Digital & Data Business

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Digital and DataBusiness

2012



airtel iCreate 2012

Current Business Context:

India has witnessed a rapid acceleration of Mobile Voice Consumption and today has over

800 mln Mobile Customers. Mobile Telephony has changed the way Indians communicate

with each other and had significant impact on lifestyles, the economy and bridging distances

and divides - across various barriers and spectrums

Bharti airtel as the Leading Mobile Operator in the country has been instrumental in making

mobile services available across the length and breadth of this country through innovative

products, marketing strategies and through extensive network deployment backed by the

best distribution infrastructure in this country

Over the course of the last 3-4 years , the Mobile phone has become a " lifestyle enabler"

and a extension of oneself for the consumer offering much more than pure " voice

connectivity" to the user.

BUSINESS CASE

airtel would like to make the transition from being a Telecom Voice Service Provider to a

digital/data Services Provider as a logical extension of keeping pace with the changing

dynamics of the usage patterns of customers

With one of the lowest tariffs in the world, the Indian telecom industry is facing

unprecedented pressures on margins which warrant an accelerated transition to non voice

Revenue generation in the Digital Space and the Data Space (Mobile Internet, 2G, 3G and 4G

LTE)

CASE OBJECTIVES

1. To build and present a comprehensive 360 plan outlining the key strategies & go to

market imperatives that airtel needs to execute for a successful transition into the Digital &

Data business.

Sub Objective 1:

How does airtel create an ecosystem that helps in accelerated penetration of Mobile

Internet/Data & also drives consumption amongst existing users of Mobile Internet?



airtel iCreate 2012

Context:

Bharti airtel has a significant % of customers that have Data Enabled Devices with them

who do not use Data through their Mobile Device. Also the usage/consumption amongst

people who are using is very nascent and not consistent

With ~ Rs 14000 crores spent for License fee for 3G Services, offtakes on 3G have to be

accelerated at a rapid pace.

Given India's population, a large part of our customers are in rural markets (defined as <

20K Population). How can synergy be leveraged between Rural customers and the world

of Mobile Internet as a sustainable business model for Bharti airtel?

Prima Facie evidence clearly suggests that consumption is a function of need and ALSO

the device that the consumer is using. Hence consumption of Mobile Internet/Data is

higher on Smartphones as compared to Featurephones.

Sub Objective 2

What are the key enablers/alliances that Bharti airtel should be cognizant of and also

participate actively in to create an environment that helps it meet its business objectives?

Context

The fundamental requirement to access the world of internet through the mobile deviceis the need for having a GPRS Phone for 2G Services or a 3G Enabled device (like an

Iphone, Other smartphones). Hence what should be Bharti airtel's approach to possible

alliances

Content partnerships

Smart alliances with Internet companies - like google/facebook/others as required

Sub Objective 3

Given that Bharti airtel has been a very successful business in the last 15 years - how do

we build a culture/people DNA that enables success for us in this transition?

Context

Bharti airtel has a successful set of employees who have grown with the organization

and actively participated in the success that has been seen in the last 15 years

However, the transition requires an enhanced level of understanding of the

internet/data space. Speed to Market, Innovation and strong consumer insights would

be required to enhance chances of success.

What & how should airtel focus on building mindset, DNA and a culture that creates the

right environment for success? What should be Bharti airtel's organizational investments towards this cause?



airtel iCreate 2012

Sub Question 4

How can Bharti airtel Leverage its Current Assets (Customer quantum & customer

behaviour, Infrastructure, Distribution, Core Competencies) to build competitive

advantage over its key competition?

Bharti airtel is the ONLY integrated player in the country with a strong presence across

Mobile, DTH (Direct to Home) and Telemedia/Broadband Services on its Fixed Line/Fibre

Network. Our product offerings pan across Consumer Segment (B2C) and Enterprise

Segment

With 200 Mln Customers across these 3 Business Lines and with a World Class

Distribution Infrastructure - it is possibly best poised to make the transition. What

specifics actions/initiatives need to be done to ensure that these core strengths around

these elements are leveraged to the max to build a competitive edge over the other

players

INDUSTRY/MARKET CONSTRAINTS

The telecom Industry has 12-13 operators in the voice space and hence it is a

competitive market. Any product changes - specially pricing is likely to be copied in the

next 48-72 hours by the key operators

3G is offered in the operating states by the incumbent (BSNL/MTNL) and 3 (depending

on allocation of 3G Licenses post bidding) private operators.

While a significant amount of Customer Analytics based on their usage behaviour is

available - demographically the analytics are moderate and typically have not been used

extensively for segmented propositions

All operators follow their own segmented strategies for targeting customers with value

propositions and offers

Overall the customer (on voice) is price sensitive and also well informed. Insights on Mobile

Internet/Data, Customer Needs and consumption/usage behaviour are significantly lower

than Voice.

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Digital & Data Business