facts challenges rivalry strategies global challenges and opportunities

2.  Director :- Sunil Bharti Mittal
 Bussiness discription: - provides mobile voice
and data services, fixed line, 3G & 4G, IPTV
and DTH services.
 Established : - July 07 1995 as a public
limited co.

3.  As of March 31, 2013 airtel has 189 million
wireless subscribers
 Market share is 22 %
 Worlds 5th largest operator in terms of
subscribers

4.  1st to provide 4g services in the country
 Provides these services currently in 4 cities –
Bengaluru, Chandigarh, Kolkatta and Pune.
 Manages 1,34,000 (approx) mobile tower
sites through Bharti Infratel & Indus towers.

5.  Past 4 years have not been fruitful for the
company with its financial performance
witnessing a major slide.
 During 2012-13, it witnessed lowest net
profit in 7 years and 50 % decline from the
year 2012-13

6.  The biggest challenge that the company is
facing is servicing its debt which stood at Rs
640 billions as of March 31,2013.
 The debt was raised largely to fund the
acquisition of Zains African operation in 2010

7.  The financial pressure is expected to increase
as the company needs funds to pay the one
time spectrum fee and to renew its license for
Delhi and Kolkata circles in 2014
 In this scenario reviewing its exixting
bussiness strategy, tapping new revenue
streams are the only way forward for the
company

8.  Hyper-competition
 The entry of new players in the market in 2008 led
to a price war and airtel was forced to offer services
at rock-bottom prices.
 Losing market share to peers like idea which has
doubled its share from 9 to 18 % in last four years.

9.  Airtel’s African operations have been a big drag on its
resource.
The company is yet to record profits
Net loss of the company increased from INR 130
billion in 2011-12 to INR 220 billion in 2012-13

10.  Bharti airtel has undertaken a restructuring
exercise to bring all verticals under two heads
 Individuals
 Enterprises
The entire country has been divided into 8 regions
instead of 3 previously to ensure greater focus on each
region.

11.  To ease pressures on financial front the
operator has been initiating several initiatives
 These include Hike in Tariffs
 Reducing promotional offers and discounts
 The company recently divested 5 % stake in Qatar
endowment for around 67.9 billion

12.  Sold majority of it stake in value added
services (VAS) company Comm-viva
technologies to tech Mahindra.
 Intends to sell minority stakes in telemedia
and DTH businesses to reduce debt
 These 3 services are valued at about 110
billion, 65 billion and 60 billion respectively

13.  Although the financial performance of its
African business is not up to the mark, bharti
has been generating adequate cash to cover
its capital cost, taxes and interest payment
on acquisition debt
 In nigeria, which is bharti’s biggest market in
africa, it has been losing share due to
increase in competetion and has reduced the
tariffs by 30% to remain competetive

14.  Despite posing economic and regulatory
challenges, africa presents major
opportunities as an emerging telecom market
 Income level in africa are lower than in india,
which is a challenge but improving political
and economic prospects and a large youth
population makes it a promising future
market.

15.  Bharti is looking to expand its operations in
Myanmar, which has only two government
based operators. Bharti has an opportunity to
cater to 60 million people with almost no
competetion

16.  Initiatives in the data space and enhancing
rural services
 Expanding its 4g operations to Delhi and
Mumbai
 Bharti is also focusing on m-commerce
market. Bharti airtel money has generated a
positive response in 15 countries