Airtel brand. Airtel digital TV. New Delhi Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. 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 95 cities and has recently launched India's best Direct-to-Home (DTH) service. in a survey conducted by The Wall Street Journal. Airtel comes to you from Bharti Airtel Limited.796 as at March 31. as a Public Limited Company Rs.615 million (year ended March 31. Bharti Airtel Limited has been voted as India's most innovative company. India’s largest integrated and the first private telecom services provider with a footprint in all the 23 telecom circles. Bharti Airtel since its inception has been at the forefront of technology and has steered the course of the telecom sector in the country with its world class products and services.

4%. which is three times higher than that for its mobile users. is one of the most profitable segments. with fiscal fourth-quarter and annual profit margins of 42. which combines fixed-line telephony. Internet and IPTV services. with nearly 94 million cellphone customers and over 2. .7 million landline subscribers over 95 cities. Its landline business.071 per month.Bharti Airtel has a 24% market share of the Indian mobile market.1% and 42. It accounts for about 9% of Bharti's total earnings and the average revenue per user here is Rs 1.

Bharti Airtel is to acquire 49 percent shareholding in MTN. said last year that earlier talks fell through after disagreement on the structuring of the deal. it said in a filing to the Bombay Stock Exchange. Bharti Airtel will be the primary . particularly MTN's insistence that Bharti Airtel should be a subsidiary company of MTN after the deal. which has Singapore Telecommunications as a key shareholder. The company. This is second time that Bharti Airtel has been in alliance talks with MTN. Bharti Airtel said in May. and MTN to acquire a 36 percent economic interest in Bharti Airtel. Under the terms announced in May. Bharti Airtel did not give a reason for the extension of the deal which initially began in 2008. The two companies agreed to discuss the proposal exclusively until July 31 which was initially extended upto August 31 and now has been further delayed till September 31. The structure and the terms of the potential transaction may be adjusted to reflect further discussions between the parties. Bharti Airtel will have substantial and governance rights in MTN. enabling it to fully consolidate the accounts of MTN. Together the two companies will have US$20 billion in revenue and 200 million customers. The negotiations are aimed at working out a formula that will help both companies keep their identities after the alliance.IS BHARTI PREPARED FOR THE BIGGEST OVERSEAS CORPORATE DEAL EVER IN INDIA? Bharti Airtel announced in May that it had begun tie-up talks with MTN Group of South Africa. according to informed sources. Under the arrangement by the two companies.

The net worth of Bharti Airtel and the creditability both give an easy go the deal. Large numbers of banks are eager to fund the deal and investors are looking forward for this merger.vehicle for the expansion of both Bharti Airtel and MTN in Asia. the deal. Though it was “purely a courtesy call. minister for corporate affairs in the last week of August. 2009.4 billion Indian rupees (US$2 billion at the exchange rate on the last day of the quarter). has been delayed for the second time and has been now extended to September 30. Inspite of the inspiring figures and consent from both the sides. The procrastination of the deal has become the major issue for the investors who are in a perplexed situation understanding the potential of the deal. Not much data and figures are reveled in the market yet. Conclusion: The deal is considered to the largest deal ever successfully undertaken in India ($23Billion). chairman and managing director of Bharti Airtel and Phuthuma Nhleko. Talks on the $23 billion deal between the two telecom players. 2009 at the minister’s minority affairs office in the capital. while MTN will focus on expansion in Africa and the Middle East.” there are indications that the close-door meeting was a bid to push the much-delayed deal between the two-telecom giants. A stumbling block for the deal could be the concerted effort by some shareholders of MTN to seek a more sweetened deal. Profits in the quarter grew by 24 percent to 25 billion rupees. which was first cancelled. up by 17 percent from revenue in the same quarter in the previous year. revenue was 99. now has been further delayed. . For the quarter ended June 30. The Indian service provider has benefited from the boom in the mobile services market in India. Earlier Mittal and Nhelko also met finance minister Pranab Mukherjee for the same concern. 2009 from the earlier assigned date of August 31. group president and CEO of MTN met Salman Khurshid. Sunil Bharti Mittal.

Nokia and Siemens. expanding its tested strategy of outsourcing technology functions to focus more on marketing and sales. and will invest Rs 2. and has signed billion-dollar deals with network vendors such as Ericsson. Another billiondollar pact exists with six BPOs. Alcatel-Lucent has carried out the transformation of fixed line networks to make them Internet Protocol-based and also next generation network-enabled. this is the first time that the company is forming a JV to handle a core business instead of outsourcing it to a third party. Bharti Airtel is expecting same kind of service from Alcatel Lucent. Bharti is minority partner in the 26:74 joint venture. In about 40 countries. build and operate its mobile network. .5 billion. which collectively handle Bharti's customer services for a 10year period. Bharti has made outsourcing a key plank of its business strategy.500 crore into the new entity over five years till 2014. It pioneered the network outsourcing model in 2004 by awarding IBM a 10-year. However. ALCATEL-LUCENT Bharti Airtel entered into a joint venture with Franco-American telecom gear maker AlcatelLucent to manage its landline and broadband business. which manage.OTHER STRATEGIC ALLIANCES OF BHARTI AIRTEL LTD. $750-million contract. whose scope is now worth $2.

The reason of this Joint Venture is the complicated nature of the fixed line and broadband business compared with mobile telephony. a possible reason for Bharti to take the JV route may be because Alcatel-Lucent has an existing contract with Reliance Communications to manage its network based on the CDMA technology. some of whom will be transferred from Bharti Airtel. BOOKMYSHOW. Airtel customers can book tickets on the Airtel WAP site live. . The average time a call centre executive spends with a broadband customer is about 8 minutes.com/AirTel Live on all GPRS enabled handsets.000 employees. Airtel customers can also call 5432191 that would be directed to the Bookmyshow call center for tele-booking and home delivery.COM Bookmyshow (Network18 venture) partnered with Airtel and their applications are now available on Airtel Live. for any cinema/Play theatre/concert venue covering any show time. However.airtelworld. according to some industry analysts. Bharti will not transfer any of its material assets to the JV. which will have 4.

Blackberry was viewed primarily as e-mail access device and did well in India.000 applications and had 6.5 lakh developers worldwide. and connect to broadband. Microsoft’s Windows platform offer about 18. HCL Bharti's Airtel Broadband & Telephone Services entered into a tie up with HCL to push highspeed Internet for home users. which apparently has not been as successful as was expected at the time of launch in India despite the hype around it. a range that no other product offered. under which people buying a PC from Intel's dealers will be offered Reliance Mobile service and an LG handset to connect with high-speed Internet wirelessly. People buying Airtel's landline connection are now able to opt for a PC on instalments. with some initial payment. Microsoft-based mobiles were expected to take enterprise mobility into a new realm with offerings like MS Office suite etc.MICROSOFT Airtel moved beyond its two year old exclusive alliance with Blackberry. Airtel entered into this deal within days of a joint initiative by Intel and Reliance. .

animal . Malaysia Airlines and Turkish Airlines. Aero currently has agreements with several global carriers such as Emirates. on especially equipped aircraft.AEROMOBILE TO OFFER IN-FLIGHT CELL CONNECTIVITY Bharti Airtel partnered with UK based in-flight solutions company AeroMobile to offer on-flight cell-phone connectivity to its customers. This service is offered without any additional subscription charges and only requires Airtel customers to activate their international roaming service IFFCO Airtel entered into a strategic tie up with the Indian Farmers' Fertiliser Co-operative Limited (IFFCO) and formed a new joint venture company called IFFCO Kisan Sanchar Limited (IKSL). Qantas. especially designed for farmers. On offer will be affordable mobile handsets bundled with Airtel mobile connections. through IFFCO societies in villages across the state. farming techniques. This joint venture company will harness the power of telecom to empower the rural farmer by giving him access of vital market information at his fingertips. while an incoming call will be charged Rs 24 per minute. The partnership will enable Airtel post-paid customers to use their mobile phones on-board flights. weather forecasts. This will enable customers to make and receive calls on their mobiles on select international airlines. Passengers will be charged Rs 41 for an outgoing SMS while incoming SMSes will be free. dairy farming. The farmers will also get access to a unique VAS platform that will broadcast five free voice messages on mandi prices. An outgoing call will cost Rs 188 per minute. IKSL will offer products and services. Bharti will be the first Indian telecom company to offer this facility to its customers.

would provide a suite of services covering both voice and back office in areas such as customer service. IBM Daksh expects to have over 700 employees in the first year focused on providing services in over 11 languages to elite Airtel customers across the country. among others on a daily basis.husbandry. a wholly-owned subsidiary of IBM Corporation. customer retention and the like to Airtel Platinum customers from its centres. collections. customer service. In addition. IBM MBPS combines IBM's deep industry and process expertise with innovative technologies and a talented employee force to offer client's repeatable processes and assets that can improve process productivity and deliver cost savings and reduced risk. farmers will be able to call a dedicated helpline manned by experts from various fields. to get answers to their specific queries OUTSOURCING PACT WITH IBM Bharti Airtel on Wednesday has strategic outsourcing agreement with IBM to further enhance its customer service experience for its top-end platinum customers through process and technology innovation. it said. . The six-year Q3 contract for outsourcing contact services to IBM's Managed Business Process Services (MBPS) unit would involve augmentation of Airtel's sales. and back office capabilities. IBM Daksh Business process Services.

airtel and magic customers should send the sms keyword "exam" followed by a space and the candidate's "hall ticket number" and send it to "444". Airtel is constantly innovating and introducing new products which are focused on entertainment and are user friendly.EASY MUSIC CARDS In endeavour to make mobile telephony grow beyond the realms of voice.50 VAS Combo card has the advantage of the balance in the VAS Wallet being carried forward. Airtel Easy Music Cards will be available in the denominations of Rs 30 & Rs 50. his hall ticket number. Customers also have a choice to go for exclusive Kannada and Hindi tones. games. The Rs. . break-up of marks of all the subjects and the total marks obtained. To view the result. and has validity for 30 days. This is the second year in succession that airtel has tied up with the board to provide such service to its subscribers in the state. the Rs 50 value added service (VAS) Combo card offers a plethora of content to choose from across items like monotones. wallpapers. polytones. truetones. While the Rs 30 Ringtone card allows a customer to download 3 monotones.ANDHRA PRADESH SSC BOARD Airtel did a tie up with Andhra Pradesh SSC board to provide SSC results to its customers on their mobile phones. INDIATIMES 8888 . The result displayed will include the name of the candidate. video clips and more.

A customer has to type and SMS it to 9600097000 (for example. It's toll-free for all Airtel customers. wherein people can source information on blood within minutes and access the real time stock of tested blood components from Jeevan Blood Bank 24 hours a day. It would contain information on quantity of readily available tested blood components of the group required. 8888. India’s largest mobile VAS player tied up with Airtel. This is a first-of-its kind initiative. Blood B+ or Blood AB+). It strengthened its tie-up through the new facility as part of the Airtel Cares for Everyone (ACE) project. Entertainment on mobile phones has grown beyond imagination. JEEVAN BLOOD BANK Airtel made a toll-free SMS facility available to its customers to enable them to be aware of stocks at the Jeevan Blood Bank.50 VAS Combo card. to supplement the entertainment channel on mobile phones. India’s leading operator. and feed the chosen category and the 16-digit secret code by an SMS to 8888. .All that a customer needs to do is buy the Airtel Easy Music Card. Mobile content in regional languages is a fundamental part of our consumer strategy. "He or she will get a response within a minute. In case of Rs. with people looking for a variety of content on their very own handsets. immediately the content will be downloaded onto the mobile. registering for the service can be done by simply sending the 16 digit secret code to 8888. post which the customer can SMS his choicest codes to 8888 to download content.

The idea is to give Indians the lowest price everyday. Inc (Wal-Mart). the world's largest retailer. Bharti was expected to pay a royalty between 2 percent and 3 percent of sales to Wal-Mart for using the latter's brand name. the government had permitted retailers of single brand products to own a majority stake in a joint venture with a local . Wal-Mart Stores.WAL-MART INDIA In November. This franchise strategy with Bharti was a deviation from Wal-Mart's usual way of entering countries. Moreover. a leading business group in India. As part of the agreement. (Bharti). only 3 percent of the Indian retail industry was in the organized sector. Many analysts opined that both the parties in the venture had their own strengths and would complement each other. However. which could further increase to US$ 1. and Bharti Enterprises Ltd. The Bharti-WalMart joint venture was expected to open its stores in India from August 2007. Foreign retailers were keen to enter India's rapidly growing retail market. The retail shops will be owned by Bharti Enterprises under the Wal-Mart franchise. This was because the policy restrictions on foreign direct investment (FDI) in the Indian retail sector. This joint venture marked the entry of Wal-Mart into the Indian retailing industry. The retail industry in India is estimated at about US$ 300 billion and is expected to grow to US$ 427 billion in 2010 and US$ 637 billion in 2015.46 billion. 2006. The joint venture with equal stakes will operate in areas where the government allows foreign investment in retail like cash-and-carry and logistics. Bharti-Wal-Mart venture would make an initial investment of US$ 100 million. signed a Memorandum of Understanding (MoU) to explore business opportunities in the Indian retail industry. Wal-Mart's logistics skill and Bharti's execution capability will create a potent force in the Indian market.

However. analysts noted that the success of the joint venture would depend on how successful Wal-Mart is in building a cost efficient supply chain and sourcing network so that the cost savings are passed on the end consumer through its trademark "every day low price" strategy. Retailers of multi-brands were only permitted to operate through franchises and licencees.partner (with prior government permission). . Carrefour SA and Tesco Plc (Tesco) would result in Indian retailers learning some of the best international practices in retailing. A few Indian retailers felt that the entry of foreign retail giants like Wal-Mart. Pantaloon Retail. or a cash-and-carry wholesale model. the retail arm of the Future Group was expected to give stiff competition as it had a first-mover advantage.

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