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h Fastest Growing Sector ʹ CAGR 22% (2002-08)

h Second Largest Telecom Market


Lowest tariff charges in the world
Wireless Subscribers ʹ 315.3 Mn
Wireline Subscribers ʹ 38.4 Mn

h 23 Circles - 4 Categories ( Metro, A, B & C)

h Bharti Airtel ʹ Largest player with presence in 23


Circles

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h Largest Private Integrated Telecom Company in
India

h 3rd Largest Wireless Operator in the World

h Largest & Fastest Growing Wireless Operator in


India

h Largest Telecom Company listed on Indian Stock


Exchange

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h By 2010 Airtel will be the most admired brand
in India:
Loved by more customers
Targeted by top talent
Benchmarked by more businesses

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h To build India's finest business conglomerate
by 2020
h Supporting education of underprivileged
children through Bharti Foundation
h Ô   

To create a conglomerate of the future by bringing


about ͞Big Transformations through Brave
Actions.͟

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h ͞ We at Airtel always think in fresh and
innovative ways about the needs of our
customers and how we want them to feel. We
deliver what we promise and go out of our
way to delight the customer with a little bit
more͟

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M Wireless Services M Enterprise Services
2G/3G Carrier
Rural Market Corporate

M Telemedia Services M Passive Infrastructure


Fixed Line Bharti Infratel
Broadband Indus Tower
DTH

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Strengths
h Largest Telecom player in India ʹ subscriber base over
100mn
h Pan India Presence
h High Pat Margins ʹ 24.8%
h Low debt on books ʹ D/E of 0.3
h Good ARPU of RS 199
h Strategic Alliance with other stakeholders in Bharti
Airtel include Sony-Ericsson, Nokia - and Sing Tel
h Experience of launching 3G services in SriLanka
h High cash balance of $1bn
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Weakness
h Tariff war at its peak
h Increased competition due to new licenses &
issuance of cross over technology
h ARPU drop is a certainty, expect drop of about
20%
h M & A regulations restrict attractive synergies
h DTH ʹ a big worry
h Land Line & fixed line service are in a matured
stage
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Opportunity
h Lot of scope in rural areas
h Current Tele-Density ʹ 37 is still low among
developing countries
h Low broadband penetration ʹ company well
equipped to take business to next level
h Fast extending International Private Lease
Circuit market, only player other than VSNL to
have International Submarine cable network
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Threat
h India centric - Major revenues from India
h 93% revenues from Bharti Televentures, only
7% from other group companies
h Mobile Number Portability by Jan 2010 ʹ
impact on margins
h Inability to obtain 3G spectrum in key circle
h Revision of spectrum usage charges

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MANTRA : Focus on Core Competencies and
Outsource the rest!
Product
Innovation

Core
Pricing VAS
Competencies

Marketing
and
Branding

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h Airtel partnered with leading players in
telecommunication players across the globe.
h It has managed to work with the best of
domain specialists globally and emerge as a
world class entity.
h Partnerships include operational contracts
with marquee vendors and strategic investors
ranging from private equity investors to global
telecom giants.

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h Warburg Pincus ʹ a celebrated PE investor


held a stake for a substantial period of time
and was instrumental in providing Airtel
support in its early stages.
h Vodafone was a strategic investor in Airtel.
h Temasek ʹ the Singapore based investor holds
a considerable stake in it.
h Was also affiliated with Singapore Telecom.

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h Higher emphasis on ARPU/min ʹ stark contrast
with other operators who concentrate on ARPU
only.
h Aim to be become a one stop shop for all
telecommunication services under the Bharti
umbrella.
h Exploring opportunities in international markets.
h Hived off tower infrastructure into a separate
entity.
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h Bharti Airtel has enjoyed an excellent run ever
since the telecom sector opened.
h It has managed to hold on to its leadership
position inspite of the presence of other
players with deep pockets ʹ Ambani͛s, Tata͛s,
Birla͛s and Vodafone.
h Has coped well with regulatory changes.
h Continues to attract and delight customers.

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h Translate its expertise in Indian markets to other
emerging economies.
h This could call for acquisitions globally.
h Technology leadership is a must ʹ Airtel must
ensure that its reliance on GSM technology does
not render it obsolete.
h Indian market inspite of being the worlds largest
is still not matured. Opportunities abound in the
hinterland which must be exploited.
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h To i    into new businesses in
agriculture, financial services and retail
business with world-class partners

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° $ % 
Infrastructure
Sharing

Rural
Growth Managed
Telephony Services
Factors

Enterprise
Telecom

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0 = ° $ 

VPN & VoIP

WiMAX

3G

2G/2.5G

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h Bharti Airtel, Annual Report -2009
h Investors presentation, Bharti Airtel Limited, November
2009
h Telecommunication Services, Indian Industry: A Monthly
Review, CMIE ʹ November 2009
h Analyst Report ʹ Bharti Airtel, Asit C. Mehta Invesment
Intermediates Ltd.
h Telecommunication Sector Report ʹ March 2009, CRISIL
h Capitaline Database http://capitaline.com
h Indian Telecommunication Sector - August 2008, IBEF
Report
h ͞Next Big Spenders ʹ Indian Middle Class͟, Businessweek

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THANK YOU !!

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