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
"Brands entering India must understand that ubiquity in diversity is an inherent dynamic of the market. Marketers must always be ready to unlearn and re-imagine their mobile strategies to succeed in India!"
- Manish Sinha, Planning Director, Digital & New Media, BatesAsia, in 2008.
"Sunil [Sunil Bharti Mittal, Chairman and Managing Director, Bharti Airtel Limited] has built an incredibly successful business from scratch, one which has had a truly transformational impact on our industry, on the customers he serves and on India's economy. His brave and ambitious strategies will continue to resonate across the country, our industry, and the business community globally, becoming a benchmark for emerging markets worldwide."
- Craig Ehrlich, Chairman, GSM Association, in February 2008.
Emerging Market Champion
On February 13, 2008, Bharti Airtel Limited (BAL), the leading telecommunications (telecom) company in India, crossed the 60-million customer mark.
BAL had crossed the crucial 50 million subscriber mark in the fourth quarter of 2007 and had become the tenth largest telecom company in the world in terms of subscriber base. (Refer to Exhibit I for the world's top 10 wireless telecom operators) The wireless segment constituted 96% of BAL's total customer base.
According to the Cellular Operators'Association of India (COAI), BAL retained its leadership position in the Indian telecom market with a market share of 31.88% in 2007. The valuation of BAL stood at US$ 40 billion as of February 2008.8 BAL's spectacular growth matched the growth in the Indian telecom sector, which was the fastest in the world. The Indian telecom sector was adding 8 million customers per month as of early 2008.
On becoming the tenth largest telecom company in the world, the CEO of BAL Manoj Kohli (Kohli), said, "The last journey for first 50 million (customers) was completed within 12 years of starting operations in November 1995.
This puts Bharti Airtel among the top telecom companies in the world. Our next target is to reach 100 million mark by 2010."
BAL was the only small initial entrant in the Indian telecom market which managed to survive consolidation in the sector. Despite tough competition from other private companies such as Hutchison Essar Ltd (Hutch), Reliance Communications Ltd11 (Reliance), Tata Teleservices Ltd1 (Tata), and the state-owned Bharat Sanchar Nigam Ltd1 (BSNL), it emerged as the undisputed leader in the Indian mobile telecom market...
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