Project Progress Report:

BHARTI AIRTEL (INDIA)

Specialization: Telecom & IT By

SHAILENDER KUMAR
Balaji I stit!te o" Teleco# $ Ma age#e t

TABLE %& '%NTENTS

'(apter )
Introduction..3 1.1 Summary of Abstract..4 1. !b"ecti#e.$ 1.3 %et&odolo'y...(

'(apter *
)ompany profile...1* +istory..11 !r'anizational Structure...13 ,alue )&ain..14. SI-!)...1.

'(apter +
%ar/etin' Strate'y B)0 %atri1... -orter 0eneric %atri1 23orce %odel. S4!T Analysis.

INTR%DU'TI%N
4e are one of India5s leadin' pro#iders of telecommunication ser#ices 6it& a nation6ide presence in all t&e 3 licensed "urisdictions 7also /no6n as Telecom )ircles8. 4e ser#ed an a''re'ate of $$9 :*91(4 customers as of ;ecember 319 **$< of 6&o $29.2*9:33 subscribe to our 0S% ser#ices and 9.1(94.1 use our Telemedia Ser#ices eit&er for #oice and=or broadband access deli#ered t&rou'& ;S>. 4e are t&e lar'est 6ireless ser#ice pro#ider in t&e country9 based on t&e number of subscribers as of ;ecember 319 **$. 4e also offer an inte'rated suite of telecom solutions to our enterprise customers9 in addition to pro#idin' lon' distance connecti#ity bot& nationally and internationally. 4e &a#e recently forayed into media by launc&in' our ;T+ and I-T, Ser#ices. All t&ese ser#ices are rendered under a unified brand ?Airtel@. T&e company also deploys9 o6ns and mana'es passi#e infrastructure pertainin' to telecom operations under its subsidiary B&arti Infratel >imited. B&arti Infratel o6ns 4 A of Indus To6ers >imited. B&arti Infratel and Indus To6ers are t&e t6o top pro#iders of passi#e infrastructure ser#ices in India. Successful businesses &a#e e1tensi#e /no6led'e about t&eir customers and competitors. 0ettin' accurate and specific information about your customers and competitors is a critical first step in mar/et in#esti'ation and de#elopment of a mar/etin' plan. Accurate mar/et assessment and de#elopment of an effecti#e plan is critical to t&e success of bot& ne6 and e1istin' businesses. T&e mar/et impacts and directs all aspects of t&e companyBs acti#ities and ultimately 6ill lead to success or failure of t&e business. In de#elopin' a mar/et plan9 your primary functions are to understand t&e needs and desires of your customer select or de#elop a product or ser#ice t&at 6ill meet 3

customer needs9 de#elop promotional material t&at 6ill ma/e t&e customer a6are9 and ensure product or ser#ice deli#ery.

ABSTRA'T
T&is document is t&e 3inal Cesearc& -roduct for BIT%9 titled ?!,DC,ID4 !3 TD>D)!% SDC,I)DS IE;FSTCG IE IE;IA & AEA>GSIS !3 B+ACTI AICTD>@.

AB%UT BHARTI AIRTEL

B&arti Airtel is India5s no.1 reliable net6or/9 ser#in' at around $$ million #oice & data user subscribers. T&e need of researc& study is to study about B&arti Airtel9 understandin' its #arious strate'ies t&at /eep it a&ead of all ot&er competitors li/e ,odap&one9 Idea9 Celiance etc.. T&is study is under'one t&rou'& #arious steps of researc& pro"ect. T&e met&od used for t&e researc& pro"ect areH 0roup ;iscussion9 internet bro6sin'9 different 'rap&s & c&art study etc. 3rom t&is analysis 6e found t&at B&arti Airtel &as t&e lar'est mar/et s&are due to its callin' plans9 Tariff plans and ot&er strate'ies. Telecom 'iant B&arti Airtel is t&e fla's&ip company of B&arti Dnterprises. B(arti Airtel9 formerly /no6n as B(arti Tele,-e t!res Li#ite. 7BT,>8. IndiaBs lar'est and 6orldBs t&ird lar'est cellular ser#ice pro#ider. %ore t&an $$ million subscribers as of 31 ;ecember **$. Airtel pro#ides mobile & fi1ed 6ireless ser#ices usin' 0S% tec&nolo'y across 3 telecom circles. >ar'est Telecom )ompany listed on Indian Stoc/ D1c&an'es. T&e company also &as a submarine cable landin' station at )&ennai9 6&ic& connects t&e submarine cable connectin' )&ennai and Sin'apore. 4

T&e ser#ice strate'ies of B&arti Airtel areH

BestHinHclass tec&nolo'y: 4orldHclass Installation & )ustomer Ser#ice Interacti#e ,AS to ;ri#e AC-F en&ancement !ne Airtel Syner'ies for ;istribution9 Brand & IT ;ata -roducts: Internet9 %->S etc Inte'rated Solutions to ;ri#e S&are of 6allet Strate'ic Alliances Indirect )&annel to ;ri#e -enetration ;eeper & Eot 4ider: (4 )ities ,ertical & Eot +orizontal: +iHCise Eet6or/ Dn&ancement to ;eli#er $I %B-S Ee6 -roducts & ,AS to dri#e 3lat9 combo plans

'%RE BUSINESS AREA

Mo/ile Ser0ices H 4e offer mobile ser#ices usin' 0S% tec&nolo'y on (**%+z and 1$**%+z bands9 and are t&e lar'est 6ireless ser#ice pro#ider in t&e country9 based on t&e Eumber of customers. !ur $29.2*9:33 mobile customers accounted for a mar/et s&are of 4.:A of 6ireless mar/et9 as on ;ecember 319 **$. 4e offer postHpaid9 preHpaid9 roamin' and #alue added ser#ices t&rou'& our e1tensi#e sales and distribution c&annel co#erin' 19*.(9:*. outlets. !ur net6or/ is present in 29*2: census to6ns and 4*19$$ nonHcensus to6ns and #illa'es in India9 t&us co#erin' appro1imately :(A of t&e country5s population. !ur net6or/ operatin' centers9 6&ic& monitor t&e &ealt& of our mobile net6or/ are located in 0ur'aon9 near ;el&i9 and )&ennai. Tele#e.ia Ser0ices J 4e pro#ide broadband 7;S>8 and telep&one ser#ices 7fi1ed line8 in (2 cities 6it& 'ro6in' focus on ne6 media and entertainment solutions suc& as ;T+ and I-T,. 4e &ad 9.1(94.1 customers as on ;ecember 319 **$ of 6&ic& 3:.(A 6ere subscribin' to broadband=internet ser#ices. !ur product offerin's in t&is se'ment include supply and installation of fi1edHline telep&ones pro#idin' local9 national and international lon' distance #oice connecti#ity and broadband Internet .

access t&rou'& ;S>. 4e also remain stron'ly committed to our focus on Small and %edium Business enterprises .4e pro#ide a ran'e of customised Telecom= IT solutions and aim to ac&ie#e re#enue leaders&ip in t&is rapidly 'ro6in' se'ment of t&e I)T mar/et. T&e strate'y of our Telemedia business is to focus on cities 6it& &i'& re#enue potential9 e1cept for ;T+ 6&ic& is an allH India offerin'. Airtel di'ital T, is a#ailable to customers t&rou'& 39 ** retail points in 1 * cities across t&e country. E terprise Ser0ices H Dnterprise Ser#ices pro#ides a broad portfolio of ser#ices to lar'e Dnterprise and )arrier customers. T&is di#ision comprises t&e )arrier and )orporate business units. Dnterprise Ser#ices is re'arded as t&e trusted communications partner to IndiaBs leadin' or'anizations9 &elpin' t&em to meet t&e c&allen'es of 'ro6t&. 'arriers 1 )arrier business unit pro#ides lon' distance 6&olesale #oice and data ser#ices to carrier customers as 6ell as to ot&er business units of Airtel. It also offers #irtual callin' card ser#ices in t&e o#erseas mar/ets. T&e business unit o6ns a state of t&e art national and international lon' distance net6or/ infrastructure enablin' it to pro#ide connecti#ity ser#ices bot& 6it&in India and connectin' India to t&e 6orld. T&e national lon' distance infrastructure comprises of (*9 *2 /ms of optical fibre9 o#er 192** %->S and S;+ -!-s and o#er 19 2* -!Is 6it& t&e local e1c&an'es9 pro#idin' a pan India reac&. T&e international infrastructure includes o6ners&ip of t&e i i submarine cable system connectin' )&ennai to Sin'apore9 consortium o6ners&ip of t&e S%44 submarine cable system and in#estment in capacities across a number of di#erse submarine cable systems across transatlantic and transpacific routes. In recent past 6e &a#e announced in#estments in ne6 cable systems suc& as Asia America 0ate6ay 7AA089 India %iddle Dast and 4estern Durope 7I%D4D89 Fnity Eort&9 DI0 7Durope India 0ate6ay8 and Dastern Africa Submarine )able System 7DASSy8. :

'orporate J T&is business unit deli#ers end to end telecom solutions to India5s lar'e corporate. It ser#es as t&e sin'le point of contact for all telecommunication needs for corporate customers in India by pro#idin' full suite of communication ser#ices across data9 #oice and mana'ed ser#ices. It specializes in pro#idin' customized solutions to address uniKue reKuirements of different industry #erticals< B3SI9 IT9 ITeS9 %anufacturin' and distribution9 media9 education9 telecom9 0o#ernment and -SFs and retail amon' ot&ers. Bac/ed by t&e alliances 6it& leadin' tec&nolo'y companies 6orld6ide and state of t&e art infrastructure9 it offers complete ran'e of telecom solutions. T&ese solutions enable corporate to net6or/ t&eir offices 6it&in India and across t&e 'lobe9 pro#ide t&em infrastructure to run business critical applications and pro#ide t&em means to connect 6it& t&eir customers9 #endors and employees.

%B2E'TI-E
T&e aim of t&is researc& pro"ect is to study about different strate'ies used9 different products used by B&arti Airtel. It also includes Indian mar/et study9 B&arti Airtel )orporate Study9 its financial & Industrial study. Fnder t&is researc& pro"ect follo6in' points are co#eredH

METH%D%L%34

,ie6in' t&e mer'ers & acKuisitions done by t&e company & predictin' its strate'y .

 D1amine t&e researc& papers & annual reports publis&ed by t&e compan

Analysin' t&e information 'i#en by t&e company about t&eir products 9a#ailable on company 6ebsite

'%MPAN4 PR%&ILE
Telecom 'iant B&arti Airtel is t&e fla's&ip company of B&arti Dnterprises.

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 B&arti Airtel9 formerly /no6n as B&arti TeleH,entures >imited 7BT,>8. IndiaBs lar'est and 6orldBs t&ird lar'est cellular ser#ice pro#ider. %ore t&an $$ million subscribers as of 31 ;ecember **$. Airtel brand is &eaded by Sunil B&arti %ittal. Airtel pro#ides mobile & fi1ed 6ireless ser#ices usin' 0S% tec&nolo'y across 3 telecom circles . India5s 3irst Telecom )ompany t&at pro#ides telecom ser#ices in all t&e circles. T&e company also &as a submarine cable landin' station at )&ennai9 6&ic& connects t&e submarine cable connectin' )&ennai and Sin'apore. )ompany s&ares are listed on T&e Stoc/ D1c&an'e9 %umbai 7BSD8 and T&e Eational Stoc/ D1c&an'e of India >imited 7ESD8 . -er S&are price of Airtel in BSD is Cs .*1.4* 72t& marc& **(8

%R3ANI5ATI%NAL STRU'TURE
11

-ALUE 'HAIN, BHARTI AIRTEL

SIP%', BHARTI AIRTEL

13

T(ere are 6 steps i t(e SIP%' process7 1. Supplier . Inputs 3. -rocess 4. !utputs 2. )ustomers

14

Teleco# Process Detaile.,

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B(arti 1Airtel E terprise Ser0ices B'3 Matri8 St!.9

B)0 %atri1:H Star SBU: Enterprise Services(Carriers & Corporates) Ceason:H7 %a"or )ontributor to re#enue in "ust 4 years of comin' *4H*$8

: SBU: Passive Infra Ceason:H7,ery ne6 approac& but Kuic/ 'rip of mar/et=0ood )oloborations li/eHIndus To6ers=Fntaaped %ar/et8

1.

'as( 'o; SBU: Mobile Services Ceason:H7>e'acy of B&arti8

Dog SBU: Telemedia Services Ceason:H7Significant fall in

ARPU/Other Big Players existing in Market8

MARKETIN3 STRATE34
'ore -al!e %" Airtel 1
-erformance ;ynamism >eaders&ip

Targeti g 1
Dlite Fp mar/et professionals Dntrepreneur 6it& business plans >o6 income mass cate'ory Gout& 4omen and senior citizens by post paid connection

A.0ertise#e t,
Airtel basically uses t6o appeal to connect to t&e users Dmotional +umorous

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B'3 MATRI<,

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P%RTER 3ENERI' M%DEL,

1(

6 &%R'E M%DEL,

1 .Threat from Competition

WirelessMarket Top 4 garnering75% market share

HIGH

2.Customer Bargaining Power

Lack of differentiation among Service Providers !t throat om"etition Lo# S#itching osts $!m%er Porta%ility #ill have &'e (m"act B!sinesses ) ons!mers

HIGH

S=%T ANAL4SIS, Stre gt(

%ar/et >eader Ceco'nized 0lobally Stron' Brand Ima'e Stron' Ee6 Business ;e#elopment team Stron' 3inancials >ar'est Telecom -layer ..A

=ea> ess
!utsourcin' of core system Eet6or/ )o#era'e

%pport! ities
>o6 Broadband -enetration9 Cural Telep&ony B&arti Infratel J )uttin' ;o6n cost in rural area )urrent TeleH;ensity J 3*.. is still lo6 amon' de#elopin' countries

T(reats
L 3allin' AC-F 3

L L L

Intense )ompetition & S&orta'e of Band6idt& Ee6 -layers comin' in India Fncertain Dconomic )ondition

I .ia Teleco# I .!str9 1 &acts

!ne of t&e fastest 'ro6in' cellular mar/ets in t&e 6orld in terms of number of subscriber additions J 1(.32 million in 3 mont&s 7April to Mune **$8 D1pected to reac& total subscriber base of about 2** million by *1* 7i.e.9 more t&an one p&one for e#ery &ouse&old8 Annual 'ro6t& rate of t&e telecom subscribers J 4: percent 7 **:J*$8 3astest 0ro6in' Sector J )A0C Second >ar'est Telecom %ar/et >o6est tariff c&ar'es in t&e 6orld 4ireless Subscribers J 312.3 %n 4ireline Subscribers J 3$.4 %n Teledensity J 3*.. 3 )ircles H 4 )ate'ories 7 %etro9 A9 B & )8 A 7 ** H*:8

B&arti Airtel J >ar'est player 6it& presence in 3 )ircles

P%RTER?S 3ENERI' '%MPETITI-E STRATE3IES 'ost Lea.ers(ip Strateg9 A firm 'ains cost leaders&ip in an industry 6&en its cost of production is lo6er t&an t&at of its competitors. Airtel &as 'ain cost leaders&ip by mana'in' its processes and resources efficiently and effecti#ely. By brin'in' do6n its operational costs9 an Airtel &as offer its products and ser#ices at lo6er prices. It &as also earn &i'&er profits because eit&er t&e profit mar'ins are 'reater or t&e sales #olume &as increased. !perational mar'in co#pa 9 B&arti Ccom I;DA %TE> EDT %AC0IE Sep@A ..4A 3.(*A 14.1*A :A

Sep @A 43A 3:.(*A 3 .$*A 3.:*A

Sep@B 3$A 31..*A ...*A .(*A

Sp@B 1(.3*A 13. *A ..2*A ..$*A

A cost leaders&ip strate'y 6or/s 6ell for Airtel in t&e e#ent of a price 6ar in t&e industry. Since t&e firm is already 6or/in' on a lo6 price strate'y9 it &as reap profits 6&ile t&e competitors 7 mtnl = reliance= tata8 are bound to ma/e losses.

Differentiation Strategy T&e differentiation strate'y adopted by t&e firms needs to possess sufficient s/ills and abilities to differentiate t&e product from t&at of t&e competitors based on some attributes t&at allo6 t&e consumers to percei#e t&e product as different from t&at of t&e competition. 3irms t&at adopt t&e differentiation strate'y successfully &a#e access to ad#anced scientific researc&9 a &i'&ly s/illed labor force9 effecti#e customer communication strate'ies9 etc. Airtel is pro#idin' free di'ital D-ABN 6it& free leased lines 7no connecti#ity c&ar'es8.So t&e firm is pro#idin' latest D-ABN to t&e customer 6&ic& is costin' appro1 Cs 2*9***. 1. Best ser#ice pro#ider9 'ood call center ser#ice esp. in local lan'ua'es9 'ood ser#ice e#en in t&e remote areas9 emp&asis on ?barriers brea/ 6&en people spea/@9 ne6 initiati#es li/e 'oo'le searc& on airtel li#e9 do6nloads etc . >on' term +C strate'y9 0allup 0reat 4or/place A6ard9 Bot& internal de#elopments as 6ell as e1ternal &irin'9 de#elopment pro'rams 6it& iims.

Fo !s Strategy A firm pursuin' a focus strate'y tends to ser#e a specific se'ment instead of caterin' to t&e entire mar/et. T&is se'ment may be a special 'roup of customers9 a specific 'eo'rap&ic area9 or a particular product or ser#ice line. T&e customers 6ill also be loyal to t&e company and t&erefore9 t&e entry of a ne6 competitor into t&at area becomes difficult. Airtel is focusin' on t&e customers 6&o is &a#in' more t&an Cs1**** mont&ly landline billin'. Airtel is offerin' landline ser#ices 6&ic& consist of -CI 7-rimary Cated Interface8. Airtel can pro#ide its ser#ice to a specific 'eo'rap&ic area i.e. from ;a&isar to )&urc&'ate in 6estern re'ion & T&ane to -an#el in eastern re'ion

T&e abo#e fi' s&o6s t&at re#enue of Indian telecom industry 6as around O * billion in t&e year **2H*.. It &as s&o6n tremendous 'ro6t& of O4 billion in t&e year **$H*(.

As s&o6n in t&e abo#e fi'ure t&e mar/et s&are of fi1ed lines in India 6as $.A as compared to only 14A of 6ireless lines in **:H*$.

T&e )ompany pro#ides broadband 7;S>8 and telep&one ser#ices 7fi1ed line8 in 12 circles spannin' o#er (4 cities across India. As on %arc& 319 **$9 t&e )ompany &ad 9 $393 $ customers 7a 'ro6t& of A89 of 6&ic& 34.$A 7P:(29***8 6ere subscribin' to broadband = internet ser#ices. T&e )ompany5s strate'y for Telemedia business is to focus on t&e cities 6it& &i'& re#enue potential. T&e product offerin' in t&is se'ment includes supply and installation of fi1edHline telep&ones pro#idin' local9 national and international lon' distance #oice connecti#ity and broadband Internet access t&rou'& ;S>.

RE&EREN'ES
1. . 3. 4. 2. ,oice & ;ata.7;ecHQ*$8 &ttp:==666.b&artiairtel.in &ttp:==capitaline.com In#estors presentation9 B&arti Airtel >imited9 Eo#ember **$ Telecommunication Ser#ices9 Indian Industry: A %ont&ly Ce#ie69 )%ID J Eo#ember **$ .. Analyst Ceport J B&arti Airtel9 Assist ). %e&ta In#estments Intermediates >td. :. Telecommunication Sector Ceport J %arc& **$9 )CISI>

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