Industry: Telecom

Firm: Airtel

Group 1

Alok Ranjan J Sathvika Yatin Maini Pvs Pavan Chandra Vamsi Kritika Saini
1911078 1911104 1911115 1911126 1911131
Industry Overview Tele-Density India
180
160
161.54
140
120
100
80 90.34
60
40 56.92
• India has second largest Telecom Network in World 20
0
Tele-density (Aug 2019)

• Tele-density grew to 90.34% by August 2019 Overall Urban Rural

Telephone Subscribers in India

• Total subscriber base in country stood 1191.81 1400
million as of August 2019 1200
1191.81

1000
800 680.8
600 511.02
400
200
0
Total Telephone Subscribers (in millions Aug 2019)

Total Subscribers Urban

Rural
Source: https://main.trai.gov.in/sites/default/files/PR_No.101of2019.pdf [Accessed 09 November 2019}
 Subscribers (in millions Aug 2019) Market Share Wireless Service Providers (Aug 2019)
20.82
10%

28%

30%

1171

32%

Wireless Wireline
Bharti Airtel Vodafone Idea Jio BSNL MTNL

Market Share Wireline Service Providers (Aug 2019)

13%
21%

2%

65%

Bharti Airtel Vodafone Idea BSNL MTNL Others

Source: https://main.trai.gov.in/sites/default/files/PR_No.101of2019.pdf [Accessed 09 November 2019}


Competitive Rivalry– High
 3+1 Player Industry
 Extensive Price Rivalry
 Commodity Product
Threat of Substitutes – Low
 No substitutes for mobile services
Industry Analysis
Threat of New Entrants – Low
 Economies of Scale
 High capital costs
 Stringent government regulations
Bargaining Power of Buyers – High
 Low switching cost
Bargaining Power of Supplier – Medium
 Commodity product
 Backward Integration (for Towers)
 Only three major tower companies
 Multiple suppliers for SIM card IT
services
 Industry Analysis
Political/Legal : High Social : High

 Dependence on  Changing social demographic

government controlled
spectrum  Increase in young working
population

 Change in usage pattern

Economic : Medium Technological : High

 Economic downturn has  Increase in smart phones

impacted growth usage

 High debt on players  Technologies like IoT,

influencing growth automated vehicles, Industry
4.0 impact growth
 With 5G coming up
chances of growth high  5G expected to further
increase network usage
Airtel : The Journey so far…….
STRATEGY : PAVAN
 SWOT Analysis
AIRTEL
Strengths Weaknesses

S W
• Strong Network Presence PAN • Fast Changing
India Customer Needs
• Vast Distribution Platform • Integration of
including services like Wynk Operations across
Music, Airtel TV, and Airtel geographies
Books

O T
• Only operator to leverage Quad
Play

Opportunities Threats
• Increased Competition
• Rising Data Demand
• Regulatory Changes
• Digital Payments
• Pressure on Average
• Infra Sharing
Revenue Per User
Financial Analysis: pavan
VRIN Analysis
Recommendations
 IoT , Industry 4.0 are things of  Digital payment increasing
the hour at CAGR of 12.7%

 Airtel should make strategic  Airtel should strengthen

partnership with hardware its position
companies

 Telecom equipment market  Only 57% telecom

expected to reach US $ 30 Bn penetration in rural India
by 2030
 Airtel should aim at rural
 Airtel through Indus Towers network expansion
should try to capitalise on it