1. Telecom Sector Study

2. Equilibrium Rumblings Identity crisis Refocus Dynamic competition 2001 1999 1998 1995- 1996 1997 1994 2000 2002 2003 Upto 1994 National TelecomPolicy, 1994 New TelecomPolicy, 1999 2004 Unified LicensingRegime

State regulated firms

Strategy heavily influenced by Government and Regulators

Limited customer choice

Threats of privatisation

Fully adjusted marketplace

No distinction between incumbents & challengers

Wide range of customer choice

Normal market forces apply

Technological advances lead to substitutes

Niche players evolve / Call-back operators provide service

Regulators formed

Competition begins

Traditional assumptions challenged

Marketing and sales focus

Increasing competition

Losing key competencies

Competitors find niche or die out

Industry settles

Greater emphasis on shareholder value

Focus on customer satisfaction

Life Cycle Stage of Indian Telecom 3.

Revenue to increase 3 times in the next 5 years

Current teledensity of 8.8 % set to increase to 20% in the next 5 years beating

Government targets by 3 years

Growth rate about 2.5 million subscribers per month

Mobile subscriber base has surpassed the fixed lines

Indian Telecom on the cusp of paradigm shift 4. Telecom Market

7th largest telecom network in the world

Telecom network growth rate 30%

Fixed lines 44.76 million

Wireless connections48 million

Size(2003) US$ 9 billion

2010 (projected) US$ 23 billion

5. Telecom Services Market

Share in total revenue of

Wireline services to fall from half to 30%

Wireless servicesto rise to half

Data revenueto rise from 2% to 8%

Over next5-8 years 6. Rising Teledensity & Telephone Subscribers

India is targeting 250 million users by 2007

India needs$30 billion to meet a target of one phone for every fivepeople by 2010

Total telecom revenues expected to almost triple fromUS$ 9 billion in 2002 to US$ 23-25 billion by 2007.

7. Telecom Equipment Market

Telecom equipment market size US$ 19.4 billion

Telecom handset marketUS$ 8.4 billion

size

2004 - 08 (estimated) 8.

Subscriber base :Almost 1.5 million wirelesssubscribers added every month

The Mobile Market

GSM 37.37 mn

CDMA 11mn

Number of networks(GSM) 70

Number of cities covered(GSM)2000

9. Market Share of Major Players 10. Market Share of Major GSM Players 11. Market Share of Major CDMA Players 12. National Telecom Policy (NTP) - 1999 Impact of NTP-99 on mobile subscriber uptake

Migration from fixed to revenue share license fee regime

Liberalised long distance sector

13.

FDI limit increased from 49% to 74%.

Virtually complete deregulation

Unified Access Service License

Interconnection Usage Charge (IUC)

Broadband Policy announced. Targets 20 million broadband subscribers by 2010.

Exemption from customs duty for import of MSCs (Mobile Switching Centre)

Policy Advantage 14. India outshining China In the 9th year of wireless operation China6.8 million India28 million Subscriber In millions Years India Vs China in comparable years of service 15.

Market share in telecom: 21.7%

Market share in GSM Segment: 29.0%

Customer base growth rate: 5.69%

Services Provided:

• Airtel Prepaid

• Airtel Postpaid

• Blackberry Wireless Handheld

• Value Added Services

Airtel: Major player in Indian Telecom Sector 16.

• Strength:

Presence in all thetelecom circles

Developed Infrastructure in place

Strong and loyal consumer base

• Weaknesses:

Presence only in GSM

Weak communication in comparison of competition

High attrition rates in the industry

Airtel: SWOT Analysis 17. Airtel: SWOT Analysis

• Opportunities

Market on a rise

Favorable Govt. Policies

Leverage form existing Infrastructure

Rapidly turning into an entertainment media

• Threats

Entrance of global players

Risk of Technology obsoletion and continuous need of up gradation

No distinction between new entrants and incumbents

18.

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www.ifeb.org

www.economictimes.com

www.myiris.com

References 19. Thank You