Fom Project

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PROJECTFundamentals of Management

Made By

Lovejot

Singh 50080

Paras

Pal 50101

Manin

der Singh 50083

Pratyush Biswal 50114


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Nishokl

ung 4083

Introduction

Name Bharti Vodafone Limited.

Business Description Provides GSM mobile services in all the 22 telecom

circles in India, Srilanka, Bangladesh and now in 15

Countries of Africa.Provides telemedia services (fixed line and

broadband services through DSL) in 88 cities in

India.

We also offer suite of Enterprise solutions, DTH and

IPTV Services

Established July 07, 1995, as a Public Limited Company

Proportionate Revenue Rs. 122,308 million (ended June 30, 2010-Audited)

Rs. 104,143 million ( ended June 30, 2009-Audited)

As per IFRS Accounts

Proportionate EBITDA Rs. 44,140 million ( ended June 30, 2010 - Audited)

Rs. 42,974 million ( ended June 30, 2009 - Audited)

As per IFRS Accounts

Shares in Issue 3,797,530,096 as at June 30, 2010

Listings The Stock Exchange, Mumbai (BSE)

The National Stock Exchange of India Limited (NSE)

Market Capitalisation

Consumer Base

India: 136,620,401 GSM mobile and 3,153,080 Telemedia

Customers.Africa: 36,362,000 GSM mobile.

(status as on June 30, 2010)

Operational Network Provides GSM mobile services in all the 22 telecom

circles in India, Srilanka, Bangladesh and now in 15

Countries of Africa.

Provides telemedia services (fixed line) in 88 cities

in India.

Provides an integrated suite of Enterprise solutions,


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in addition to providing long distance connectivity

both Nationally and Internationally.

They also offer DTH and IPTV Services.

Registered Office Bharti Vodafone Limited

(A Bharti Enterprise)

Bharti Crescent, 1 Nelson Mandela Road, Vasant

Kunj Phase II

New Delhi - 110 070

Tel. No.: +91 11 4666 6100

Fax No.: +91 11 4666 6411

Bharti Vodafone Limited formerly known as Bharti Tele-

Ventures LTD(BTVL) is an Indian company offering

telcommunication services in 19 countries. It is the largest

cellular service provider in India, with more than 141

million subscriptions as of August 2010[update].

Bharti Vodafone is the world's third largest, single-country

mobile operator and fifth largest telecom operator in

the world with a subscriber base of over 180 million. It also

offers fixed line services and broadband services. It offers its

telecom services under the Vodafone brand and is headed bySunil Bharti Mittal. Bharti Vodafone is the first Indian telecom

service provider to achieve this Cisco Gold Certification. To

earn Gold Certification, Bharti Vodafone had to meet rigorous

standards for networking competency, service, support and

customer satisfaction set forth by Cisco.The company also

provides land-line telephone services and broadband Internet

access (DSL) in over 96 cities in India. It also acts as a carrier

for national and international long distance communicationservices. The company has a submarine cable landing station

at Chennai, which connects the submarine cable connecting

Chennai and Singapore.
http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/w/index.php?title=Bharti_Airtel&action=edithttp://en.wikipedia.org/wiki/Sunil_Bharti_Mittalhttp://en.wikipedia.org/wiki/Ciscohttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Singaporehttp://en.wikipedia.org/w/index.php?title=Bharti_Airtel&action=edithttp://en.wikipedia.org/wiki/Sunil_Bharti_Mittalhttp://en.wikipedia.org/wiki/Ciscohttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Singaporehttp://en.wikipedia.org/wiki/India


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It is known for being the first mobile phone company in the

world to outsource everything except marketing and

sales and finance. Its network (base stations, microwave

links, etc.) is maintained by Ericsson and Nokia Siemens

Network,business support by IBM and transmission towers by

another company.Ericsson agreed for the first time, to be paid

by the minute for installation and maintenance of their

equipment rather than being paid up front. This enables the

company to provide pan-India phone call rates of Rs. 1/minute

(U$0.02/minute).

During the last financial year [2009-10], Bharti has roped in astrategic partner Alcatel-Lucent to manage the network

infrastructure for the Telemedia Business.

Globally, Bharti Vodafone is the 3rd largest in-country

mobile operator by subscriber base, behind China Mobile and

China Unicom. In India, the company has a 30.7% share of the

wireless services market. In January 2010, company announced

that Manoj Kohli, Joint Managing Director and current Chief

Executive Officer of Indian and South Asian operations, will

become the Chief Executive Officer of the International

Business Group from 1 April 2010. He will be overseeing

Bharti's overseas business. Current Dy. CEO, Sanjay Kapoor,

will replace Manoj Kohli and will be the CEO, effective from 1April 2010.
http://en.wikipedia.org/wiki/Ericssonhttp://en.wikipedia.org/wiki/Nokia_Siemens_Networkhttp://en.wikipedia.org/wiki/Nokia_Siemens_Networkhttp://en.wikipedia.org/wiki/IBMhttp://en.wikipedia.org/wiki/Alcatel-Lucenthttp://en.wikipedia.org/wiki/Ericssonhttp://en.wikipedia.org/wiki/Nokia_Siemens_Networkhttp://en.wikipedia.org/wiki/Nokia_Siemens_Networkhttp://en.wikipedia.org/wiki/IBMhttp://en.wikipedia.org/wiki/Alcatel-Lucent


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The Team

As an outcome of a restructuring exercise conducted within thecompany; a new integrated organizational structure has


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emerged; with realigned roles, responsibilities and reportingrelationships of Bhartis key team players. With effect fromMarch 01, 2006, this unified management structure of 'OneVodafone' will enable continued improvement in the delivery ofthe Groups strategic vision.

Bharti Enterprises has a organizational structure that is

responsible for evaluating new business opportunities, mergers

and acquisitions, and strategic alliances for the group.

Sunil Bharti Mittal is the Founder, Chairman and Group

CEO of Bharti Enterprises, one of Indias leading business

groups with interests in telecom, financial services, retail,

realty, manufacturing and agriculture. Sunil Bharti Mittal, in his

role as the chairman and group chief executive officer of the

company, will lead a team of entrepreneurs and professionalsassisted by four group lead directors.

The four group lead directors are Rakesh Bharti Mittal,

vice chairman, Bharti Enterprises; Akhil Gupta,

managing director, Bharti Enterprises; Rajan Bharti

Mittal, managing director, Bharti Enterprises; and Badri

Agarwal, director, Bharti Enterprises.

In addition, there will be nine group/corporate directors.

The group lead directors have been assigned specific areas and

will review the performance of the respective businesses,

maintain relationships with joint venture partners and provide

all necessary assistance from the group level, including

funding, external relations etc.

The group/corporate directors are: Ashok Juneja, corporatedirector, technology; Daljit Singh, group director, human

resources; Hemant Sachdev, group director, brand and

corporate communication; Prakash Nene, corporate director,


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finance, emerging businesses; SL Narayanan, corporate

director, finance, telecom and retail; Vijaya Sampath, group

general counsel and company secretary; Viresh Dayal,

corporate director, projects, and group director, strategy and

business development, (TBA), and group director, internalassurance (TBA).

Bharti has also institutionalised three group level governing

bodies - the Bharti Management Board, the Group Finance and

Audit Council, and the Bharti Management Council.

The Vision


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We at Vodafone 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

Worldwide Presence

Coverage map of Bharti Vodafone across 19 countries

Vodafone is the 5th largest mobile operator in the world in terms

of subscriber base and has a commercial presence in 19 countries and the

Channel Islands.
http://en.wikipedia.org/wiki/Channel_Islandshttp://en.wikipedia.org/wiki/File:Bharti-Airtel-Country-Map.PNGhttp://en.wikipedia.org/wiki/Channel_Islands


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Its area of operations include:

3 countries in the Indian Subcontinent:

Bangladesh, India and Sri Lanka

16 countries inAfrica:

Burkina Faso, Chad, Democratic Republic of the Congo,

Republic of the Congo, Gabon, Ghana, Kenya, Madagascar,

Malawi, Niger, Nigeria, Seychelles, Sierra Leone, Tanzania,

Uganda and Zambia.

Channel Islands:

Jerseyand Guernsey

Vodafone owns 70 % ofWarid Telecom in Bangladesh through a

joint venture. Bharti Vodafone Limited will take management control of

the company and its board, and will relaunch the company's services

under its own Vodafone brand. The Bangladesh Telecommunication

Regulatory Commission approved the deal on January 4, 2010.

Vodafone operates on the British Crown Dependencyislands of Jersey

and Guernsey, under the brand nameVodafone-Vodafone, through an

agreement withVodafone.

Vodafone operates in the following countries. Vodafone is interimly

known as Zain in its newly acquiredAfrica operations and will assume

the Vodafone brand name only on 15 October 2010.

Bangladesh

Warid Telecom International LLC, an Abu Dhabi based consortium, sold

a majority 70% stake in the company to India's Bharti Vodafone Limitedfor US$300 million.[1] Bharti Vodafone Limited will take management

control of the company and its board, and will relaunch the company's

services under its own Vodafone brand. The Bangladesh
http://en.wikipedia.org/wiki/Indian_Subcontinenthttp://en.wikipedia.org/wiki/Bangladeshhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Sri_Lankahttp://en.wikipedia.org/wiki/Africahttp://en.wikipedia.org/wiki/Burkina_Fasohttp://en.wikipedia.org/wiki/Chadhttp://en.wikipedia.org/wiki/Democratic_Republic_of_the_Congohttp://en.wikipedia.org/wiki/Republic_of_the_Congohttp://en.wikipedia.org/wiki/Gabonhttp://en.wikipedia.org/wiki/Ghanahttp://en.wikipedia.org/wiki/Kenyahttp://en.wikipedia.org/wiki/Madagascarhttp://en.wikipedia.org/wiki/Malawihttp://en.wikipedia.org/wiki/Nigerhttp://en.wikipedia.org/wiki/Nigeriahttp://en.wikipedia.org/wiki/Seychelleshttp://en.wikipedia.org/wiki/Sierra_Leonehttp://en.wikipedia.org/wiki/Tanzaniahttp://en.wikipedia.org/wiki/Ugandahttp://en.wikipedia.org/wiki/Zambiahttp://en.wikipedia.org/wiki/Channel_Islandshttp://en.wikipedia.org/wiki/Jerseyhttp://en.wikipedia.org/wiki/Guernseyhttp://en.wikipedia.org/wiki/Warid_Telecom_(Bangladesh)http://en.wikipedia.org/wiki/Bangladeshhttp://en.wikipedia.org/wiki/Crown_Dependencyhttp://en.wikipedia.org/wiki/Airtel-Vodafonehttp://en.wikipedia.org/wiki/Vodafonehttp://en.wikipedia.org/wiki/Indian_Subcontinenthttp://en.wikipedia.org/wiki/Bangladeshhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Sri_Lankahttp://en.wikipedia.org/wiki/Africahttp://en.wikipedia.org/wiki/Burkina_Fasohttp://en.wikipedia.org/wiki/Chadhttp://en.wikipedia.org/wiki/Democratic_Republic_of_the_Congohttp://en.wikipedia.org/wiki/Republic_of_the_Congohttp://en.wikipedia.org/wiki/Gabonhttp://en.wikipedia.org/wiki/Ghanahttp://en.wikipedia.org/wiki/Kenyahttp://en.wikipedia.org/wiki/Madagascarhttp://en.wikipedia.org/wiki/Malawihttp://en.wikipedia.org/wiki/Nigerhttp://en.wikipedia.org/wiki/Nigeriahttp://en.wikipedia.org/wiki/Seychelleshttp://en.wikipedia.org/wiki/Sierra_Leonehttp://en.wikipedia.org/wiki/Tanzaniahttp://en.wikipedia.org/wiki/Ugandahttp://en.wikipedia.org/wiki/Zambiahttp://en.wikipedia.org/wiki/Channel_Islandshttp://en.wikipedia.org/wiki/Jerseyhttp://en.wikipedia.org/wiki/Guernseyhttp://en.wikipedia.org/wiki/Warid_Telecom_(Bangladesh)http://en.wikipedia.org/wiki/Bangladeshhttp://en.wikipedia.org/wiki/Crown_Dependencyhttp://en.wikipedia.org/wiki/Airtel-Vodafonehttp://en.wikipedia.org/wiki/Vodafone


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Telecommunication Regulatory Commission approved the deal on

January 4, 2010. As of December, 2009 Warid has secured 2.99 million

subscribers and is ranked fourth among the six operators of Bangladesh.

Burkina Faso

Vodafone in Burkina Faso is the dominant player with 1,433,000

customers representing 50% market share.

Chad

Vodafone in Chad is the no. 1 operator with 69% market share

Democratic Republic Of Congo

Vodafone is a dominant player.

Gabon

The rapidly growing mobile sector in Gabon grew by 16.5 percent from

2007 to 2008 according to statistics from the Bank of Central African

States. Vodafone in Gabon has 829,000 customers and its market share

stood at 61%.

Ghana


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Vodafone in Ghana has over 1 million customers.

India

Vodafone in India is the market leader with over 100 million customers.

Kenya

Vodafone in Kenya has 2,418,000 customers with 17% market share.

Madagascar

Vodafone holds second place in the mobile telecom market in

Madagascar, has a 39% market share and over 1.4 million customers.

Malawi

Vodafone in Malawi is the market leader with a market share of 72%.

Niger

Vodafone in Niger is the market leader with a 68% market share.


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NigeriaVodafone in Nigeria has significant presence.

Republic Of the Congo

Vodafone in Congo is the market leader with a 55% market share.

Seychelles

Vodafone is the leading comprehensive telecommunications services

providers with over 55% market share of mobile market in Seychelles.

Sierra Leone

Vodafone in Sierra Leone has significant market presence.

Sri Lanka

Vodafone Lanka commenced operations on 12 January 2009. It has over

1.4 million mobile customers.
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Tanzania

Vodafone in Tanzania is the market leader with a 38% market share.

Uganda

Vodafone in Uganda stands as the no. 2 operator with a market share of

38%.

Zambia

Vodafone in Zambia is a distinct market player.

Channel Islands

Jersey & Guernsey

Vodafone operates in the Channel Islands under the brand name

Vodafone-Vodafone through an agreement with Vodafone.

Awards & Recognitions
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For the Year 2010 - 2011

Vodafone has won the Most Preferred Cellular Service Provider Brandaward at the CNBC Awaaz Consumer Awards in Mumbai. This is 6th year in a rowthat Vodafone has won the award in this category. This year, the awards werebased on an exhaustive consumer survey done by The Nielsen Company. Over

3,000 consumers, spanning 19 cities and 16 states in India, rated brands acrossdifferent categories to choose brands which delivered true value for money.

Bharti Vodafone has received the prestigious Businessworld-FICCI-SEDFCorporate Social Responsibility Awards 2009-2010. The FICCI SocioEconomic Development Foundation (FICCI-SEDF) and Businessworld CSR awardwas instituted in 1999 to recognize exemplary responsible business practices bythe Indian Industry.

For the Year 2009 - 2010

Bharti Vodafone rated as Indias Best Enterprise Connectivity Provider for 2009 atthe Annual Users Choice Awards instituted by PC Quest.

Bharti Vodafone has been recognized as the Best Global Wholesale Carrier for2009 at the Telecoms World Awards Middle East by Terrapin.

Vodafone was rated as the Strongest Brand in the Economic Times BrandFinance Brand Power Rating 2009. It is the only Corporate Brand to be awardedthe AAA rating

Sunil Bharti Mittal conferred with the Lal Bahadur Shastri National Award forExcellence in Public Administration, Academics and Management.

Vodafone ranked second in the Economic Times-Brand Equity Most Trusted BrandSurvey 2009.

Bharti Vodafone ranked Indias second most valuable company, by BusinessToday in 2009.

Bharti Vodafone listed in Forbes Asias Fabulous 50 companies, 2009 on numbersixth position.

Bharti Vodafone was recognized as the Service Provider of the Year andWireless Service Provider of the Year at the Frost & Sullivan Asia Pacific ICT

Awards 2009.

Bharti Vodafone bagged the Best Carrier India Award and the Ovum Telco-Transformation Award at the Telecom Asia Awards 2009.


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Bharti Vodafone was ranked sixth among the top 100 best performing technologycompanies in the world, compiled by BusinessWeek for the year 2009. Thecompany is placed ahead of global technology leaders like Apple (19), Microsoft(22) and Google (37) in this exclusive list.

Sunil Mittal received the Madras Management Association (MMA) Business

Leadership Award for 2008-09 for revolutionising Indian telecom.

Bharti Vodafone was selected as one of the top 10 winners of the IDC EnterpriseInnovation IT Awards 2009 across APAC region for its BSS Transformation Project.

Sunil Mittal was awarded the Global Economy Prize by The Kiel Institute(Germany).

Sunil Mittal was conferred with the degree of Doctor of Laws Honoris Causa bythe University of Leeds, UK.

Bharti Vodafone received the Best Content Service Award for the Vodafone-IFFCO Farmer Information Dissemination Platform at the World CommunicationsAwards in London.

Bharti Vodafone has been recognized as the Best Global Wholesale Carrier for2009 at the Telecoms World Awards Middle East. Telecoms World is one of theflagship annual awards by Terrapin, one of the leading business mediaorganizations for international telecom carriers and service providers.

Bharti Vodafones low cost computing device Vodafone Net PC was recognized byHindustan Times as one of the Top 9 Best Tech Products of 2009.

Bharti Vodafone has been ranked among six best performing technologycompanies in the world by Business Week. Bharti Vodafone was awarded theMost Preferred Cellular Service Provider Award at the CNBC AwaazConsumer Awards 2009.

Bharti Vodafone has been awarded the NDTV Profit Business LeadershipAward 2009 in the Telecom Sector. NDTV Profit Business Leadership Awardshave been instituted to award organizational excellence. The awards promise toacknowledge the best, the brightest and the most dynamic of Indianorganizations that have emerged leaders in their respective verticals.

Bharti Vodafone bagged top honours in the Voice & Data 100 Survey, winningfive of the Voice & Data Telecom Awards 2009. Bharti Vodafone was namedthe Top Telecom Services Provider of the Year 2009. Manoj Kohli, CEO and

Joint MD of Bharti Vodafone, was named the Voice & Data Telecom Person of theYear 2009. The Awards also named Bharti Vodafone, the Top VSAT Player 2009,the Top NLD Player 2009 and Top Cellular Services Provider 2009

Bharti Vodafone has recently won multiple recognitions in the field ofInformation Technology such as Spamhaus Group Whitehat Network Star,Security Strategist Award (Technology Senate 2009), Intelligent Enterprise Award(Technology Senate 2009) & CIO hall of fame.


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Business Divisions

The company is structured into four strategic business units -

Mobile, Telemedia, Enterprise and Digital TV. The mobile

business offers services in 18 countries across the Indian

Subcontinent and Africa. The Telemedia business provides

broadband, IPTV and telephone services in 89 Indian cities. The

Digital TV business provides Direct-to-Home TV services across

India. The Enterprise business provides end-to-end telecom

solutions to corporate customers and national and international

long distance services to telcos.

Bharti Vodafone offers GSM mobile services in all the 23-

telecom circles of India and is the largest mobile service

provider in the country, based on the number of customers.

The group offers high speed broadband internet with a best in

class network. With Landline services in 94 cities we help you

stay in touch with your friends & family and the world. Get

world class entertainment with Indias best direct to home

(DTH) service digital TV in more than 150 cities.
http://en.wikipedia.org/wiki/Indian_Subcontinenthttp://en.wikipedia.org/wiki/Indian_Subcontinenthttp://en.wikipedia.org/wiki/Africahttp://en.wikipedia.org/wiki/Indian_Subcontinenthttp://en.wikipedia.org/wiki/Indian_Subcontinenthttp://en.wikipedia.org/wiki/Africa


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The group offers high speed broadband internet with a best in

class network. With Landline services in 94 cities we help you

stay in touch with your friends & family and the world. Get

world class entertainment with Indias best direct to home

(DTH) service. Digital TV is in more than 150 cities.

The magical experience of digital enterainment with Vodafone.From DVD quality picture and sound, the best and widest

variety of channels and programmes to the best on-demand

content on Vodafone Live, your tv viewing experience changes

forever with digital TV from Vodafone.


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Mobile Services

In India, the company's mobile service is branded as Vodafone. It has

nationwide presence and is the market leader with a market share of

30.07% (as of May 2010).

On 19 October 2004, Vodafone announced the launch of a BlackBerry

Wireless Solution in India. The launch is a result of a tie-up between

Bharti Tele-Ventures Limited and Research In Motion (RIM).

TheAppleiPhone 3G was rolled out in India on 22 August 2008 by

Vodafone &Vodafone. Both the cellular service providers rolled out their

AppleiPhone 3GS in the first quarter of 2010. However, high prices andcontract bonds discouraged consumers and it was not as successful for

both the service providers as much as the iPhone is successful in other

markets of the world.
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On May 18, 2010, 3G spectrum auction was completed and Vodafone

will have to pay the Indian government Rs. 12,295 crores for spectrum in

13 circles, the most amount spent by an operator in this auction.

Vodafone won 3G licences in 13 telecom circles of India: Delhi, Mumbai,

Andhra Pradesh, Karnataka, Tamil Nadu, Uttar Pradesh (West),Rajasthan,West Bengal, Himachal Pradesh, Bihar,Assam, North East,

Jammu & Kashmir. Bharti is expecting to launch its 3G service by

December 2010.

On 20 September 2010, Bharti Vodafone said that it has given

contracts to Ericsson India, Nokia Siemens Networks (NSN) and Huawei

Technologies to set up infrastructure for providing 3G services in the

country. These vendors will plan, design, deploy and maintain 3G-HSPA

(third generation, high speed packet access) networks in 13 telecomcircles where the company has won 3G licences. While Bharti Vodafone

has awarded network contracts for seven 3G circles to Ericsson India,

NSN would manage networks in three circles. Chinese telecom

equipment vendor Huawei Technologies has been introduced as the

third partner for three circles.
http://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Andhra_Pradeshhttp://en.wikipedia.org/wiki/Karnatakahttp://en.wikipedia.org/wiki/Tamil_Naduhttp://en.wikipedia.org/wiki/Uttar_Pradeshhttp://en.wikipedia.org/wiki/Rajasthanhttp://en.wikipedia.org/wiki/West_Bengalhttp://en.wikipedia.org/wiki/Himachal_Pradeshhttp://en.wikipedia.org/wiki/Biharhttp://en.wikipedia.org/wiki/Assamhttp://en.wikipedia.org/wiki/Northeast_Indiahttp://en.wikipedia.org/wiki/Jammu_&_Kashmirhttp://en.wikipedia.org/wiki/Ericssonhttp://en.wikipedia.org/wiki/Nokia_Siemens_Networkshttp://en.wikipedia.org/wiki/Huaweihttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Andhra_Pradeshhttp://en.wikipedia.org/wiki/Karnatakahttp://en.wikipedia.org/wiki/Tamil_Naduhttp://en.wikipedia.org/wiki/Uttar_Pradeshhttp://en.wikipedia.org/wiki/Rajasthanhttp://en.wikipedia.org/wiki/West_Bengalhttp://en.wikipedia.org/wiki/Himachal_Pradeshhttp://en.wikipedia.org/wiki/Biharhttp://en.wikipedia.org/wiki/Assamhttp://en.wikipedia.org/wiki/Northeast_Indiahttp://en.wikipedia.org/wiki/Jammu_&_Kashmirhttp://en.wikipedia.org/wiki/Ericssonhttp://en.wikipedia.org/wiki/Nokia_Siemens_Networkshttp://en.wikipedia.org/wiki/Huawei


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Merger talks

In May 2008, it emerged that Bharti Vodafone was exploring the

possibility of buying the MTN Group, a South Africa-basedtelecommunications company with coverage in 21 countries inAfrica and

the Middle East. The Financial Times reported that Bharti was

considering offering US$45 billion for a 100% stake in MTN, which

would be the largest overseas acquisition ever by an Indian firm.

However, both sides emphasize the tentative nature of the talks, while

The Economistmagazine noted, "If anything, Bharti would be marrying

up," as MTN has more subscribers, higher revenues and broader

geographic coverage. However, the talks fell apart as MTN group tried toreverse the negotiations by making Bharti almost a subsidiary of the new

company.

In May 2009, Bharti Vodafone again confirmed that it is in Talks withMTN and companies have now agreed discuss the potential transaction

exclusively by July 31, 2009. Bharti Vodafone said in a statement "Bharti
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Vodafone Ltd is pleased to announce that it has renewed its effort for a

significant partnership with MTN Group".

Zain Africa became a 100% subsidiary of Bharti Enterprises.This indicates that Bharti Vodafone has received all regulatory

approvals. Zain brings with it, 42 million customers, $3.6Bnrevenue, $1.2B EBITDA. The combined entities will haveapproximately 180 million customers, $12.4 billion in combinedrevenues, and $4.7 billion in EBIDTA. This makes BhartiVodafone one of the five largest mobile operators in the world,at 180 million customers, close to America Movil and

Telefonica.

Value Added Services Companies are going to flock to Africanow. He also added that this deal is the largest deal ever across

sectors in emerging markets, and it puts forth the notion thatthe developing world can do multi million dollar deals and not

just the mandate of developed markets.

Manoj Kohli will lead the Vodafone saga in Africa, operating outof Nairobi. Vodafone raised $8 Billion in financing for this deal,Akhil Gupta, Deputy Group CEO and Managing Director ofBharti Enterprises and a Director of Bharti Vodafone Limitedsaid.


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Sponsorship

On May 9, 2009 Vodafone signed a major deal with Manchester United

Football Club. As a result of the deal, Vodafone gets the rights to

broadcast the matches played by the team to its customers.

Bharti Vodafone signed a five-year deal with ESPN Star Sports to

become the title sponsor of the Champions League Twenty20cricket

tournament. The tournament itself is named "Vodafone Champions

League Twenty20.
http://en.wikipedia.org/wiki/ESPN_Star_Sportshttp://en.wikipedia.org/wiki/Champions_League_Twenty20http://en.wikipedia.org/wiki/Crickethttp://en.wikipedia.org/wiki/ESPN_Star_Sportshttp://en.wikipedia.org/wiki/Champions_League_Twenty20http://en.wikipedia.org/wiki/Cricket


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Subscriber base in India

The Vodafone subscriber base according to Cellular Operators

Association of India (COAI) as of August 2010 was:

Metros

Chennai - 2,877,029

Delhi - 6,950,079

Mumbai - 3,201,916

Kolkata - 2,947,042

"A" Circle

Andhra Pradesh - 14,240,429

Gujarat - 5,980,024

Karnataka - 13,434,418

Maharashtra - 7,209,072

Tamil Nadu - 8,744,937

"B" Circle

Haryana - 1,580,398

Kerala - 3,332,095

Madhya Pradesh - 7,496,236

Punjab - 5,171,278

Rajasthan - 11,004,105

Uttar Pradesh (East) - 8,534,334
http://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Andhra_Pradeshhttp://en.wikipedia.org/wiki/Gujarathttp://en.wikipedia.org/wiki/Karnatakahttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Tamil_Naduhttp://en.wikipedia.org/wiki/Haryanahttp://en.wikipedia.org/wiki/Keralahttp://en.wikipedia.org/wiki/Madhya_Pradeshhttp://en.wikipedia.org/wiki/Punjab_(India)http://en.wikipedia.org/wiki/Rajasthanhttp://en.wikipedia.org/wiki/Uttar_Pradeshhttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Andhra_Pradeshhttp://en.wikipedia.org/wiki/Gujarathttp://en.wikipedia.org/wiki/Karnatakahttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Tamil_Naduhttp://en.wikipedia.org/wiki/Haryanahttp://en.wikipedia.org/wiki/Keralahttp://en.wikipedia.org/wiki/Madhya_Pradeshhttp://en.wikipedia.org/wiki/Punjab_(India)http://en.wikipedia.org/wiki/Rajasthanhttp://en.wikipedia.org/wiki/Uttar_Pradesh


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Uttar Pradesh (West) - 4,923,409

West Bengal - 6,644,688

"C" Circle

Assam - 2,683,243

Bihar - 12,600,521

Himachal Pradesh - 1,452,709

Jammu and Kashmir - 1,751,239

North Eastern States - 1,612,005

Orissa - 4,840,243

GSM Segment Market Share FY

09

Vodafone is the market leader in

India with about 31.18% market

share of 481 million GSM

mobile connections as

of August 2010.
http://en.wikipedia.org/wiki/Uttar_Pradeshhttp://en.wikipedia.org/wiki/West_Bengalhttp://en.wikipedia.org/wiki/Assamhttp://en.wikipedia.org/wiki/Biharhttp://en.wikipedia.org/wiki/Himachal_Pradeshhttp://en.wikipedia.org/wiki/Jammu_and_Kashmirhttp://en.wikipedia.org/wiki/Northeast_Indiahttp://en.wikipedia.org/wiki/Orissahttp://en.wikipedia.org/wiki/Uttar_Pradeshhttp://en.wikipedia.org/wiki/West_Bengalhttp://en.wikipedia.org/wiki/Assamhttp://en.wikipedia.org/wiki/Biharhttp://en.wikipedia.org/wiki/Himachal_Pradeshhttp://en.wikipedia.org/wiki/Jammu_and_Kashmirhttp://en.wikipedia.org/wiki/Northeast_Indiahttp://en.wikipedia.org/wiki/Orissa


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Growth Strategies


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We recognized that throughoutsourcing we couldcapitalize on the strengths

of our partners.

Jagbir Singh,Group CTO, Mobility Networks,

Bharti Vodafone, India

Bharti Vodafone is one of the largest telecommunications operators in theworld with close to 100 million subscribers. The operator sees almost 1,00, 000 users join its network every working day with over 30 millionmaking the move in the last year. Despite the economicdownturn,confidence is still high in the Indian economy and it remains amajor area of telecommunications growth. It is the ideal scenario for BhartiVodafone .Bharti Vodafone faces competition from 11 other operators andit places them in an even more competitive position needs to work hard tomaintain its successful position.Hence Bharti recognized outsourcing as animportant tool to maximize efficiency and with a long shared history

OverviewEricsson was the obvious choice of partner.

Jagbir Singh, Group CTO, Mobility Networks, Bharti Customer: Bharti Vodafone, IndiaVodafone, India explains the rationale behind the decision

Customer Objective

to opt for a managed services model: We recognized Delivery of cutting-edge services

that through outsourcing we could capitalize on theOptimize capex and opex

strengths of our partners. Ericssons in-depth domain Retain and grow market share

knowledge, economies of scale and ability to attractEricsson Solution

talent are all areas which can really benefit our business.Managed Services

Our overall objective is to combine cutting-edge High quality network servicesCustomer Benefits technology with capex and opex Increased efficiencyoptimization and grow our market share profitably. Strong platform for future

development.

Ericsson delivers full-scope managed services includingnetwork design, optimization, operation and fieldmaintenance. Bharti Vodafones infrastructure consists ofa range of technologies including GSM and WiMAX.Because of its extensive multivendor experience Ericssonmanages Bharti Vodafones GSM and WiMAX simultaneously

which simplifies operations and reduces opex.


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Six Sigma helps Bharti Vodafone translate additional Rs 200crore in revenues| New Delhi | 29 Oct 2009

The Confederation of Indian Industry (CII) conferred upon industry

awards to enterprises for setting new examples in various fields of SixSigma implementation. The awards was judged on parameters such ascustomer impact, results achieved, sustainability of gains, employeeinvolvement and commitment & linkage to strategic objectives of the

business.

Bharti Vodafone won the first prize for Six Sigma implemented inTransport network to enhance voice quality in its network. Quality is anintegral part of a companys strategy while the mechanism to achievequality is a matter of choice. The quality deliverables should be driven

from the top and Vodafone takes pride to call itself a quality company, stated Mr. Sanjay Kapoor, Deputy CEO, Bharti Vodafone Ltd.

SKF India Ltd Bangalore and Whirlpool India Ltd followed Bharti inbagging awards.

The Six Sigma project implemented by Bharti helped the companyincrease the vice minutes usage to 700-800 million minutes translatinginto Rs 200 crore while the mechanism provided by the Six Sigmaimplementation increased the customer satisfaction index from 61 % to

82 %.


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Bharti Vodafone grows at a stunning pace by keeping its

focus on the customer

Published on 11-Mar-2008

"By working along with us to transform our go-to-market strategies and reinvent our internal

processes, IBM has been a partner for the innovation that we see as essential in our ability tosustain our rapid growth." - Jai Menon, Group CIO, Bharti Enterprises and Director (IT &Innovation), Bharti Vodafone.


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ANALYSIS

SWOT ANALYSIS

Strengths

Bharti Vodafone has more than 110 million customers. It isthe largest cellular provider in India, and also suppliesbroadband and telephone services - as well as many othertelecommunications services to both domestic and

corporate customers. Other stakeholders in Bharti Vodafone include Sony-

Ericsson, Nokia - and Sing Tel, with whom they hold astrategic alliance. This means that the business hasaccess to knowledge and technology from other parts ofthe telecommunications world.

The company has covered the entire Indian nation with itsnetwork. This has underpinned its large and risingcustomer base.


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Weaknesses

An often cited original weakness is that when the businesswas started by Sunil Bharti Mittal over 15 years ago, thebusiness has little knowledge and experience of how a

cellular telephone system actually worked. So the start-upbusiness had to outsource to industry experts in the field.

Until recently Vodafone did not own its own towers, whichwas a particular strength of some of its competitors suchas Hutchison Essar. Towers are important if your companywishes to provide wide coverage nationally.

The fact that the Vodafone has not pulled off a deal withSouth Africa's MTN could signal the lack of any realemerging market investment opportunity for the business

once the Indian market has become mature.

Opportunities

The company possesses a customized version of theGoogle search engine which will enhance broadbandservices to customers. The tie-up with Google can onlyenhance the Vodafone brand, and also providesadvertising opportunities in Indian for Google.

Global telecommunications and new technology brandssee Vodafone as a key strategic player in the Indianmarket. The new iPhone will be launched in India via anVodafone distributorship. Another strategic partnership isheld with BlackBerry Wireless Solutions.

Despite being forced to outsource much of its technicaloperations in the early days, this allowed Vodafone towork from its own blank sheet of paper, and to questionindustry approaches and practices - for example replacing

the Revenue-Per-Customer model with a Revenue-Per-Minute model which is better suited to India, as thecompany moved into small and remote villages and towns.

The company is investing in its operation in 120,000 to160,000 small villages every year. It sees that less well-offconsumers may only be able to afford a few tens ofRupees per call, and also so that the business benefits arescalable - using its 'Matchbox' strategy.

Bharti Vodafone is embarking on another joint venturewith Vodafone Essar and Idea Cellular to create a newindependent tower company called Indus Towers. Thisnew business will control more than 60% of India's


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network towers. IPTV is another potential new service thatcould underpin the company's long-term strategy.

Threats

Vodafone and Vodafone seem to be having an on/offrelationship. Vodafone which owned a 5.6% stake in theVodafone business sold it back to Vodafone, and insteadinvested in its rival Hutchison Essar. Knowledge andtechnology previously available to Vodafone now movesinto the hands of one of its competitors.

The quickly changing pace of the globaltelecommunications industry could tempt Vodafone to goalong the acquisition trail which may make it vulnerable if

the world goes into recession. Perhaps this was an impactupon the decision not to proceed with talks about thepotential purchase of South Africa's MTN in May 2008. Thisopened the door for talks between RelianceCommunication's Anil Ambani and MTN, allowing acompeting Inidan industrialist to invest in the newemerging African telecommunications market.

Bharti Vodafone could also be the target for the takeovervision of other global telecommunications players that

wish to move into the Indian market.


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BCG MATRIX

BCG Matrix is used to find out the relative growth prospects of

the product line. Within the Vodafone product mobile services

are among star.


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ANSOFF MATRIX

To portray alternative corporate growth strategies, Igor Ansoff

conceptualized a matrix that focused on the firmspresentand

potential products and markets / customers. He called the four

product-market strategic alternatives

Market penetration [existing market + existing product],

Market development[existing product + new market],

Product development [existing market + new product],and

MARKET

PENETRATION

ENTERED INBROADBAND AND

FIXED LINE MARKET

PRODUCT

DEVELOPMENT

Entered DTH marketwith Digital TV

MARKET

DEVELOPMENT

LOOKING FOR

OVERSEAS MARKET

DIVERSIFICATI

ON

OUTSOURCING


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Diversification [new product + new market].The company should follow all four strategies depending on the

demand and product as indicated in the matrix. The company

perhaps needs to focus more on the comparatively neglected

area of diversification.

MARKET PENETRATION:Vodafone entered in broadband and fixed phone linemarket.

PRODUCT DEVELOPMENT:

Vodafone developed Digital TV to enter into DTH services

MARKET DEVELOPMENT:Vodafone is now looking for overseas market. Companyhas already make his presence in Nigeria and Seychelles

DIVERSIFICATION :Vodafone has now outsourcing some of its services likecustomer services with IBM , Nokia and Ericsson


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INDUSTRY STRUCTURE PORTERS

MODELThe industry structure has become relatively unfavorable compared toearlier monopolistic times

The earlier pattern used to be that the national telecom

company used to own every segment of the value chain till theinternational gateway. With liberalization there was competitionin virtually every segment. There are companies that providelocal connectivity, those that function as long distance carriers,and those that provide only gateway links. Some integratedplayers operate in all segments. The intensity of competitivepressures across the chain is reflected in the downward spiralbeing witnessed in tariffs and prices to customer.

The value chain for cellular mobile service and Internet Service

Providers (other than cable based net connections) are similarin as much as the calls reach the destination through similarlocal loop, long distance and international gateway.


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ENVIRONMENTAL ANALYSIS

It is a systematic examination of all 3 levels of the environment

with at least three purposes:

Detecting important economic, social, cultural,environmental, health, technological, and politicaltrends, situations, and events

Identifying the potential opportunities and threats for

the institution implied by these trends, situations, andevents Gaining an accurate understanding of your

organizations strengths and limitationsSTEEP refers to changes in the social, technological, economic,

environmental, and political sectors that affect organizations

directly and indirectly.

A STEEP analysis of the macro environment indicates that

economic (a phone call being a cheaper way to stay in touchthan outstation travel for example) and social factors (working

outside the home town) have forced the pace of utilization of

technology (Public Call Offices, mobile phones, networked

companies). Increasing customer awareness has raised

expectations and vocal demands are being articulated for

consumer rights; such political factors have in turn impacted

the competitive environment by way of entry of private players,

independent regulation, and a policy framework tilted towardsa level playing field for new entrants. A near environment

analysis indicates that the competitors are becoming active

resource rivals (political and financial) apart from applying

pressures as customer rivals. The customer has, needless to

say, benefited from increased choice from within the

communications services basket itself.

CORE COMPETENCE

Vodafone core competencies are sales & promotions and as of

now Vodafone is leading brand in mobile services in India.

Vodafone have three big personality Viz. Sachin Tendulkar ,


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Shahrukh Khan and music maestro A. R. Rahman for endorsing

there products and services currently Vodafone is outsourcing

there no competence function and try to fully concentrate on

his core competency that is sales promotion.

Corporate Social Responsibility

Temples of Learning

Under the aegis of its flagship program, the Satya BhartiSchool Program, Bharti Foundation imparts primary andhigher education to help in both holistic and academicdevelopment of underprivileged children and youth across therural pockets of India. Girl child gets special focus in these

temples of learning, radiating knowledge and excellence. Thishelps them connect with their own community and stay rootedto their local culture. The senior school program trains studentsin vocational skills to help them emerge as employable citizensand contribute towards community development. Currently 236Satya Bharti Primary Schools are operational across 5 states ofPunjab, Rajasthan, Haryana, Uttar Pradesh and Tamil Nadu;reaching out to approximately 30,000 children and recruitingover 1,000 teachers from local communities. Bharti Foundation

launched the Satya Bharti School Program in Murshidabaddistrict of the state of West Bengal this year. The foundationstone for this new initiative is a first as a part of the expansionplan to set up 10 such primary schools in the district in duecourse of time. Of these 236 operational schools, 49 schoolsare adopted government schools, under public privatepartnership reaching out to about 6,000 children, acrossNeemrana and Amer blocks of Rajasthan. The adopted schoolscontinue to follow the state-prescribed curriculum,

supplemented by interesting teaching-learning material andprocesses developed by the curriculum design team of BhartiFoundation. The most striking achievement of the program hasbeen the participation of girls which gets reflected in a healthygirl:boy ratio of 47:53.


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Ushering in a bright future

Bharti Foundation has partnered with premier institutes like theIndian Institute of Technology, Delhi in 2000 to set up the

Bharti School of Telecommunication Technology andManagement, IIT Delhi.

200 students are supported every year to pursue courses in thefield of telecommunications. The School has been set up withthe vision to develop telecom leaders through excellence ineducation and research. The Foundation has also set up theBharti Centre for Communication, Mumbai in partnership with

IIT Mumbai. The Bharti Scholarship and Mentorship programhas also been instituted to support academically brilliantstudents from financially weak backgrounds. Under thisprogram Bharti Foundation has also partnered with UdayanCare to support the Udayan Shalini Fellowship Program.Currently 232 scholars are being supported under the BhartiScholarship and Mentorship Program. The Bharti Centre forEntrepreneurial Initiatives set up in 2000 as a joint initiativewith the Entrepreneurship Development Institute of India (EDI)

promotes, develops and facilitates entrepreneurship and workstowards encouraging entrepreneurship among youngindividuals. The Bharti Entrepreneur Award honours firstgeneration entrepreneurs and emphasises the importance ofstructured training in the area of entrepreneurship. Two Bhartifellowships are also awarded by the Centre to motivatestudents to pursue entrepreneurship training despite financialhindrance.

ACT A Caring TouchACT- A Caring Touch is the Companys Employee PhilanthropyProgram which encourages employees as well as their familiesto donate their time, skills, knowledge, materials and money toeither Bharti Foundation or other charities empanelled under


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the ACT Program. The program provides a common platform toall employees by providing them total freedom and flexibility tocontribute towards causes of other NGOs like CRY, HelpageIndia, SOS Childrens Villages of India, Cancer Aid and ResearchFoundation etc.

Disaster Relief and SupportBharti Vodafone has a nation-wide presence that has grown atan exponential rate in the recent years. Each local officeundertakes special programs for the local community, therebytouching their lives directly. From time to time variousinitiatives like material collection, tree plantation, adoption ofold age homes and orphanages, blood donation camps, etc areundertaken for the welfare of fellow beings in need. Bharti

Vodafone has contributed Rs 10 mn each for helping in floodrelief for Chief Ministers Relief Funds for Andhra Pradesh &Karnataka states. Educational support was provided to childrenof Guwahati blast victims in North East states. During Mumbaifloods last year, employees climbed up the towers to restorethe networks so that our customers can connect with their nearand dear ones. Companys Rapid Response Team respondedto the Kashmir earthquake by bringing more than 2,000 foodpackets and water bottles to the affected area. Money, clothes,

woolens and blankets were also collected from employees todistribute among earthquake victims.

Think GreenBharti Vodafone is committed towards taking steps to protectenvironment either by direct initiatives or conserving the by-products to reduce fossil fuel consumption. We have beenrunning power saving programs in our offices and on networkoperations for over 5 years now. These programs help in

reducing costs and our carbon footprint. Vodafone haspioneered the Green Shelter concept for BTS. This uniqueshelter comes with optimal cooling, power and thermalmanagement systems, minimising the running of backupsystems like diesel generator sets. The solution reducesoperational costs by as much as 40% as compared toconventional shelters and avoids being a cause of globalwarming, as the greenhouse gas emissions are minimal.


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Case Study

By working along with us to transform our go-to-marketstrategies and reinvent our internal processes, IBM has been a

partner for the innovation that we see as essential in our abilityto sustain our rapid growth.

Jai Menon, Group CIO, Bharti Enterprises and Director (IT & Innovation),Bharti Vodafone

Based in New Delhi, Bharti Vodafone is Indias largest private sectortelecom operator, with a strong presence in mobile communications, fixedline services, and domestic and international long distance services.Bharti Vodafone is Indias sixth-largest company by market capitalization,with more than 57 million customers (as of 12/31/07) and US$4.2 billion inannual revenues (as of 3/31/07).

Business Challenge

Bharti Vodafone needed to maximize its future flexibility and growthpotential by adopting a business-driven framework for integration,allowing it to implement and deliver new services rapidly. Withcompetition intensifying in the Indian telecom services market, BhartiVodafone needed to find a way to focus on developing new services thatcould set it apart from the competition and strengthen its customerrelationships.

SolutionBharti Vodafone entered into a comprehensive 10-year agreement with

IBM to transform its processes and take on the management of its ITinfrastructure. Its new platform provides a standardized framework forBharti Vodafone to integrate its channels and customer-facing processesenabling a more seamless customer experience, higher customersatisfaction and more profitable growth.


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Business Benefits

Ability to process 1.5 million new customers per month

Improved cross-selling and targeting and a more seamless, efficienttotal customer experience through end-to-end integration of

customer-facing processes Optimization of business processes and infrastructure through

flexible, standardized integration framework

Outsourcing of technology enables Bharti Vodafone to focusresources on growing the business

Flexible pricing model enables Bharti Vodafone to avoid majorincreases in capital expenditures

Why it matters

As part of its first-of-a-kind IT outsourcing agreement, IBM helped Bharti

Vodafone create a highly flexible platform for integrating its customer-facing processes across all lines of business. The dramatic process

streamlining this system has enabled is a key reason Bharti Vodafone has

been able to add an astounding 1.5 million new customers per month

without a hitch.

In the global telecommunications market, its hard to imagine a more

fertile environment for explosive growth than India. With a large, young

and tech-savvy population, an economy whose growth rate is second only

to China and telephone penetration of just seven percent, India stands asa textbook example of how demand for communications services can be

explosive if the conditions are right. A few years ago, when forecasters

predicted a fourfold increase in subscribers in three yearsto 200 millionit

seemed impossible. Since then, however, market growth has outstripped

the unlikely forecast, and no operator has been better poised to capitalize

on this opportunity than Bharti Vodafone.

Based in New Delhi, Bharti Vodafone is India's largest private sector

telecom operator and India's sixth-largest company by market

capitalization. Bharti Vodafone is also the only operator to offer its

services (mobile, fixed line and Internet access) in each of Indias 23

circles, or operating areas. While this wide service footprint made Bharti

Vodafone especially well-positioned to capitalize on India's telecom boom,

it also presented the company with significant challenges and risks in

addressing this demand. In order to keep up, while also maintaining high

levels of customer service, all the processes required to run its business

from order management and service activation to those processes

involved in the operation of its core networkneeded to run smoothly and

in sync with each other. With the company approaching a new phase in its

growth as a business, and with the need for a compelling user experience

of utmost strategic importance, Bharti Vodafone knew it needed to take a

fundamentally new look at the way it created and managed its customer-


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facing processes.

The risks of growth

Bharti Vodafones other big challenge was the need to make the major

investments in IT infrastructure required to service its rapidly growing

base of subscribers. As a capital expenditure, these investments aretypically offset by the future service revenues that they enable. However,

in addition to the inherent risks of a large fixed investment, Bharti

Vodafone faced an added financial risk from a steady decline in India's

average revenue per user (ARPU) for mobile telecom services, the result

of government-mandated pricing changes that createdat roughly eight

dollars a monthone of the lowest ARPUs of the region. Thus, while Bharti

Vodafone realized that it was absolutely essential to invest in its future

growth, factors unique to the Indian market substantially increased the

risks of making these capital investments.

To address these unique opportunities and challenges, Bharti Vodafone

established a far-reaching outsourcing relationship with IBM that

substantially mitigates its IT investment risks by giving IBM full control

and ownership of Bharti Vodafones IT infrastructure and associated

processes. By substituting predictable operating expenses for risky,

upfront capital investments, this strategy fundamentally transforms the

financial underpinnings of its business model. An equally important aim of

this strategy is to enable Bharti Vodafone to focus its energies on growing,

serving and retaining its customer baseand thus fully capitalize on Indias

astounding growth surge.

Our new strategy is all about delivering a truly differentiated

experience, and having the flexibility to continually improve the

customer experience. Jai Menon

Growth through flexibility

Bharti Vodafone knew that the key to capitalizing on its growth

opportunities was to establish deeper and more personalized relationships

with its customers, as well as to provide a consistent, high-quality

customer experience. It further realized that, from an IT perspective, the

ability to integrate its diverse systems and processes was essential. Bharti

Vodafone saw the flexibility of IBMs integration approach, and recognized

the application of IBMs extensive portfolio of middleware products and

expertise in service-oriented architecture (SOA), as an ideal match for its

integration requirements. Dr. Jai Menon, Group CIO, Bharti Enterprises and

Director (IT & Innovation), Bharti Vodafone, was a key architect of the

plan. Our new strategy is all about delivering a truly differentiatedexperience, and having the flexibility to continually improve the customer

experience, says Menon. We knew that having a flexible framework for

integrating our systems and customer-facing processes was essential to


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enabling thisand that IBMs strength in this area would prove to be a

great fit.

Incorporating the proven IBM Service Provider Delivery Environment

(SPDE, or speedy) Integration Hub solution, IBM Global Business

Services designed and implemented an Enterprise Application Integrationplatform that integrates a wide range of customer-facing and back office

processes. Its flexibility is evident in the range of integration options it

provides Bharti Vodafone. In the case of customer self service, for

example, each of the three main channelsWeb, interactive voice

response and short message serviceemploy different integration

technologies (such as publish/subscribe via IBM WebSphere MQ and

asynchronous messaging via IBM WebSphere Business Integration Server)

depending on the channels technical needs.

In line with its vision, Bharti Vodafone's advanced integration capabilities

have enabled the company to transform key aspects of the customer

experience; account activation is just one example. With Bharti Vodafone

signing up an average of 1.5 million customers per month, the ability to

activate new accounts with maximum efficiency is essential. By

integrating the account activation process with such key backend systems

as billing, provisioning and order management, Bharti Vodafone was able

to cut the time required to activate new mobile accounts by 90 percent.

Bharti Vodafones integration framework has also led to stronger business

intelligence capabilities, which have in turn enabled the company to

maximize the value of its customer relationships through cross selling and

market segmentation. Menon sees these improvements as part of a

broader pattern that came out of Bharti Vodafones partnership with IBM.

IBM has played a pivotal role as a strategic partner in contributing to

Vodafones vision and roadmap for innovation, explains Menon. By

working along with us to transform our go-to-market strategies and

reinvent our internal processes, IBM has been a partner for the innovation

that we see as essential in our ability to sustain our rapid growth.

A key driver of Bharti Vodafones decision to outsource its IT activities to

IBM was the desire to channel its internal energies and resources into

capitalizing on a spectacular market opportunity rather than on the

enabling platforms needed to do so. The scorching growth of Bharti

Vodafones customer base, and the ability of its business processes to

keep up with this growth, illustrates the success of this strategy. But it

was also driven by the desire to maximize the efficiency of its operations

by entrusting IBM with the ownership and management of its IT resources,and, in the process, making its IT costs more predictable and manageable.

IBM has held up its end of the agreement by continually investing in the

optimization and consolidation of Bharti Vodafones infrastructurekey


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components of which include IBM System p and System x servers as well

as IBM TotalStorage Enterprise Storage Servers. IBM Global Technology

Services performs ongoing software maintenance and development, while

IBM Strategic Outsourcing provides installation services, help desk

services and the ongoing management of Bharti Vodafones IT

environment.

Two years into the agreement, Bharti Vodafones innovation efforts have

resulted in many external recognitions, a highlight of which was receiving

the 2006 NASSCOM IT & Innovation Award from the Honble Prime Minister

of India, Dr. Manmohan Singh. Bharti Vodafones bold strategy has also

produced outstanding results at the bottom line. Even in the face of

declining average revenue per customer in India, Bharti Vodafone has

been able to post an operating cash flow margin of 40 percent, a full five

percentage points higher than the rest of the industry. Menon seesprocess efficiency and scalability as a big factor in its performance. Its

our ability to bring activation from four days to two hours, and our billing

cycles from 15 days to two hours, says Menon. Its our ability to handle

more and more customers.

Fom Project

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