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Institute of Management Technol

ogy, Ghaziabad

REPORTON

SPGDM P/T [08-11], Ter

DEEPANKER AGRAPRABHJYOT SINGH BH

SUSHAN RUNPARIKSHIT

RAUNAQ SINILESH

Page 1

bmitted By: - V, Group 8AL 08EM-014

TTI 08EM-030

GTA 08EM-048AIN 08EM-028GH 08EM-034AID 08EM-024


Institute Of Management TechnGhaziabad

1. Introduction2. Company History3. Strategic Intent

4. Industry Analysisa. External Analy

i. Industryii. PESTELiii. PORTER iv. Opportuv. Threat

b. Internal Analysi. Strengthii. Weakne

iii. Financial5. Recommendations

ogy, Ghaziabad

ology

isAnalysis

MODELnities

isssesls

Page 2




INTRODUCTION

Bharti Enterprises is onetelecom, agri business, fina

Bharti Airtel, a grouptelecommunications servicmobile services, telemedialways been at the forefrowith its world-class services

In the area of financial servoffer life insurance, general

Bharti Retail, a wholly ownformat consumer friendly sWalmart, for wholesale caoperations.

Other businesses in the gr

and FieldFresh Foods PrivLimited to offer fresh fruitsinternational markets.

BHATI AIRTEL

Airtel is Indias largest intewith a footprint in all the been at the forefront of t

sector in the country with i The businesses at Bharti Ai business units (SBUs) - MServices, Digital TV Services" Mobile business pr

technology across 23" Airtel Telemedia Ser

in 94 cities.

ogy, Ghaziabad

of Indias leading business groups wi

cial services, retail and manufacturing.

ompany, is one of Asias leadinges with operations in India and Sri Laservices and enterprise services. Bhnt of the telecom revolution, transfor built on leading edge technologies.

ices, Bharti has been partnering with Ainsurance and asset management servi

ed subsidiary of Bharti Enterprises opeores, while Bharti Walmart is a B2B joinh and carry and back-end supply chaiup are Beetel for communication andte Limited, a joint venture with Deland vegetables, and processed food in I

grated and the first private telecom se3 telecom circles. Bharti Airtel since itschnology and has steered the courses world class products and services.

tel have been structured into Four indi bile Services, Airtel Telemedia Service

vides mobile & fixed wireless servictelecom circles.ices business offers broadband & tele

Page 3

h interests in

providers of nka, spanningrti Airtel hasing the sector

A of France toes.

ates multiple-t venture withmanagement

edia devices,Monte Pacificndia as well as

vices provider inception hasf the telecom

idual strategic& Enterprise

s using GSM

hone services




" Enterprise servicescustomers and natio

" Digital TV services pr

All these services are prostudy we will concentrate o With 10-crore subscribers icountry mobile servicestelecom company globally.Ventures, the company cro5-crore mark in October company in the world. The

Targeting 20-crore subscriseries of network augmentover one-lakh base stationetwork coverage across tservice management centr rural areas by March 2010,

Airtel at present has 25 per terms of revenue. It is only

Airtel has set a very ambiti2-3 Years.

ogy, Ghaziabad

provide end-to-end telecom solutionsal & international long distance servicesvides Direct To Home Television Servic

ided under the Airtel brand. For then the Mobile Business

n May 2009, Airtel has become the thir perator in the world and sixth largAfter having started its service in 1995ssed the 7.5-crore customer mark in Au007, making it one of the fastest gr irst 2.5-crore subscribers were achieved

ers in the next 2-3 years, Airtel will betion and customer service initiatives.sites by this year-end to set up widhe country and establish a state-of-th, besides setting up one-lakh Airtel ser he said.

cent subscriber share and 30 per cent behind China Mobile and China Unicom.

ous target of doubling the subscriber b

Page 4

to corporateto carriers.s

urpose of the

largest singlest integratedas Bharti Tele-gust 2008 andwing telecomin July 2006.

undertaking ae will roll-outr and deeper -art customer ice centres in

arket share in

se in the next




Company Histo 2009

" Becomes third largessubscriber base of 10

" 70% stake in the Ban

2006-2008" Profit crosses US $ 1" Receiver licenses for " Launch of Airtel Cal

aimed at the Indian" Strategic Partnershi

2005-2006

" All-India Footprint wi" Vodafone acquires 1" Becomes Indias Lar

customer base2004" Airtel announced the l

2001-2003" Joins the US $ 1 Bn r " Strategic Partnershi

Company core IT net" First private operato

2001-2002" IndiaOne, Indias fi

distance service laun" Eastern foray throu

across India" Indias first private s" IPO through India;s fi" First Provate operat

Nadu and Karnataka1999-2000" The largest Private s

Providing Cellular Ser

ogy, Ghaziabad

y

t single country mobile service provideCrore.ladesh business of Abu Dhabi based Wa

Bn providing 2G & 3G mobile services in Sril Home Services a calling card serviceiasporawith Google for search through Mobile

h the launch of mobile services in Assa% economic interest in the Companyest integrated private operator base

aunch of a BlackBerry Wireless Solution i

venue Club

with IBM and Ericsson for outsoork activitiesto launch mobile services in J&K

st private sector national and intehedh acquisition and new licenses for eig

bmarine Cable Landing station in JV witrst 100% book building issuer to offer Landline services in Haryan

ector operator in India after acquiringvices in Punjab, Karnataka and Andhra P

Page 5

by crossing a

rid Telcom

Lankafor countries

on the totaln India

rcing of the

national long

ht new circles

Singtel

, Delhi, Tamil

JT Mobile for radesh




" Acquired Skycell, Che" Singtel acquires stak

1997-98" The first Private tele

telephony in Madhya" Incorporation of Bh

India and Bharti BT In1995-96" Mobile Services und

in Delhi and Himacha" British Telecom Plc (

ogy, Ghaziabad

nnai and expands South Indian Footprinin Company

com service provider to obtain a licen

Pradeshrti BT VSAT Ltd. for providing VSAT sternet Ltd.

r the brand name Airtel launched for l PradeshT) acquires stake in Company

Page 6

e for landline

lutions across

the forst time




Strategic

Promise:We at Airtel always thin

customers and how we waout of our way to delight th

Objectives of th Airtel has set an ambitiouyears. Through this studyWeaknesses, Opportunitiestarget.

ogy, Ghaziabad

k in fresh and innovative ways about thnt them to feel. We deliver what we pe customer with a little bit more

e Study

s target of doubling the subscriber bawe will understand the strategic posi

and threats that will play a role in ac

Page 7

Intent

needs of our romise and go

e in next 2-3ion, Strength,ieving Airtels




External Analys

Indian Telecom Sector The Indian telecom Sector to 525 Million telecom clargest market, second tolowest in the world.

The India population standrelatively large young popucurrent Telecom penetratiis one of the lowest in the

well as increased penetraBroadband subscribers alsagain the lowest in the broadband subscribers by 2

ogy, Ghaziabad

s

nalysisas seen a phenomenal growth and curr stomers. Indian telecom market isonly China. However the penetration

s close to 1.2 billion with increasing ur lation, which is a major driver for telecn stands at 44.87% ie 525.65 mn telecorld. The growth will come from expan

tion, giving dual advantage. Growth ias the penetration is just 0.63% 7.4orld. Government has set a target to010.

Page 8

ntly has closeorlds secondis one of the

anization andm sector. Them subs whiching market as

s expected inmn, which isreach 20 mn




Indias Competitive AdThe Porters Diamond ModMobile Sector. All Five factRivalry; Factor Conditions

Conditions are Favorable

ogy, Ghaziabad

antage in Mobile Sector el below shows the Competitive Advanrs namely Government; Firms Strategy,; Related and Supporting Industries

Page 9

tage of IndianStructure andand Demand


PESTEL Analysis

Political and Regulatory Iss

Political factors are howeconomy. The unprecedenwell supported by the polic January 2010" Proposal to Waiver o

2009" Regulatory on Qualit" Interconnection Reg" Interconnection Usa

" Resale of Internation" GoM has been const

2008" Guidelines for 3G Sp" DoT issues 121 Lette" Guidelines for Mobil" DoT allows active inf

2007" Dual Technology Allo

2006" Number portability p

2005" An attempt to boost

" FDI limit was raised f 2004" Intra-circle merger g

" Broadband Policy 20

by2010

2003" Calling Party Pays (CP" Unified Access Licens

" Reference interconn2002

ogy, Ghaziabad

ues

nd to what degree a government intted growth of the Indian telecom indreforms. Some of the key Highlights ar

License fees in Rural Areas

of Services for Telecom Sector lation for Broadcasting Sector

e Charge Regime- Charges have been ral Private Leased Circuit (IPLC)itutes to decide the pricing of 3G Spectr

ctrum Auction issued. Foreign Players als of Intent (LoIs) for UAS licences Number Portability Servicesastructure sharing

ed

roposed

ural telephony was made om 49 to 74 per cent

idelines were established 4 was formulated to target 20 million

P) implementeding (UAL) regime established ct order issued

Page 10

rvenes in thestry has beengiven below:

ionalized

m

lowed to bid.

internet users




" ILD services unlocke" Go-ahead to CDMA t" Initiation of internet" Reduction of license

2001" Additional licenses in" Reduction of license

" Limited launch of CD" Reduction of GSM ce" Widening of service" Initiation of 3rd and

.

The above table from TRAIservices and hence on thecharges in India are amongthe licensing fees. clearly, tdevelop and provide qualit

ogy, Ghaziabad

to competitionechnologytelephony in Indiafees

basic and cellular servicesfee MA WLL (M)llular tariff overage by the then playersth GSM operator networks

shows the impact of various regulationssubscriber base between 1998 and 20st the lowest in the World due to graduhe above regulations have helped the Sservice at affordable prices.

Page 11

on the cost of 7. The Mobileal reduction inector to grow,




ECONOMICEconomic factors includethe inflation rate. These faand make decisions. It is udecent levels of Inflation anwhich is fuelled by the gr telecom is said to contributelecom will continue toEconomic factors in India lGrowth of the Mobile indus

SOCIAL

Social factors include thdistribution, career attitud product or a service. Firstllowest mobile penetrationSecondly, 35 % population

base. Thirdly, Urbanizatioconnectivity. This also hinimpetus for Growth.

Clearly the Social Scenario i

ogy, Ghaziabad

conomic growth, interest rates, exchactors have major impacts on how busidisputed that India is a long term grod GDP. India is still posting a robust growth in the services and manufacturinte to the growth of Economy. And in I play an important role. Hence we for ike Growing GDP and disposable incotry.

cultural aspects, population grows etc.. Trends in social factors affect thy, India has favorable Social factors win the second most populous countrys below 14 yrs of age which is a huge fu

is increasing leading to an increasets that growth in the rural industry c

s also in favor of the industry.

Page 12

nge rates andesses operateth Story with

th of 8 % GDPsectors. The

dias case theesee that thee will help in

th rate, agedemand for ath one of the

in the world.ture customer demand for an be a good




TECHNOLOGICALTechnological factors incluas R&D activity, automatiochange. They can determinand influence outsourcingcosts, quality, and lead to i The Indian telecom sectcompanies in various areas,distance calls, value added

The above diagram showsin the Mobile Industry." 3G Services The Ne

In the conducive bus

services. The global r services. India expecmarket is well poiscategories such as sp

" Worldwide Interope

Digital Divide

ogy, Ghaziabad

de technological and environmental, technology incentives and the rate obarriers to entry, minimum efficient p

ecisions. Furthermore, technological snovation.

r offers unprecedented opportunitisuch as 3G, virtual private network, int

ervices, etc.

arious Technologies that will provide G

Buzz Word iness environment, India Inc. awaits th

evenue for 3G is 60 per cent higher thas to replicate its 2G growth in 3G servid to leverage the 3G service offerinorts, games and music.ability for Microwave Access (WiMAX

Page 13

aspects, suchf technologicaloduction levelifts can affect

s for foreignrnational long

owth Avenues

rollout of 3G

that of other es. The Indiangs in content

Bridge the




" Infrastructure Sharin

Optimizing Costs In twill improve coveragActive InfrastructureAntenna systems,infrastructure with s

" Value Added Service

Rolling out of advaadvancement and he

Porters Five Forces Mo"Porter's five forces" is astrategy development dSchool in 1979. It useseconomics to derive five f therefore attractiveness of overall industry profitabilcombination of forces actsindustry would be one appr

ogy, Ghaziabad

e midst of the telecom boom, commonand quality of calls and reduce costs.sharing has started in 2008 which enaables and transmission systems, Bitches and networking).(VAS) nced VAS has been possible due tonce creating higher value for Buyers and

elframework for the industry analysis

veloped by Michael E. Porter of Har

concepts developing Industrial Orgorces that determine the competitivea market. Attractiveness in this contexity. An "unattractive" industry is oto drive down overall profitability. A veoaching "pure competition".

Page 14

infrastructure

les sharing of

ackhaul (core

TechnologicalSellers.

and businessard Business

nization (IO)intensity andrefers to the

e where they unattractive


We will study the Above 5

Competitive RivalryThe Competitive Rivalry in

players enter the industry." The Competition iscustomer brings witcompetition.

Here we shall discuss two l1. Bharat Sanchar Niga

the seventh-largestwide range of servimobile, internet, bro

BSNL is the largestservices helping it toareas.Rural PenetrationBSNL is playing a learural areas. It has beby pioneering its ser India, except Delhi astate-owned player.Low Cost Strategy

BSNL is a low-costhelped BSNL in penet

2. Reliance CommunicaReliance Communicaabout a digital revoluvast population withReliance Infocom, postcards, built a 60,the entire country. R its eight circle footpri

world mobile portal.1X network.Integrated Service

ogy, Ghaziabad

orces model for Mobile Sector in the In

India is high and will continue to in

price and quality based. The entryh it a new set of price cut and he

rge Competitors of Airtel and their StratLtd. BSNL, a state-owned service prov

elecommunication company in the woces in India, such as wireline, CDMAdband, carrier, MPLS-VPN, VSAT, VoIP, Ioperator in basic services in India westablish its presence as the largest op

ership role in developing the telecom inen successful in increasing its cellular sices in the rural terrain. Its services covnd Mumbai, which are covered by M

ervice provider of many services. Thirating the market.tionstions, previously known as Reliance Inf tion in the Indian telecom industry by pr affordable means of information and cith the aim of making mobile calls000-kilometre-long fibre optic backboneliance currently offers its services in 3nts; it also initiated mobile data serviceThis portal leverages the data capabilit

Page 15

ia.

rease as new

of every newce intensifies

egies:ider in India, isrld. It offers amobile, GSM N, etc.th its cellular erator in rural

frastructure in bscriber baser the whole of NL, the other

strategy has

com, broughtoviding Indiasmmunication.cheaper than

, crisscrossing40 towns withthrough its R-of the CDMA




From the beginnicommunication servigreater number of hNokia.Large Distribution NReliance has creatcommunication stor expanding its reach aelectronic recharge o

Other Competitors being Id Competitive Rivalry is high i

ogy, Ghaziabad

ng, Reliance believed in providies to its customers. The company claimndsets compared to those sold by the

twork d the largest chain of digital enter es Reliance Web World. The coggressively through retail outlets, salesutlets.

ea, MTNL, Vodafone, Telenor, Spice, Ora

n the Mobile Sector

Page 16

g integrateds that it sells aarket leader,

tainment and pany is alsogents and

nge


Supplier Power

The supplies in Mobile sService providers and the H

Network Equipments: Ther Nokia Siemens, Ericsson, Hsuppliers the power of thesof the operators if supplies

Tower Providers: Though tTowers but still the covera bargaining power of Tower

Handset Suppliers: Nokia players. The bargaining pcompeting amongst thems Overall we can make outIndustry

Buyer Power

" Switching cost is lowhich will lead to fur services are not met.

" The Voice and messathe competition nosimilar across the op

" The customers areintroduction of pay p

" Buyers are wanting

Hence the companies haveSatisfaction.

ogy, Ghaziabad

ctors primarily comprise of Switch Suandset providers.

e are limited Network Equipment providawei. Due to the increase in demand ane suppliers are high and may impact theare not smooth.

he new sharing technology has helpede remains a problem due to few Towe providers if High.

Samsung, LG, Sony, iPhone and nuwer of Handset Suppliers is less aslves

that the key supplies powers are hi

. Government is also introducing Numther switching between the operators if

ge based services are moving toward adepends mostly on the prices as th

rators.emanding more value for money whier second plans.

ore and more value added service at ch

to now focus on Customer Delight and

Page 17

pliers, Tower

ers like ZTEd limitedgrowth plan

in utilizing ther provider The

merous other they are also

h for Mobile

ber portabilitythe prices and

commodity ase services are

ch has lead ti

aper prices

not Customer




Threat of Substitutes" The VOIP is getting p" Video Conferencing i" CDMA is another thr

The threat of substitutes isimilar quality and service

Potential for New Entrants " The government is al" Many mobile players NLD/ILD operations.

" The sharing business

down the capital req The potential for new entra

The above External anOpportunities and Threats

Opportunities:" Exponentially Growin

" The Rural Landscapefees in rural areas.which is just 15 % provides a massiveRural Household coRural segment is curr

" New Technologies anthe proliferation andevolve their infrastrufrom the base stati

auctions is due wConvergence will bservices, using IP as t

ogy, Ghaziabad

pular for Eg. Skype, Vonage etc.also getting popular at to GSM players

high as the alternate modes are muc

o issuing new licenses in the current cir are also entering the enterprise busine

has reduced the capital requirement anirement for new player.

nt is also high.

Macro-Environment Analysis proaced by Airtel which can be summarize

g Market both in size and usage: The Regulators have proposed the waClubbing the regulators policy with l provides immense opportunity to Airtopportunity for Airtel to expand its cprise of 70 % of Indias Population.ently 8-10 % per monthd Paradigms: As growth in data traffic aadoption of web services the telecom

cture through their access transmissionons to the core switching network.ich provides a big opportunity tovital phenomenon to support all nhe strategic technology

Page 18

cheaper with

les.s by launching

thus bringing

ides us theas below:

iver of licensew teledensityel. Rural areastomer base.he growth in

celerates with

operators willinfrastructureG and BWAhe company.twork and IT




" Strong Strategic Par with Singtel, which hdue to technology tr and technology par

solutions." Value Added Serviceoperators. Airtel haexploited further for

Threat

" Increased Competitiwireless market in players in to newer

CDMA technology.national long distapressure of marketin

" Substitutes like VOIthreat to internation

ogy, Ghaziabad

nerships for Technology: Airtel has str s helped in providing quality services tnsfer. AIrtel also has strong alliancestners who also drive development a

s: These services bring both Value tos special services and the opportunit better profitability.

n may reduce market share and /or the year 2008-09 saw the entry of

circles along with operators migratingThe market also saw entry of intece operators. This has lead to tarif g expenditure in the coming year.for eg Skype, Vonage etc. these ser al long distance calls.

Page 19

ategic alliancethe customer ith equipmentnd innovative

ustomers andcan still be

Revenue: Theany existing

to GSM fromrnational anderosion and

ices are a big




Internal Analysi

Asias leading providers of licensed jurisdictions (alsoServed an aggregate of 1whom 110,511,416 subscServices either for voice anDSL. The largest wireless scustomers as of Septembsolutions to our enterprisconnectivity both nationallAll these services are rende

The company also deploysto telecom operations undowns 42% of Indus Towerstop providers of passive inf

Strength:" 3rd Largest Wireless o" Largest private integ" 6th Largest integrated

" Largest wireless oper " Largest private fixed l" Largest telecom com

Weakness:

" An often cited originSunil Bharti Mittal oexperience of howstart-up business had

" Until recently Airtel

strength of some of important if your co

" The fact that the Air could signal the lack

ogy, Ghaziabad

s

elecommunication services with presen

nown as Telecom Circles) in India, and i3,439,670 customers as of Septembeibe to GSM services and 2,928,254/or broadband access delivered througrvice provider in the country, based oner 30, 2009. Offer an integrated suicustomers, in addition to providingand internationally. Also offer DTH and

red under a unified brand Airtel.owns and manages passive infrastruct

r its subsidiary Bharti Infratel Limited.Limited. Bharti Infratel and Indus Toweastructure services in India.

perator in the worldated telecom company in India

telecom operator in the worldator in Indiaine operator in Indiaany listed on Indian Stock Exchanges

al weakness is that when the businesser 15 years ago, the business has littlecellular telephone system actually wto outsource to industry experts in the

did not own its own towers, which wits competitors such as Hutchison Ess pany wishes to provide wide coveragetel has not pulled off a deal with Soutof any real emerging market investme

Page 20

e in all the 22

Srilanka.30, 2009; of se Telemedia

he number of e of telecomlong distanceIPTV Services.

ure pertainingBharti Infratelrs are the two

as started bynowledge andorked. So the

ield.s a particular r. Towers areationally.Africa's MTNt opportunity




for the business once Business Units 1. Mobile/Wireless ServicIndia and Sri Lanka. Weon the number of custSeptember 30,2009 andas on September 30, 2added services through1,362,464 outlets. Our nnon-census towns andthe countrys populatilaunches in the world wimonths of launch. Airtel

Sri Lanka. The companycreated a wide distributretailers across the counProduct Portfolio

ogy, Ghaziabad

the Indian market has become mature.

s: We offer mobile services using GSM

re the largest wireless service provider mers. We had 110,511,416 mobile cucustomer market share of 23.5% of wi

09.We offer post-paid, pre-paid, roaour extensive sales and distribution chetwork is present in 5,072 census townsillages in India, thus covering approxin. Airtel Sri Lanka is amongst the f th a base of over 1 million customers wialready has presence in 16 administra

has launched 3.5G services in the major ion network comprising of 23 distributtry.

Page 21

technology in

in India, basedtomers as onreless market,ing and valuennel coveringand 429,723ately 83% of stest growinghin sixive districts of

towns and hasrs and 15,000


ogy, Ghaziabad Page 22Institute of Management Technol

2. Telemedia Services: We(fixed line) in 95 cities wSMB segment. We hadwhich 40.5% were subsofferings in this segmen

local, national and inter Broadband Internet acc

ogy, Ghaziabad

provide broadband (DSL), data and teleith growing focus on the various data s2,928,254 customers as on Septembcribing to broadband/ internet servicesinclude installation of fixed-line teleph

ational long distance voice connectivityss through DSL.

Page 23

hone serviceslutions for ther 30, 2009 of ? Our productnes providing

and




Product Portfolio

Strategies

ogy, Ghaziabad Page 24Institute of Management Technol

3. Enterprise Services: Ecommunications serviceWe provide long distanccustomers. We own a st

network infrastructureIndia and connectinginfrastructure compriseand SDH POPs and over India reach in 301 LDCAOur international infrastsystem connecting Chensubmarine cable systeSingapore, and investmacross transatlantic an

systems such as Asia AEurope (IMEWE), UnitySubmarine System (EASWe have also built ter such as Nepal and Bhutlarge corporates. Wetelecommunication neesuite of communicationmanaged services. We sunique requirements

Manufacturing and DisPSUs and Retail amoInternational MPLS ServiDomestic and InternatiAudio and Video confer Professional Services,Access Services, Fixedsolutions, Domestic andenablement solutions.

ogy, Ghaziabad

nterprise Services is Indias leadingto large Enterprise and Carrier custome wholesale voice and data services to oate of the art national and internationanabling us to provide connectivity servicIndia to the world. Our nationalof 113,326 Rkms of optical fibre, ov1,500 POIs with the local exchanges, ps and 1275 SDCAs.ructure includes ownership of the i2i sunai to Singapore, consortium ownershiconnecting Chennai and Mumbai t

ent in a number of diverse submarinetranspacific routes. Our investments

erica Gateway (AAG), India Middle EasNorth, EIG (Europe India Gateway) ay) will expand our global network acrosestrial express connectivity to neighbn. We deliver end to end telecom soluserve as the single point of cos for corporate customers in India byservices across data, oice, network inecialize in providing customized solutioof different industry verticals; B

tribution, Media, Education, Telecom,ng others. These services include;ces, Internet Services, Remote Access Vnal Private Leased Circuits, Satellite sencing, Datacenter Services, Network Ianaged Network Services, TerrestrialLine and Converged Voice Services,International Toll free services and Mo

Page 25

provider of rs.er 400 carrier l long distancees both withinlong distancer 1,500 MPLSroviding a pan

bmarine cableof the SMW4Europe and

cable systemsin new cable

and Westernd East Africa5 Continents.

ring countriesions to Indiasntact for allroviding a fulltegration, ands to addressSI, IT, ITeS,Government,omestic and

N Services,rvices (VSAT),tegration andand Wirelessontact centre bile enterprise






5. Passive Infrastructure Sservices on a non-discriInfratel deploys, ownsIndia. Infratel also holdsBharti Infratel, Vodafoncircles common with Inf 29,112 towers in 11 circthe right of use has beeIndus Towers has a poright of use.

ogy, Ghaziabad

ervices: Bharti Infratel provides passiveinatory basis to all telecom operators iand manages passive infrastructure in42% share in Indus Towers (a Joint Vee and Idea Cellular). Indus operates iratel, 12 circles on exclusive basis). Bhales, excluding the 35,066 towers in 12 cin assigned to Indus with effect from Jatfolio of 100,728 towers including the

Page 27

infrastructuren India. Bharti11 circles of

ture between16 circles (4

rti Infratel hasrcles for whichnuary 1, 2009.towers under


Financials

" The consolidated To2009 of Rs.19,787 cr

15% on a year on yea" EBITDA margins impr of the previous year.

" The Net Income for crore, a growth of 19

" The strong Free CasNet Debt to Rs.4,21all-time low of 0.12.

" The consolidated To2009 of Rs. 9,846 cro

" The Company continsecure cost efficienci

" EBITDA at Rs. 4,142margins improved to previous year.

" Bharti had 113.4 mnthe total customer bmaintained its leadwireless subscribers

Highlights for the Half Year " otal Revenues of " EBITDA of Rs.8,29" EBITDA margin at" Cash Profit of Rs." Net Income of Rs.

Highlights for the Second" Overall customer " Net addition of 82

" Market leader subscribers at 23.

" otal Revenues of

ogy, Ghaziabad

al Revenues for the half year endedre grew by 13% and EBITDA of Rs. 8,293

r basis.oved to 41.9% from 41.3% in the corres he half year ended September 30, 200% over last year.Flow of Rs. 2,617 crore resulted in thcrore, with the Net Debt to Equity rat

tal Revenues for the quarter ended

re grew by 9%.ued to leverage its scale and vendor ps, leading to improved margins.crore grew by 12% on a year on year 42.1% from 41.0% in the correspondin

customers, as on September 30, 2009,se of 42% over the corresponding perioership position through market shar t 23.5%, as on September 30, 2009.

ended September 30, 2009Rs. 19,787 crore (up 13% Y-o-Y).crore (up 15% Y-o-Y).

41.9% (prior year: 41.3%),511 crore (up 32% Y-o-Y).4,838 crore (up 19% Y-o-Y).

uarter ended September 30, 2009ase at 11.34 crore.44 lakh customers in a single quarter.ith a customer market share of all%.Rs. 9,846 crore (up 9% Y-o-Y).

Page 28

eptember 30,crore grew by

onding period

was Rs.4,838

e reduction of io reaching an

eptember 30,

artnerships to

basis. EBITDA period of the

an increase in

last year andof all India

India wireless




" EBITDA of Rs. 4,1" EBITDA margin at" Cash Profit of Rs." Net Income of Rs.

ogy, Ghaziabad

2 crore (up 12% Y-o-Y).42.1% (prior year: 41.0%),099 crore (up 31% Y-o-Y).2,321 crore (up 13% Y-o-Y).

Page 29




ogy, Ghaziabad Page 30




RECOMMENDA

After the complete analrecommendations which ar PRICING

Depending on the marketservice providers and also tmechanism (either at centr

IMPROVEMENT IN TECHN Airtel should immediately sswitches. This will improvsimultaneous integration wthe transmission towers sh ESTABLISHMENT OFDISTRI Airtel should establish widthe competitors. The distr available at convenient loca UNTAPPED RURALMARKE Large part of Indian rural

bring that area under mobil

ogy, Ghaziabad

IONS

ysis of entire STUDY we put forw

e as follows:

conditions / competition from cellular o suit local conditions, there should bel or local level).

LOGY

hift to third generation switches by repthe quality of service to desired lev

ith the nationwide network. The specialuld be increased to avoid no signal po

BUTION CHANNELS

spread and conspicuous distribution toibution network shall make the prodtions

arket is still untapped therefore Airtelity.

Page 31

rd a set of

r WLL-mobilelexible pricing

lacing its c-dotl and providedistribution of kets

match that of ct visible and

is required to

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