Business Model Of Airtel

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 Low teledensity (depicting large untapped potential)

0.4% 4 R CAG

Subscribers (in million)

250

24 18.3

200

50

19.9 20 16

12.8

150 100

Telecom Advantage

9.1

225.21

7.0 5.1 53

76

98.4

140.3

206

12 8 4

0

0 2002–03

2003–04

2004–05

2005–06

Telecom Subscriber Base

-- Rapid Urbanization level

Teledensity (in percent)

Large number of additions in telecom subscribers

2006–07 2007–08 (as of June 2007) Teledensity

-- Rising Income 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 • Conferencing • Voice Solutions

Want to grab the potential of market of business sector by these 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