telecom sector group2

8/8/2019 Telecom Sector Group2

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LOOK ATHENDIAN TELECOM SECTOR&UTURE PROJECTIONSFORHARTI AIRTEL

:resenters Prateek Ahuja

Mrityunjai Singh

. .Ashik K R Harkaran Atwal

Suhrid Chaudhry Nirvi Asher


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:In d ia n Te le co m In d u stry A n O ve rv ie w


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:In d ia n Te le co m In d u stry E vo lu tio n

1 9 9 2

1 9 9 4

1 9 9 7

1 9 9 9

2 0 0 0

2 0 0 2

2 0 0 3

2 0 0 4

2 0 0 5

2 0 0 6

2 0 0 7

2 0 1 0

Priva tep la ye rs

w erea llo w e d in

Va lu eA d d e d

S e rvice s

N a tio n a l

Te le co mPo licy

( )NTP wasfo rm u la te

d

Ind ep en de

n t,re g u la to r

,T R A I w a se sta b lish e

d

-N TP 9 9 le d tom ig ratio n-from h ig h

co st fixe dlice n se fe e to

-low costreve nu esh a rin g

re g im e

B S N Lw a s

e stab lis

h e d b yD o T

ILD serviceswas opened

tocompetition

Reductionof

licence

fees

-Go aheadto the

CDMAtechnolog

y

Internettelephony

initiated

CallingParty Pays( )CPP wasimplemented

ReferenceInterconn

ect order

wasissued

Unified

AccessLicensing

( )UASL

regime

wasintroduced

-Intra circlemerger

guidelineswere

established

Broadbandpolicy

2004 wasformulated

targeting

20 millionsubscribers by 2010

Attemptedto boost

Ruraltelephony

FDI limitwas

increasedfrom 49 to

74 percent

Numberportability

was proposed( )pending

Decision on

3G services( )awaited

3g

Auctionstakeplace


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:Indian Telecom Industry CurrentScenario

.Indian Telecom Industry is one of the fastest growing industries in the world


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:-23 circles 4Met

ros 19Circle;s

which are further,subdivided into A B and C

category based on economicparameters and revenue

.potential


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:Indian Telecom Industry MarketStructure

Unified License Operator

Fixed Line Operator

National Long Distance Operator

International Long Distance Operator

Wireless Operator

inistry of Communication And Information Technology

Department of Telecom

LICENSOR

Telecom RegulatoryAuthority Of India

( )TRAI

REGULATOR

Telecom DisputeSettlement Appellate

Tribunal

JUDICIARY

CDMA( )1800 MHz

GSM( &900

)1800 MHz


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:Indian Telecom Industry MarketStructure

Key Players Key Players


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:Indian Telecom Industry ForecastedDemand For Next 2 Years

Year .o1 .36 292 .44 973 .54 624 .75 545 .98 416 .140 327 .206 838 .300 499 .429 7210 .590 5311 .509 323312 .565 969

SING STRIGHT LINE REGRESSION


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:Indian Telecom Industry ForecastedDemand For Next 2 Years

year .o ( .)n no1 .36 29 .3 5915422212 .44 97 .3 8059956013 .54 62 .4 0004001164 .75 54 .4 3246623175 .98 41 .4 5891424256 .140 32 .4 9439255297 .206 83 .5 33189728 .300 49 .5 7054144769 .429 72 .6 06313383410 .590 53 .6 38102043911 .760 473412 .1047 312

SING EXPONENTIAL REGRESSION


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:Indian Telecom Industry ChallengesAhead


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:Indian Telecom Industry Future

No company has a pan India presence so it s-imperative for companies to have tie ups which

will only allow them to give all India coverage to.subscribers

It is a logical step because the urban market is,more or less covered so the major opportunity for

the telecom companies is to explore the rural.market which is still not fully tapped

To increase the ARPU the companies will startproviding more and more value added services


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:Bharti Airtel


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:Bharti Airtel Corporate Structure


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:Bharti Airtel Operational Structure

:IRTEL S MANTRA Focus on Core Competencies and Outsource!he rest


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:Bharti Airtel Operational Strategies


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:Bharti Airtel Performance

- -1 Mar 09 - -0 Jun 09 - -0 Sep 09 - -1 Dec 09 - -1 Mar 10otal Customer Base 000 ,96 649 ,105 196 ,113 440 ,121 853 ,130 686obile Services ,93 923 ,102 368 ,110 511 ,118 864 ,127 619

&roadband Telephone Services ,2 726 ,2 828 ,2 928 ,2 989 ,3 067

.evenue INR Mn ,98 245 ,99 416 ,98 455 ,97 722 ,100 557.BITDA INR Mn ,40 014 ,41 518 ,41 416 ,39 112 ,38 222

.ash profit from operations INR Mn ,37 878 ,44 123 ,40 988 ,40 881 ,40 058ncome before income taxes INR ,24 906 ,30 088 ,26 589 ,25 716 ,24 586

et income INR ,22 393 ,25 167 ,23 210 ,22 098 ,20 551ey Ratios %BITDA Margin . %40 70 . %41 80 . %42 10 . %40 00 . %39 00

%et Profit Margin . %22 80 . %25 30 . %23 60 . %22 60 . %20 40


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:Bharti Airtel Revenue Forecast

Quarter Revenue007 Q2 ,59 046007 Q3 ,63 374007 Q4 ,69 639008 Q1 ,78 191008 Q2 ,84 833008 Q3 ,90 203008 Q4 ,96 334009 Q1 ,98 245009 Q2 ,99 416009 Q3 ,98 455009 Q4 ,97 722010 Q1 ,100 557010 Q2 ,122 308010 Q3 118941010 Q4 .123203 7011 Q1 .127466 4011 Q2 .131729 2011 Q3 .135991 9011 Q4 .140254 7012 Q1 .144517 4

SING LINEAR REGRESSION


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Quarter Revenue007 Q2 ,59 046007 Q3 ,63 374007 Q4 ,69 639008 Q1 ,78 191008 Q2 ,84 833008 Q3 ,90 203008 Q4 ,96 334009 Q1 ,98 245009 Q2 ,99 416009 Q3 ,98 455009 Q4 ,97 722010 Q1 ,100 557010 Q2 ,122 308010 Q3 .124152 5595010 Q4 .130537 2973011 Q1 .137250 3801011 Q2 .144308 6936011 Q3 .151729 9918011 Q4 .159532 9418012 Q1 .167737 1705


:Bharti Airtel Revenue Forecast


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:Bharti Airtel Net Income Forecast

Quarter et Income007 Q2 ,15 116007 Q3 ,16 139007 Q4 ,17 224008 Q1 ,18 529008 Q2 ,20 250008 Q3 ,20 463008 Q4 ,21 593009 Q1 ,22 393009 Q2 ,25 167009 Q3 ,23 210009 Q4 ,22 098010 Q1 ,20 551010 Q2 ,16 816010 Q3 .22948 5010 Q4 .23374 6703011 Q1 .23800 8407011 Q2 .24227 011011 Q3 .24653 1813011 Q4 .25079 3516012 Q1 .25505 522

SING LINEAR REGRESSION


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Quarter et Income007 Q2 ,15 116007 Q3 ,16 139007 Q4 ,17 224008 Q1 ,18 529008 Q2 ,20 250008 Q3 ,20 463008 Q4 ,21 593009 Q1 ,22 393009 Q2 ,25 167009 Q3 ,23 210009 Q4 ,22 098010 Q1 ,20 551010 Q2 ,16 816010 Q3 .23075 3717010 Q4 .23593 9926011 Q1 .24124 2696011 Q2 .24666 4647011 Q3 .25220 8456011 Q4 .25787 6862012 Q1 .26367 2667

:Bharti Airtel Net Income Forecast



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:Bharti Airtel Revenue Distribution


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:Bharti Airtel Disaster Or A Step In TheRight Direction?


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:Bharti Airtel SWOT Analysis

STRENGTHS WEAKNESS

THREATSPPERTUNITIES

(Customer Retention Strategy Providecustom based plans for users who want

to disconnect or switch to some other)service providers

-Bharti Zain Deal

Fifth largest telecom company in

,the world and largest in India

-Tower sharing Strategy Indus towers

Debt Burden Increased due to.acquisition

Decreasing ARPUs due to price.competition

Airtel looking at ruralmarketing as long term growth

.segment

Gearing up to increase (revenue share from VAS Value)Added Services and

.applications .Value Added Services Looking at avenues outside

the country Look for possible mergers

.within India

ReachingIndustry Limit

Teledensityexpected to%reach 51 by

2012 ,Very high competition

especially on pricing frontFalling MarginsFailure of MTN deal

SWOT


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:Bharti Airtel Growth Path


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:Bharti Airtel Future Strategies


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HANKYOU

telecom sector group2

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