Bharti Airtel Limited

User Base in Africa Crosses 50 - Million mark

Strengths

o o o o o

Largest Private Integrated Telecom Company in India LARGEST WIRELESS service provider in India by subscribers 5th LARGEST MOBILE telecom operator in the world 3 LARGEST in-country wireless service operator in world Amongst the LARGEST providers of passive infra (by tow ers)

o o o o

2 C C D w ( S

Internal Factors

o o o

Decline in Customer market Share Decline in ARPUs ( Average Revenue per Minute) Not much of presence in Rural India.

Weaknesses

Opportunities

o o o o o

Airtel essentially has two large businesses, India (mature asset) and Africa (growth). Untapped Landscape Rural India New Technologies and Paradigms 2G & 3G Growing overseas Srilanka, Bangladesh and Africa ( presence in 16 African countries ) Strong Strategic Partnerships

o o

P o Ta E

External Factors

o o o

MNP can be double edged sword Increased Competition - by new (green field operators ) and current players. Regulatory Environment (TRAI & others)- uncertain regulatory environment in India even globally

Threats

Opportunities

Prepare for BPR o o o Build Cross Functional Team Identify Customer driven objective Develop Strategic Purpose

External Factors

Threats

Business Model Minutes Factory

Drive affordability more users more usage

Affordability

Improved Profitability

Strategy

Positive Elasticity

Economies of Scale (Cost Efficiency)

Increase in Usage

High usage environment, while building customer base profitably..

Opinion Significant Synergies

Bharti Airtel buying the African assets of Zain, a Kuwaiti operator, in June 2010 for $10.7bn was with an objectives of long term strategic benefits Airtel essentially has two large businesses, India (mature asset) and Africa (growth). In India, the major investments have been made; the revenues are large and growing, and the high competition is expected to ease up. (But when you consider the near saturation point being reached in the Indian market it is easy to see why Bharti is pumping money into the rest of its business. It is easy to see why Bharti has switched focus to the African market. Not only is the company practiced at providing a low-cost, high-volume model in its home market; it is also acutely aware of the growth potential in exploding Africas middle class

Opinion Has its eyes firmly trained on Africa where it has bumped its investment up by some $491m thats 586 per cent over the past year. Bharti Airtel has a leadership position in a large number of the 16 African countries with 3G spectrum across 10 countries and enjoys limited competition Comparison of India and African Telecom Markets
Product Type Mobile Penetration Average Number of Competitors Business Model Minutes of Usage per sub ARPU (US$) ARPM (US cents ) India 68% 10-14 + High usage, low tariff model 423 $4.0 < 1.0 Africa 51% 3-5 Low usage high tariff model 128 $7.3 5.7

Bharti Airtel Limited

User Base in Africa Crosses 50 - Million mark

Strengths

o o

Largest Private Integrated Telecom Company in India LARGEST WIRELESS service provider in India by subscribers o 5th LARGEST MOBILE telecom operator in the world o 3 LARGEST in-country wireless service operator in world o Amongst the LARGEST providers of passive infra (by towers)

o o o o

2 C C D w ( S

Internal Factors

o o o

Decline in Customer market Share Decline in ARPUs ( Average Revenue per Minute) Not much of presence in Rural India.

Weaknesses

Opportunities

o o o o o

Airtel essentially has two large businesses, India (mature asset) and Africa (growth). Untapped Landscape Rural India New Technologies and Paradigms 2G & 3G Growing overseas Srilanka, Bangladesh and Africa ( presence in 16 African countries ) Strong Strategic Partnerships

o o

P o Ta E

External Factors

o o o

MNP (Mobile number portability) can be double edged sword Increased Competition - by new (green field operators ) and current players. Regulatory Environment (TRAI & others)- uncertain regulatory environment in India even globally

Threats

Opportunities

External Factors

Threats

Business Model Minutes Factory

Drive affordability more users more usage

Affordability

Improved Profitability

Strategy

Positive Elasticity

Economies of Scale (Cost Efficiency)

Increase in Usage

High usage environment, while building customer base profitably..

Opinion Significant Synergies

Bharti Airtel buying the African assets of Zain, a Kuwaiti operator, in June 2010 for $10.7bn was with an objectives of long term strategic benefits Airtel essentially has two large businesses, India (mature asset) and Africa (growth). In India, the major investments have been made; the revenues are large and growing, and the high competition is expected to ease up. (But when you consider the near saturation point being reached in the Indian market it is easy to see why Bharti is pumping money into the rest of its business. It is easy to see why Bharti has switched focus to the African market. Not only is the company practiced at providing a low-cost, high-volume model in its home market; it is also acutely aware of the growth potential in exploding Africas middle class

Opinion Has its eyes firmly trained on Africa where it has bumped its investment up by some $491m thats 586 per cent over the past year. Bharti Airtel has a leadership position in a large number of the 16 African countries with 3G spectrum across 10 countries and enjoys limited competition Comparison of India and African Telecom Markets
Product Type Mobile Penetration Average Number of Competitors Business Model Minutes of Usage per sub ARPU (US$) ARPM (US cents ) India 68% 10-14 + High usage, low tariff model 423 $4.0 < 1.0 Africa 51% 3-5 Low usage high tariff model 128 $7.3 5.7