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8/3/2019 Bharti Airtel User Base in Africa Crosses 50-m
http://slidepdf.com/reader/full/bharti-airtel-user-base-in-africa-crosses-50-m 1/14
Bharti Airtel Limited
User Base in Africa Crosses 50 - Million mark
8/3/2019 Bharti Airtel User Base in Africa Crosses 50-m
http://slidepdf.com/reader/full/bharti-airtel-user-base-in-africa-crosses-50-m 2/14
o Largest Private Integrated Telecom Company in India
o LARGEST WIRELESS service provider in India bysubscribers
o 5th LARGEST MOBILE telecom operator in the world
o 3 LARGEST in-country wireless service operator in world
o Amongst the LARGEST providers of passive infra (by tow
ers)
Strengths
Internal
o Decline in Customer market Share
o Decline in ARPU’s ( Average Revenue per Minute)
o Not much of presence in Rural India.
Factors
Weaknesses
8/3/2019 Bharti Airtel User Base in Africa Crosses 50-m
http://slidepdf.com/reader/full/bharti-airtel-user-base-in-africa-crosses-50-m 3/14
o Airtel essentially has two large businesses, India (mature
asset) and Africa (growth).
o Untapped Landscape – Rural Indiao New Technologies and Paradigms – 2G & 3G
o Growing overseas – Srilanka, Bangladesh and Africa (
presence in 16 African countries )
o Strong Strategic Partnerships
External
Opportunities
o MNP – can be double edged sword -
o Increased Competition - by new (green field operators )
and current players.
o Regulatory Environment (TRAI & others)- uncertain
regulatory environment in India even globally
Factors
Threats
8/3/2019 Bharti Airtel User Base in Africa Crosses 50-m
http://slidepdf.com/reader/full/bharti-airtel-user-base-in-africa-crosses-50-m 4/14
Prepare for BPR
o Build Cross Functional Team
o Identify Customer driven objective
o Develop Strategic Purpose
External
Opportunities
Factors
Threats
8/3/2019 Bharti Airtel User Base in Africa Crosses 50-m
http://slidepdf.com/reader/full/bharti-airtel-user-base-in-africa-crosses-50-m 5/14
Affordability
Drive affordability– more users– more usage
Business Model – “Minutes Factory”
PositiveElasticity
Increase inUsage
Economies of Scale (CostEfficiency)
ImprovedProfitability
Strategy
High usage environment, while building customer
base profitably…..
8/3/2019 Bharti Airtel User Base in Africa Crosses 50-m
http://slidepdf.com/reader/full/bharti-airtel-user-base-in-africa-crosses-50-m 6/14
In India, the major investments have been
made; the revenues are large and growing,
and the high competition is expected toease up. (But when you consider the near
Significant
Synergies
Bharti Airtel buying the African assets of
Zain, a Kuwaiti operator, in June 2010 for
$10.7bn was with an objectives of
long term strategic benefits
Opinion
Airtel essentially has two large businesses,
India (mature asset) and Africa (growth).
saturation point being reached in the
Indian market –it is easy to see why Bharti
is pumping money into the rest of its
business.
It is easy to see why Bharti has switchedfocus to the African market. Not only is the
company practiced at providing a low-cost,
high-volume model in its home market; it
is also acutely aware of the growth
potential in exploding Africa’s middle
class
8/3/2019 Bharti Airtel User Base in Africa Crosses 50-m
http://slidepdf.com/reader/full/bharti-airtel-user-base-in-africa-crosses-50-m 7/14
Opinion
Bharti Airtel has a leadership position in a large
number of the 16 African countries with 3G
spectrum across 10 countries
and enjoys limited competition
Has its eyes firmly trained on Africa where it
has bumped its investment up by some $491m
– that’s 586 per cent – over the past year.
Product Type India Africa
Mobile Penetration 68% 51%
Average Number of Competitors 10-14 + 3-5
Business ModelHigh usage, low
tariff modelLow usage high
tariff model
Minutes of Usage per sub 423 128
ARPU (US$) $4.0 $7.3
ARPM (US cents ¢) < 1.0¢ 5.7¢
ompar son o n a an r can e ecom ar e s
8/3/2019 Bharti Airtel User Base in Africa Crosses 50-m
http://slidepdf.com/reader/full/bharti-airtel-user-base-in-africa-crosses-50-m 8/14
Bharti Airtel Limited
User Base in Africa Crosses 50 - Million mark
8/3/2019 Bharti Airtel User Base in Africa Crosses 50-m
http://slidepdf.com/reader/full/bharti-airtel-user-base-in-africa-crosses-50-m 9/14
o Largest Private Integrated Telecom Company in India
o LARGEST WIRELESS service provider in India by
subscriberso 5th LARGEST MOBILE telecom operator in the world
o 3 LARGEST in-country wireless service operator in world
o Amongst the LARGEST providers of passive infra
(by towers)
Strengths
Internal
o Decline in Customer market Share
o Decline in ARPU’s ( Average Revenue per Minute)
o Not much of presence in Rural India.
Factors
Weaknesses
8/3/2019 Bharti Airtel User Base in Africa Crosses 50-m
http://slidepdf.com/reader/full/bharti-airtel-user-base-in-africa-crosses-50-m 10/14
o Airtel essentially has two large businesses, India (mature
asset) and Africa (growth).
o Untapped Landscape – Rural Indiao New Technologies and Paradigms – 2G & 3G
o Growing overseas – Srilanka, Bangladesh and Africa (
presence in 16 African countries )
o Strong Strategic Partnerships
External
Opportunities
o MNP (Mobile number portability) – can be double
edged sword -o Increased Competition - by new (green field operators )
and current players.
o Regulatory Environment (TRAI & others)- uncertain
regulatory environment in India even globally
Factors
Threats
8/3/2019 Bharti Airtel User Base in Africa Crosses 50-m
http://slidepdf.com/reader/full/bharti-airtel-user-base-in-africa-crosses-50-m 11/14
External
Opportunities
Factors
Threats
8/3/2019 Bharti Airtel User Base in Africa Crosses 50-m
http://slidepdf.com/reader/full/bharti-airtel-user-base-in-africa-crosses-50-m 12/14
Affordability
Drive affordability– more users– more usage
Business Model – “Minutes Factory”
PositiveElasticity
Increase inUsage
Economies of Scale (CostEfficiency)
ImprovedProfitability
Strategy
High usage environment, while building customer
base profitably…..
8/3/2019 Bharti Airtel User Base in Africa Crosses 50-m
http://slidepdf.com/reader/full/bharti-airtel-user-base-in-africa-crosses-50-m 13/14
In India, the major investments have been
made; the revenues are large and growing,
and the high competition is expected toease up. (But when you consider the near
Significant
Synergies
Bharti Airtel buying the African assets of
Zain, a Kuwaiti operator, in June 2010 for
$10.7bn was with an objectives of
long term strategic benefits
Opinion
Airtel essentially has two large businesses,
India (mature asset) and Africa (growth).
saturation point being reached in the
Indian market –it is easy to see why Bharti
is pumping money into the rest of its
business.
It is easy to see why Bharti has switchedfocus to the African market. Not only is the
company practiced at providing a low-cost,
high-volume model in its home market; it
is also acutely aware of the growth
potential in exploding Africa’s middle
class
8/3/2019 Bharti Airtel User Base in Africa Crosses 50-m
http://slidepdf.com/reader/full/bharti-airtel-user-base-in-africa-crosses-50-m 14/14
Opinion
Bharti Airtel has a leadership position in a large
number of the 16 African countries with 3G
spectrum across 10 countries
and enjoys limited competition
Has its eyes firmly trained on Africa where it
has bumped its investment up by some $491m
– that’s 586 per cent – over the past year.
Product Type India Africa
Mobile Penetration 68% 51%
Average Number of Competitors 10-14 + 3-5
Business ModelHigh usage, low
tariff modelLow usage high
tariff model
Minutes of Usage per sub 423 128
ARPU (US$) $4.0 $7.3
ARPM (US cents ¢) < 1.0¢ 5.7¢
ompar son o n a an r can e ecom ar e s