Presented By-

Jagriti
Sweta
Vijendra
Vikas
Vimal
 Evolution of Telecom In
India
ILD services was
BSNL was Number portability
Independent opened to Intra-circle
established was proposed
Private regulator, competition merger
by DoT Calling Party (pending)
players were TRAI, was guidelines were
Attempted
Pays (CPP) was
allowed in established Go-ahead to established to boost
implemented
Value Added the CDMA Rural
Services technology telephony
1994 1999 2007
INDIA

2002 2003 2004 2005

1992 2000 Internet Unified 2006

1997
telephony Access
initiated Licensing Broadband
(UASL) policy 2004
National Decision on 3G
NTP-99 led to Reduction regime was was
Telecom FDI limit was services
migration from of licence Reference
introduced formulated—
Policy (NTP) increased (awaited)
high-cost fixed fees Interconnec targeting 20
was from 49 to 74
license fee to low- t order was million
formulated percent
cost revenue issued subscribers
sharing regime by 2010

Department of Telecommunication (DoT) is the main body

formulating laws and various regulations for the Indian telecom
industry.
ILD – International Long Distance
7 P’s of Airtel
 Product
• Airtel Pre-paid
• Airtel Post-paid
• Blackberry Wireless Handheld
• Value Added Services (VAS)
The different value added services provided by Airtel are-
 Instant Balance Enquiry
 24Hr recharge Facility
 Caller line identification
 Call divert, Call wait & Call Hold
 Multimedia messaging service (MMS)
 Airtel Live Portal
 SMS based Information Service
 ….Contd
 Hello Tunes & Ring Tones
 Voice Mail Service
 Easy Post-paid bill collection
 Gifting of Ring Tones & Hello Tunes
 GPRS

• Business Solutions
 Place &Price
Place
 It has wide and extensive presence even in the
remotest areas
 Airtel Customer Care Touch Points
 Distributors like
 E.g. Paan shops, grocery stores, chemists, outlet etc.

Price
 Customer based pricing strategies.
 Flexible pricing mechanism
 Controlled by TRAI.
 Promotion
• Large scale print and video advertising.
• Big celebrities like SRK and Sachin are roped in to endorse the product because it
.
• In 2002 Airtel got its Signature tune from A.R. Rehman, this signature tune is the
most downloaded tune in India.
• Provides innovations such as Bollywood movie premiers, music services such as
ring back tones & many more.
Recently launched promotional
activities
 People & Process
People
• Total Employees 25616( Bharti Airtel
consolidated) as per Q3 08.
• Dedicate and passionate workforce.
• One of the best customer support.
• Have won 2nd Best employer award in 2004.

Process
• Process for services is very easy and
customer can avail it very easily.
• 121 is the customer support no. which can
be dialed from anywhere in India.
Physical Environment
 THE FIRST MOVER
ADVANTAGE
• Electronic recharge
• Hello tunes
• Airtel Live!
• Portfolio manager
• Song catcher
• Easy music
• Black berry handsets
• M-cheques
First Mover Advantage
 RURAL STRATEGIES
• Airtel follows “Match-box strategy”
• The firm expands regularly in Bihar,
piggybacking on 300 distributors and more
than 50,000 retail outlets selling Airtel
prepaid cards
• Covers over 4,00,000 villages and hopes to
expand to other 1,00,000 by 2009
 AIRTEL ADVERTISEMENT
• Airtel basically uses two appeal to
connect to the users
– Emotional
– Humorous

• Total advertising budget of Airtel is

Rs. 150 crore
Porters Generic Strategy
Narrow
Market
Scope

Broad
Market
Scope Differential
Cost Leadership
Strategy

Uniqueness Low Cost

Competency Competency
Porter’s 5 forces
1. Threat from Competition
Wireless Market – Top 4 garnering 75%
market share

HIGH
Competitor Analysis

Best OP Margins
& Net Profit
Margins among
Peers

Source: CMIE November 2008

 2. Customer Bargaining
Power
• Lack of differentiation among Service Providers
• Cut throat Competition HIGH
• Low Switching Costs
• Attractive Schemes for new connection
• Availability of all operators everywhere
• Difficulty to differentiate Brand
• Number Portability will have –Ve Impact
• Businesses & Consumers
3. Suppliers Bargaining
Power
LOW
 4. Threat of Substitutes
• Landline DIMINISHING HIGH
• CDMA MARKET

• World Phone
• Video Conferencing
BROADBAND
SERVICES
• VOIP - Skype, Gtalk, Yahoo Messenger
• e-Mail & Social Networking Websites
 5. Threat of New Entrants
Low Because
• Huge License Fees to be paid upfront &
High gestation period
• Entry of MVNOs & WiMAX operators
• Spectrum Availability & Regulatory Issues
Previously
Low, Now
• Infrastructure Setup Cost - High High

• Rapidly changing technology

 5. Threat of New Entrants
High Because
• Entry through 3G
• New Entrants are ready to enter with
Huge Capital Considering the
attractiveness of the market
• Increase Of FDI to 76% bringing
competiton from Foreign players
• New Entrants from Non telecom
companies with the ease of Outsourcing
Previously
Low, Now
High
 SWOT
Strengths Weakness
• Largest Telecom Player in India - • Outsourcing of Core
~80Mn, 22.6%
• Market Leader Systems
• Strong Leadership – Sunil Bharti
Mittal • Network Coverage
• Recognized Globally
• Pan India Presence
(earlier)
• Strong Financials
• Focus on Core Activities – Outsource
the rest
• Strong Brand Image – Marketing
Team
• Strong New Business Development
team
 SWOT
Opportunities Threats
• Bharti Infratel – • India centric – Major
Cutting Down cost in revenues from India
Rural area
• Falling ARPU & AMOU
• Match Box Strategy –
Scale of Penetration • Intense Competition &
• Current Tele-Density – Shortage of Bandwidth
30.6 is still low among • New Players coming in
developing countries India
• Low Broadband • Uncertain Economic
Penetration, Rural conditions
Telephoney
Thank You!!!!!!!