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Group - 2

Summary

India’s leading private telecom provider.

Launched first cellular service in ‘95.

Slow takeoff as fixed lines were preferred.

NTP issued in ’99 and introduced tariff rebalancing.

Replaced license fee with revenue sharing plan.

Increase in subscriber growth and decrease in

ARPU.

Summary

A joint venture with Seimens.

Partnership with Emtel, MSI for license bidding.

Provided service at Rs7.50, lesser than govt. ceiling

@ Rs 8.40

Expanding distribution channels through

supermarkets

In ‘98, declared first profit.

Summary

Derived advantage for low and high profit areas.

In ‘02 provided national and international long

distance services.

Acquired fixed line license in ‘95

Foreign support by BT, SingTel & Warburg

Pincus.

Bharti tele-ventures went public in ‘02.

Issues / Challenges

Slow take off with low volume users and low

usage

Emergence of WLL-M technology.

Emergence of Competitors

Focus on operational efficiency

Lack of funds

Analysis

Introduction Of NTP reduced barrier to entry

Better connectivity & wider distribution

channels

Brand Equity

Thin profit margins reduction in admin costs

Advantage as switching costs were high

Recommendation

Revise price plans to capture more market

Enter WLL-M market

Enter the CDMA segment

Focus on advertising

Research based Findings

Structured into four strategic business units ( Mobile, Tele-media, Enterprise and Digital TV)

Operates in 19 countries across Asia and Africa

The company offers mobile services, fixed line, Broadband etc

Airtel has 200 million customers across its operation

Research based Findings

Airtel is the fifth largest telecom operator in the world

Outsource everything except marketing, sales & finance

Bharti has recently roped in a strategic partner  Alcatel-Lucent 

Provides end-to-end telecom solutions to corporate customers

Learning from the Case

Relied on speed and instincts to win the first

round.

Adapt new ways to compete in the market.

Single minded devotion to the product.

Learning from the Case

Cost per minute comes down rapidly with scale

economies.

They wanted to cater to all strata’s of society.

Employed direct sales strategies for pre-paid &

post-paid revenues