Te le co m S e cto r
Alyn Varghese
Azharuddin Mansiya
Mrinal Kaul
Sandeep Kumar A
Subrato Das
Platform1882-Platform 2009
• T & T Relation
- Year 1850
- Year 1882
•
Important Milestones
R e vo lu tio n in th e ye a r
1987.
D O T w a s sp lit in to V S N L a n d M T N L in ye a r 1 9 8 6 .
In ye a r 2 0 0 0 D O T b e co m e s B S N L .
In th e ye a r 1 9 9 7 T R A I w a s fo rm e d u n d e r th e
M in istry o f
Te le co m m u n ica tio n a n d IT w ith o b je ctive to b e a n
e ffe ctive
re g u la to ry fra m e w o rk a n d to e n su re fa ir
co m p e titio n a n d
p ro te ctio n o f co n su m e r in te re sts. A lso to e n su re
re so lu tio n o f
d isp u te s b e tw e e n G o ve rn m e n t ( in its ro le a s
NTP94
The focus of the Telecom Policy shall be
telecommunication for all and
telecommunication within the reach of all.
A d d e n d u m to N T P 9 9
•
• Unified Licence for Telecommunication Services permitting
Licensee to provide all telecommunication/ telegraph
services covering various geographical areas using any
technology;
•
•
Mr. Martin Cooper
As of 2009 …
The Moment Of Truth ….
1995
Factsheet- Airtel
• Telecom giant Bharti Airtel is the flagship company of Bharti
Enterprises.
• Headed by Sunil Bharti Mittal
• India’s largest integrated and the first private telecom
services provider
• Bharti is now the world's third-largest, single-country mobile
operator and sixth-largest integrated telecom operator.
• Has a customer base of 110 million people in India.
• Has a footprint in all 23 circles.
• Market share of 23.5 overall (as of Sep ‘09) and 26.82% (as
of June ‘09) in the rural market.
• Bharti has 30 % market share in terms of revenue.
• It is worth about $25 billion and is growing fast.
• Airtel's operation in Sri Lanka, known as Airtel Lanka,
commenced operations on the 12th of January 2009.
•
Organisational
Structure
Source: www.airtel.co.in
Evolution of Airtel in
India
• Bicycle parts Business (1976-1980).
• Bharti Telecom Ltd (1985).
• Conglomerate with Siemens AG (1985).
• Bharti Tele Venture
– Airtel was founded in 1995 as Bharti Tele-
ventures(1995)
– Touchtel (2001)
• Discontinuation of Multi Branding
strategy(2004). Telecom services
under ‘Airtel’.
• BTV renamed to BAL(2006).
Marketing the brand
‘Airtel’
Ø Second Largest Advertiser in India after HUL in
2008.
Business Model
The secret of Airtels’ success is its effective business model.
Source: Airtel quarterly report for the 2nd quarter and half year ended 30th September 2009
Airtel & Oligopoly
• Number of operators
• Measures of concentration
– Concentration ratio: indicator of the
relative size of firms in relation to
the industry as a whole
– Herfindahl Hirschman index
–
Market Share
Herfindahl-Hirschman
Calculation
Operator Market share in M^2
Airtel percentage
24 . 3 (M) 590 . 49
Reliance 18 . 9 357 . 21
Vodafone 18 . 8 353 . 44
MTNL 12 . 7 161 . 29
Idea 11 . 2 125 . 44
TTSL 9.7 94 . 09
Others 4.4 19 . 36
1806
People know about AIRTEL
cellular service through
AIRTEL users in people’s
phone book
Celebrity liked by people
very much in AIRTEL
Balance Sheet
Operational Performance
Comparative Study
Data as on Sept 09
Airtel Reliance Idea
ARPU 250 161 209
AMOU 450 340 375
RPM 0.56 0.47 0.56
• Locally domiciled
• Dual listing structure
Airtel 26 . 82 Reliance 12 . 99
Vodafone 19 . 72 Aircel 7 . 01
Idea 15 . 72 Others 3 . 38
BSNL 15 . 36
VAS
• Provide more Value Added Services , e.g
• Twitter on Airtel
• Ringtones
• Wallpapers
• Web Applications
• Phone Banking (M-Commerce)
• Hello Tunes
• SMS
• Airtel Live
• Co-Branding Activities
• Business Solutions
Aggressive Marketing
• More Proactive with Plans
• Continue on going Ad – Campaigns
• Consistent Brand Message
• Improve its Customer Care Services
and make it marketable.
•
•
•
TAPPING UNTAPPED
MARKET
• 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 under the Vodafone-
Airtel brand.
• Airtel started in operations in Srilanka in 2008