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Bharti Airtel

Bharti Airtel Limited is an Indian global telecommunications services


company based in New Delhi, India. It operates in 18 countries across South
Asia and Africa. Airtel provides GSM, 3G and 4G LTE mobile services, fixed
line broadband and voice services depending upon the country of operation.
Airtel is also testing VoLTE technology across five cities in India and should
roll out the technology towards the end of 2017.[6] It is the largest mobile network operator in India and the
third largest in the world with 400 million subscribers. Airtel was named India's second most valuable brand
in the first ever Brandz ranking by Millward Brown and WPP plc.

Airtel is credited with pioneering the business strategy of outsourcing all of its business operations except
marketing, sales and finance and building the 'minutes factory' model of low cost and high volumes. The
strategy has since been adopted by several operators.[10] Airtel's equipment is provided and maintained by
Ericsson, Huawei, and Nokia Solutions and Networks whereas IT support is provided by IBM. The
transmission towers are maintained by subsidiaries and joint venture companies of Bharti including Bharti
Infratel and Indus Towers in India. Ericsson agreed for the first time to be paid by the minute for installation
and maintenance of their equipment rather than being paid up front, which allowed Airtel to provide low call
rates.

Coverage map of Bharti Airtel across 19 countries.


Airtel Mission and Vision
As stated by the company:

“At airtel, we always put you at the heart of what we do. We strive to enhance your experience with us and
build a lasting relationship with you by delivering better results every time. And this, reflects in our mission
too”.

Mission
Hunger to win customers for life.

Vision
“Our vision is to enrich the lives of our customers. Our obsession is to win customers for life through an
exceptional experience”.

Values
Alive

We are alive to the needs of our customers. We act with passion, energy and a can-do attitude to help our
customers realise their dreams. Innovation and an entrepreneurial spirit drive us - if it can’t be done, we’ll
find a way.

Inclusive

Airtel is for everyone - we champion diversity, recognising the breadth and depth of the communities we
serve. We work with them, anticipating, adapting and delivering solutions that enrich their lives. We do this
by having an open mind and embracing change.

Respectful

We live the same lives as our customers, sharing the same joys and the same pains. We never forget that
they are why we exist. We act with due humility, always open and honest, to achieve mutual respect.
Airtel SWOT analysis

One of the top telecommunication companies in India, Airtel has spread across far and wide in the last 2
decades of its existence. The company is known for its availability and its smart range of value added
services. Here we present you the SWOT analysis of Airtel to understand the strengths, weaknesses,
opportunities and threats for the company.

Strengths

1. Renowned Telecom company: With its 19+ years of rich experience in telecom industry this MNC
had travelled far to become world’s 3rd largest telecom operator overseas with operations in nearly
20 countries.
2. High Brand Equity: It is one of the pioneer brands in telecommunication having a high brand recall
and with a whopping subscriber base.
3. Extensive infrastructure: With the formation of Indus tower & due to its partnership with Idea &
Vodafone, the infrastructure of Airtel has extended in all parts of the country resulting into
nationwide penetration.
4. Strategic Alliances: The company has top notch stakeholders, namely Sony Ericsson, Nokia and
singtel, and the recent one being Apple. Such strategic alliances boost the brand equity and the
bottom line of the company.
5. Torchbearer of the telecom Industry: With its number 1 spot due to its excellent services in
developing economies, Airtel has interconnected the life of people in an highly efficient way. Thus,
where Vodafone is an external entrant, Airtel is a leading nationwide player in India and the
torchbearer of the telecom industry in India.

Weaknesses

1. Outsourced Operations: Outsourcing operations helped Airtel in lowering its cost. But on the other
hand, they are running the risk of being dependent on some other companies which may affect its
operations.
2. Venturing into African operations: Although it’s been 4 years that Airtel has acquired Zain’s
Africa business, but Airtel is still struggling to turn around the unit which was bought at a whoppy 9
billion dollars.
3. High Debt: With its acquisitions turning out to bad investment, and credit being high and margins
being low, Airtel group is under high debt. Airtel does not have as deep pockets as Vodafone.
Opportunities

1. Strategic Partnership: Partnering with smart phone companies is going to be a smart strategy as far
as MNP (mobile number portability in India) is concerned. This will ensure fixed cash flows in the
future and a higher customer base.
2. Market Development: With fierce competition in the telecom industry & shrinking margins,
venturing out in new markets/developing economies will prove fruitful for the company.
3. VAS: VAS (Value Added services) is going to future of the telecommunication industry & by
specializing itself in this vertical Airtel can differentiate itself in highly competitive market. With
introduction of unique services, Airtel can avail higher margins.
4. Untapped geography of the current market: Although it is currently providing 3G & 4G services,
but these services are limited to specific geographical locations. Expansion of these services to most
of its regions will help the company get more margins and customers.
5. LTE: The whole wireless world is moving towards LTE (long term evolution or 4G). LTE for
mobile broadband can be a good solution for India where fixed broadband penetration is otherwise
low. Airtel has taken the lead with this version of LTE in 4 cities, but deployment needs to catch up
pace. Despite a weak LTE ecosystem in India, Airtel should portray itself as the embracer of that
technology. The company lacks nationwide 3G license with spectrum in 13 out of 22 telecom service
areas. Airtel’s LTE network for mobile broadband is still confined to only 4 cities in India.

Threats

1. Government Regulatory Framework: With the auction of spectrum & change in the government
policies on a regular basis, it is a potential threat to the stability & existence of this industry thereby
affecting the players.
2. Competition: Price war in the home market and declining margins due to this is adversely affecting
the overall business of the group.
3. MNP (Mobile number portability): MNP gives the customer independence to change the service
provider while retaining the number and as Airtel charges are premium over other service providers,
it can see slump in subscriber base in the next fiscal year with PAN India MNP applicable from May
3rd 2015.

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