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Bharti Airtel Limited (NSE: BHARTIARTL, BSE: 532454), commonly known as Airtel, is an Indian telecommunications company that operates in 20 countries across South Asia, Africa and the Channel Islands. It operates a GSM network in all countries, providing 2G or3G services depending upon the country of operation. Airtel is the third largest telecom operator in the world with over 243.336 million customers across 20 countries as of March 2012. It is the largest cellular service provider in India, with over 178.78 million subscribers at the end of February 2012. Airtel is the third largest in-country mobile operator by subscriber base, behind China Mobile and China Unicom. Airtel is the largest provider of mobile telephony and second largest provider of fixed telephony in India, and is also a provider of broadband and subscription television services. It offers its telecom services under the Airtel brand, and is headed by Sunil Bharti Mittal. Bharti Airtel is the first Indian telecom service provider to achieve Cisco Gold Certification. It also acts as a carrier for national and international long distance communication services. The company has a submarine cable landing station at Chennai, which connects the submarine cable connecting Chennai and Singapore. It is known for being the first mobile phone company in the world to outsource all of its business operations except marketing, sales and finance. Its network—base stations, microwave links, etc.— is maintained by Ericsson, Nokia Siemens Network and Huawei,and business support is provided by IBM, and transmission towers are maintained by another company (Bharti Infratel Ltd. in India). Ericsson agreed for the first time to be paid by the minute for installation and maintenance of their equipment rather than being paid up front, which allowed Airtel to provide low call rates of 1/minute (US$0.02/minute). During the last financial year (2009–10), Bharti negotiated for its strategic partner Alcatel-Lucent to manage the network infrastructure for the tele-media business.
Bharti Airtel Limited
BSE: 532454NSE: BHARTIARTL BSE SENSEX Constituent
July 7, 1995
Sunil Bharti Mittal
New Delhi, India
South Asia, Africa and the Channel Islands
Sunil Bharti Mittal
(Chairman) and (MD)
Fixedline Telephony Mobile Telephony Broadband Internet Digital Television IT services
596.01 billion (US$11.89 billion)(2011)
60.46 billion (US$1.21 billion)(2011)
1,007.85 billion (US$20.11 billion)(2011)
20,675 (December 2011)
Bharti Enterprises (52.7%) SingTel (15.57%) Vodafone (4.4%)
Airtel Africa Airtel Digital TV Airtel Sri Lanka Airtel Bangla
Sunil Bharti Mittal founded the Bharti Group. In 1983, Mittal was in an agreement with Germany's Siemens to manufacture push-button telephone models for the Indian market. In 1986, Mittal incorporated Bharti Telecom Limited (BTL), and his company became the first in India to offer pushbutton telephones, establishing the basis of Bharti Enterprises. By the early 1990s, Sunil Mittal had also launched the country's first fax machines and its first cordless telephones. In 1992, Mittal won a bid to build a cellular phone network in Delhi. In 1995, Mittal incorporated the cellular operations as Bharti Tele-Ventures and launched service in Delhi. In 1996, cellular service was extended to Himachal Pradesh. In 1999, Bharti Enterprises acquired control of JT Holdings, and extended cellular operations to Karnataka and Andhra Pradesh. In 2000, Bharti acquired control of Skycell Communications, in Chennai. In 2001, the company acquired control of Spice Cell in Calcutta. Bharti Enterprises went public in 2002, and the company was listed on Bombay Stock Exchange and National Stock Exchange of India. In 2003, the cellular phone operations were rebranded under the single Airtel brand. In 2004, Bharti acquired control of Hexacom and entered Rajasthan. In 2005, Bharti extended its network to Andaman and Nicobar. This expansion allowed it to offer voice services all across India. In 2009, Airtel launched its first international mobile network in Sri Lanka. In 2010, Airtel Today, Airtel is the largest cellular service provider in India and the fourth largest in the world. Organisational
The organisational structure that existed until recently concentrated on the hierarchy of the operations inside the company as a whole. The structure depicts the corresponding operation/region of different in-charges and it didn't hold anyone responsible for each of its services. So, the company found it better to restructure its organizational chart. The transformed organisational structure will have two distinct Customer Business Units (CBU) with clear focus on B2C (Business to Customer) and B2B (Business to Business) segments. Bharti Airtel's B2C business unit will comprehensively service the retail consumers, homes and small offices, by combining the erstwhile business units— Mobile, Telemedia, Digital TV, and other emerging businesses (like M-commerce, M-health, Madvertising etc.). The B2C organization will consist of Consumer Business and Market Operations. It is the largest telecommunication company in India. Worldwide
Airtel Africa.000 customers representing 50% market share. Republic of the Congo. Sierra Leone. Gabon. Airtel operates in the following countries: Country Site Remarks Bangladesh Airtel Bangladesh Airtel Bangladesh had about 5. Burkina Faso Airtel Burkina Faso Airtel Burkina Faso is the dominant player with 1. Seychelles. under the brand name AirtelVodafone. Uganda and Zambia. Niger.433.1 million customers at the end of June 2011. in Bangladesh Airtel. Madagascar. Malawi. in Sri Lanka Burkina Faso. Chad.Coverage map of Bharti Airtel across 20 countries Airtel is the third largest mobile operator in the world in terms of subscriber base and has a commercial presence in 20 countries and the Channel Islands. Ghana. Chad Airtel Chad Airtel Chad is the #1 operator with 69% market share. Nigeria. Its area of operations include: The Indian Subcontinent: Airtel Bangla. which operates in 17 African countries: The British Crown Dependency islands of Jersey and Guernsey. Kenya. through an agreement withVodafone. Tanzania. Rwanda. . Democratic Republic of the Congo. in India Airtel Sri Lanka.
 Nigeria Airtel Nigeria . India Airtel Airtel is the market leader with almost 152.000 Airtel Gabon customers and its market share stood at 61%. has a 39% market Madagascar share and over 1. Gabon Airtel Gabon has 829. Niger Airtel Niger Airtel Niger is the market leader with a 68% market share. Malawi Airtel Malawi Airtel Malawi is the market leader with a market share of 72%.5 million customers at the end of 2010. Kenya Airtel Kenya is the second Airtel Kenya largest operator and has 4 million customers.Democratic Republic of the Congo Airtel DRC Airtel is the market leader with almost 5 million customers at the end of 2010. Madagascar Airtel holds second place in the mobile telecom market in Airtel Madagascar. Ghana Airtel Ghana had about Airtel Ghana 1.76 million customers at the end of 2010.4 million customers.
 Uganda Airtel Uganda Airtel Uganda stands as the #2 operator with a market share of 38%. Tanzania Airtel Tanzania Airtel Tanzania is the market leader with a 38% market share. It had about 1. Rwanda Airtel Rwanda Airtel launched services in Rwanda on 30 March 2012.Republic of the Congo Airtel Congo Airtel Congo is the market leader B with a 55% market share. Sierra Leone Airtel Sierra Leone Sri Lanka Airtel Sri Lanka Airtel Sri Lanka commenced operations on 12 January 2009.8 million mobile customers at the end of 2010. Seychelles Airtel Seychelles Airtel is the leading comprehensive telecommunications services providers with over 55% market share of mobile market in Seychelles. Zambia Airtel Zambia Channel Islands : Jersey and Guernsey† Airtel Airtel operates in the Channel Islands under the brand name .
high prices and contract bonds discouraged consumers and it was not as successful as the iPhone is in other markets of the world. Airtel launched 3G in Chennai and Coimbatore. This gives Airtel a 3G presence in 15 out of 22 circles in India. Kanpur and Kolkata through an agreement withVodafone and in Gujarat through an agreement with Idea. With this launch. Airtel announced the launch of a BlackBerry Wireless Solution in India. 3G On May 18. NSN would manage networks in three circles. and Jammu & Kashmir. design. Airtel's countries of operation is considered to be 19. Airtel became the third private operator (fifth overall) to launch its 3G services in the country following Reliance Communications and Tata Docomo. Rajasthan.45 billion) for spectrum in 13 circles. Therefore. The Apple iPhone 4 was introduced on May 27. deploy and maintain 3G–HSPA (third generation. Karnataka—its largest circle by revenue. However. India Mobile Airtel has nationwide presence. North East. Tamil Nadu. Airtel launched 3G services in Bangalore. The launch is a result of a tie-up between Bharti Tele-Ventures Limited and Research In Motion (RIM). On January 24. Cochin and Calicut). the most amount spent by an operator in this auction. Goa. 2011.95 billion (US$2. 2011.Mumbai. While Bharti Airtel has awarded network contracts for seven 3G circles to Ericsson India. and is the 6th most valued brand according to an annual survey conducted by Brand Finance and The Economic Times in 2010. Bharti Airtel said that it has given contracts to Ericsson India. These vendors will plan. West Bengal. The Apple iPhone 3G was rolled out in India in 2008 by Airtel and Vodafone. 2011 by Airtel and Aircel. They are not independent countries. Uttar Pradesh (east). 2010. Karnataka. Chinese telecom equipment vendor Huawei Technologies has been introduced as the third partner for three circles. 2010. Bihar. Andhra Pradesh. Airtel also operates 3G services in Maharastra. high speed packet access) networks in 13 telecom circles where the company has won 3G licences. 3G spectrum auction was completed and Airtel will have to pay the Indian government 122. . Nokia Siemens Networks (NSN) and Huawei Technologies to set up infrastructure for providing 3G services in the country. Airtel won 3G licences in 13 telecom circles of India: Delhi. †Jersey and Guernsey are British Crown Dependencies. On 19 October 2004. Himachal Pradesh. On January 27. On July 27. 2011 Airtel launched 3G in three major cities in Kerala (Trivandrum. Assam. On September 20.Vodafone Airtel–Vodafone through an agreement with Vodafone.
Several thousands of users were falsely billed. The company was allocated 20 Mhz of BWA spectrum in 2. The company.Airtel plans to cover 1. with the help of Airtelmoney. the broadband wireless access (BWA) or 4G spectrum auction in India ended. in Infosys Campus of bangalore. VAS Fraud There has been lot of criticism about Airtel for its unauthorised VAS activation. . Controversy Bharti Airtel (India).500 cities across 13 circles by the end of March 2012. Airtel provides both capped as well as unlimited download plans (reduced speeds at unlimited data are implied). Telemedia The Telemedia business provides services in 89 Indian cities and consists of two brands. The maximum speed available for home users is 16Mbit/s.1436 billion for spectrum in 4 circles: Maharashtra. Reliance Communications and Vodafone. they had received complaints from customers regarding unwarranted rejection of porting requests by telecom operators and 10 had been charged for a message requesting porting code through number 1900. Many of its services were activated automatically according to a complaint forum.users can transfer money. Karnataka. 4G On 19 May 2010. is also in talks with other service providers to roll out the services in the remaining 10 circles as part of its roaming offerings. Airtel will be launching 4G in Bangalore in April 2012 and later in Pune and Chandigarh. along with Loop Mobile. you can sign up on the "Do Not Disturb" list to avoid all telemarketing calls and SMSes. Airtel Broadband provides broadband and IPTV services. Punjab and Kolkata. which has 3G licences for 13 circles. Airtel paid 33. In return Airtel launched STOP/START 121 services for such issues. On 10 April 2012. Idea Cellular. Airtel had about 3 million 3G subscribers as of May 2011.3 Ghz frequency band. It is launched on April 5th 2012. Airtel launched 4G services using TD-LTE technology in Kolkata. Airtel Money Airtel has started a new mCommerce platform called Airtel Money with collaboration with Infosys. was issued notices by Telecom Regulatory Authority of India (TRAI) for violation of Mobile number portability (MNP) regulations. for example downloading wallpaper or ringtones. Alternatively. Airtel has selected ZTE to build and operate its TD-LTE network in Kolkata and Nokia Siemens Networks in Maharashtra. According to TRAI.pay bills and other financial transactions using mobile phone. becoming the first company in India to offer 4G services.
999 ($220) 7-inch tablet in India based on Google Inc. One is GPRS Based Solutions like mobile applications tools for enterprise. Enterprise business solutions There are two kind of solutions offered by Airtel. It has two sections under it. Until 18 September 2004. a unit of Bharti Enterprises Ltd. of which 42. off-load the pressure on the billing staff and bring convenience to the user. Android-based tablet Beetel Teletech Ltd. Digital Television Main article: Airtel digital TV The Digital TV business provides Direct-to-Home (DTH) TV services across India under the brand name Airtel digital TV.16 million wireline customers.'s Android operating system. The offering is intended to capitalize on the expected demand for cheap computing devices in the world's fastest-growing and second-largest mobile phone market. Rest Africa Main article: Airtel Africa Bangladesh Main article: Airtel Bangla of the World . Bharti now provides all telecom services including fixedline services under a common brand "Airtel". and the other is SMS Based Solutions like interactive sms. It started services on 9 October 2008 and has about 32.Airtel has about 3.. USB modem that helps in getting instant access to Internet and corporate applications.a web-enabled mobile email solution working on 'Push Technology'.Airtel Data Card that gives the liberty to access the internet anytime. TrackMate. on 18 August launched a 9. ISP and international bandwidth access through the gateways and landing stations.6% are broadband internet subscribers as of August 2010. automatic meter reading solutions etc. bulk sms. last mile connectivity in fixed-line and mobile circles. VSATs. Easy Mail is a platform that provides access to personal/corporate e-mails independent of handset operating system and application services that shorten the queues at the billing section. Enterprise The Enterprise business provides end-to-end telecom solutions to corporate customers and national and international long distance services to telcos through its nationwide fiber optic backbone. Mobile data service The different services under mobile data are BlackBerry services.. inbound call center solutions. Bharti provided Fixedline telephony and broadband services under the Touchtel brand.44 million customers as of August 2010.
336 million subscribers worldwide—232.295 "B" Circle Haryana – 1.870 Chennai – 2.947.3.024 Karnataka – 14.687 Kolkata – 3. both wholly owned subsidiaries of the Bharti Group.598 Gujarat – 5. India The Airtel subscriber base according to Cellular Operators Association of India (COAI) as of December 2010 was: Metros Hyderabad −8.Sri Lanka Main article: Bharti Airtel Lanka Channel Islands: Jersey and Guernsey Main article: Airtel-Vodafone Yaya ya On 1 May 2007.263.856.688 Kanpur . Airtel-Vodafone operates a 3G network in Jersey and Guernsey.073 "A" Circle Andhra Pradesh – 15. Therefore.181.247 Maharashtra – 7.157. Airtel's countries of operation is considered to be 19.093 .329.425 Tamil Nadu – 9.865. The numbers include mobile services subscribers in 19 countries and Indian Telemedia services and Digital services subscribers. Jersey and Guernsey are British Crown Dependencies.870 Delhi – 7.95 million in India and South Asia and 50.004.949 million in Africa as of the end of December 2011. announced they would launch mobile services in the British Crown Dependency islands of Jersey and Guernsey under the brand name Airtel-Vodafone after signing an agreement with Vodafone.980.420.259. Subscriber Base Bharti Airtel has about 243.171 Mumbai – 3. Jersey Airtel and Guernsey Airtel. They are not independent countries.947.
 Bharti Airtel said in a statement "Bharti Airtel Ltd is pleased to announce that it has renewed its effort for a significant partnership with MTN Group". and Mergers .102 Airtel is the market leader in India with about 152.383.901.584 Punjab – 5. Bharti struck a deal to buy the Kuwait firm's mobile operations in 15 African countries.843 West Bengal – 7. However. higher revenues and broader geographic coverage.442 Uttar Pradesh (East) – 11. Bharti Airtel completed its $9 billion acquisition of African operations from Kuwait's Zain.592. in India's second biggest overseas acquisition after Tata Steel's $13 billion buy of Corus in 2007.163 Himachal Pradesh – 1.202 Orissa – 4.000. Talks eventually ended without agreement. places Airtel as the only mobile operator in the top 10 most trusted brands in India. Zain In March 2010.001. both sides emphasize the tentative nature of the talks. while The Economist magazine noted.989.219 out of the total 745.097 Madhya Pradesh – 8.879.490 Bihar – 13. which would be the largest overseas acquisition ever by an Indian firm.455." as MTN has more subscribers.487 "C" Circle Assam – 2.946. "If anything. Acquisitions MTN In May 2008.727 Jammu and Kashmir – 1. due to the South African government opposition.475. it emerged that Bharti Airtel was exploring the possibility of buying the MTN Group.46% market share as of December 2010. Kerala – 3.527.495. Bharti Airtel again confirmed that it is in Talks with MTN and companies have now agreed discuss the potential transaction exclusively by 31 July 2009. a South Africa-based telecommunications company with coverage in 21 countries in Africa and the Middle East.828 North Eastern States – 1. In May 2009. The Financial Times reported that Bharti was considering offering US$45 billion for a 100% stake in MTN.638 Uttar Pradesh (West) – 5.828.748.528. The Brand Trust Report published by Trust Research Advisory.000 subscribers in India or about 20.742 Rajasthan – 12. the talks fell apart as MTN group tried to reverse the negotiations by making Bharti almost a subsidiary of the new company. However. Bharti would be marrying up.
net profits dropped by 41% from US$470 million last year to US$291 million this year due to a US$188 million increase in radio spectrum charges in India and an increase of US$106 million in debt interest. 2010. Ericsson will manage and optimize Airtel‘s mobile networks in Africa. network planning & design and network deployment. Ericsson will also provide technology consulting.making the firm the world's No. Designed by Londonbased brand agency. 5 wireless carrier by subscribers.Ericsson has been the managed services and network technology partner in the Asian operations. ship to shore services satellite telephony.However. newly acquired Zain Africa division contributed US$911 million to the total. while retaining their home network service functionality. the new logo is the letter 'a' in lowercase. Joint Ventures Airtel-Ericsson As per a five-year managed services agreement signed recently[when?]. On 23 November 2010. Airtel rebranded itself in India in the first phase of a global rebranding strategy. with 'airtel' written in lowercase under the logo. Sri Lanka followed on 28 November 2010 and on 20 December 2010. The company has over 57% share of the mobile market of Seychelles. and be treated as ―virtual‖ local customers of the visited network in terms of pricing. Telecom Seychelles On August 11. One Network allows customers travelling to One Network countries to make outgoing calls/SMS at the same rates as local customers and recharge with local top-up cards or with home network top up . The US$34 million SEAS project is aimed at improving the Seychelles‘ global connectivity by building a 2. Ericsson will modernize and upgrade Airtel‘s mobile networks in Africa with the latest technology including its multi standard RBS 6000 base station. Telecom Seychelles began operations in 1998 and operates 3G. among value added services like VSAT and Gateways for International Traffic across the Seychelles under the Airtel brand.2 billion compared to the previous year. Rebranding On 18 November 2010. Airtel announced plans to invest US$10 million in its fixed and mobile telecoms network in the Seychelles over three years. Fixed Line. Airtel's Africa operations were rebranded to 'airtel'. The company unveiled a new logo with 'airtel' written in lower case. One Network One Network is a borderless mobile phone network across all Airtel operating countries which enables customers to move freely between the countries in which Airtel operates.000 km undersea high speed link to Dar es Salaam in Tanzania. As part of the modernization. The Brand Union. Warid Telecom rebranded to 'airtel' in Bangladesh.Airtel has reported that its revenues for the fourth quarter of 2010 grew by 53% to US$3. Bharti Airtel announced that it would acquire 100% stake in Telecom Seychelles for US$62 million taking its global presence to 19 countries. whilst also participating in the Seychelles East Africa submarine cable (SEAS) project.
Incoming calls however are charged at between $0.In eight of these countries. S. the One Network is operated in partnership with other mobile operators. No. Country Network 1 Burkina Faso Airtel 2 Bangladesh Airtel 3 Chad Airtel 4 Channels Islands: Jersey and Guernsey Airtel 5 Democratic Republic of the Congo Airtel 6 Gabon Airtel 7 Ghana Airtel 8 India Airtel 9 Kenya Airtel 10 Madagascar Airtel 11 Malawi Airtel .15 depending on the country the call is received from. Airtel offers the service currently to its Africa customers travelling to any of the following 27countries.cards while using the same number and SIM. They are also listed below.0.03 .
12 Niger Airtel 13 Nigeria Airtel 14 Republic of the Congo Airtel 15 Sierra Leone Airtel 16 Seychelles Airtel 17 Sri Lanka Airtel 18 Tanzania Airtel 19 Uganda Airtel 20 Bahrain Zain 21 Iraq Zain 22 Jordan Zain 23 Kuwait Zain 24 Saudi Arabia Zain 25 Sudan Zain .
As a result of the deal. also signed a deal to be title sponsor the inaugural Formula One Indian Grand Prix during the 2011 season. as part of the rebranding of the company. . This version too was composed by Rahman himself.26 South Africa Cell C 27 Egypt Mobinil It will be extended to Airtel's operations in South East Asia as well as in Seychelles soon. Green initiative This unreferenced section requires citations to ensureverifiability. Bharti Airtel signed a five-year deal with ESPN Star Sports to become the title sponsor of theChampions League Twenty20 cricket tournament. Signature tune The signature tune of Airtel is composed by Indian musician A. On 9 May 2009 Airtel signed a major deal with Manchester United Football Club. A new version of the song was released on 18 November 2010. Sponsorship The Circuit's official logo. But now the deal is terminated and Nokia is sponsoring Champions League Twenty20 cricket. R. Rahman. Airtel gets the rights to broadcast the matches played by the team to its customers. The tune became hugely popular and is the world's most downloaded mobile music with over 150 million downloads." Airtel.
Energy efficiency measures such as Integrated Power Management Systems and variable speed DC generators It has resulted in the reduction in the rate of diesel consumption by 1. Airtel has embarked upon technology related initiatives like virtualization of servers that has helped it release over 500 CPUs.9 mn litres of diesel and approximately 280 million. generating more than 5 mn units of electricity every year.This section appears to be written like an advertisement. the initiative will reduce diesel consumption by 66 mn litres per year with a significant carbon dioxide reduction of around 1. . Energy conservation The company has installed solar hot water generator at its main campus in Gurgaon for fulfilling the hot water requirement in the cafeteria.(October 2011) GreenTowers P7 program As of today.5 lakh units of electricity per year. Bharti Infratel bagged the 2011 'Green Mobile Award ' at the GSMA Mobile World Congress at Barcelona and was also awarded the 2010 innovative infrastructure company of the year award at the CNBC Infrastructure Awards for this groundbreaking initiative. saving consumption of 4.Bharti remains the first company in the world to introduce the practice of sharing of passive infrastructure by collaborating with their competition to share mobile towers and to reduce the collective carbon footprint of the industry.2 mn litres.500 sites have already been implemented in the first year as a part of this 3-year program. These measures have resulted in a total saving of 8. Majority of its facilities across NCR region are now equipped with LES (Lighting Energy Savers) which have reduced energy consumption in the lighting system to the tune of 10–25%. Alternate energy sources such as solar energy They have already deployed these at as many as 1050 sites thus saving 6. Also the drive of sending e-bills to the post-paid customers is helping save 12. Please help improve it by rewriting promotional content from a neutral point of view and removing any inappropriate external links. Once completed.000 tower sites (primarily rural areas having low or no Grid Power availability) out of which 5.5 lac MT per year.Bharti Infratel is the only telecom tower company. They have already saved 47 million across nearly 900 sites.1 mn litres of diesel. Demand side management like Free Cooling Units (FCU) instead of air conditioners It has already been implemented across 3400+ sites.840 trees annually. which has installed almost 3 MWT of solar capacity on their network. Variable Frequency Drives installed in AHU (Air Handling Unit) at its campus have helped in enhancing the efficiency of cooling system by 10%.The Green Towers P7 program is scoped for 22. Within its campus the ‗Secure Print Solution' – an automated queue management based secured printing solution has led to an annualized saving of about 8 metric tonnes of paper. This has become a subject of case studies in institutions including the Harvard Business School.
Airtel Money in the millennium city of Gurgaon.Karnataka. On 2 June 2011. Assam. Tamil Nadu. Andhra Pradesh. Airtel launched wallet service . Punjab and Kolkata for Rs. On 20 December 2010.Bihar. West Bengal. Bharti Airtel enters into a partnership with photo service Zoomin. On 18 February 2011. . Bharti Airtel announced the launch of ‗Airtel Broadband TV‘. 3314. Karnataka. On 17 May 2011. North East. Bharti Airtel offers on-demand online movie viewing services . Airtel digital TV launches iKisaan – the world‘s first interactive service in Hindi. Uttar Pradesh (West).launches ‗Airtel Movies‘ On 16 June 2011. On 18 April 2011. Airtel won 3G spectrum in 13 circles: Delhi. 12. On 11 April 2011. Rajasthan. Airtel opened its first underground terrestrial fibre optic cable built in alliance with China Telecom. Airtel launched its new identity for Bangladesh subscribers.36 crores. 2011 On 24 January 2011.Timeline Logo used by Airtel till 2010 November The chronology of events since Bharti Tele-Ventures was incorporated in 1995: 1995 Bharti Cellular launched cellular services as "AirTel" in Delhi. On 14 March 2011.com. Airtel announced the launch of its 3G services in India. Jammu & Kashmir for Rs. they would be referred as airtel. Airtel Digital TV brings cricket world cup in High Definition. 2010 On 18 May 2010.295 crores. Bharti Airtel announced a re-branding campaign wherein. On 18 November 2010. On 31 January 2011. Himachal Pradesh. Bharti Airtel and Apple bring the iPhone 4 to India. On 23 December 2010. Mumbai. Airtel launches the world‘s first USSD-based Facebook access service in India – Facebook by Fonetwish. with a new logo. Bharti Airtel wins broadband spectrum in four circles: Maharashtra.
Airtel launched Vh1 Radio GAGA powered by Hungama on Airtel Mobile. 2011 Formula 1 Airtel Grand Prix of India Winner's Trophy Revealed. AP launches iPhone 4S in Hyderabad. On 3 February 2012. On 22 September 2011. 2011. Airtel prepaid mobile recharge made easier with netbanking at www. Airtel launched Comedy FM on Airtel Mobile. On 28 October 2011. Airtel digital TV brings the TV series ―Johnny Test‖ to India. Bharti Airtel recognized for the delivery of best network services with customer focus at Telecom Centre of Excellence Awards. On 1 November 2011. Airtel 3G launches international video calling services. On 18 July 2011. Airtel digital TV adds 41 new channels.in On 30 January 2012. Bharti Airtel announces new organisation structure for its India and South Asia operations. On 26 September 2011. On 12 January 2012. On 2 February 2012. On 23 January 2012.  On 27 February 2012. Bharti Airtel Launches Facebook For Every Phone. Sharlin Thayil. On 21 December 2011. Wide availability of Airtel Service Centers in Rajasthan creates easy touch points for customer service. Airtel introduces India‘s first free mobile access to Twitter. Airtel Youth Star kicks off ‗Friends Dance Carnival‘ in Andhra Pradesh. Mr. On 16 August 2011. On 19 September 2011. Airtel launches all new ―BBM Plan‖ for its postpaid mobile customers on BlackBerry. On 10 February 2012. 2012 On 11 January 2012.Expands total channel count to 262. Bharti Airtel launched 3 Pack Education Portal for its mobile customers across India. Airtel launches exciting recharge offers for mobile customers in Rajasthan. On 1 December 2011. On 27 June 2011. Bharti Airtel announces consolidated IFRS results for the third quarter and nine months ended December 31.  . Airtel digital TV launches iKidsworld. On 25 November 2011. On 25 July 2011. Airtel digital TV now has 11 True HD channels. India‘s largest collection of Hello Tunes is now available online for Airtel mobile customers. On 11 November 2011. Bharti Airtel named amongst the top 25 companies for leaders globally. On 4 February 2012. On 12 December 2011. CEO – Bharti Airtel. On 7 July 2011. Bharti Airtel announces GO! GO! GOAL Contest 2011. Bharti Airtel selects Infosys as its technology partner for airtel money.airtel.
June 2010. Bharti Airtel announced that it had been awarded a licence by the Rwanda Utilities Regulatory Agency to operate 2G and 3G GSM mobile services in Rwanda. On September 1. 2010. The company has over 57% share of the mobile market of Seychelles. On 8." Minister in the . June 2010.7 billion. On 8 September 2011. Chairman and Managing Director Sunil Bharti Mittal said that Bharti Airtel Ltd would change its Africa operations brand from Zain to Airtel by 23 November 2010. in the largest ever telecom takeover by an Indian firm. Fixed Line. completed a deal to buy Kuwait-based Zain Telecom's businesses in 15 African countries for $10. On 29 February 2012. 2010. The combined revenue of the two entities would be around $12 billion. Bharti Airtel announced that it would acquire 100% stake in Telecom Seychelles for US$62 million taking its global presence to 19 countries. issued a resolution to accept a proposal received from Bharti Airtel Limited (Bharti) to enter into exclusive discussions until 25 March 2010. The company plans to invest over USD 100 million in its operations in Rwanda over the next three years. now Zain Nigeria. but later approved the sale.in which it bought a majority stake in Nigerian mobile operator Vee Networks Ltd. regarding the sale of its African unit. ship to shore services satellite telephony. said "the Board of Directors of Kuwait's Zain Group. The government of Congo Republic had also said Bharti-Zain deal broke law. February 2010 a statement issued by Zain Ghana. "We are pleased to be part of the vision of the government of Rwanda to take telecommunications forward as a priority.then called Celtel .7 billion. We will work with the Government to bring affordable and best in class mobile services that add value to the lives of people of Rwanda and contribute towards bridging the digital divide in the country." The overall integration should be complete by the end of this financial year. Sunil Bharti Mittal. On August 11. Minority shareholder Econet was seeking to overturn a 2006 deal by Zain . the biggest market in the deal. among value added services like VSAT and Gateways for International Traffic across the Seychelles under the Airtel brand. The deal ran into hurdles after the government of Gabon had come out against the deal. adding around 40. Telecom Seychelles began operations in 1998 and operates 3G.  Airtel Africa Airtel Africa is the collective name given to the African operations of Indian telecommunications company Bharti Airtel History On 14. after its meeting on February 14." The offer was for $10. Zain Africa BV. Bharti said the Nigeria ownership dispute had been settled. The transaction is the largest ever cross-border deal in an emerging market and will result in combined revenues of about $13 billion. There was also a dispute about minority ownership of Zain's operations in Nigeria. manage 4G network in Maharashtra. On 8.1 million subscribers to its already 125 million-plus user base. 2010. the company's footprint across the African continent will expand to 17 countries. The deal would provide Bharti access to 15 more countries in the region. Bharti Airtel appoints Nokia Siemens Networks to supply. With this licence. CMD of Bharti Airtel said. Bharti Airtel.
"We are entering an exciting era in telecommunications in Rwanda. Managing Director of Airtel Ghana made the promise of making mobile communications affordable for all by launching a bundle of products made up of a new Nokia phone plus Airtel Sim card. The service will enable users to make and receive payments for products and services online. . Celtel was acquired by and became a subsidiary of Zain (formerly the Mobile Telecommunications Company). the company had about 24 million subscribers in 14 African countries.. The operator has also partnered with telecommunications infrastructure suppliers such as Nokia. a new online payment service has been launched by Dream Oval Ltd in partnership with Airtel Money. Ericsson. Siemens. it was rebranded as 'airtel'. At the time. Bharti Airtel is pumping 200 million dollars to expand its operations in Ghana and has also planned to bring its ecosystem of global partners to the country which could result in additional employment opportunities. On 8 June 2010. Ignace Gatare said. Unveiling the new brand in Ghana. according to Antoine Pamboro. Philip Sowah. iWallet will also allow local merchants to expand across the internet and make their products available for sale to customers across the country. Airtel‘s managing director in Congo. Democratic Republic of the Congo (DRC) In the DRC." On 30 November 2011.75G network in Ghana. airtel replaces the Zain brand and comes with the promise of delivering high quality customer benefits through the scale of the global airtel brand.. Ghana Bharti Airtel on November 22. the company was purchased by Bharti Airtel from Zain. Airtel Ghana had about 1. talk time and SMS credits that is effectively free. We are looking to expand our reach to the most rural areas. On 22 November 2010. iWallet.76 million subscribers at the end of 2010. within 17 months of acquiring Zain Telecom's Africa operations. Airtel announced it acquired its 50 millionth mobile customer in Africa.this also marks the largest investment out of India into Rwanda and will be invaluable in enhancing the economic cooperation between the two nations. 2010 officially launched their brand in Ghana at the Banquet Hall in Accra. Huawei among others to extend its network to rural areas which are at present disconnected from the world and ensure that Airtel has the best quality network in Ghana and becomes the leader in Africa by 2015. Burkina Faso In April 2005.President's Office in Charge of ICT. Dr. after taking over the operations of Zain. Bharti Airtel is planning to spend $400 million to improve its network in the DRC over the next three years. Airtel operates a 3. which entails bringing advanced broadband wireless services at more competitive prices and allowing more people in rural areas to access mobile technology. Operations Airtel Africa operates in 17 countries in Africa.
 On 27 February 2012. said Rene Meza. which was made up of a group of Nigerian entrepreneurs who vowed never to let the brand exit without a fight. Kenya‘s biggest mobile-phone company. The coming of Airtel into Malawi has brought in other investors in the country such as IBM. The circumstances created Vmobile. Airtel plans to keep costs down in Kenya by sharing infrastructure with existing players and through its partnerships with service providers including IBM Corp. a poor desert nation currently in the grips of a food crisis. .Kenya Airtel Kenya is the second largest mobile phone operator in Kenya. though the company is keen for those tariffs to remain low as it seeks to grow market share. Econet was rebranded to Vodacom.. Tech-Mahindra. was one of the lowest at 10 percent to 11 percent. owners of Celtel brand that later acquired the Vmobile and rebranded it. Niger Manoj Kohli said penetration rates in Niger. precisely on August 1. and Nokia Oyj.75G services in Kenya. which transformed to Zain. 2008. 2011. The development prompted Nigeria‘s first GSM brand to operate in the country without identifiable corporate name and strategy for over two months. Airtel Kenya competes with Safaricom Ltd." he said. a unit of France Telecom. South Africa‘s second largest telecommunication brand. Airtel launched 3. But two years later. Huawei Technologies Co. It would be recalled Celtel in 2006.‘s Kenyan unit will focus on reducing call rates and expanding its customer base after changing its name to Airtel Kenya from Zain Kenya." Nigeria Airtel Nigeria started operations as Econet Nigeria. Sunil Mittal said that Airtel would install up to 200 new towers by the end of 2011. Vodacom did not last a week in the Nigeria. He said once Airtel Malawi completes its initial investment in the country. "Our group is going to invest here to ensure that we can make the difference in telecommunications here in Niger. ―The tariffs will remain low due to lower overall cost of operations as we enjoy economies of scale through these partnerships. Zain announced takeover of the Celtel brand from MTC across Africa and Middle East. It has 4 million subscribers as on January 15. Celtel in Nigeria.‖ Meza said at the press briefing. Malawi would join the list of countries in Africa with first class networks. a company official said. Meza said. However.. They (Vmobile) led the unbranded Vmobile to the threshold of MTC. Airtel suffered losses as a result of the reduction in call charges. Mittal was accompanied on his visit by Bharti Airtel‘s international Chief Executive Officer Manoj Kohli. Celtel made the way for Zain following the global acquisition of Celtel International by MTC Group. "If Niger is to develop. and Telkom Kenya. Two years after the success story of Celtel. it much reach (penetration rates) of 40 percent. Bharti Airtel Ltd. managing director of the Kenyan unit. Malawi During his visit to Malawi. Ericsson and Nokia who have established their operations to provide subordinate services to Airtel.
among value added services like VSAT and Gateways for International Traffic across the Seychelles under the Airtel brand. Mr. Dr. Telecom Seychelles began operations in 1998 and operates 3G.In just another two years interval. The company has over 57 percent share of the mobile market of Seychelles. whilst also participating in the Seychelles East Africa submarine cable (SEAS) project." On 23 September 2011. Airtel launched their mobile services in Rwanda. The company plans to invest over USD 100 million in its operations in Rwanda over the next three years. Airtel launched 3. On 30 March 2012. We will work with the Government to bring affordable and best in class mobile services that add value to the lives of people of Rwanda and contribute towards bridging the digital divide in the country. Bharti Airtel announced that it had been awarded a licence by the Rwanda Utilities Regulatory Agency to operate 2G and 3G GSM mobile services in Rwanda. . ship to shore services satellite telephony. The US$34 million SEAS project is aimed at improving the Seychelles‘ global connectivity by building a 2. Seychelles On August 11. "We are pleased to be part of the vision of the government of Rwanda to take telecommunications forward as a priority. Sunil Bharti Mittal. Sierra Leone Airtel officially launched their brand in Sierra Leone on November 19.. with over 15 years experience at FMCG and telecom companies including Coca-Cola and Celtel and having worked across the continent. Zain was acquired by Bharti Airtel and rebranded for the sixth time to 'Airtel'. Airtel Sierra Leone on the 25th February 2011 were worthy recipients of a certificate by the Independent Media Commission for their support to the commission and for their relentless sponsorship of the commission‘s awards ceremony since its inception in 2005. Airtel announced the appointment of Marcellin Paluku as the country manager in Rwanda. CMD of Bharti Airtel said.. was the commercial director at Airtel DRC. Kelvin E Kellie. Airtel‘s Head of Corporate Communications was in acceptance of the certificate on behalf of company.this also marks the largest investment out of India into Rwanda and will be invaluable in enhancing the economic cooperation between the two nations. which entails bringing advanced broadband wireless services at more competitive prices and allowing more people in rural areas to access mobile technology. Airtel announced plans to invest US$10 million in its fixed and mobile telecoms network in the Seychelles over three years. Airtel Sierra Leone introduced the BlackBerry®™ Enterprise service. Rwanda On 8 September 2011. Ignace Gatare said." Minister in the President's Office in Charge of ICT. Fixed Line. 2010 and is the most innovative mobile phone operator in the country. Bharti Airtel announced that it would acquire 100% stake in Telecom Seychelles for US$62 million taking its global presence to 19 countries. On 29 February 2012. 2010. Paluka.000 km undersea high speed link to Dar es Salaam in Tanzania. "We are entering an exciting era in telecommunications in Rwanda.75G services in Nigeria.
Nokia 1280 phone and the equivalent value in Airtel talktime and SMS text messages for TZS 39. Bhart Airtel Limited Chief Executive Officer and Joint Managing Director MANOJ KOHLI said the rebranding will see more employment opportunities created in Zambia. Zambia Airtel has also unveiled its new brand identity across its sixteen African operations including Zambia. MTN. Warid. after Senegal. He said that that Airtel had signed contracts with Ericsson. Airtel launched 3G services in Congo.000. I-Telecom. . On 13 March 2012. Smile and Orange.75G services in Tanzania. On 25 October 2011. the telecom industry regulator.‖ The east African country has a competitive telecommunications market with six GSM operators. 3G Airtel has 3G licences in 12 out of the 17 countries in Africa it operates in and offers services in 11 of them. The company wants to tap the African 3G market with a special focus on video services. Airtel launched 3. On 17 January 2012. writes the Citizen Reporter citing comments from Bharti Airtel MD Sam Elangalloor. Uganda‘s telecom sector is considered by current operators as crowded. referred to as ―the continent of hope and opportunity. revenues from the sector are forecast to increase at an annual rate of 25-30 percent over the next five years. Airtel launched 3. as it sees a huge demand for video based services there. This was the first 3G service launched in Central Africa and the second amongst the French-speaking African nations. He added that Airtel was looking to expand its group subscriber base by 150 percent by 2013 to 100 million customers across Africa. Airtel launched 3. To help boost take-up in rural areas. According to the Uganda Communications Commission(UCC). There are seven players. About US$ 150 million will be spent in network expansions. Uganda Bharti Airtel entered one of Africa‘s most competitive markets that Sunil Bharti Mittal.75G services in Sierra Leone. Airtel Zambia Managing Director FAYAZ KING said Airtel is committed to bridging the digital divide in the country by expanding to rural areas. underpinned by a rapid uptake of internet services. Zain. Huawei and Nokia Siemens Networks (NSN) to extend its network to underserved areas. Tanzania Airtel Tanzania plans to expand its network and boost market penetration. Airtel has unveiled a new package in Tanzania offering an Airtel SIM card. The remaining 5 countries would also get Airtel 3G services as soon licences are issued for them.On 3 February 2012. the chairman of Bharti Airtel.75G services in Zambia. Uganda telecom. The market is dominated by the local subsidiary of South Africa's MTN Group controlling more than half of the subscriber base.
Incoming calls however are charged at between $0.One Network One Network is a borderless mobile phone network across all Airtel operating countries which enables customers to move freely between the countries in which Airtel operates. while retaining their home network service functionality.0. the One Network is operated in partnership with other mobile operators. Country Network 1 Burkina Faso Airtel 2 Bangladesh Airtel 3 Chad Airtel 4 Channels Islands: Jersey and Guernsey Airtel 5 Democratic Republic of the Congo Airtel 6 Gabon Airtel 7 Ghana Airtel 8 India Airtel .15 depending on the country the call is received from. In seven of these countries. One Network allows customers travelling to One Network countries to make outgoing calls/SMS at the same rates as local customers and recharge with local top-up cards or with home network top up cards while using the same number and SIM.03 . S. Airtel offers the service to its Africa customers travelling to any of the following 27 countries. No. They are also listed below. and be treated as ―virtual‖ local customers of the visited network in terms of pricing.
9 Kenya Airtel 10 Madagascar Airtel 11 Malawi Airtel 12 Niger Airtel 13 Nigeria Airtel 14 Republic of the Congo Airtel 15 Sierra Leone Airtel 16 Seychelles Airtel 17 Sri Lanka Airtel 18 Tanzania Airtel 19 Uganda Airtel 20 Bahrain Zain 21 Iraq Zain 22 Jordan Zain .
761. coaches and have an opportunity to further their football skills. Manchester United. Airtel Rising Stars Airtel conceptualised a unique football property across its 16 markets in Africa that supported talent and provided a platform to gain football skills and have a chance to become football stars in each country. any time you want Top up your mobile phone or another customer's mobile phone Access and manage your Bank Account Pay for your utility bills.80 35.32 25.11 17. The initiative targets boys and girls across the country and supported by one of the world‘s leading soccer teams. The program provided a platform for upcoming soccer talent under the age of seventeen to showcase their skills to leading scouts. The cooperation and support of all stakeholders uplifted these stars onto a world stage.609. Profit & Loss .23 Kuwait Zain 24 Saudi Arabia Zain 25 Sudan Zain 26 South Africa Cell C 27 Egypt Mobinil Airtel Money Airtel money is a Mobile Commerce service that allows you to access services that include Transfer money from your mobile phone to another mobile phone recipient wherever you are.Print Mar'11 12 Months Mar'10 12 Months Mar'09 12 Months Mar'08 12 Months Mar'07 12 Months INCOME: Sales Turnover 38. an ambitious Pan African soccer talent programme that focussed on identifying and nurturing budding soccer talent from the grassroots onto a national stage. Airtel Rising Stars.61 .015.851.54 34.Bharti Airtel Ltd.048.
609.72 -1.80 EBIT Interest 8.608.31 0.08 207.53 34.613.210.882.96 7.25 0.126.00 11.680.586.982.00 35.08 1.23 .64 -293.743.641.63 1.244.287.24 3.31 0.397.Excise Duty 0.54 2.968.79 Profit and Loss for the Year Non Recurring Items Other Non Cash Adjustments Other Adjustments REPORTED PAT 7.13 281.61 0.87 -60.28 178.192.033.00 TOTAL INCOME 38.60 3.100.00 25.10 296.507.00 34.166.66 2.87 9.007.95 1.193.761.180.78 0.890.842.01 33.07 EBT Taxes 8.206.609.685.43 4.00 0.00 17.32 0.467.67 0.353.304.855.17 566.048.00 6.019.00 4.67 434.07 7.68 283.926.77 3.00 8.35 10.557.32 1.31 26.00 5.65 1.00 7.92 9.015.00 13.10 1.24 282.716.917.946.017.80 0.35 2.15 0.78 7.101.627.02 17.00 0.70 9.34 3.00 0.78 15.00 0.43 8.297.82 10.00 NET SALES Other Income 38.30 11.40 1.70 4.20 244.20 5.90 8.00 9.92 0.691.39 3.34 10.076.73 -162.85 1.53 0.953.649.401.78 10.351.50 3.402.339.90 14.65 EBITDA Depreciation Other Write-offs 13.91 5.41 313.00 0.80 63.60 9.50 3184.108.40.206 20.84 13.868.00 7.359.48 -50.497.659.80 0.54 13.31 EXPENDITURE: Manufacturing Expenses Material Consumed Personal Expenses Selling Expenses Administrative Expenses Expenses Capitalised Provisions Made 14.54 0.11 0.493.30 137.00 0.404.758.43 4.851.066.45 969.00 0.59 393.00 0.80 21.93 13.593.19 4.284.74 -46.428.028.70 417.27 22.426.16 632.204.043.16 7.88 1.58 266.84 6.00 7.00 TOTAL EXPENDITURE Operating Profit 24.03 -269.588.257.51 4.70 35.15 9.
42 6.52 2.61 26.443.40 36.82 40.32 24.375.251.10 11.959.24 2.643.011.00 0.40 2.00 18.67 11.54 18.517.21 Net Worth Secured Loans Unsecured Loans 44.811.92 20.51 2.05 2.00 26.15 2.00 37.60 19.07 Assets Gross Block (-) Acc.115.50 20.975.85 56.566.Annualised (Rs) 20.96 51.979. Depreciation 61.40 0.104.737.84 1.Bharti Airtel Ltd.98 816.880.437.009.52 780.00 18.60 17.32 27.813.70 6.00 0.698.80 133.94 19.00 0.776.044.253.982.49 52.40 41.375.23 2.773. Inventories Sundry Debtors Cash And Bank 40.43 4.204.81 1.00 379.00 18.661.65 20.932.80 20.085.594.10 Mar'10 12 Months 2.53 16.111.509.38 Mar'08 12 Months 1.00 0.999.30 0.10 41.357.515.177.014.60 11.084.266.74 15.303.34 28.10 35.56 37.45 5.79 32.19 Mar'09 12 Months 2.212.36 TOTAL LIABILITIES 56.90 21.925.08 10.18 39.975.82 705.00 379.955.46 25.49 27.736.241.46 502.283.93 7.30 Net Block Capital Work in Progress.84 16.74 25.028.79 20.07 0.65 9.952.00 379.754.82 Mar'07 12 Months 1.27 Balancesheet .776.46 .497.80 28.00 34.KEY ITEMS Preference Dividend Equity Dividend Equity Dividend (%) Shares in Issue (Lakhs) 0.650.70 44.751.82 47.73 7.418.777.Print Particulars Liabilities Share Capital Reserves & Surplus Mar'11 12 Months 2.627. Investments.022.86 2.550.70 12.30 0.93 9.34 EPS .86 34.76 62.92 11.27 266.00 37.187.
38 1.84 Total Current Liabilities NET CURRENT ASSETS Misc.49 634.002.922.86 2.186.635.02 Total Current Assets Current Liabilities Provisions 13.61 26.466.103.439.042.89 -4.30 0.160.95 5.104.63 13.38 12.638.Loans And Advances 11.406.83 1.466.009.832.809.10 35.42 5.961.09 14.92 0.072.357.979.20 11.776.732.232.362.75 10.021.00 14.40 -3.80 627.811.000.83 5.07 Case study .30 -3.10 41.81 9.38 12.616.66 TOTAL ASSETS (A+B+C+D+E) 56.40 8.33 -5.10 16.55 658. Expenses 16.26 0.754.00 13.400.602.67 -5.13 3.10 7.730.60 10.84 16.95 0.
The deal value is $ 10. 2009 which means that it is virtually a debt free company. It is good to have low debt but zero debt is not a desirable situation as debt can increase the shareholders‘ return on their investment due to tax advantages associated with borrowing.7 billion which Bharti plans to fund by loans arranged by Standard Chartered Bank and a couple of other Banks. As it can be seen from the figure. the total cost of capital is high if there is no or low debt and there is a level of financial leverage where the total cost of capital is the lowest. just after the announcement of the deal. This means that it is better for the company to pay interest than . The share price of Bharti took a serious beating after this announcement as most of the analyst felt that Bharti is overpaying for Zain’s assets by around $ 2 billion. Low Financial Leverage Bharti has a very low ―Net Debt to Equity Ratio‖ of 0.. 2010 Bharti announced the acceptance of its bid for Zain‘s Africa business by Zain‘s board. The figure along side illustrates how financial leverage can help companies optimize their cost of capital.Bharti – Is Zain a good match? On 15th Feb. Bharti is a profitable company with over 40% EBIDTA margins which is higher than the cost of debt. This is the third attempt by Bharti to enter Africa after two failed attempts with MTN of South Africa. I brought Bharti shares and my optimism is based on the following facts: 1. Most of the companies try to maintain leverage at the level where the total cost of capital is lowest. My analysis shows that it is a good deal for Bharti and its stock price would rise in the long run. In fact.05 at the end of Dec.
Attractiveness of African Market Africa is the next frontier as far as mobility is concerned. the carriers start to look at opportunities outside of their domestic markets. Bharti has selected the second option and is taking debt to buy Zain that would return higher profits in the long term. If Bharti decides to fund the Zain acquisition through debt. Now that the tariffs have declined significantly in India and that the . As markets saturate. Even if Bharti were to pickup $ 7 billion for the Zain acquisition as debt. Free Cash Bharti is one of the few carriers across the world that has free cash flow and it does not make sense for the company to keep sitting on the pile of cash when it can deploy it in productive assets.78 (source: Forbes financial application). 2. Vodafone invested in India around three years back to increase the growth potential of its revenues. then also the leverage is unlikely to exceed 1 which would still be lower than many listed companies. Verizon has a debt to equity ratio of1:45 while the similar ratio for Sprint Nextel is at 1. 3.paying dividends to a large number of shareholders and hence it should either reduce the shareholding (through share buyback) or increase debt and deploy debt in a profitable way. The capex in the Indian operations have started to decline and hence the free cash flow is likely to increase even further in future. It is like investing for the future.19 and for Telefonica. it is as high as 2. To put the case in perspective. it would not find much problem in servicing this debt due to generation of free cash flow in the years to come.
Moreover. form the largest cellular service provider of India. with a customer base of more than 121million subscriber.penetration levels have crossed 45% in India.4%. The penetration levels in Africa are around 33% and the ARPU levels are high varying from $8 – 12 (apart from Kenya and Ghana where it is closer to India ARPU levels of $4). The countries where Zain has operations in Africa have a population of close to 500 million which is an indicator of the opportunity that lies in Africa. single-country mobile operator and sixth-largest integrated telecom operator. The groups cater the mobile service in India under the brand name of Airtel and are headed by Sunil Bharti Mittal. Most of the joint ventures or mergers fail due to cultural issues and ego issues between partners and the ego issues are more likely in co-ownership model. Airtel Telemedia Services & Enterprise Services. the regulators are unlikely to hold the deal on account of nation pride as Zain does not belong to any of African country and hence there would not be any insistence on dual listing or any similar binding as it was in the case of MTN. . Bharti can replicate its low cost model in the African market which would not only bring the cost down but would also result in significantly higher subscriber addition. Bharti-Zain Deal: Is it a Good Deal? Bharti Group: Bharti-Airtel Groups. in case of Zain. The Bharti group is now the world‘s third-largest. He is termed as the Indian Telecom Mogul because of his largest telecom service provider in India.7% and Vodafone by 17. The company has a turnover of US$ 12 billion. The Company has a market share of around 24. Summary I believe that with this deal. The level of competition in Africa is not as intense as India as most of the countries have no more than 4-5 operators. The Zain deal would turn out to be better than MTN as it would be an outright purchase rather than co-ownership as in case of MTN deal. there is little opportunity left in the domestic market for Bharti.6% of the whole chunk of the mobile subscriber in India followed by Reliance Communication with 17. The businesses at Bharti Airtel have always been structured into three individual strategic business units (SBU‘s) – Mobile Services. He is the chairman and the managing director of the Bharti Groups. Bharti would be able to increase the valuation of the company in the longer term.
853 billion Zain Group: : US$ 7. Madagascar.196 Billion US$ 7. Saudi Arab. The Bharti Groups always tried to take the brand of Airtel outside of India. The eight countries in Middle-East where Zain has it Operation are Bahrain. Revenue : Net Income :US$ 1. Republic of Congo.441 Billion Why African Telecom Sector? One of the best penetrating opportunities for the global telecom players is the telecom market in Africa. Barak Al-Sabeeh is the chairman of the board of Director of the company. Recently in January. Chad. Tanzania. Revenue : US$ Operating Income : US$ Net Income Total Assets : US$ 11. about 60% of the Zain customers are in Africa contributing only 15% to the net profit of Zain. It operates third generation networks in several markets across Asia. Europe. Zain has a total of 65 million customers. Zambia and Morocco. Jordan. Niger. Nigeria.662billion Zain is a Kuwait based company started under the name of Mobile Telecommunication Company (MTC) in 1983 and was later rebranded to ZAIN in 2007. Gabon.Airtel has always looked at the overseas market also. Bharti Airtel rolled out third generation services in Sri Lanka in association with Singapore Telecommunications. SingTel is a major player in the 3G space in Asia. Sierra Leona. the telecom sector is approaching a saturation point. The seventeen countries which comprises of the members of the Zain‘s Operative family in Africa are Burkina Faso. In Asia. Palestine and Sudan. Iraq. Lebanon. Democratic Republic of Congo. with a estimated workforce of 15000. Kuwait. Zain has present operation in 25 countries covering 17 countries in Africa and 8 countries in Middle-East.254billion 2. To an extent it has been successful also in doing this as it has nearly started its operation in Srilanka and Bangladesh also under the brand name of Airtel. Malawi. Kenya. North America. The . Out of which 39 million customers are from Africa. As on February 2010. The operation of Airtel in Srilanka is under the name of Airtel-Srilanka. Nabeel Bin Salamah is the CEO of the Zain Groups and Mr.2010 it announced of its operation in Bangladesh.043Billion 1. Uganda. Ghana. In December 2008. Mr. It has its operation in Lebanon under the brand name of MTC TOUCH.
This report‘s estimate growth of the industry almost doubles that of Brazil which stood at 28 percent in the same period and is almost seven times the growth of France which grew at 7. In 2004. Because of these regulations. but made the African mobile network market a huge potential market for the global players. Thus making it an attractive market to lure some of the major player from the world. They produced low cost and user-friendly phones and network plans to attract more and more customer so that the company can increase its customer base. But there some other criteria or which we also call as external environment of a company which affects a company to operate in that area. The Afro-nation doesn‘t have the apt infrastructure or the geographical hindrances as well as the population is scattered. there are only three players in telecom network market. the industry grew by 49. there are many Afro-nations like South Africa which hold a huge potential market. people pay tax of 26% on mobile communication and the operator pay the remaining 4%. The supply side was much higher than the demand side. Many African governments have developed their telecommunication infrastructure by privatizing their former state-owned enterprises. Even there was a report by The World Bank in which it mentioned that Afro-nations like Kenya have 95% of mobile network penetration and coverage gap of only 5%. The company has to keep more than 2000 standby generators because of frequent power failure. Zain. So these open up the stage for global players to perform in it. The Law of Land also affects the company to design its operation in a country. On of the company operating in Kenya. Tanzania. The mobile user base has increased to more than 82 million in Africa. If the areas like North America. The operating cost of the . For example. in Kenya. This makes the cost of investment much high in comparison to the other area. In South Africa. A survey by Ernst & Young shows that between 2002-07. But still the government of these nations opines that the industry is highly profitable. despite of the fact that return on investment could be delayed due to poor infrastructure. Africa has become the fastest growing mobile-network market during last five years. South Africa and Kenya.3 percent as opposed to Asia which recorded a 27. whether it may be through cutting down of cost or increasing the sales. The heavy tax burden on both the operator and consumer is the major challenge for the industry.5 percent over the same time. The companies always look for the maximization of profit. STC etc. their telecommunication infrastructures have improved drastically. Some of the major players in the telecom sectors of Africa are MTN. They may be the tax-policy. Vodacom. Asia and Europe are already in a saturation point then the next growing market for the global player will be Africa continent. Safaricom spends over KShs 171 million on diesels due to lack of power supply. Why the Afro mobile market is developing so late and faster than any area that used to be at the same period of time. the policy regarding and regulating the telecom sectors etc. Since the processes of liberalization and privatization have been taken into consideration by African countries such as Uganda. And the prices dropped. Nigeria. If the market reaches a saturation point then there is no opportunity to increase the sale.growth in these areas will be comparatively slower. with an average taxation on the operator‘s profits standing at 30%. only 6% of the African citizen owned mobile. the FDI policy of the government. The total tax paid is 30%. The Sudan. And if the company cannot decrease the cost then it will try either to diversify or to expand it grip in the global market.4 percent growth. Let‘s think a bit over this scenario. The main problem lies with the electric infrastructure.
a new and better management is going to run the company and bring it back to track. Many analysts termed it as a forced marriage or this deal has black futures etc.311.company is high in this area because of frequent power cut and even the tax rate is also high. The company may sustain the loss in the short-run but it may earn profit in the long-run. 272. they will not find any extras to lure the customers. Mittal replied that it is obvious that when a company makes an acquisition. Some of their views were: It felt that there is higher rate of business risk on the Zain Deal which Bharti may have to bear. Mr. So it may in the long-run be aptly developed so as to favor the network industry. So the acquiring company has to pay the liability from his own pocket and thereby decreasing the Profit and the EPS. 2010. Bharti is well set to dream big in terms of global ambitions. it not only become the owner of the assets of the company but also he become liable to pay-off the debt or the liability of the company. When asked by a Media Person about this reaction of shareholders.7 billion. This behavior pushed the price of the Bharti-Airtel down to Rs. thus bringing down the profit of the company. So the share holders feel insecure of their holdings of shares and they try to sell out their holdings. Even the S&P revised its rating on the Bharti. The share price of Bharti. So the shareholders show a characteristic of bearish on the shares of acquired company. Bharti-Zain Deal “Zain’s profitability is lower than Bharti despite average higher spending by its users. After the declaration by the company of this deal. The investor became pessimistic on this deal and with the bearish mood they sold out their holding shares. as per an estimate only one in two Africans holds mobile phone and with Zain having a strong presence in most of the countries in Africa. the shareholder feel secured that the outstanding liability would paid off. on behalf of the management of Bharti. The company when acquire another company. Because the economy of Afro-nations are growing at a remarkable rate and the infrastructure are also gradually increasing. For this reason the share holder are bullish on the acquired company and bearish on the acquiring company. He declared that the company is going to raise a debt of $9 billion to finance its acquisition of Zain‘s Africa operations.Airtel was Rs. Sunil Bharti Mittal.8 in the first week of March. Moreover this is the entry level of the network sector in Africa as it is developing but once it get saturated the threat to entrants decreases because if they enter in to the segment. And the rest amount of $1. the share price of that company falls who acquire and the share price of that company rise which is acquired. The company will earn profit in the hand of new management and give a better return on the investment. Now let us analyze this behavior of share-holders.85 on 11th February. confirmed that it is in an exclusive talk with Zain Telecom for buying the African asset of Zain (excluding Sudan and Morocco) for $10.7 billion would be met from the cash reserves of the Bharti.” On 11th February. But it may be the future scenario of these countries which lures the global players. .Airtel is paying much higher than the actual value. It revised the ranking of Bharti share and rated as negative credit watch. Whereas on the counterpart when a company is acquired. However. They were of this view because they felt that the Bharti. 2010 on the date of declaration of this deal. there were many rumors that rolled in the market and the printing media as well as the electronic media.Airtel share price.
But after the rating provided by the S&P. Coming back to the point that whether the Bharti groups is over-paying for Zain deal? And because of this will the stock come under more pressure? . on behalf of Government of India said that if an Indian Company is trying to take the essence of Indian Trade to world market then GOI would back such acquisition.The impact of this rating by S&P on the share price of Bharti would that the rate on borrowing by the Bharti Airtel may increase. Minister for Trade and Commerce. Anand Sharma.
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