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EMERGING MARKET CHAMPIONFeb 13,2008 Bharti Airtel Limited (BAL), a leading telecomcompany in India crossed 60 million customer mark.Tenth largest telecom company in the world in terms of subscriber base.

Wireless segment constitutes 96% of BALs total customer base.Market share 31.8% and its valuation stood at US $ 40 Billion(Feb 2008)BALs growth matched the growth in Indian Telecom Sector,which was fastest in the world.Emerged as undisputed leader in Indian mobile market.Faced new challenges to its leadership position with the entry of strong international telecom companies.

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MOBILE TELEPHONY IN INDIAStarted when government decided to allow private sector participation.In initial days, mobiles were out of reach of most Indians.Subscriber number increased with a fall in tariff.Legal conflict between fixed service operators and cellular operators.

Introduction of Universal service telecom license.small players and foreign players exited from the sector.Mobile subscriber- 86% of telecom subscribers in India.GSM operators 74% of mobile phone users and rest CDMA.

ARPU per month for GSM operators- Rs. 275 while for CDMAoperators Rs. 173Changes in market may be witnessed due to introduction of newtechnologies, etc.

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Bharti Airtel LtdBicycle parts Business (1976-1980).Bharti Telecom Ltd (1985).Conglomerate with Siemens AG (1985).

Bharti Tele Venture Bharti Cellular Ltd (1995) Touchtel (2001) IndiaOne MantraDiscontinuation of Multi Branding strategy(2004).Telecom services under Airtel .BTV renamed to BAL(2006).

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THE CZAR OF INDIAN TELCOM

Building a Strong BrandVarious Brand Ambassador(SRK, Sachin, A R Rahman)Largest advertiser in India

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Business Model Innovation

Lean organizationOutsourcing Network Deployment- Nokia andEricssonIT services IBMCustomer Contact Centers NortelDifferent Payment Model from revenue per share to

cost per all.Free incoming calls to its mobile phone user.

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ACCOLADES

Best CMT company for 5 years (2001-05) in terms of Shareholder Performance Index.M IS Asia IT Excellence Award for best Change in

Management2005 Indian Mobile Operator of the Year .Competitive Service Provider of the Year .(2006)

CEO of the Year Sunil Mittal(2006).

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BAL COMPETITIORS

VODAFONE ->

RELIANCE COMMUNICATION(ADAG)

TATA INDICOM

BSNL

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NEW CHALLENGES FOR BAL

Vodafone s entry in Indian telecom market posed 1 st real threat to

BAL s supremacy.

Vodafone planned to invest $ 2 billion to establish and introduce

new 3G technologies.

Vodafone s application of allocation of spectrum to expand from 16to 23 telecom circles.

Vodafone entry increased competition and better services to

customer.

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RELIANCE AND TATA

GoI s approval to companies to provide both GSM & CDMA.

Entry of new players like Reliance and Tata in GSM.

New player expected to break oligopoly on market.

Due to competition slashing down of tariff rates which were already lowest in

world.

BAL did not have plans to start CDMA.

GoI plan to allow more players to enter to reduce rates.

BSNL, Reliance, Tata are players in both GSM & CDMA.

Steady fall in BAL s ARPU.

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TAPPING UNTAPPED MARKET

International presence inSeychelles through its subsidiary Telecom Seychelles Limited.Europe (Channel Islands) through its subsidiaries Jersey

Airtel Limited (JAL) and Guernsey Airtel Limited (GAL).In 2006, Airtel became the first Indian telecom operator tolaunch 3G services in SeychellesIn May 2007, JAL and GAL entered into a partnership with

Vodafone to launch mobile services in Channel Islands underthe Vodafone-Airtel brand.Airtel started in operations in Srilanka in 2008

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A $23 BIILION DEAL

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CONCLUSION

Airtel faced some challenges to its leadershipposition in the Indian telecom market.Industry experts said that the key to futuregrowth lay in making the Airtel brandattractive to both the tech-savvy urbanpopulation and the rural masses where thebulk of the future growth is expected.Finding alternate revenue streams in view of the rapidly falling ARPUs is one moresignificant challenge that lay before Airtel interms of future growth.