Bharti Airtel Limited and the Indian Telecom Sector
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Case Code: BSTR300 Case Length: 21 Pages Period: 2005-2008 Pub Date: 2009 Teaching Note: Available |
Price: Rs.400 Organization: Bharti Airtel Ltd. Industry: Telecom, Broadband Countries: India; Global Themes: Growth Strategy, Globalization |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
The Czar of Indian Telecom
BAL had focused on differentiating itself in the Indian telecom market by ensuring customer delight and a cost-effective business model -a business model of being profitable despite having the lowest tariff in the world...
Results
BAL's various initiatives helped it attain a dominant position in the market (Refer to Table II for the top mobile telecom operators in India) As of March 2008, its ARPU was US$ 10, higher than that of other operators in India...
New Challenges and Competitors
When Vodafone acquired Hutch, BAL faced the first major threat to its supremacy in the Indian mobile market since the entry of Reliance into this market. Reliance was not able to overtake BAL as the CDMA technology it had adopted did not do too well in the Indian telecom market...
Countering the Threats
BAL focused on expanding its network coverage all over the country before other players could expand on a big scale. In February 2008, it announced an annual investment plan of US $ 2 billion to expand its network over the next 3 years. This was substantially higher than its average annual investment plans of US$ 1.5 billion. BAL planned to add an additional 30,000 base stations to its existing 40,000 base stations for the fiscal year 2007 and thereby cover 70% of the country. Nearly 50 to 60% of the future expansion was to be in the rural areas......
Ready to Tap Other Emerging Markets?
By early 2008, BAL was not only the dominant player in the Indian market but also had an international presence in Seychelles through its subsidiary Telecom Seychelles Ltd., and Europe (Channel Islands) through its subsidiaries Jersey Airtel Limited (JAL) and Guernsey Airtel Limited (GAL)...
Outlook
Analysts felt that its success notwithstanding, BAL faced some challenges to its leadership position in the Indian telecom market. It had to focus on devising aggressive strategies to continue its dominance and grow at the same rate at which it had been growing...
Exhibits
Exhibit I: The World's Top 10 Wireless Telecom Operators Exhibit
II(A): BAL's Consolidated Balance Sheets Exhibit
II(B): BAL's Consolidated Statements of Operations
Exhibit III: The Top Ten: Most Innovative Infotech Companies
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