DTH Service

Airtel, Infosys tie up for next gen DTH services

BANGALORE. INDIA: Making the idiot box an interactive one has been a long cherished dream. Infosys Technologies has
just made this attempt with success!

Infosys has entered into an innovation and technology partnership with Bharti Airtel, India's leading integrated telecom
service provider, to provide an interactive and personalization experience to customers of Airtel digital TV.

Infosys will offer a suite of products, including devices, application servers and interactive applications that will provide
an enhanced digital lifestyle to Airtel digital TV customers, said S.D. Shibulal, COO, Infosys.

The Infosys’ Digital Convergence Platform will bring digital lifestyle applications offering interactivity and
personalization into the living room. This will include interactive and non-intrusive applications like widgets that can be
invoked by the user to view relevant and customized information.

For the first time in India, Airtel DTH TV subscribers will be able to now be able to access local city information through
interactive applications such as iCity, Internet like experience with iNet, get personalized stock quotes, breaking news,
among others, without interrupting their TV viewing experience.

The technology platform that powers Airtel digital TV brings the potential that computers offer to TV sets. In addition
to entertainment, it is now possible to experience interactive information services and engage in transactions using
regular TVs.

‘This technology also makes it possible to have a converged consumer experience across devices like TVs, computers,
smart mobile phones and digital music players. The availability of these services in the Indian market marks a significant
milestone," the Infosys COO said.

Infosys eyes emerging markets

Infosys, whose major part of revenue comes from US market, is eyeing the emerging markets in a big way. Besides India,
Infosys has entered into strategic agreements across verticals in Canada, Australia, etc., among other nations in the
recent past.

"This is the first time that we have worked on the TV vertical. We are focusing on emerging markets in a big way and
enter them at a right time," the Infosys COO said, adding that the digital convergence platform was the second major
product after Finacle to be released in India.

DTH market
 Atul Bindal, President, Telemedia Services, Bharti Airtel, said that the partnership with Infosys would bring the best
technology available to its DTH subscribers.

He said currently there were 7-8 million households with DTH connections in India, which is likely to grow to 225 million
DTH households by 2010. Therefore, it is not just having a share in the existing market share, but tapping the huge
potential market, Bindal added.

Commenting on the uniqueness of the underlying technology, Mr. S.D. Shibulal, Chief Operating Officer, Infosys said, "At Infosys, we
are focused on helping our clients compete effectively by creating a distinct product experience for their customers. The Airtel digital TV is
an example of this focus. The technology platform that powers Airtel digital TV brings the potential that computers offer to our television
sets. In addition to entertainment, it is now possible to experience interactive information services and engage in transactions using regular
TVs. This technology also makes it possible to have a converged consumer experience across devices like televisions, computers, smart
mobile phones and digital music players. The availability of these services in the Indian market marks a significant milestone - the
transformation of the idiot box into a smart box."

AIRTEL VISION 2010

By 2010 most admired brand in India

- Loved by more customers
- Targeted by top talents
- Benchmarked by more businesses

AIRTEL VISION 2020

- To build India’s finest business conglomerate

- Support education of underprivileged through Bharti foundation

STRATEGIC INTENT

To create a conglomerate of future by “Big transformations through brave actions”

MISSION

Customer service focus

Empowered employees
Innovative services
Cost efficiency
Core Competences

Ability to effectively manage the services of a host of outsourced vendors, with diversified technical
capabilities, in order to provide superior services to customers in its different offerings at reasonable prices.

Ability to do deal with vendors at variable costs (revenue sharing, minute based model, etc) which
significantly brought down its fixed costs and enabled provision of services at lower costs.

Ability to leverage its brand value through associations with a host of big names like Sachin Tendulkar,
Shah Rukh Khan, Saif Ali Khan – Kareena Kapoor, A. R. Rehman, etc.

SWOT

SWOT Analysis Bharti Airtel

Strengths
• Bharti Airtel has more than 65 million customers (July 2008). It is the largest cellular provider in India, and also
supplies broadband and telephone services – as well as many other telecommunications services to both
domestic and corporate customers.
• Other stakeholders in Bharti Airtel include Sony-Ericsson, Nokia – and Sing Tel, with whom they hold a
strategic alliance. This means that the business has access to knowledge and technology from other parts of the
telecommunications world.
• The company has covered the entire Indian nation with its network.
This has underpinned its large and rising customer base.
Weaknesses
• An often cited original weakness is that when the business was started by Sunil Bharti Mittal over 15 years
ago, the business has little knowledge and experience of how a cellular telephone system actually worked. So
the start-up business had to outsource to industry experts in the field.
• Until recently Airtel did not own its own towers, which was a particular strength of some of its competitors such
as Hutchison Essar. Towers are important if your company wishes to provide wide coverage nationally.
• The fact that the Airtel has not pulled off a deal with South Africa’s MTN could signal the lack of any real
emerging market investment opportunity for the business once the Indian market has become mature.
Opportunities
• The company possesses a customized version of the Google search engine which will enhance broadband
services to customers. The tie-up with Google can only enhance the Airtel brand, and also provides advertising
opportunities in Indian for Google.
• Global telecommunications and new technology brands see Airtel as a key strategic player in the Indian
market. The new iPhone will be launched in India via an Airtel distributorship. Another strategic partnership is
held with BlackBerry Wireless Solutions
• Despite being forced to outsource much of its technical operations in the early days, this allowed Airtel to work
from its own blank sheet of paper, and to question industry approaches and practices – for example replacing
the Revenue- Per-Customer model with a Revenue- Per-Minute model which is better suited to India, as the
company moved into small and remote villages and towns.
• The company is investing in its operation in 120,000 to 160,000 small villages every year. It sees that less well-
off consumers may only be able to afford a few tens of Rupees per call, and also so that the business benefits
are scalable – using its ‘Matchbox’ strategy.
• Bharti Airtel is embarking on another joint venture with Vodafone Essar and Idea Cellular to create a new
independent tower company called Indus Towers. This new business will control more than 60% of India’s
network towers. IPTV is another potential new service that could underpin the company’s long-term strategy.
Threats
• Airtel and Vodafone seem to be having an on/off relationship. Vodafone which owned a 5.6% stake in the Airtel
business sold it back to Airtel, and instead invested in its rival Hutchison Essar. Knowledge and technology
previously available to Airtel now moves into the hands of one of its competitors.
• The quickly changing pace of the global telecommunications industry could tempt Airtel to go along the
acquisition trail which may make it vulnerable if the world goes into recession. Perhaps this was an impact upon
the decision not to proceed with talks about the potential purchase of South Africa’s MTN in May 2008. This
opened the door for talks between Reliance Communication’s Anil Ambani and MTN, allowing a competing
Indian industrialist to invest in the new emerging African telecommunications market.
• Bharti Airtel could also be the target for the takeover vision of other global telecommunications players that wish
to move into the Indian market

SWOT Analysis Bharti Airtel

Strengths
• Bharti Airtel has more than 65 million customers (July 2008). It is the largest cellular provider in
India, and also supplies broadband and telephone services - as well as many other
telecommunications services to both domestic and corporate customers.
 • Other stakeholders in Bharti Airtel include Sony-Ericsson, Nokia - and Sing Tel, with whom they
hold a strategic alliance. This means that the business has access to knowledge and technology from
other parts of the telecommunications world.
• The company has covered the entire Indian nation with its network. This has underpinned its large
and rising customer base.

Weaknesses
• An often cited original weakness is that when the business was started by Sunil Bharti Mittal over 15
years ago, the business has little knowledge and experience of how a cellular telephone system
actually worked. So the start-up business had to outsource to industry experts in the field.
• Until recently Airtel did not own its own towers, which was a particular strength of some of its
competitors such as Hutchison Essar. Towers are important if your company wishes to provide wide
coverage nationally.
• The fact that the Airtel has not pulled off a deal with South Africa's MTN could signal the lack of
any real emerging market investment opportunity for the business once the Indian market has
become mature.

Opportunities
• The company possesses a customized version of the Google search engine which will enhance
broadband services to customers. The tie-up with Google can only enhance the Airtel brand, and also
provides advertising opportunities in Indian for Google.
• Global telecommunications and new technology brands see Airtel as a key strategic player in the
Indian market. The new iPhone will be launched in India via an Airtel distributorship. Another
strategic partnership is held with BlackBerry Wireless Solutions.
• Despite being forced to outsource much of its technical operations in the early days, this allowed
Airtel to work from its own blank sheet of paper, and to question industry approaches and practices -
for example replacing the Revenue-Per-Customer model with a Revenue-Per-Minute model which is
better suited to India, as the company moved into small and remote villages and towns.
• The company is investing in its operation in 120,000 to 160,000 small villages every year. It sees
that less well-off consumers may only be able to afford a few tens of Rupees per call, and also so
that the business benefits are scalable - using its 'Matchbox' strategy.
• Bharti Airtel is embarking on another joint venture with Vodafone Essar and Idea Cellular to create a
new independent tower company called Indus Towers. This new business will control more than
60% of India's network towers. IPTV is another potential new service that could underpin the
company's long-term strategy.

Threats
• Airtel and Vodafone seem to be having an on/off relationship. Vodafone which owned a 5.6% stake
in the Airtel business sold it back to Airtel, and instead invested in its rival Hutchison Essar.
Knowledge and technology previously available to Airtel now moves into the hands of one of its
competitors.
• The quickly changing pace of the global telecommunications industry could tempt Airtel to go along
the acquisition trail which may make it vulnerable if the world goes into recession. Perhaps this was
an impact upon the decision not to proceed with talks about the potential purchase of South Africa's
MTN in May 2008. This opened the door for talks between Reliance Communication's Anil Ambani
 and MTN, allowing a competing Inidan industrialist to invest in the new emerging African
telecommunications market.
• Bharti Airtel could also be the target for the takeover vision of other global telecommunications
players that wish to move into the Indian market.

Airtel comes to you from Bharti Airtel Limited, India's largest integrated and the first private telecom
services provider with a footprint in all the 23 telecom circles. Bharti Airtel since its inception has been at
the forefront of technology and has steered the course of the telecom sector in the country with its world
class products and services. The businesses at Bharti Airtel have been structured into three individual
strategic business units (SBU's) - Mobile Services, Airtel Telemedia Services & Enterprise Services

BCG

Ansoff
Porter’s 5 forces for DTH
African venture

Reducing the costs of acquiring international gateways license is seen as a first step toward lowering the high cost of African

telecommunications.

Currently, the cost of acquiring an international gateway license stands at $214,000 in Kenya and at $50,000 in Uganda.

The move by African countries to reduce international gateway license fees follows persistent calls by mobile phone service

providers on African governments to liberalize their international gateways as the only way to decrease the cost of communication.

UNCTAD is a United Nations agency working on maximizing trade, investment, and development opportunities in developing

countries and assisting them with world economy integration.

Zambian president Levy Mwanawasa has directed the country's Ministry of Commerce Trade and Industry to find ways of ensuring

that the international gateway is liberalized to reduce the cost of doing business in Zambia.
Two pan-African mobile service providers -- Celtel Africa and Mobile Telecommunication Network (MTN) -- have been pressuring

African governments to consider revising their exorbitant international gateway license fees so that communication costs can be

cheaper. Celtel has a presence in 14 African countries, including Kenya, Nigeria, Uganda, and Malawi. MTN has a presence in

many African countries, including Zambia, South Africa, Uganda, Nigeria, and Rwanda.