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Confidential IIM Calcutta - Prep Committee, Created on 19 Feb 2012 Page 1

Airtel
About the Company:

Bharti Airtel limited is a leading global telecommunications company with operations in 20 countries across Asia
and Africa with more than 287 million customers as of Dec 2013.
Bharti Airtels product and services portfolio includes mobile services, home phones, broadband, calling cards, DTH,
IPTV, MPLS Services, satellite services, data transport solutions and conferencing services.
It is known for being the first mobile phone company in the world to outsource all of its business operations except
marketing, sales and finance. Its network is maintained by Ericsson, Nokia Siemens and Huawei, business support is
provided by IBM, and transmission towers are maintained by another company (Bharti Infratel Ltd. in India)

Vision: By 2015, Airtel will be the most loved brand, enriching the lives of millions.

Key Facts:
Founded in 1995 and headquartered in New Delhi, India.
Key Roles:
o Chairman and MD: Sunil Bharti Mittal
o CEO (India and South Asia): Mr. Sanjay Kapoor
o CEO (International) & Joint Managing Director: Mr. Manoj Kohli
Employee strength of nearly 24720 as on Jan 2014
It is the 3
rd
largest in-country mobile operator in the world
It is the 6th largest in-country integrated telecom operator in the world
Ranked number 5 in the best performing technology companies in the world by business week
Indias most innovative company by Wall Street Journal
Winner of Gallups great workplace for being one of the best places to work worldwide
Ranked 188 in the FT 500 worlds largest companies 2009 ranked by financial times

Quick Look on Finance:
Revenue 59,601 crore (US$13.11 billion) (2011) up by 42% over last year
Profit 6,046 crore (US$1.33 billion) (2011) down by 32% over last year
Total assets 100,785 crore (US$22.17 billion) (2011)

Supply Chain Characteristics:
Number & Structure Fewer; Clustered
Relationship focus Mutually-beneficial; Performance
Contract length Long-term
Pricing practices Target costing
Price Changes Downward
Delivery Smaller Quantities (JIT)
Inventory buffers Minimized, eliminated
Communication Extensive; multi-level, collaborative; two-way
Role in development Substantial
Production flexibility High
Technology sharing Extensive
Dedicated investments Substantial
Governance Self-governing

Confidential IIM Calcutta - Prep Committee, Created on 19 Feb 2012 Page 2

Awards:
On 12 December 2011, Bharti Airtel recognized for the delivery of best network services with customer focus
at Telecom Centre of Excellence Awards.
Bharti Airtel named amongst the top 25 companies for leaders globally.
6th most valued brand according to an annual survey by Brand Finance and The Economic Times in 2010.

Key Business Divisions:

Airtel DTH:
The Digital TV business provides Direct-to-Home (DTH) TV services across India under the brand name Airtel
digital TV. It started services on 9 October 2008 and was the fastest to reach the first 5 mn customers in Feb
2011. Airtel digital TV is available in areas covered by over 21,000 of the countrys approximately 27,000 pin
codes. Over 70% of its customers today are coming in from towns with a population less than 100,000. This
has made Airtel digital TV the clear leader in share of new customers addition every month in 10 of the 19
state clusters in the country. Tata Sky and Dish TV, the top two private DTH operators in the market, use
MPEG2 technology while the remaining DTH operators, including Sun Direct, Digital TV, Big TV and D2H, use
MPEG4 technology.


*Tentative figures

A survey shows that people are now more willing to switch over to a DTH connection rather than paying
extra to their cable operators. Even within the DTH brands the competition has become quite stiff. Big TV
and Airtel DTH even got involved in Guerrilla Marketing.

Telemedia:
The Telemedia business provides services in 89 Indian cities and consists of two brands. Airtel Broadband
provides broadband and IPTV services. Airtel provides both capped as well as unlimited download plans
[reduced speeds at unlimited data are implied]. The maximum speed available for home users is 16Mbit/s.
Airtel Fixed Line which provides fixed line services. Airtel has about 3.16 million wireline customers, of which
42.6% are broadband/internet subscribers as of August 2010. Until 18 September 2004, Bharti provided
fixed-line telephony and broadband services under the Touchtel brand. Bharti now provides all telecom
services including fixed-line services under a common brand "Airtel".

Mobile:
Airtel has nationwide presence and is the market leader with a market share of almost completely (as of
May 2010). It is 6th most valued brand according to an annual survey conducted by Brand Finance and The
Economic Times in 2010. On 19 October 2004, Airtel 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).
Confidential IIM Calcutta - Prep Committee, Created on 19 Feb 2012 Page 3

The Apple iPhone 3G was rolled out in India on 22 August 2008 by Airtel & Vodafone. Both the cellular
service providers rolled out their Apple iPhone 3GS in the first quarter of 2010. However, high prices and
contract bonds discouraged consumers and it was not as successful as the iPhone is in other markets of the
world. The Apple iPhone 4 was introduced on 27 May 2011 by Airtel & Aircel.
Airtel saw a drop in profits for 2 consecutive years till it restructured its South Asia operations and gained
some ground back in 2011. Other GSM operators like Vodafone and Idea Cellular continued with their gains
while state-owned BSNL/MTNL combine fell further by 1% on the revenue market share chart. The price
wars in the industry continue although Airtel was the first one to increase tariffs in 2011 and the move was
followed by other operators as well.

3G:
On 18 May 2010, 3G spectrum auction was completed and Airtel will have to pay the Indian government
12,295 crore (US$2.34 billion) for spectrum in 13 circles, the most amount spent by an operator in this
auction. Airtel won 3G licences in 13 telecom circles of India: Delhi, Mumbai, Andhra Pradesh, Karnataka,
Tamil Nadu, Uttar Pradesh (east), Rajasthan, West Bengal, Himachal Pradesh, Bihar, Assam, North East,
Jammu & Kashmir. Airtel also operates 3G services in Maharastra, Goa, Kanpur and Kolkata through an
agreement with Vodafone and in Gujarat through an agreement with Idea. This gives Airtel a 3G presence in
15 out of 22 circles in India.

Airtel Rebranding:
On 18 November 2010, Airtel rebranded itself in India in the first phase of a global rebranding strategy. The
company unveiled a new logo with 'airtel' written in lower case. Designed by London-based brand agency,
Brand Union, the new logo is the letter 'a' in lowercase, with 'airtel' written in lowercase under the logo. The
new Airtel campaign is not merely a rebranding. It's a re-launch with a new positioning. An interesting take
on the rebranding exercise can be read here. The Rs 340 crores rebranding costs had brought down Bhartis
net income in the fourth quarter of 2010 by 41%.
*Tentative
Confidential IIM Calcutta - Prep Committee, Created on 19 Feb 2012 Page 4


Important News:

1. Bharti Airtel(India) along with Loop Mobile, Idea Cellular, Reliance Communications and Vodafone was
issued notices by Telecom Regulatory Authority of India(TRAI) for violation of Mobile number portability
(MNP) regulations. Bharti Airtel faces the largest number of complaints, at 893 by December 2011, for
rejecting mobile number porting requests.

2. In March 2010, Bharti struck a deal to buy the Kuwait firm's mobile operations in 15 African countries,
in India's second biggest overseas acquisition after Tata Steel's $13 billion buy of Corus in 2007. Bharti
Airtel completed its $9 billion acquisition of African operations from Kuwait's Zain, making the firm the
world's No. 5 wireless carrier by subscribers.

3. I-T dept slaps Rs 1067cr tax demand notice on Bharti: The notice has reportedly been issued against the
company for non-payment of TDS on overseas operations.

4. Bharti Airtel appointed Suren Goonewardene as CEO Sri Lanka in December 2011.

5. Airtel money - Indias first mobile wallet service by a telecom operator.

6. VAS Fraud: There has been lot of criticism about Airtel for its unauthorised VAS activation. Many of its
services were activated automatically according to a complaint forum. Several thousands of users were
falsely billed, for example downloading wallpaper or ringtones.

7. Rebranding: On 18 November 2010, Airtel rebranded itself in India in the first phase of a global rebranding
strategy. The company unveiled a new logo with 'airtel' written in lower case. Designed by London-based
brand agency, Brand Union,