CASE STUDY(STRATEGIC

MANAGEMENT)

Presented by:
Arun Kumar
MBA 3rd sem.
17302
 About the case study
THE CASE STUDY HAS MAIN FOCUS ON INDIAN TELECOM
SECTOR AND ITS DEVELOPMENT. THIS CASE STUDY BASED ON
HOW AIRTEL MERGED WITH DIFFERENT TELECOM COMPANIES
LIKE TATA TELECOM,IDEA,VODAFONE.
Development of the Indian Telecom
market
 THEINDIAN TELECOM SECTOR WAS CLASSIFIED INTO THREE
SEGMENTS – WIRELESS, WIRELINE, AND INTERNET SERVICES.
 INTERNET SERVICE:
THE INTERNET PENETRATION RATE IN INDIA IS ONE OF THE
LOWEST IN THE WORLD AND ONLY ACCOUNTS FOR 35% OF THE
POPULATION COMPARED TO THE GLOBAL AVERAGE INTERNET
PENETRATION IS OVER 54.4%.
 ONE OF THE MAJOR ISSUES FACING THE INTERNET SERVICE IN
INDIA IS THE LOWER AVERAGE BANDWIDTH OF BROADBAND
CONNECTIONS COMPARED TO THAT OF DEVELOPED COUNTRIES.
 THEHISTORY OF THE INTERNET IN INDIA STARTED WITH LAUNCH
OF SERVICES BY BSNL. THEY WERE ABLE TO ADD ABOUT 10,000
INTERNET USERS WITHIN 6 MONTHS.
Rationale behind Tata’s CMB acquisition by
Airtel
 AIRTELHAS JOINED HANDS WITH TATA AND WILL ACQUIRE IT'S
CONSUMER MOBILE BUSINESSES (CMB) WHICH INCLUDES THE TATA
TELESERVICES LIMITED ACROSS THE COUNTRY IN 19 CIRCLES.
 THE MERGER IS DONE ON A DEBT-FREE CASH-FREE BASIS, APART FOR
AIRTEL ASSUMING A SMALL PORTION OF THE UNPAID SPECTRUM
LIABILITY OF TATA'S TOWARDS DOT.
 AS PER THE AGREEMENT, ALL THE CUSTOMERS AND ASSETS OF TATA'S
CONSUMER MOBILE BUSINESS WILL BE TRANSFERRED TO AIRTEL. WITH
THE MERGER, AIRTEL BASICALLY AIMS TO STRENGTHEN ITS SPECTRUM
HOLDING TO COUNTER JIO. THE MERGER WILL ENABLE AIRTEL TO ADD
178.5 MHZ SPECTRUM, OUT OF WHICH 71.3 MHZ IS LIBERALISED IN THE
850, 1800 AND 2100 MHZ BANDS.WITH THIS MERGER, AIRTEL HAS THE RIGHT
TO USE EXISTING FIBRE NETWORK OF TATA.
 Issues and Challenges faced by Airtel due
to the acquisition
 TATATELESERVICES HAS 2.5 MHZ OF AIRWAVES IN THE 850 MHZ
BAND WHICH ARE EXPIRING IN A FEW YEARS. HENCE IT MAY PROVE
INADEQUATE FOR AIRTEL TO LAUNCH FULL-SCALE 4G LTE.
 AIRTELHAD TO INTEGRATE TELENOR INDIA’S EMPLOYEES,
CUSTOMERS, AND SPECTRUM SIMULTANEOUSLY WITH TATA’S CMB
EMPLOYEES, CUSTOMERS, AND SPECTRUM AND THIS CREATED AN
INTEGRATION RISK FOR THE COMPANY.
 TATATELESERVICES HAS 2.5 MHZ OF AIRWAVES IN THE 850 MHZ
BAND WHICH ARE EXPIRING IN A FEW YEARS.
 How Airtel could overcome these
challenges and maintain its number one
position in the Indian telecom industry
 AIRTEL NEED TO FOCUS ON 5G SERVICES
 AIRTEL MAY FOCUS ON FUTURE EXPANSION
 PROVIDE BEST SERVICE FOR CUSTOMERS
 AIRTEL NEED TO FOCUS ON INCREASE THE NETWORK QUALITY IN
WIDE AREAS
 AIRTEL FOCUS ON LATEST TECHNOLOGY
 IMPROVE MARKETING STRATEGY