Ankit Somani (57)

A PRESENTATION ONBHARTI AIRTEL

PRESENTED BY

IntroductionAirtel was established in 1985, Bharati (Airtel) has been pioneering force in telecom sector

It is a Indian Multinational Telecommunication services company headquartered in New Delhi

Largest Private Integrated Telecom Company in India

Bharati Airtel is the world’s 3rd largest telecommunication company

It operates in 20 countries across Asia, Africa, Channel Islands.

261 million subscribers across countries.

It has 190.90 million subscribers in India.

Bharti Airtel is first Indian telecom service provider to achieve Cisco gold certification.

Company Profile

Name: Bharti Airtel Limited

Established: July 7th , 1995, as a public limited company.

Business Description: Provides mobile, tele-media services (fixed line) and enterprise services (carriers and services to corporates)

Listings: The Stock Exchange, Mumbai (BSE), The 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 operators to have an all India presence.

Provides tele-media services (fixed line) in 94 cities in India.

The sales turnover of the company as on 26th feb 2013 was rs. 20253.70 crores and net profit quarterly as on dec’12 was rs. 283.70 crores

COMPANY’S VISION# TO PROVIDE GLOBAL TELECOM SERVICES AND HAVE DELIGHT CUSTMERS

COMPANY’S MISSION#ERROR FREE SERVICE DELIVERY

#INNOVATIVE PRODUCTS#COST EFFICIENCY

#UNIFIED MESSAGING SOLUTION

Founder

A first generation entrepreneur, Mittal started his first business in April 1976[7] at the age of 18, with a capital investment of 20000 (US$340) borrowed from his father. His first business was to make crankshafts for local bicycle

SUNIL BHARTI MITTAL started his career at a young age of 18 after graduating in the year 1976 from PUNJAB UNIVERSITY with the bachelor of arts and science .

He is the CHAIRMAN and MANAGING DIRECTOR since october 2001

An alumni of HAVARAD UNIVERSITY BUISSNESS SCHOOL

He was also Awarded by PADMA BHUSHAN

Being conferred by the degree of DOCTER by G B PANT UNIVERSITY .

Also awarded by INSEAD Business Leader Award 2011 .

History

In 1983, Mittal was in an agreement with Germany's Siemens to manufacture push-button telephone models for the Indian market. In 1986, Mittal incorporated Bharti Telecom Limited (BTL), and his company became the first in India to offer push-button telephones, establishing the basis of Bharti Enterprises.

By the early 1990s, Sunil Mittal had also launched the country's first fax machines and its first cordless telephones.

In 1992, Mittal won a bid to build a cellular phone network in Delhi.

In 1995, Mittal incorporated the cellular operations as Bharti Tele-Ventures and launched service in Delhi.

In 1996, cellular service was extended to Himachal Pradesh.

In 1999, Bharti Enterprises acquired control of JT Holdings, and extended cellular operations to Karnataka and Andhra Pradesh.

In 2000, Bharti acquired control of Skycell Communications, in Chennai.

In 2001, the company acquired control of Spice Cell in Calcutta. Bharti Enterprises went public.

In 2002, and the company was listed on Bombay Stock Exchange and National Stock Exchange of India.

In 2003, the cellular phone operations were rebranded under the single Airtel brand. In 2004, Bharti acquired control of Hexacom and entered Rajasthan.

In July 2004, Airtel launched "Hello Tunes", a Caller ring back tone service (CRBT) and became the 1st operator to do so.

In 2005, Bharti extended its network to Andaman and Nicobar.

In 2009, Airtel launched its first international mobile network in Sri Lanka.

In 2010, Airtel acquired the African operations of the Kuwait based Zain Telecom.

In March 2012, Airtel launched a mobile operation in Rwanda.

Corporate Structure

Organization is defined by the formal structure, coordination and control systems, and the organization culture.

It’s the formal arrangement of roles, responsibilities and relationships within an organization.

It’s a powerful tool to implement strategy.

Earlier Organization Structure

Worldwide Presence

COVERAGE MAP OF BHARTI AIRTEL ACROSS 20 COUNTRIES

Airtel Products

AIRTEL CONNECTIONS• -PREPAID• -POSTPAID

AIRTEL DATA CARDS

AIRTEL CALLING CARDS

AIRTEL BROADBAND

AIRTEL FIXED LINES

Marketing Analysis

In the mind of the consumer, Airtel Services should provide following features:-•Easy Billing •Strong Market Coverage•Credit Limit •Long Distance Calling Facility•Best Value Plan•Widest Roaming- National & International•Easy Payment Option- Anytime & Anywhere

Marketing Strategies

• Airtel partnered with leading players in telecommunication players across the globe.

• It has managed to work with the best of domain specialists globally and emerge as a world class entity.

• Partnerships include operational contracts with marquee vendors and strategic investors ranging from private equity investors to global telecom giants.

Market Shares

Strengths

SWOT Analysis

• Largest Telecom Player in India - ~80Mn, 22.6%• Strategic Alliance with other stakeholders in

Bharti Airtel include Sony-Ericsson, Nokia - and Sing Tel

• Pan India Presence• Strong Financials

Weakness

• Outsourcing of Core Systems• Lack of emerging market investment

opportunity

Opportunities

• Bharti Infratel – Cutting Down cost in Rural area

• Match Box Strategy – Scale of Penetration• Current Tele-Density – 30.6 is still low among

developing countries• Low Broadband Penetration, Rural Telephoney

Threats

• India centric – Major revenues from India• Falling ARPU & AMOU• Intense Competition & Shortage of Bandwidth

• STP OF AIRTEL

• Segmentation

 – On the basis of Geography – divided Indian market in telecom circles. – Subdivided States into category A,B and C.

 

• Targeting  

– Earlier elite class above age group of 25 years. – Corporate people and business men. – Again targeted youth by introducing YOUTOPIA plan. – Targeted women and senior citizens by introducing post paid plans.

• Positioning

– Tagline- “ EXPRESS YOURSELF ”. – Positioned in premium category aimed at elite

class of society. – Perception of aspirational and lifestyle brand. – Airtel decided that the brand should always

connote leadership - be it in network, innovations, offerings or services

– Sponsored games like Golf.

• Promotion

• Large scale print and video advertising.

 • In 2002 Airtel got its Signature tune from A.R. Rehman, this signature tune is perhaps the

most downloaded tune in India.

 • Provides innovations such as Bollywood movie premiers, music services such as ring back

tones & many more.

 • "Friendz" pre-paid connection for youth," Ladies Special" plan, Seniors plan.

 • Executives corporate plan(First to give prepaid in this category).

 • Special discounts in calling rates & sms services.

 • Providing wallpapers and screensavers on website.

• Founded in 1994, MTN operates in 21 countries.

• The bulk of its subscribers are in South Africa, Nigeria, Iran, Ghana, Syria, Cameroon, and Uganda. tries in Africa and the Middle East.

• It is Africa's largest mobile phone operator by subscribers.

• Largest Telecom Player in South Africa• Strong Financials• Focus on Core Activities – Outsource the rest• Strong Brand Image – Marketing Team• Strong New Business Development team• Financial performance and continued investments• Client relationship management• Focus on R&D and innovation to create new services

• THE PROPOSED $23-BILLION MEGA DEAL BETWEEN BHARTI AIRTEL AND SOUTH AFRICA’S MTN WOULD BE WORLD’S BIGGEST DEAL.

• INDIA’S BIGGEST CROASS BORDER DEAL ALMOST TWICE THE SIZE OF TATA STEEL’S $13 BILLION BUY OF CORUS IN 2006.

• MTN TO TAKE 25 % STAKE IN BHARTI FOR $2.9 BILLION PLUS NEW SHARES EQUAL TO ABOUT 25 % OF THE CURRENT SHARES ON ISSUE. MTN SHAREHOLDERS TO TAKE ANOTHER 11 % OF BHARTI.

• BHARTI TO BUY ABOUT 36 % OF MTN SHARES AT $10.44 EACH, PLUS HALF THE NEWLY ISSUED BHARTI GLOBAL DEPOSITARY RECEIPTS FOR EACH MTN SHARE.

• THAT AND THE SHARES MTN ISSUES FOR ITS STAKE IN BHARTI WOULD TAKE THE INDIAN FIRM’S HOLDING TO 49 % OF MTN’S ENLARGED CAPITAL. BHARTI WOULD BE ABLE TO FULLY CONSOLIDATE MTN’S ACCOUNTS, AND MTN GETS REPRESENTATION ON THE BHARTI BOARD.

IN TERMS OF SUBSCRIBERS, CURRENTLY THE TOP FIVE MOBILE FIRMS AS IN MARCH ARE AS FOLLOWS:

(1) CHINA MOBILE : 477 MILLION SUBSCRIBERS(2) VODAPHONE : 303 MILLION

SUBSCRIBERS(3) TELEFONICA SA : 198 MILLION

SUBSCRIBERS(4) AMERICA MOVIL : 187 MILLION

SUBSCRIBERS(5) TELENOR : 166 MILLION

SUBSCRIBERS

BHARTI AIRTEL : 100 MILLION SUBSCRIBERSMTN : 100 MILLION

SUBSCRIBERS

IF THIS DEAL GET SUCCESSFUL THEN THEY GOT 200 MN SUBSCRIBERS.SO THAT THEY WILL GET THIRD RANK IN ALL OVER THE WORLD.

• Both Firms Exposure To New Markets Ripe For Growth

• Full Cost Savings

• Allow for Technology Sharing

• Provide The Financial Muscle For More Expansion

• Bigger Market Exposure

• Access To Innovative Products

• Better Buying Power,

Some other international facts about bharti airtel

Newyork life insurance fund ,acquired a 3% equity share in bharti cellular

Singtel acquired stake 15.3% equity interest in bharati televentures

Airtel joints hands with Microsoft

Airtel signs agreement with HTC for touch screen mobile

Bharati airtel has informed that Microsoft & Co. announced a strategic partnership that will offer a range of software & services for small & medium industries

British telecom acquired 21.05% equity in bharti cellular

Bharti Airtel has a subsidiary in SriLanka called as airtel Lanka limited

International Partners

The company has a strategic alliance with singel

The company's mobile network equipment partners are Ericson & nokia

In case of the broadband & telephone services equipment suppliers include Siemens,Nortel,Corning and others

On 16 June 2011, Airtel digital TV launches iKisaan – the world’s first interactive service in Hindi

On 1 December 2011, Airtel introduces India’s first free mobile access to Twitter.

On 11 April 2011, Bharti Airtel and Apple bring the iPhone 4 to India

On 12 December 2011, Bharti Airtel recognized for the delivery of best network services with customer focus at Telecom Centre of Excellence Awards

On 30 January 2012, Airtel digital TV launches iKidsworld.[

On 24 October 2012, Bharti Airtel's mobile user base in Africa crosses 60 million

On 27 May 2012, Bharti Airtel announced its strategic foray into the mobile advertising (m-Advertising) segment, in India

16-08-2013] airtel launches ‘Re 1 Entertainment Store’ for its mobile customers

[06-12-2012] Airtel Mobitude 2012 reveals the preferences of over 186 million mobile customers in India

15-04-2013] Stay connected with loved ones with Airtel ‘Summer Special’ offers for International roaming

Most successful brand in India with largest market share.

Success is based on three pillars- connectivity, affordability and innovation. The core is connectivity, i.e. the network

Doesn’t promote its product always by celebrities.  

Pre paid services are more expensive than post paid service .