Business Model of Airtel

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VALUE PROPOSITION

FOR YOU
• Mobile
• Home Phones
• Broadband and Internet
• BlackBerry
• Email on the go
• Calling Cards
• Wireless Network
• Digital TV

FOR YOUR
BUSINESS
• Data and IP solutions
• Voice Solutions
• Conferencing AIRTEL 2
Suppliers Bargaining Power

GROUP 7 6
Untapped Potential
Large number of Low teledensity Telecom
additions in telecom (depicting large Advantage
subscribers untapped potential)

R 4 0.4%
250 CAG 24

Teledensity (in percent)


Subscribers (in million)

18.3 19.9 20
200
12.8 16
150
9.1 12
225.21
100 7.0
206 8
5.1 140.3
50 98.4 4
53 76
0 0
2002–03 2003–04 2004–05 2005–06 2006–07 2007–08 (as
of June
2007)
Telecom Subscriber Base Teledensity

-- Rapid Urbanization -- Rising Income


level
7
Target Customers

Post Paid Connection - For Premium Segment


Pre-Paid Connection - For Middle income Segments

Ø32 k Sim - For Large No. of Contacts – Mainly For Business


Sector.
Ø Low Priced and Youth Oriented schemes (e.g. Campus pack,
Student pack)
Ø Promotion In Regional Languages to Tap Rural Market
Ø Value Added Services (eg. Callertune etc.) – Youth Oriented
Ø Connection with Blackberry and other business customer
oriented services.
Focusing on Business Sector

• Data IP Solutions Want to grab the


potential of
• Conferencing market of business
sector by these
• Voice Solutions services.
Business Strength

Current market share


Brand image
Brand equity
Production capacity
Corporate image
Profit margins relative to
competitors
R & D performance
Managerial personal
Promotional effectiveness
GROUP 7 10
• Strengths
•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
11
Strategy
• 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
Future Strategies
• Translate its expertise in Indian markets
to other emerging economies.
• This could call for acquisitions globally.
• Technology leadership is a must – Airtel
must ensure that its reliance on GSM
technology does not render it obsolete.
• Indian market inspite of being the
worlds largest is still not matured.
Opportunities abound in the hinterland
which must be exploited.
Future
• Customer service and experience
• Capture home and SMB
• Robust leadership pipeline to support
growth
Where is the Recession?
• Customer base – 6.4 crore
• Market share – 23.8% as against
22.4%
• Total revenues – Rs. 27,025 cr up
46% YOY basis
• Net Income – Rs. 6701 crores up 57%
YOY
• Cash Profit Rs. 11,137 crores up 52%
YOY
Just in
Airtel - Strategy

MANTRA : Focus on Core Competencies


and Outsource the rest!
Revenue Model
THANK YOU for your
attention

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