Bharti Airtel Limited and the Indian Telecom Sector


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Case Details:

Case Code : BSTR300
Case Length : 21 Pages
Period : 2005-2008
Pub Date : 2009
Teaching Note : Available
Organization : Bharti Airtel Ltd.
Industry : Telecom
Countries : India; Global

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts

Background Note

Mobile Telephony in India
The mobile telephony revolution started in India when the government decided to allow private sector participation in the Indian telecom sector. In 1994, the Department of Telecommunications (DoT), Government of India (GoI), issued licenses to private operators to start mobile services in the four Metropolitan cities of Delhi, Mumbai, Chennai, and Calcutta (now Kolkata)...

Bharti Airtel Ltd.
The foundations of the Bharti Enterprises (Bharti) were laid when its Chairman and Managing Director (CMD) Sunil Bharti Mittal (Mittal) started a bicycle-parts business in 1976 in his home state Punjab...

The Czar of Indian Telecom

BAL had focused on differentiating itself in the Indian telecom market by ensuring customer delight and a cost-effective business model -a business model of being profitable despite having the lowest tariff in the world...

Results

BAL's various initiatives helped it attain a dominant position in the market (Refer to Table II for the top mobile telecom operators in India) As of March 2008, its ARPU was US$ 10, higher than that of other operators in India...

New Challenges and Competitors

When Vodafone acquired Hutch, BAL faced the first major threat to its supremacy in the Indian mobile market since the entry of Reliance into this market. Reliance was not able to overtake BAL as the CDMA technology it had adopted did not do too well in the Indian telecom market...

Excerpts Contd...>>


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