Bharti Airtel Project Report on Marketing Topic-Dissertation Help

PhD Research Proposal on Marketing in Bharti Airtel

MBA Project Report and Case Studies in Bharti Airtel

 Company Profile

Bharti Airtel Limited’s Airtel is India’s largest integrated and the first private telecom services provider with a footprint in all the 23 telecom circles. Bharti Airtel since its inception has been at the forefront of technology and has steered the course of the telecom sector in the country with its world class products and services. The businesses at Bharti Airtel have been structured into three individual strategic business units (SBU’s) - Mobile Services, Airtel Telemedia Services & Enterprise Services. The mobile business provides mobile & fixed wireless services using GSM technology across 23 telecom circles while the Airtel Telemedia Services business offers broadband & telephone services in 94 cities. The Enterprise services provide end-to-end telecom solutions to corporate customers and national & international long distance services to carriers. All these services are provided under the Airtel brand. Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises.

The Bharti Group has a diverse business portfolio and has created global brands in the telecommunication sector. Bharti has recently forayed into retail business as Bharti Retail Pvt. Ltd. under a MoU with Wal-Mart for the cash & carry business. It has successfully launched an international venture with EL Rothschild Group to export fresh agri products exclusively to markets in Europe and USA and has launched Bharti AXA Life Insurance Company Ltd under a joint venture with AXA, world leader in financial protection and wealth management.

- Key wireless indicators for the quarter

The rise in number of mobile subscribers continued at a scorching pace, with a record net addition of 8.2m for the quarter. This has taken Bharti’s total number of mobile subscribers to 85.7m. By capturing around 25.9% of incremental subscribers added during the quarter, Bharti has been able to raise its overall share in the wireless market to 24.7%, 110bps improvement YoY. During the quarter, Bharti increased its network coverage to 5,057 towns, and added 17k other towns and villages totalling 401,882 villages, leading to larger population coverage (79%) on a capex of Rs39bn.

- Telemedia business slowed first time in last six quarters

Bharti has increased its broadband and fixed-line telephone services by 110K to 2.62m customers in 95 cities for Q3FY09. Revenues were flat QoQ at Rs8.5bn, primarily on account of lower overall usage. EBITDA margin shrunk by 190bps to 41.7% for the quarter, implying an overall slow down of economic activity, resulting in lower realizations per line.

- Long distance and enterprise services continue to show decent growth

Long distance and enterprise services reported flattish revenues at Rs21.8bn, though margins improved to 45%. We feel that the overall slowdown in corporate activity is visible in the current scenario, but the overall growth opportunity in this segment in enormous and it’s just a matter of time when the demand again picks up.

- Tenancy pick-up in Passive Infrastructure business

Passive Infrastructure segment reported revenue of Rs12.7bn and EBIDTA margin of 33.5%. It added 1.4k towers for the quarter with the overall portfolio of 61.3k. Tenancy ratio improved to 1.34 and sharing revenue (per sharing operator per month), was marginally down to Rs31.4k. The company has transferred close to 35k towers in Indus Infratel (where Bharti Infratel holds 42%) and separate reporting is expected to commence from Q4FY09.

• No plans to raise funds

Bharti Airtel, Asia`s leading integrated telecom services provider has no plans to raise foreign investment in the company.

• To expand undersea cable connectivity business

Bharti Airtel is set to take on Reliance`s Flag and Tata Communications in the undersea cable business to carry voice and data between different countries. The company is considering plans to offer connectivity to countries across South-East Asia and West Asia. It is a part of four different consortiums that are building undersea links across the world and these cables are set to become operational by later this year, which would help the company to target business opportunities across many countries in Asia and Africa.
It has invested over Rs 15 billion in the last 2 years in existing and upcoming cable routes and the company has also entered in to a pact with Australia Japan Cable (AJC) to interconnect their current and future networks at the pacific Island of Guam.

• S&P affirms “BBB-“ rating
The rating agency, Standard & Poor`s (S&P) has affirmed its `BBB-` rating on the company, and this rating reflects the company`s long-term corporate creditworthiness and stable outlook.

• Allots shares to employees under ESOP
Bharti Airtel had allotted 3,977 equity shares of Rs 10 each at a price of Rs 221 to the employees upon exercise of stock options pursuant to ESOP Scheme 2005 of the company and with the allotment of the above shares the equity base of the company increased from present level of 1,898,235,819 (Nos.) to 1,898,239,796 (Nos.) equity shares of Rs 10 each.

• To reshuffle businesses into 9 arms
In order to expand into areas beyond its mainstay, voice telephony, Bharti Airtel will reshuffle its businesses into 9 arms under different CEOs. The company has already identified some of these verticals such as mobile commerce, entertainment, media, internet, enterprise services and small & medium businesses and it will also announce a new reporting structure that will  give these new business divisions` flexibility to innovate, develop and implement new technologies.

• Acquires 1.11% stake in Bharti Hexacom

Bharti Airtel has acquired 1.11% stake that is 2,780,306 equity shares in Bharti Hexacom, a subsidiary company, from Mobile Telecommunications Company, KSC, Kuwait. With this acquisition, the company`s shareholding in Bharti Hexacom stands increased from 68.89% to 70%.

• Launches Windows based Online Desktop
Bharti Airtel, part of Bharti Enterprises has launched world`s first Windows based online Desktop, powered by Microsoft and Nivio. This service will be available to all Airtel broadband customers across 95 cities in the country and the initiative would give access to personal virtual desktop from any computer connected to the internet for Airtel broadband customers, making computing and broadband services easy and affordable in India.

• Plans USD 5 bn capex for 2009-10

Bharti Airtel has set aside around USD 5 billion as capital expenditure (capex) for mobile services and infrastructure business for the next financial year. The company has allocated nearly USD 2.5 billion as capex for mobile services and approximately USD 2.5-3 billion for the passive infrastructure. The company will spend around USD 3 billion in the tower business  worked by Bharti Infratel (a wholly owned subsidiary) and Indus Towers, an independent tower company formed by Bharti, Vodafone and Idea to provide passive infrastructure services in India. But, this capex does not include the amount the company will spend during 3G auctions and the money will be brought up internally for 3G auctions if the bids are sensible.

• Launches IPTV services
Bharti Airtel made a debut of its Triple Play Service with the launch of Airtel digital TV interactive – it`s Internet Protocol Television (IPTV) Service. With this, Airtel delivers the Triple Play Advantage of Telephony, broadband and Entertainment Service to its customers and the Triple Play Service will be initially available to customers in Delhi, Gurgaon and Noida starting  Jan. 19, 2009. On this occasion, company offer its customers a single knock on the door experience - a uniform Airtel quality of experience with a single customer service interface and a single unified bill for voice, broadband and TV and video entertainment.

• Launches lifetime prepaid at Rs 99
Bharti Airtel, India`s leading telecom services provider introduced its popular lifetime prepaid at a lower price point of Rs 99 only. This is a significant initiative that further reinforces Airtel`s commitment to make mobile more affordable and provide greater value to the Airtel prepaid customer. As an industry leader, Airtel has always been at the forefront of driving affordability and expanding the market.

• Starts services in Sri Lanka
Bharti Airtel Lanka, a subsidiary of Bharti Airtel launched its services in Sri Lanka, under Bharti Airtel Lanka (P) and the services have been launched on a 3.5G network. Bharti Airtel plans to invest around USD 200 million in its Sri Lanka operations and over a period of one year, the company has commissioned a sizeable network.

It has entered into a three-year managed network deal with Huawei, partnered with IBM to manage its IT infrastructure and application requirements, and selected iSmart Timex as its customer care partner.

• Launches DTH TV Service powered by Broadcom` Technology

Bharti Airtel, India`s leading integrated telecom services provider, has deployed Broadcom Corporation`s highly integrated satellite set-top box (STB) system-on-a-chip (SoC) solutions to power its direct-to-home (DTH) TV services, Airtel digital TV, marking Broadcom`s first commercial satellite product launch in India.
To satisfy the growing market potential and demand in India for satellite TV, Bharti Airtel selected the Broadcom` BCM7454 standard definition (SD) satellite STB solution with integrated H.264, MPEG-4 and VC-1 video decoding, and the Broadcom BCM4505 integrated satellite tuner and demodulator front-end solution.

• Rolls out new BlackBerry
Airtel and Research in Motion (RIM) has launched the BlackBerry Pearl Flip 8220 Smartphone in India. The Smartphone is now available at Airtel authorized channels nationally and is priced at Rs 21,990. In addition to the power that Blackberry platform offers, the new phone has a wide range of features including spacious keyboard into a sleek flip design.

• CEO sells his stake
Bharti Airtel`s CEO and joint managing director, Manoj Kumar Kohli has selling off his holding in the telecom company for personal reasons. He continues to hold 180,000 options in the company, some of which have already vested and the balance will vest from time to time according to the vesting schedule. Despite selling off 123,000 shares in the company in the open market on Mar. 6, 2009 and Mar.9, 2009, he continues to be the CEO and joint managing director of the company.



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