Subscribe

0

Telecom Services V&D 100

AIRTEL-1 : Big Got Bigger

author-image
Voice&Data Bureau
New Update

For the first ranker in the VOICE&DATA Top 10 tally, the total revenue grew
to Rs 38,800 crore. The revenue growth was 5% thanks to hyper competition and
tariff wars.

Advertisment

The company's capex in FY 2009-10 was just under Rs 8,000 crore for the full
year as against approximately Rs 1,150 crore in the year before-clearly highest
ever in its history. The last year was full of challenges and opportunities,
fighting all odds, the telco passed some critical milestones.

The operator became the first cellular service provider in India to become
over 100 mn subscribers strong. The operator expanded its global footprint to
the neighbouring SAARC by acquiring 70% stake in Warid Telecom. Completion of
deal with the South African player-Zain has made Bharti Airtel the world's first
telecom services MNC and also the world's fifth largest company.

Strengthening its profile, the service provider launched international data
services. The telemedia services began showing results. The operator moved some
notches up on the non-voice business. Currently, non-voice's contribution to its
revenues is about 12%. The company gave India its first mobile applications
store, which recorded 2.5 mn downloads in first thirty days. The telco is now
trying to popularize it in the tier-2 cities. On the fixedline also, it is
witnessing a good traction, getting more business and data traffic from DSL.
Rural thrust paid off significantly in Q1, the operator will continue the
distribution expansion in these areas.

Advertisment

AIRTEL - 1
Highlights
  • Over 65% of net adds coming from B&C circles (rural India)
  • Current monthly net adds at 3 mn vs. 2.8 mn a year ago
  • Broadband access network reduced to 89 cities from 85 earlier
  • WiMax network in 143 cities
  • Consolidated Capex for the year was Rs 8,200 crore
  • Capex for current fiscal will be Rs 1,800 crore (excluding 3G)

Airtel which at present accounts for 3 mn monthly net adds felt the heat of
the tariff war fueled by per second billing.

Arnaud Soubelet was appointed the CEO of Bharti's managed services joint
venture with Alcatel-Lucent. The operator is now looking at enhancing its
managed services profile. The company reshuffled roles at the top positions.
Sanjay Kapoor took over as the chief executive for India and South Asia. The
company also announced the appointment of Jai Menon as the group director for
information technology. Menon will work closely with the international business
group led by Manoj Kohli. Amrita Gangotra took over as the director for IT.

Advertisment

The company also announced the launch of digital media business-its foray
into entertainment-to deliver content to a range of users, including producers
and media firms.

Bharti Airtel-that has won Gallup Great workplace award for three consecutive
years-has been focusing on service through service training and employ
sensitivity; and has a unified network operating center to help Airtel enhance
its users' experience. Keeping pace with the market trends, Airtel introduced
various interesting plans and value added services like 'Live Arti'.

It was a proud year for us as we
touched the 100 mn subscribers mark

CEO, India and
South Asia, Bharti Airtel, Sanjay Kapoor




Was FY 2009-10 a good year for you?

It was fairly eventful, marked by hyper competition in the market. It
was a proud year for us, since we touched the 100 mn subscriber mark. We
also launched the international data services, spruced up our DTH services,
and propped up more SMB services. We succeeded in protecting our high-ARPU
customers. Some years back, when there were only five to six players, none
of them made 50% of the market; and today we alone have about 31% of the
market. We entered a new geography-Bangladesh with the Zain deal coming
through. In that sense, it was a rewarding year.

What was the main impact of per second billing on your
business?

Per second tariff war was a challenge as well as an opportunity. Every
time prices fall, there is an impact on the revenues. The per second billing
did have an impact in Q2 and Q3. However, Q4 showed resilience and resulted
in positive increase in revenues, resulting in an unprecedented trend. We
recorded 2 bn a minutes in a day. In a way, Q4 was a clear testimony to the
fact that per second billing is not

sustainable. We succeeded in preserving our high-value subscribers. The
tariff tussle driven by the euphoria of some players, including some new
entrants to garner subscribers, proves that one cannot stack up more
customers by simply discounting tariffs; customers want to experience the
whole suite of services.

Has the import restrictions on some telecom equipments
affected your business?

When an embargo like this comes, it affects everyone's business. It did
have an impact on us as well, but our teams did a fantastic job in handling
the situation. We used innovative strategies so as not to let our networks
suffer. We used the additional capacities from the under-performing sectors,
also a big player like us always has to maintain a headroom, which did come
to our rescue this time.

What are your 3G rollout plans?

It's early to comment on the rollout plans for 3G, but we are gearing up
the data migration that is setting in the market. We have a separate
investment layout for 3G. Last year itself, we started trails with strategic
vendors, started preparing our network and passive infrastructure. The
industry will see collaborations. I believe India will act no different from
the rest of the markets and the low-lying fruits will be Internet and voice.

What are the new focus areas for Airtel?

The telecom industry is fast changing to usher in cutting edge
technologies that impact the lifestyle of consumers. We will be a part of
that transformation and bring in solutions to help us achieve that and
exploit it to generate new revenue streams.
Advertisment

With an intent of exploring new avenues of M-Entertainment Airtel launched a
service of narrating movies along with dialogues, songs and background score to
its customers. The new service 'Airtel Talkies' would offer a pre-edited fifteen
minute capsule of a film to the listeners. The customer has also reached an
Angreement with Apple to bring iPhone 3GS to India.

The operator has been gearing up for the third generation technology, its
total outgo is Rs 15,609 crore towards 3G and BWA. It spent Rs 12,295 crore on
the 3G spectrum, and would pay Rs 3,314 crore for BWA.

Bharti Airtel's investment and exposure in Africa will be a value addition
for its Indian operations.