Enterprise Services

@ AIRTEL
Doing Wonders to Businesses

GROUP-05
*Amiya Kumar(10EX-003) *Ankur Girdhar (10EX-004)
*Dilip Kumar Mallick (10EX-013) *Pradipta Paul (10EX-033)

*Satyabrata Dash (10EX-045)

AIRTEL Product
Portfolio
qMobile / Wireless Services
–2G / 3G
–Rural Market

qTelemedia Services
–Fixed Line
–Broadband
–DTH
–
qEnterprise Services
–Carrier
–Corporate
–
–
qPassive Infrastructure
–Bharti Infratel
–Indus Tower
Market Condition in
2002 - 2003
•Market had become highly competitive
•Mobile rates had fallen to 1.5-2 Rs/min
and avg monthly revenue/person fallen by
50% in three years.
•Top companies are trying to lower their
unit cost by increasing market share
through acquisition of smaller
competitors.
•By 2003, 7 major operators- Bharti, BSNL,
Hutchinson, Reliance, Tata, Idea & MTNL
Change in Approach

•With industry consolidation the focus was

shifting from having national footprint to
having the ability to provide value added
services
• Intense pressure on market share and pricing
of core services
•Bharti’s focus to leverage its high speed
fiber optics network.
•Focus on Enterprise solution to be an end to
end solution provider in the B2B segment
•Full suite of business communication services
across data, voice and managed services
tailored to fit particular needs. 
 Enterprise Solutions

• The enterprise market for mobile

services identified as an attractive
and growing opportunity as
ØIt offers high ARPS,
Ølow churn
Østable growth
ØNew growth areas (machine-to-
machine segment, and
underexploited ones)
•
% Contribution of
services in 2003
Advantage - Bharti
 B2B Customer Segmentation

•
Airtel ’ s Customer Segments

•Infosys, first enterprise customer, followed by Cognizant

Technology Solutions.
•Canara Bank and ICICI Bank first in the series of customers
in Banking sector.
•Delhi Stock Exchange and Kolkata Stock Exchange.
Product Positioning
 Key offerings
Fixed cellular terminals
•

• Converts fixed line to mobile into

mobile to mobile
• Cost savings of 70%
•
Key offerings ( contd ...)
Strategic Alliances
STRATEGIC GROUP
ANALYSIS
 Strategic Group Analysis
PRODUC
T
RANGE 25 %

Reliance
Narrow 18 %
BSNL , Vodafone
MTNL 17 %
15 %

10 %
Broad

IDEA TATA 9 . 3 %
Other – 9.6%
5%

VIRGIN -0.5%

TIONAL
GEOGRAPHICAL SCOPE
 Competitor Analysis

VODAFONE

  OP Margin Net Margin

Company Jan - 10 Jan - 11 Jan - 10 Jan - 11
Bharti 38.00% 28.00% 23.40% 19.30%
t OP Margins & Net Profit Margins among Peers
Vodafone 27.90% 21.60% 21.90% 14.20%
IDEA 22.80% 16.60% 14.10% 6.50%
MTNL 21.70% 19.90% 7.00% 6.80%

Source: CMIE March 2010

 GE Matrix for Competitors- AIRTEL
Market
Attractiveness
Weighta Rating ( Weight
ge 1-5) ed
Competitive Factors
Score
Overall Market 0.2 4 0.8
Market
Size Growth 0.15 4 0.6 STRONG MEDIUM
Rate 5
Profitability 0.1 3 0.3 WEAK
Technological 0.15 4 0.6
Development
Global 0.05 5 0.25 HIGH 21% (4.05,4) 16.24% (4.05,3.06)

Market Activeness
Opportunities
Market Rivalry 0.2 5 1
Pricing 0.15 3 0.45
Total 1   4
3.6
6
Key Competitive Weig Rating Weigh
Factors ht ( 1 - 5 ) ted
Score
Market Share 0.1 4 0.4
Market Growth Rate 0.1 4 0.4
Profit Margin relative 0.1 3 0.3
to competitors
Technological 0.15 4 0.6 2.3
Innovation 3
Brand Reputation 0.15 4 0.6
Sales Distribution 0.15 3 0.45
Effectiveness MEDI
UM
Advertising and 0.15 4 0.6
Promotional
Effectiveness
Pricing strategies 0.05 4 0.2
Customer Loyalty 0.15 3 0.45 1
      Total
= 4 .0
5 3 . 66
2 . 33
1
Market Trend

• Expected avg. growth of 10-12% YOY.

• The segment is going to grow to $ 10
billion
• Greater adoption of mobile
enterprise subscriptions as fixed
mobile convergence (FMC) and
mobile broadband will play key
drivers of revenue
• Entry of more nos of MNCs in to the
segment.
Market Trend ( contd …)

• Leveraging brands, channels,

relationships, and infrastructure to
increase revenue from business
clients( Enterprise connectivity
provider award)
• Create a closer customer
relationship, lower churn, and
create additional barriers to entry
(Outsourced to IBM)
• Further segmentation of the
TH
NKS