final airtel ppt

8/8/2019 Final Airtel Ppt

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Presenters

Mohak marwah

Hindoli Bhattacharjee

Jasbir Singh Karishma Bothra

Piyush Jain

Nimeel Mehta Kaushal Joshi


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Flow of presentation

Emerging markets

Background of the company and industry analysis

Czar of Indian telecom and its outcome Challenges and Competitors

Countering Threats

Ready to tap and current scenario(including 3G) Outlook and SWOT analysis


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Emerging markets


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Emerging markets are nations with social or

business activity in the process of rapid

industrialization.

India and china are the largest among them


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MSCI Barra list


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Dow Jones list


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Similar concepts

BRIC Brazil, Russia, India and China

BRICET BRIC + Eastern Europe and Turkey

BRICS BRIC + South Africa BRICM BRIC + Mexico

CIVETS Columbia + Indonesia + Vietnam +

Egypt + Turkey + South Africa


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Emerging markets

r e te gr t in e ne re en e 2007 t 2010

% growth

96%

5 %

42%

20%20%

20%

1 %

sia a i i

estern E r e

Countries

n ia an ina

i e East an ri a

Latin meri a

rt meri aEastern E r e


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Leading players


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Rank Brand Parent Company Brand Value ($bn)

1 Vodafone Vodafone Group 26.59

2 AT&T AT&T 24.6

3 Verizon Verizon Comm 24.38

4 Orange France Telecom 18.35

5 China Mobile China Mobile 13.87

6Telecom

ItaliaTelecom Italia 9.43

7 T-Mobile Deutsche Telekom 8.96

8 Movistar Telefonica 7.95

9 NTT DoCoMo NTTC 7.54

10 BT BT Group 7.29

11 Sprint Sprint Nextel Corp. 7.07

12 Telefonica Telefonica 6.33

13Alcatel-

LucentAlcatel-Lucent 5.16

14America

MovilAmerica Movil 5.08

15 Telstra Telstra Corp. 4.64

16 O2 Telefonica 4.62

17China

UnicomChina Unicom 3.45

18 Qwest Qwest Comm Intl 3.06

19 SoftBank Softbank Corp. 3.02

20 KDDI KDDI Corp. 3.01

21 Telenor Telenor 2.97

22 Swisscom Swisscom 2.96

23 MTS Mobil TeleSystems 2.79

24 CNCChina Netcom

Group2.55

25 Airtel Bharti Airtel Ltd 2.48


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Reason for growth

Market size.

Green field competitive opportunity.

Lower cost structure.

Availability of cheaper cell phones.

Increased per capita income.

Technology.


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Indian Sector

Company Name Market Cap in Crores

arti irte 108066.23

e iance o nication 32683.44

Idea e ar 14368.92

ata o nication 13181.25

ata e e er ice 4393.06

S ice o nication 4136.13

4044.6

2475.12

In ra tr ct re 2210.49

n o i e o a 1403.52


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THE CZAR OF INDIAN TELCOM

Building a Strong Brand Various Brand Ambassador(SRK, Sachin, A R Rahman)

Largest advertiser in India

Power to keep in Touch( )

Touch Tomorrow( )

Live every Moment ( )

Express Yourself ( 3)


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Business Model Innovation Lean organization

Outsourcing Network Deployment- Nokia andEricsson

IT services IBM

Customer Contact Centers Nortel

Different Payment Model from revenue per share to

cost per all.

Free incoming calls to its mobile phone user.


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ACCOLADES

Best CMT company for years ( - ) in terms of

Shareholder Performance Index.

MIS Asia IT Excellence Awardfor best Change in

Management

2005 Indian Mobile Operator of the Year.

Competitive Service Provider of the Year.(2006)

CEO of the Year Sunil Mittal(2006).


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COUNTERING THE THREATS

NETWORK EXPANSION

Expanding all over the country.

Increased budget of annual investment to $2 Billion per year from an average of

$ .5

Billion per year

Planned to expand aggressively in the rural areas in the future and cover of

the country by 2010.


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TARGETING ALL SEGMENTS

BAL did away with the practice of using

a single marketing strategy to target all

the customers

Rural Segment:

Tied up with Nokia to offer entry-level handsets to its customers to counter self-

branded handsets offered by Vodafone & Tata.

Reduced the tariffs and lowered fixed & recurring charges .

The aim was to remove entry barriers for the customers and increase the user

base by further expanding the market.


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Urban Segment:

Categorized these consumers based on ARPU and

adaptability to VAS and Technologies

High End users were segmented into a separate category

called funsters

BAL planned to focus its marketing efforts on these tech savvy users.

Tied-up HTC and RIM to provide high-end hand held devices to its high end corporate

users.

The aim was to increase its falling ARPU with the help of such high-end offers.


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Wooing the Rural Masses

The challenge in penetrating the rural masses was low

ARPU, high cost of building infrastructure for network

& diverse languages and dialects.

BAL started to tie-up with shop owners in remote areas of India.

Started providing economical plans (with handset bundling) to rural masses toincrease uptake.

BAL launched a joint venture company IFFCO Kisan Sanchar Limited with

to provide VAS and voice services to farmers throughout India.


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New Advertising Strategy

The aim here was to Reposition the Airtel brand as branding played an

important role in the telecom sector

BAL began to rollout some new promotional campaigns like

KUCH BANDHAN ATOOT HOTE HAIN

stressed on the wide coverage that the nationwide mobile

coverage of Airtel provided.

BARRIERS BREAK WHEN PEOPLE TALK

was aimed at projecting Airtel as a Global brand.


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New Technology

The next generation 3G services were another area on which BAL decided tofocus in order to retain its dominant position in the Indian telecom servicesmarket.

It will help it increase its revenues in the view of its steadily falling ARPU.

In the 3G auction conducted by GoI, BAL was an aggressive bidder.

.


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TAPPING UNTAPPED MARKET

International presence in

Seychelles through its subsidiary Telecom Seychelles Limited.

Europe (Channel Islands) through its subsidiaries Jersey

Airtel Limited (JAL) and Guernsey Airtel Limited (GAL). In 2006, Airtel became the first Indian telecom operator to

launch 3G services in Seychelles

In May 2007, JAL and GAL entered into a partnership with

Vodafone to launch mobile services in Channel Islands underthe Vodafone-Airtel brand.

Airtel started in operations in Srilanka in 2008


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BAL & MTN


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Fallout between BAL & MTN


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Bharti Zain Deal

Set to Enter Africa one of the few remaining global high growthmarkets:

" Bharti Airtel is set to become worlds fifth largest wireless company with

operations across 18 countries

" Bhartis total customer base to be around 179 million and includes Zain

Africas mobile operations in 15 countries with over 2 million customers " Bhartis telecom footprint to cover 1.8 billion people across Asia and

Africa second largest among telcos

With this acquisition, Bharti Airtel will be the worlds fifth largest

wireless company with operations across 18 countries. Bharti

groups global telecom footprint will expand to 21 countriesalong with the operations in Seychelles, Jersey, and Guernsey.


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Bharti Zain Deal

The total cost of the deal is expected to be10

.7

billion dollars.Where 9 billion dollars and 1.7 billion through debt and the restis to be paid in the following year, which is about 700 milliondollars. The entire process is managed with 1.9% rate ofinterest.

Standard Chartered Bank is the Lead Advisor to Bharti on thistransaction. Barclays Capital is the Joint Lead Advisor and SBIGroup is the Lead Onshore Advisor. Global Investment HouseKSCC is the Regional Advisor to Bharti on this transaction.

The acquisition gives Bharti Airtel a total customer base of180

million, including 131 million subscribers it had in India at theend of April.


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Bharti & the 3G spectrum F

our years of delay, 3 days and18

3 rounds of frenetic bidding later,the auction of 3G mobile spectrum wound down finally, delivering an

unexpected bonanza of Rs 67,719 crore ($15 billion) for the

governments dry coffers and paving the way for services such as

video calling and high-speed internet using phones to be launched

across India. The thirteen 3G licences bagged by Suni Mittal-promoted Bharti Airtel

cover 59% of India's cellular subscribers and 61% of revenues this

is the maximum 3G coverage any telecom operator has managed.

Data released by sector regulator Trai reveal that regions where

Bharti has bagged 3G spectrum contributes about 70% of itsrevenues.

final airtel ppt

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