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Sahana, Sandeep , Sanjan, Sachin,

Sabyasachi……
INDIAN TELECOMMUNICATION
SECTOR
•Indian telecom industry is growing at a great pace & India
is expected to become a manufacturing hub for telecom
equipment.
•Indian telecom equipment manufacturing sector is set to
become one of the largest sectors globally by 2010. Due to
rising demand for a wide range of telecom equipment,
particularly in the area of mobile telecommunications, has
provided excellent opportunities to domestic and foreign
investors in the manufacturing sector.
•The Indian telecom market is expected to grow three fold
by 2012 & market size over US $ 8 billion. Moreover the
government has set a target of 20 million broadband
connections by 2010.
Cont.

• India is the world's fastest growing Wireless market, with 752


Million mobile phone subscribers as of February, 2011. It is
also the second largest telecommunication network in the
world in terms of number of wireless connections after China. 
• As the fastest growing telecommunications industry in the
world, it is projected that India will have 1.159 billion mobile
subscribers by 2013.
INTRODUCTION TO
AIRTEL
• Bharti Airtel Limited formerly known as Bharti Tele-Ventures
LTD (BTVL) is an Indian company offering telecommunication
services in 19 countries. It is the largest cellular service
provider in India, with more than 141 million subscriptions as
of August 2010. Bharti Airtel is the world's third largest,
single-country mobile operator and fifth largest telecom
operator in the world with a subscriber base of over 180
million. It also offers fixed line services and broadband
services.
• It offers its telecom services under the Airtel brand and is
headed by Sunil Bharti Mittal.
Cont.
• Bharti Airtel is the first Indian telecom service provider to achieve
this Cisco Gold Certification. To earn Gold Certification, Bharti Airtel
had to meet rigorous standards for networking competency,
service, support and customer satisfaction set forth by Cisco.
• The company also provides land-line telephone services and
broadband Internet access (DSL) in over 96 cities in India.
• The company is structured into four strategic business units -
Mobile, Telemedia, Enterprise and Digital TV. The mobile business
offers services in 18 countries across the Indian Subcontinent and
Africa. The Telemedia business provides broadband, IPTV and
telephone services in 89 Indian cities. The Digital TV business
provides Direct-to-Home TV services across India. The Enterprise
business provides end-to-end telecom solutions to corporate
customers and national and international long distance services to
Telco's.
AIRTEL ENTERPRISE
SERVICES
•The businesses at Bharti Airtel have been structured
into three individual strategic business units (SBU’s) -
mobile services, broadband & telephone services (B&T)
& enterprise services. The mobile services group
provides GSM mobile services across India in 23
telecom circles, while the B&T business group provides
broadband & telephone services in 90 cities. The
Enterprise services group has two sub-units - carriers
(long distance services) and services to corporate. All
these services are provided under the Airtel brand. 
Cont.
Threat of New
Entrants..
• 3G Competition

• Mobile number Portability

• Foreign Entrants
Cont.

• Tapping Rural market

• Low call rate offered


by other competitors.

• Unavailability of
opportunities
outside India.
Cont.

• Entry of WiMAX operators

• High Infrastructure setup


cost.
Threats of Substituite Products

• In porter model substitstute products refers to product of other


industry .As more substitute available ,the demand become more
elastic since the customers have more choice as also the presence of
substitute constraints the ability of the firm industry raise the price .

• Airtel also face threat of substitute from different products. Airtel


operates in mobile telephony and the substitute of mobile telephony
are – landline, broad band and internet.

• The major chunk of Indian land line is under state owned BSNL and
MTNL where as internet served by BSNL and MTNL and TATA
indicom.
Cont..

 Landline
 CDMA DIMINISHING MARKET

 Video Conferencing

 VOIP - Skype, Gtalk, BROADBAND


SERVICES
Yahoo Messenger
 e-Mail & Social Networking
Websites
Bargaining Power of Buyers

Lack of differentiation among Service


Providers
Cut throat Competition
Low Switching Costs
Number Portability will have +ve
Impact
Market Scenario

Postpaid Vs Prepaid Customers & Market Share


Suppliers Bargaining Power
Rivalry among competing firms:

• Lower call rates offered by competitors.


• Brand wars
• Acquisitions
Vodafone - Hutch(success )
Airtel - Zain telecom(low response)
• Spectrum (2G-3G)
Conclusion..

 Airtel faced some challenges to its leadership


position in the Indian telecom market.

 Industry experts said that the key to future


growth lay in making the Airtel brand
attractive to both the urban population and
the rural masses where the bulk of the future
growth is expected.

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