Post on 20-Jan-2015
description
Rakesh SonarVikas Sharma
RESEARCH PRODUCT
Lokesh GuptaManish Pandey
Baijanath MandalAditya Mahakulkar
Index
• Introduction to Indian Telecom Industry.
• Introduction to Bharti Airtel.
• Subscriber Growth.
• Value Chain.
• SIPOC.
• Financial Analysis.
• Marketing Analysis.
• Porters Generic Strategy.
• BCG.
• 5 Force Model.
• SWOT.
• Awards.
INTRODUCTION
Indian Telecom Market
Source : Telecommunication Services, Indian Industry: A Monthly Review, CMIE – December 2008
• Subscriber base- 384.79 million as on Jan 2009.
• Wireless penetration- 33.23 %
• CAGR (wireless)- 68%
• Second Largest Telecom Market
• Wireless Subscribers – 346.09 Mn• Wireline Subscribers – 38.7 Mn• Teledensity – 33.23 • Share in Asia Pacific mobile phone market- 6.4• Mobile subscriber base growth rate- 82.2%, 42% of the
population below 20
• 9 GSM players in 19 circles and 4 metro cities connecting 2000 towns
Industry
Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises.
Bharti Airtel, formerly known as Bharti Tele-Ventures Limited (BTVL).
India's largest and world's second largest cellular service provider.
More than 88 million subscribers as of 31 December 2008.
Airtel brand is headed by Sunil Bharti Mittal.
Airtel provides mobile & fixed wireless services using GSM technology across 23 telecom circles .
About Bharti Airtel
India’s First Telecom Company that provides telecom services in all the circles.
• The company also has a submarine cable landing station at Chennai, which connects the submarine cable connecting Chennai and Singapore.
• Company shares are listed on The Stock Exchange, Mumbai (BSE) and The National Stock Exchange of India Limited (NSE) .
• Per Share price of Airtel in BSE is Rs 601.40( 5th march 2009)
Organization Structure
Investor Relations :- http://www.bhartiairtel.in
Vision 2010
By 2010 Airtel will be the most admired brand in India:
Loved by more customers.
Targeted by top talent.
Benchmarked by more businesses .
“ We at Airtel always think in fresh and innovative ways about the needs of our customers and how we want them to feel. We deliver what we promise and go out of our way to delight the customer with a little bit more”
• Bharti Hexacom
• Bharti Comtel
• Bharti Aquanet
• Bharti Broadband
• Bharti Infratel
• Bharti Telemedia
• Bharti Airtel (UK, USA, Canada, Hongkong, USA, Lanka)
Subsidiary Companies
National Coverage
Investor Relations :- http://www.bhartiairtel.in
Enterprise Services – Carriers ILD
Investor Relations :- http://www.bhartiairtel.in
PRESENT COMPETITION
National Long Distance
• BSNL, RELIANCE, VSNL, VODAPHONE, TATA, IDEA
International Long Distance
• VSNL, RELIANCE , BSNL
PRODUCTS
PRODUCTS
Satisfaction with Mobile Services
0
20
40
60
80
100
120
Telecom Operators
Sa
tis
fac
tio
n (
in
%)
2008 2007 2006 2005
2008 85.44 88.64 87.1 91.96 91.97 87.38 86.75 91.47 87.84 90.67 95.09
2007 92.23 87.77 91.9 86.03 87.74 82.34 91.2 82.53 75.71 80.49
2006 88.4 90.2 86.8 87 89.2 88.3 86.4 87.6 88.5 90.3
2005 85.8 93.3 97.9 87.7 93.8 91.5 97.9 89.7 89.8 80.2
Aircel Bharti Airtel BPL BSNL Vodafone Idea MTNL Reliance SpiceTata(Indico
m)Virgin Mobile
Source : Voice & Data
Overall Satisfaction Score (2008)
0
50
100
150
Telecom Operator
Sat
isfa
ctio
n ( i
n %
)
Sales & Presales Network Quality Value Added Services
Customer Care Billing Integrity
Sales & Presales 91.93 97.7 98 98.1 95.4 94.4 99.3 95.3 97.5 97.4 99.6
Network Quality 85.9 90.1 98.2 89.1 91.2 90.2 97 91.2 89.8 93 96.9
Value Added Services 78.8 93.3 95.6 95.9 93.2 87.5 91.9 94.4 91.9 93.7 94.7
Customer Care 87.9 77.5 54.1 85.6 86.3 76.6 65.3 85.9 80.2 80.2 88.9
Billing Integrity 83.4 84.6 89.6 91.1 93.7 88.2 80.3 90.6 79.8 89 95.3
AircelBharti Airtel
BPL BSNL Vodafone Idea MTNL Reliance SpiceTata(Indico
m)Virgin Mobile
Source : Voice & Data
METRO CRICLES
83.4 %
91.4 %
93.4 %
92.4 %
92.5 %
90.7 %
91.7 %
95.7 %
Source : Voice & Data
YEAR 2008
A CIRCLE
90.3 %
93.7 %
87.9 %
89.4 %
91.6 %
85.5 %
91.3 %
84.7 %
YEAR 2008
B & C CIRCLE
Source : Voice & Data
YEAR 2008
SUBSCRIBER TREND
MILLION
Investor Relations :- http://www.bhartiairtel.in
SUBSCRIBER GROWTH
Source –Tele.net / jan 2009
Prepaid and Postpaid user
Source –Tele.net / jan 2009
OPERATOR SALIENCE & PERCEPTION
Source : Voice & Data
CONTINUE
Source : Voice & DataSource : Voice & Data
TOP OF MIND ADVERTISER
CONTINUE
Source : Voice & DataSource : Voice & Data
PROVIDES THE MOST COST EFFECTIVE TARIFF PLANS
10 Million Net Adds Per Month
GROWING WIRELESS MARKET
Investor Relations :- http://www.bhartiairtel.in
Detailed Value Chain
INTEL(ORIGINAL EQUIPMENT
MANUFACTURER 1 , CHIP LEVEL)
NOKIA-SEMIENSERRICSON
(equipment vendor)
CISCO(ORIGINAL EQUIPMENT
MANUFACTURER 2,ROUTERs, SWITCH LEVEL)
BHARTIINFRATEL
IBM(INDEPENDENT
SOFTWARE VENDOR)
INFYTCS
(Application Provider)
ON MOBILE, INDIA TIMESHUNGA MOBILE.
(CONTENT AGGREGATOR)
MAUJ, ONE 97IMI MOBILE.
(CONTENT PROVIDER)
AIRTEL(Service Provider)
Nil(MVNO)
PUBLIC(USER)
NI(network integrator)
SI(System integrator)
AFFLE(THIRD PARTY APPLICATION
PROVIDER)
Generic Value Chain
VENDOR
NETWORK INTEGRATOR
SERVICE PROVIDER
OSS/BSS PRODUCT
VENDOR
SYSTEM INTEGRATOR
BILLING SOLUTION PROVIDER
ISV
I II
III
IV V
END USER
SIPOC
SupplierSupplier InputInput ProcessProcess OutputOutput CustomerCustomer
OEM1-NORTELOEM2-CISCO
EV-NOKIA-SEMIENS
ERRICSON
ISV-IBM
3APP- AFFLE
CA- INDIA TIMES
ASP-INFY
Network Infrastructure
Spectrums
Technology
Finance
Licenses
GSM Services
VAS
Fixed Lines
Broadband
DTH
IPTV
Public
Corporate
Businesses
SME’s
Institutes
Customer
ImportanceCustomer
Importance
TechnologyTechnology
CompetitivePosition
CompetitivePosition
CapableSupplierCapableSupplier
StartStart
Telecom Processes Detailed
Corporate Customers
Hathway – Internet gateway. National Long distance services.
EFD Corporation -
Raymond
Bajaj Allianz
Mphasis
Wipro
IBM Daksh
Large Stock Broking Company
source:- http://www.bhartiairtel.in
FINANCIALS
LATEST RESULT Q3 FY08/09
Q3 FY 09 Y-ON-Y
CUSTOMERS 88.27 MN 54.0 %
REVENUE $1,983 MN 38.3 %
EBITDA $ 812 MN 33.12 %
CASH PROFIT $ 773 MN 38.07 %
NET INCOME $ 444 MN 25.37 %
Investor Relations :- http://www.bhartiairtel.in
CONTINUED STRING PERFORMANCE
•Wireless Customer market share leadership at 24.7 %.
•Total minutes on network carried in Q3 – 143 billion.
•Total employee strength – 25,553.
•Balance sheet strength :
• Assets - $ 12 billion
• Net Debt - $ 677 million
• Net Debt to EBITDA – 0.21 times
Investor Relations :- http://www.bhartiairtel.in
REVENUE USD MILLION
1155
13221423
1433
1983
Investor Relations :- http://www.bhartiairtel.in
Investor Relations :- http://www.bhartiairtel.in
Value Added Services (VAS)
VAS Contribution is 10.6 % of total revenue (for 2007-08).
VAS revenue is 2844 cr. In 2007-08.
Composition of VAS Revenue (2007-08)
Source-IMRB Reserch
Airtel Revenue in Telecom Sector (07-08)
Source- voice and data / jul 2008
MARKETING
• Performance
• Dynamism
• Leadership
Core Values of Airtel
• Elite
• Up market professionals
• Entrepreneur with business plans
• Low income mass category
• Youth
• Women and senior citizens by post paid connection
TARGETING
First Mover Advantage / Product Innovations
• Airtel basically uses two appeal to connect to the users
• Emotional
• Humorous
AIRTEL ADVERTISEMENT
PORTERS GENERIC STRATEGY
Porters Generic Strategy
Differential Strategy Cost Leadership
Narrow Market Scope
Broad Market Scope
Uniqueness Competency
Low CostCompetency
BCG Matrix for Bharti Airtel
LOWHIGH
HIG
HLO
W
Mobile Services
DTH & IPTV
Broad Band
5 Force Model
5 Force Model
1 .Threat from Competition
HIGHHIGH
Wireless Market – Top 4 garnering 75% market share
Lack of differentiation among Service Providers
Cut throat Competition
Low Switching Costs
Number Portability will have –Ve Impact
Businesses & Consumers
2.Customer Bargaining Power
HIGHHIGH
3.Supplier Bargaining Power
LOWLOW
4. Threat of Substitutes.
HIGHHIGH
Landline CDMA
Video Conferencing
VOIP - Skype, Gtalk, Yahoo Messenger e-Mail & Social Networking Websites
52GROUP 7
BROADBAND SERVICES
DIMINISHING MARKET
5. Threat of New Entrant.
LOWLOW
Huge License Fees to be paid upfront & High gestation
period
Entry of MVNOs & WiMAX operators
Spectrum Availability & Regulatory Issues
Infrastructure Setup Cost - High
Rapidly changing technology
53GROUP 7
SWOT
Strength
• Market Leader
• Recognized Globally
• Strong Brand Image
• Strong New Business Development team
• Strong Financials
• Largest Telecom Player 22.6%
Weakness
• Outsourcing of core system
• Network Coverage
Opportunities
• Low Broadband Penetration, Rural
• Telephony
• Bharti Infratel – Cutting Down cost in
Rural area
• Current Tele-Density – 30.6 is still low
among developing countries
Threats
• Falling ARPU
• Intense Competition & Shortage of
Bandwidth
• New Players coming in India
• Uncertain Economic Condition
• Bharti Airtel, Annual Report -2008 http://www.bhartiairtel.in
• Investors presentation, Bharti Airtel Limited, November 2008
• Telecommunication Services, Indian Industry: A Monthly
Review, CMIE – November 2008
• Analyst Report – Bharti Airtel, Assist C. Mehta Investments
Intermediates Ltd.
• Telecommunication Sector Report – March 2008, CRISIL
• Capitaline Database http://capitaline.com
• www.Wikipedia.com/airtel/
• “Next Big Spenders – Indian Middle Class”, Business week
REFERENCES
Thank You!!!!!!!