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AIRTEL MAGIC – SELLING A PRE-PAID CELLPHONE SERVICE

            

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EXHIBIT II
ABOUT THE BHARTI GROUP.

            

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The Bharti Group has been a leading player in the Indian telecom industry ever since its entry into the sector during the early 1990s. Bharti Tele-Ventures, a part of Bharti telecom, offered various telecom services such as cellular, fixed line, V-SAT and the Internet. The operations of Bharti Tele-Ventures were managed by four wholly owned subsidiaries. These included Bharti Cellular Ltd. (Cellular), Bharti Telenet Ltd. (Access), Bharti Telesonic Ltd. (Long Distance) and Bharti Broadband Networks Ltd. (Broadband Solutions). The flagship services of the Bharti group in different telecommunication markets included Airtel (cellular), Mantra (Internet Services) and Beetel (telephone instruments).

Bharti Cellular Ltd. was one of the first private players that entered the cellular telephony sector in India. Bharti launched Airtel, a post-paid cellular service in Delhi in November 1995. Bharti laid the foundations of the Indian cellular business and Airtel became a popular brand due to its innovative marketing strategies, continuous technological upgradations, new value-added service offerings and efficient customer service. Initially, confined only to the Delhi circle, Airtel services were extended to other places as well. Bharti revolutionized the cellular market in India. It was the first cellular operator to set cellular showrooms – Airtel Connect, a one stop cellular shop where the customers could purchase handsets, get new connections, subscribe to various value-added services and pay their mobile bills. Bharti was also the first player to provide roaming cellular services and other services such as Smart mail, Fax facility, Call hold, Call waiting and Webmessage. On account of such initiatives, Airtel was even voted the ‘Best Cellular Service'in the country for four consecutive years (1997-2000).

Bharti acquired fourth operator license in eight circles in India during July 2001, following which it launched its services in Mumbai, Maharashtra, Gujarat, Haryana, Uttar Pradesh (West), Kerala, Tamilnadu and Madhya Pradesh in 2002. Bharti also launched its services in Punjab in early 2002, when the Department of telecommunication re-allotted the license to Bharti empowering it to operate in Punjab. In 2002, Bharti along with the other two leading cellular players, Hutchison and BATATA-BPL accounted for over 67% of the total Indian cellular services market. The remaining market was shared by Escotel, Aircel, Koshika, Spice Communications, Reliance Telecom, BSNL and MTNL.

In the early 21st century, many leading players were seen entering into partnerships with one another to sustain the increasing competitive pressures and achieve higher economies of scale. A series of mergers and acquisitions followed. In June 2002, Idea Cellular (consolidated cellular services of Birla, AT &T and Tata) merged with BPL cellular in order to consolidate their position. Hutchison acquired complete control of Fascel. Bharti also followed this trend and acquired Skycell Communications Ltd., a leading player in Chennai in mid 2002 and renamed it as Bharti Mobinet Ltd. It also acquired Spice Cell in Kolkata.

Source: ICMR
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Contents...
Casting The Celebrity Magic
Background Note
All Set To Create Magic
The Industry Strikes Back
The Future – Far From Magical
Questions For Discussion
Exhibit I
Exhibit II
Exhibit III
Exhibit IV
Cellular Service Subscriber Base In India
Additional Readings & References