Presented By

Group B
AJAY KUMAR JHA (7003) ROHAN KELSHIKAR (7023) NAVA KEERTHI SAGAR (7031) M PRIYADHARSHINI (7036) SALIM HAQUE(7041)

TELECOM INDUSTRY

' Indian Telecom Industry' is the third largest and fastest

growing in the world with nearly 200 million connections. Subscriber growth rate is 45% The wireless technologies currently in use in ' Indian Telecom Industry ' Global System for Mobile Communications (GSM) Code Division Multiple Access (CDMA). There are primarily 11 GSM and 4 CDMA operators providing mobile services in 19 telecommunication circles and 4 metro cities, covering more than 2000 towns across the country.

Telecom Industry in India ' is regulated by 'Telecom Regulatory Authority of India' (TRAI). Three types of players exist in ' Indian Telecom Industry ' : State owned companies like - BSNL and MTNL. Private Indian owned companies like - Reliance Infocomm and Tata Teleservices. Foreign invested companies like Vodafone-Essar , Bharti Tele-Ventures, Escotel, Idea Cellular, Spice Communications etc.

MARKET SHARE
Group Compay wise Market Share as on 30-6-2007
1.44% 1.75% 3.74% 8.89% 9.56% 0.60% 0.08% 0.05% 23.55%
MTNL (GSM) BPL (GSM) HFCL (CDMA) SHYAM (CDMA) AIRTEL (GSM) RELIANCE(CDMA + GSM) BSNL (GSM)

16.96% 15.68%

17.69%

VODAFONE - ESSAR (GSM) TATA (CDMA) IDEA (GSM ) AIRCEL (GSM) SPICE (GSM)

BHARTI ENTERPRISES
BHARTI ENTERPRISES

Bharati Teletech Ltd.

Telecom Seychelles Ltd.

Bharti Telecom Ltd.

Jersey Airtel Ltd.

Bharti AXA Insurance Co. Ltd

Bharti Telesoft Ltd.

Field Bharti Fresh Retail Pvt. Foods Pvt. Ltd. Ltd.

Teletech Services (India) Ltd.

Bharti Airtel Ltd

BHARTI AIRTEL LIMITED

Established in June 07, 1995 as a Public Limited Company. Largest Cellular Operator in India. Listed on Bombay Stock Exchange (BSE) & National Stock Exchange of India Limited (NSE) Operational Network: Provides GSM mobile services in all the 23 telecom circles in India, and was the first private operator to have an all India presence. Provides broadband (DSL) and telephone services (fixed line) in 94 cities in India

Bharti Airtel added the highest ever net addition of 53 lakh customers in a single quarter (Q4-FY0607) and also the highest ever net addition of 1.8 crore total subscribers in 2006-07 The company will invest up to $3.5 billion this fiscal (07-08) in network expansion. It has an installed base of 40,000 cellsites and 59% population coverage After the proposed network expansion, an additional 30,000 towers will result in the company achieving 70% population coverage It has set a target of 125 million subscribers by 2010 Has completed 100% verification of its subscribers and in the process disconnected three lakh subscribers

STRATEGIC BUSINESS UNIT

Mobile Services: This unit constitutes the largest portion of the companys business in terms of total revenues and customers. The companys mobile customer base accounts for 23.5% of the overall wireless (GSM+CDMA) market. Broadband and Telephone Services This unit provides fixed line and broadband services over the same copper lines. Plans to introduce IPTV (Internet Protocol Television) Enterprise Services : Two sub-units are Carriers : It handles long distance national & international mobile, broadband and telephone services. Corporates: It provides customised integrated voice and data communications solutions to corporate customers.

PERFORMANCE AT A GLANCE
Particulars Units 2003 Total Customer Base Mobile Services Broadband and Telephone Services (In 1000) (In 1000) (In 1000) 3,443 3,071 372 Financial Year Ended March 31 2004 7,141 6,504 637 2005 11,842 10,984 857 2006 20,926 19,579 1,347 2007 39,013 37,141 1,871

Revenue Profit After Tax Return on Capital employed

Rs. Mn Rs. Mn %

30,554 (2,051) 0.9

50,369 5,837 9.9

81,558 12,116 15.7

116,641 20,279 21.5

184,202 40,621 31.6

ANSOFFS MODEL
MARKET PENETRATION STRATEGY
(Increase Market Share)

Attract users of competitors products : Full Talktime Convert nonusers into users :Lifetime plans to attract low
income groups

Increase product usage : Easy Recharges Increase the frequency of purchase : Recharge through ATM
; Internet based recharging through leading banks ; Products available on Indiatimes shopping and Rediff shopping Find new applications for current users : Collaboration with banks to facilitate fund transfer through mobile; Global Money Transfer.

NEW PRODUCT DEVELOPMENT

Product quality improvement strategy : Good mobile

coverage.

Product feature additions strategy : Wap Services ; EDGE

Service; Airtel Live ( Cricket news, downloads, astrology, travel etc.) ;

New product development strategy : Blackberry service.

MARKET DEVELOPMENT
(Intensive)

Expand geographically : Entering new markets in the west

(U.K) ; Launching mobile services in Sri Lanka ; GSM license in Bhutan

Target new segments : CallHome service for NRIs living in

USA to be in touch with their loved ones.

DIVERSIFICATION

Broadband Services. Telephone Services - Touchtel. Consultancy services to industry verticals like Banking, Financial services and Insurance, ITES, etc. to meet their telecom needs.

FOUR Ps

FIVE PRODUCT LEVELS

Core Product: Communication; Basic Product: Mobile telephony Expected Product: Strong network coverage Augmented Product: Caller tunes, Wallpaper, Ring tones, WAP, SMS alerts, Voice SMS Potential Product: 3G & 4G technologies.

PRODUCT

Product Variety:
Prepaid Postpaid Calling card Value added services Blackberry services Business solutions

PRICE

Easy payment options. Anytime Anywhere Easy billing Flexible Credit limit Happy recharge ( full talktime everytime)

PLACE

Operating in 23 circles in India Strong distribution network with approximately 160,000 family of retailers Over 500 exclusive outlets Operation in foreign countries

PROMOTION

Setting up of exclusive stalls in public places to attract customers, promote existing and new products. Lowering of tariffs Loyalty rewards Special season( festivals) offers Talk time schemes with attractive offers Celebrity endorsements Innovative advertisement campaigns Mass promotion campaigns Corporate Social Responsibility: Satya Bharti School providing primary education for underprivileged children in rural areas.

SEGMENTATION

Geographic Segmentation : 23 telecom circles (different tariff for different circles) Demographic Segmentation : Age : Senior citizen. Gender : Women. Occupation : Students ( Youth Plan) , Corporate . Income: All income groups ( Different plans for various income groups)

POSITIONING
Airtel is positioned as a mass brand which even a chaiwala can

own (as highlighted in one of their communications).

Airtel positions itself in the market as a very reliable, effective and consumer savvy brand Positioning as a brand which people can trust in terms of quality and performances Plans to position itself as complete telecom service provider with a strong presence in global network

FIVE FORCE ANALYSIS

Potential entrants
-Entry

of Global Telecom providers

Suppliers (supplier power) Ericsson GSM Network Management Service Provider

Industry Competitors Hutch,

BSNL, Idea, MTNL, Tata Indicom, Reliance

Buyers Loyalty shift.

Substitutes
CDMA technology, Internet messengers, Net-to-Phone

COMPETITOR HUTCH

Hutch is the second largest cellular operator in India in terms of revenue. Operates in 16 telecom circles. Subscriber base : 26.73 Million. Market share : 16.96% of the GSM market. Highest average revenue per user in industry. With tagline wherever you go, out network follows you., it positions itself as a brand with high quality network and valueadded services. Vodafone has acquired a 67% of holding in Hutch-Essar for US$11.1 billion

SERVICE PORTFOLIO

Prepaid Postpaid Calling Cards HandyPhone Hutch PCO Hutch World (GPRS service) Hutch services on mobile PlanetHutch services Mobile E-mail solutions

AIRTEL vs HUTCH (Revenue Comparison)

20000 18000 16000 14000 12000 10000 8000 6000 4000 2000 0 17888
20000 20000 18000 18000 16000 16000 14000 14000 12000 12000 10000 10000 8000 8000 6000 6000 4000 4000 2000 2000 0 0

Revenue ( in Crore)

Revenue in Crore) Revenue (( in Crore)

11291

10565

6837

FY -- 2005-06 FY 2005-06

FY 2006-07 FY 2006-07 Year Year Airtel Year Hutch Airtel Hutch

FY - 2005-06

FY 2006-07

Airtel

Hutch

RECOMMENDATIONS

Prepaid Customers account for 88.5% of the total customers. So, Airtel should try to convert prepaid customers to postpaid. Non-Voice revenue (SMS, voice mail, call management, hello tunes and Airtel Live) constitute only 10% of total revenues. So, efforts should be made to increase the revenue from non-voice sources. Airtel should consider acquisition of domestic and local GSM service providers, thereby increasing its market share. E.g. , acquisition of Spice. Airtel should also consider acquisition of local CDMA service providers to get in the CDMA technology and build its competency. Eg. Shyam, HFCL.

It has to be quick to adapt to and bring new emerging technologies like 3G and 4G in India at affordable cost. It should start Mobile Bill Payment Van services. It should expand its rural network coverage to widen its customer base. It should put more focus on entering into new countries and establishing itself as a global brand.

THANK YOU