Presented By:

Mameet Singh (221069)

Siddharth Kohli (221142)
Sonakshi Srivastava (221146)
Vagesha Sinha (221157)
Vishal Jain (221171)
Akshay Maken (221177)
Group 2


Global Economy & Emerging Industries
Telecom Sector
Introduction
No other industry touches as many technology-related
business sectors as telecommunications, which, by
definition, encompasses not only the traditional areas of
local and long-distance telephone service, but also
advanced technology-based services including wireless
communications, the Internet, fiber-optics and satellites.

Telecom is also deeply intertwined with entertainment of
all types. Cable TV systems, such as Comcast, are
aggressively offering local telephone service and high-
speed Internet access.

The relationship between the telecom and cable sectors
has become even more complex as traditional
telecommunications firms such as AT&T are selling
television via the Internet, and competing directly against
cable for consumers entertainment dollars.
Telecom Market Segments

Global Telecom Scenario
The base of global wireless subscribers has grown rapidly,
as low-cost providers are making service prices low
enough to be affordable for vast numbers of people in
emerging nations.
Inexpensive cellphones are now indispensable to
consumers from Haiti to Africa to New Guinea.
Handsets can be bought for $10 to $20 in such markets,
and they can be topped-off with a segment of prepaid
minutes for as little as 50 cents
Worldwide telecommunications industry revenue is set to
reach $2.1 trillion this year according to market research
firm Insight Research Corp.
Despite the rocky global economy, industry revenue will
grow further at an average annual rate of 5.3% to $2.7
trillion in 2017.
Continued.
The Asian region is seen as a key market and wireless
revenue there is expected to grow 64%.
Mobile broadband services and the transition from 3G to
4G will also be key growth drivers.
There are about 6.9 billion mobile connections globally,
which are growing at an annual rate of 7.36%.
The ARPU is stagnating to around $24.6 while Minutes
of Use (MoU) show an upward trend around 296 per
connection.
4G had only 2.85% of the world market penetration at
the end of 2013 while 3G had that of 28.45%.
Despite global economic uncertainty, the
telecommunications industry is showing strong revenue
growth, which is being driven by consumer Internet
usage and business mobility solutions.

Factors for creating deep changes in
telecom sector today
Shift in business and commercial telephones to VOIP
(Voice Over Internet Protocol) services, that is, telephone
via the Internet
A shift in residential and personal telephone use from wired
services to wireless
Intense competition between cable and wired services
providers
Steady increases in Internet usage for communications
and entertainment of all types
The continuing evolution of advanced wireless
technologies, including more smart phones and wider
availability of 3G services and 4G services
Simply put, a growing number of telecommunications service
users prefer to make their phone calls, download data,
view entertainment and otherwise access the Internet via
smart phones and tablets, not fixed telephones or PCs
plugged into the wall.

Global Telecom Players
World Telecom Market
New cellular,
satellite, VOIP and
wireless
technologies
promise
continuous rapid
advancement
Cost of a
cellphone call has
become a bargain
worldwide,
massive threat to
traditional
landlines
Competition
among handset
makers is more
intense than ever
Wireless access to the
Internet threatens
traditional DSL
broadband suppliers
Smart phones
have more
computer
processing power
than a PC of 10
years ago
Millions of households
and businesses
worldwide have signed
up for less-expensive
VOIP service as an
alternative to landlines
Companies like
Verizon and AT&T,
are laying fiber-optic
cable directly to the
neighborhood, in
order to retain
customers with
promises of ultra-
high-speed Internet
Mergers, acquisitions and other
industry changes redefined
telecom in recent years. AT&T
and SBC merged and MCI
merged into Verizon. Sprint and
Nextel have combined to create
wireless giant Sprint
Nextel. Qwest has merged into
CenturyLink .
AT&T and its peers
are focusing on
bundled service
packages
(combining wireless
accounts, very high-
speed Internet
access and
entertainment such
as video on demand
and TV via IP, in
addition to VOIP or
landlines).
3 Major Challenges for World Telecom
Sector
Demand for
high
connectivity
and speed
Long-term
spectrum
availability
Security issue
with Increasing
popularity of
(BYOD)
Emerging Markets Big Challenges, Big
Opportunities

Brief History of Indian Telecom
Sector
Indian Telecom Sector

Indian Telecom Subscriber Base
expanded substantially

Indias telephone subscriber
base expanded at a CAGR
of 26.8 per cent to 895.5
million during 2007-12
Teledensity (defined as the
number of telephone
connections for every
hundred individuals)
increased from 23.9 in 2007
to 73.3 in 2012
In March 2013, the total
telephone subscription was
898 million, while teledensity
was 73.3

Telecom Revenues have been
surging ahead

Indian telecom sectors
revenue grew by 13.4 per
cent to USD64.1 billion in
FY12
Wireless and wireline
revenue increased at a
CAGR* of 11.9 per cent to
USD40.8 billion over FY07-
12.
Revenues from the telecom
equipment segment in FY12
stood at USD23.5 billion as
compared to USD23.4
billion in FY11
For 9M13, the telecom
sectors revenue grew to
USD30.6 billion
Sector benefits from growing young
population

National Telecom Policy 2012
Challenges Faced by Indian Telecom
Sector
2G Scam
Fallout of the 2G spectrum scam under the UPA government
pulled down the telecom sector
Huge Traffic
Wireless economy with fixed wireline penetration being very
limited, New solutions such as M2M, m-governance, m-
banking and m-entertainment will lead to voluminous traffic
on the wireless networks
Underutilized
Spectrum
Spectrum in all the bands (e.g. 2100 MHz, 1800 MHz, 800
MHz and 700 MHz) presently lying unutilized by various
government agencies.
Financial &
Operational
pressure
Operators are finding business sustainability a challenging
task.
Challenges continued.
Low
Telecom
Infrastructur
e
Investment
India accounts for just 11 per cent of the total investments in
the Asia-Pacific region while compared to China, which
accounted for nearly 50% of the investments in the region in
2012-13.
Irrational
Taxes
Taxes aggregate presently to 30 percent of the revenues
earned by telecom companies as compared to about 5% in
other Asia-Pacific (APAC) countries
Low Revenue
Growth
While revenue growth remains challenged, data
consumption is expected to grow at a high rate due to over-
the-top services, accelerating demand for network
investments.
Unsustainable
Business
Model
Without a parallel revenue stream to support these
investments, it becomes disruptive for the telcos and
makes the business model unsustainable in the long run.
Need to monetize these services
Telecom Industrys 5Pt. Agenda for new
Govt.
Make more spectrum available for data usage
Rationalize the taxes and levies in the sector
Facilitate introduction of new and efficient
technologies such as M2M and cloud computing
Implement the benefits of the status for the
industry in parity with other infrastructure sectors in
the country
Exploring a revenue sharing arrangement between
the over the top Internet players and telecom
companies

Union Budget 2014 Telecom
10% customs duty on telecom products outside the
purview of IT sector, to discourage imports.
Govt. didn't reverse the 2012 retroactive amendment to
income tax laws or make it prospective, disappointing many
in the investor community and leaving the over six-yr-old
multi-billion-dollar dispute with Vodafone Group
Plc unresolved.
Govt. to launch Rs 500 crore for internet connectivity in
villages under National Rural Broadband Vision.
Internet and mobile advertising now under service tax net
Digital drive through broadband connectivity at village level
by way of allocating Rs. 500 crore and an additional Rs. 100
crore towards governance improvement is in line with the
National Optical Fiber Network project that will eventually
connect 2,50,000 gram panchayats.



Contribution to GDP
Indias service sector accounts for roughly 55% of
GDP. Within the services sector, the telecom sector
has been the major contributor to the countrys
growth, accounting for nearly 5.3% of the total GDP in
2012. (Source: Deloitte)
A 10% increase in mobile and broadband penetration
increases the per capita GDP by 0.81% and 1.38%
respectively in the developing countries. (World
Bank)
The contribution of the telecom sector also has a
multiplier effect on growth, due to associated
individuals and businesses. Further, the GoIs aim to
reach rural teledensity of 40% by 2014 from the
current levels and achieve broadband coverage of all
250,000 village panchayats under the Bharat Nirman
Program is expected to enhance the contribution of
the telecom sector to Indias GDP.
Estimated Employment
Besides being one of the largest revenue generators, telecom is
also a major creator of jobs. The telecom sector has led to the
growth of a range of communication technology-enabled activities
and services. Operations such as data entry, revenue accounting,
processing of insurance claims, call center operations, customer
support centers are popular examples.
The spread of telecom and information services to rural areas is
enabling the setup of rural business process outsourcing (BPO).
The expansion of the Indian BPO industry is a classic example of
indirect employment.
The Indian telecom industry employs more than 430,000 direct
employees, with the majority of these employees being a part of the
public sector undertakings (PSU). ( Source: EY)
Over the past decade, private telecom players have considerably
expanded their operations, which has resulted in an increase in
employment opportunities in the telecom sector. The sector has
created direct employment across various business areas such as
sales and marketing, technology, R&D and customer care, as well
as indirect employment.

Key Market Players

Market Share of Top Companies
Wireless market
Bharti Airtel is the market leader, with a 21.7 per
cent share of total subscription.
Vodafone follows with a 17.6 per cent market
share.
The top 5 players- Bharti Airtel , Vodafone,
Reliance, Idea and BSNL- account for over 79
per cent of the total subscribers.
Market Share of Top Companies
Fixed Line market
BSNL is the market leader with a 67.7 per cent
share.
MTNL follows with 11.5 per cent market share.
BSNL, MTNL and Bharti together account for 90
per cent of the total fixed line market.
Market Share of Top Companies
Broadband market
BSNL has the largest share (66.0 per cent) of the
total broadband market.
Bharti Airtel has the second-largest share (9.3 per
cent) of the total broadband market.
BSNL, Bharti and MTNL together account for
more than 80 per cent of the total broadband
market.
Telecom industry trends
Average revenue per user (ARPU) is considered to be a
key industry profitability benchmark.
Average revenue per user (ARPU) and Minutes of Usage
(MOU) are stabilising for both GSM as well as CDMA
service operators.
Monthly ARPU for GSM services increased by 6.14% from
Rs.105 in March 2013 to Rs.111 in Jun 2013, with year-on-
year increase of 16.73%.
On an all India average, the overall MOU per subscriber
per month for GSM services increased by 1.38% from 383
in QE March 2013 to 388 in QE June 2013.
Gross Revenue (GR) and Adjusted Gross Revenue (AGR)
of Telecom services sector for QE June 2013 has been
Rs.572.60 billion and Rs.386.40 billion respectively.
There has been an increase of 5.48% in GR and 9.53% in
AGR as compared to previous quarter.
Critical Success factors
Number of Subscribers
According to Porters Five Forces theory, the growth of
subscriber numbers can be related to the strength required
to compete with existing competitors.
Another potential benefit that results from the steady
growth of number of subscribers in the telecom industry is
that, it gathers crucial customer related information.
Operators maintain databases with personal information
and choice, which is collected during the registration and
cancellation processes. Customers are normally obliged to
provide personal information as well as personal opinions
on the product or service. This information is valuable for
the company and the industry to understand better their
customers behaviours, preferences, and segmentations,
which provides necessary statistics in order to improve the
efficiency in marketing analysis.

Critical Success factors
Government Regulations and Policies
All industries, irrespective of the product or service, depend
heavily on the support they receive from the government to
survive in the market. The role of the government is seen as an
essential supporter of the industry, employing a host of policies
to contribute directly to the competitive performance of strategic
or target industries (Porter, 1990). The telecom industry similarly
enjoys the support from the the Indian government in terms of
various policies and regulations that help the sector to thrive.
In 1999, the Indian Government established the National
Telecom Policy 1999, which played a key role in shaping the
sector and later in 2000 introduced the Communications
Convergence Bill that setup the autonomous commission called
the Communications Commission of India (CCI) that acts as the
super/regulatory body to regulate telecommunications, Internet
and Broadcasting sectors. The Planning Commission of India in
its eleventh five-year plan for the period 2007 till 2012 stated that
the approach would be towards achieving faster, broader and
inclusive growth, with special attention to enhance the rural
connectivity (Planning Commission, 2008).
Critical Success factors
Technological innovations
Today telecommunications is a highly technical
industry, which is constantly evolving, and inventing
technologies to improve the cost, coverage and
quality of communication. It is one of the most R&D
intensive-industries, with leading multinational
corporations (MNCs) spending on average between
10 and 20% of their revenues in R&D in 2003 (MIT
Technology Review, 2003).
The telecom-equipment market in India is growing at
a rapid pace and competing globally for market share.
The telecom infrastructure has seen tremendous
advancement in the past few decades. Echoing the
market growth, most of the global leading telecom-
equipment manufacturing firms have started their
operations in India. This has facilitated the growth of
infrastructure
Competition in the Telecom Industry
The New Telecom Policy was announced by the
Indian government in1999 (NTP99) to rationalize
certain expectations in industry growth and services.
In the second round of licensing during 2001, the
government decided to further open up basic services
without any restrictions on the number of operators
following the recommendations of the New Telecom
Policy 1999 (NTP99). A total of 25 licenses were
picked up by private operators in 18 service areas,
leading to an oligopoly in many service areas.
With new players coming in, the intensity of
competition in the industry has increased, especially
over the last five years. The market share of telecom
operators reflects the fragmented nature of the
industry, with as many as 15 players.
Industry Structure
The Indian telecom industry has undergone
significant structural transformation since its
liberalisation in the 1990s.
During the last decade, the Indian telecom
industry has evolved into a multi-segment,
competitive market from a small supplier-
dominated market having public sector monopoly.
Coherent Government policies have played a
crucial role in shaping the structure of the Indian
telecom sector.
Industry Value Chain
Shift in Value Chain for Telecom
operators

Bharti Airtel

Bharti Airtel
#1 Operator
in India
1.85 bn
Addressable
Population
US $ 14.2 bn
Revenue
#5 Operator
in the world
Present in 20
countries
#2 Operator
in Africa
Source:
TRAI and Informa
Telecoms and Media
Overview
Bharti Airtel Limited is a leading global telecommunications company with
operations in 20 countries across Asia and Africa.
Headquartered in New Delhi, India, the company ranks amongst the top 4
mobile service providers globally in terms of subscribers.
In India, the company's product offerings include 2G, 3G and 4G wireless
services, mobile commerce, fixed line services, high speed DSL broadband,
IPTV, DTH, enterprise services including national & international long distance
services to carriers.
In the rest of the geographies, it offers 2G, 3G wireless services and mobile
commerce. Bharti Airtel had nearly 287 million customers across its operations
at the end of Dec 2013.
Bharti Airtel becomes the fourth largest mobile operator in the world
At the end of the quarter ended June 2012, the Company had over 250
million mobile subscribers across its operations, representing 13% Y-o-
Y growth



(Source: Wirelessintelligence.com (Mobile operator worldwide group
global ranking by connections, Q2 2012)
Corporate information
Organizational Structure
Recent Honours
Ranked the No.1 Service Brand and No.3 in the overall rankings of the annual Brand
Equity Most ' Trusted Brands Survey
Telecom Center of Excellence (TCOE) Award for Service Provider with Customer Focus
for Best Delivery of Network Services
Airtel Digital TV (HD) recognized as 'Product of the Year 2012', through an independent
survey conducted by the research firm, AC Nielsen
'Telecom Center of Excellence (TCOE) Award' for Service Provider with customer focus
for best delivery of Network Services for the year 2011
DSCI (Data Security Council of India) Excellence Award 2011 for Security in Telecom
Rated as one of the Top 5 best employers, by Aon Hewitt's Best Employers in India 2011
study
'Golden Peacock National Quality Award' for the year 2011
SSON Excellence Award under 'Excellence in Culture Creation' category for Airtel
Center of Excellence-Finance, RA, HR and SCM Shared Services
Featured amongst the Top 25 Companies globally in a study by Fortune- AON Hewitt on
The Best Companies for Leaders'

Company Growth
Core Values
Diversified Portfolios
Business Model
Minutes factory
Bharti Airtel-The leader
Source:
TRAI
Notes:
1. As of Feb 28,2014 as announced through TRAI
2. For quarter ended Dec 31, 2013. Calculated on the
basis of Gross Revenue for UASL + Mobile +CMTS
licenses
Strong Spectrum Position
Source:
TRAI, Department of Telecom
International Operations-Transaction
Rationale
Africa-Opportunity for growth
Source:
Company Filings, World
Cellular Information Service
(WCIS)


SWOT ANALYSIS
STRENGTHS
Biggest mobile service
provider in worlds second
largest telecom market
Well-established nationwide
High brand equity
Superior overall network
quality and reliability
Weaknesses

High
competition
in the
telecom
market
Debt and
finances
Africa
acquisitions
and
operations
Late
adoption of
3G and
advanced
wireless
technologies
Opportunities

Untapped voice
3G and data revenue
LTE
Mergers and Acquisitions
Threats

Unfriendly regulatory
environment
Spectrum Auctions and
Refarming
Mobile Number Portability
Market Capitalization (as on Jul 10, 2014)Approx. Rs.1,338 billion
Closing BSE share price = Rs. 334.65
Closing NSE share price = Rs. 334.05

Strategic Directions
Bharti Enterprise to invest in, build and grow businesses that make a positive difference
to the lives of people and partner Indias economic growth.
Bharti Enterprises strategic intent is to continue to lead in the market, build new
businesses and reinforce its best in class governance model. The new apex level structure
takes this vision & strategy forward.
Bharti Enterprises will be the strategic architect for all businesses of Bharti Telecom,
Retail & Wholesale, Communication & media devices, Insurance & Financial services,
Agri business, Realty, software / BPO & Bharti Foundation.
Strengthens empowerment & accountability for business leaders and further enhances
professionalism. Bharti Enterprises will set overall direction, focus on macro strategies &
business reviews and ensure a continued senior leadership pipeline.
Sunil Bharti Mittal to lead Bharti Enterprises as the Chairman and Group CEO. Rakesh B
Mittal will be Vice Chairman, Rajan B Mittal & Akhil Gupta will be Managing Directors.
Group Lead Directors, Group/Corporate Directors to form core of the Bharti Enterprises
team.

Acquisitions
1. Bharti Airtel acquires Loop Mobile in a Rs 700-crore deal, taking India's
biggest operator to the top spot in Mumbai.
Airtel acquires Zain Africa
2. In the largest ever telecom takeover by an Indian firm, Bharti Airtel completed
a deal to buy Kuwait-based Zain Telecom's African business for $10.7 billion
(about Rs 48,000 crore).

The transaction is the largest ever cross-border deal in an emerging market and
will result in combined revenues of about $13 billion."

On March 30, 2010, Bharti had entered the deal to acquire Zain Telecom's
operations in 15 nations, excluding Sudan and Morocco. Zain has operations in
17 African countries.
Bharti Airtel acquires Warid Groups
Congo business
With an investment of $70-80 million, the deal makes Airtel the largest mobile
operator in Congo Brazzaville, with around 2.6 million subscribers.
This agreement is the third such deal that Bharti is signing with the
Warid Group. Earlier, Bharti had acquired Warid Bangladesh and Warid
Uganda.
This acquisition is in line with the stated strategy of Airtel of
strengthening their market position through in-country acquisitions, as
and when suitable opportunities come along.
Voice data fone
to reflect Voice
and Data services
over Mobile
Phones


How and where Vodafone
does Business
One of the world largest
communications companies
providing a wide range of services
including voice, messaging, data
and fixed broadband. Over 434
million mobile customers and 9
million fixed broadband customers
across the globe.

The business is split across two
geographic regions- Europe and
Africa, Middle East and Asia
Pacific( AMAP), which includes
emerging markets


SERVICES
PROVIDED
Voice
We carried 1.2 trillion minutes of calls over our
network last year thats the equivalent of
everyone around the world talking for two and
a half hours.
Messaging
Our network carried 337 billion text, picture,
music and video messages last year.
Data
Over 544 petabytes of data were sent across
our network last year thats enough data for
over 100 billion one minute video clips.
Fixed broadband
We have 9.3 million fixed broadband
customers, mainly in Germany, Spain and Italy.
Other services
Includes revenue from mobile virtual network
operators (MVNOs) using our network in our
markets and from operators outside our
footprint using our products and services as
part of our partner market network that spans
48 countries.

MARKETS
Europe: Number one or two mobile operator in most of our European
markets with market shares ranging from around 25% to over 40%. Holds
a small but growing share in fixed line across Europe, with the acquisition
of Kabel Deutschland and proposed acquisition of Ono boosting our
positions in Germany and Spain.
AMAP: Number one or two mobile operator in most of our AMAP region.
Our mobile market shares vary by market from around 20% to over 50%.
The telecommunications industry
today
BUSINESS MODEL
ONE COMPANY- MANY ROOTS
The Importance of Diversity
KEY EVENTS
Vodafone 2015 Strategy
Short-term Challenge
A very tough regulatory environment, particularly in Europe and India,
combined with significant macroeconomic pressures in many of our
markets, mean that it is currently hard for us to grow their business.
Competition, while a fact of life in any industry, is being exacerbated by high
unemployment and austerity measures. These force many customers to
value price over quality. In addition, regulation has lowered barriers to entry
and allowed low or no-capital operators to compete with businesses such
as theirs which have invested significantly over many years.

Long-term growth opportunities
We expect smartphone adoption to accelerate in all markets over the next
three years, with mobile applications and low cost smartphone availability
increasing everywhere. With the broad deployment of high speed data
networks, and the increasing deployment of TV programming, films and
music streaming across all devices, we expect customers appetite for data
on both mobile and fixed networks to increase significantly. Companies will
increasingly look to consolidate telecoms procurement across borders and
put mobility at the centre of their strategies, favouring operators who can
supply seamless unified communications.
Vodafone 2015 strategy is the
response to this dynamic
environment. This is based on
a new strategic approach to
their consumer offer and
pricing in Europe, an
increasing focus on unified
communications, and an
attractive and growing
exposure to emerging markets.
Fundamental to the success of
this strategy will be an ongoing
enhancement of the consumer
and enterprise customer
experience through continuous
investment in high speed data
networks, and an increased
drive towards standardisation
and simplification across
the Group to maximise cost
efficiency and accelerate
execution.
Accelerating Strategy for Growth
Consumer Emerging Markets
M-Pesa in Tanzania
The cost of travel prevents many people seeking the
medical care they need. A local NGO, the
Comprehensive Community Based Rehabilitation in
Tanzania (CCBRT), is working with the Vodafone
Foundation to address this by integrating M-Pesa
into its referral process, to ensure patients suffering
from obstetric fistula get to hospital.In 2013, 70% of
CCBRTs fistula patients came via the M-Pesa
Text to Treatment initiative.
Data usage in South Africa
In South Africa were investing in newer revenue streams
such as data by driving smartphone adoption and
enhancing the network. During the year supported a
24% increase in the number of active smartphones and
tablets, taking the total to eight million devices. Average
monthly smartphone usage increased 82% to 253MB per
device and grew 25% to 743MB on tablets. We supported
this growth by investing in our market-leading data
network. We can now provide 3G services to 92% of the
population. Were also ready for the future, with 4G
coverage of 20% of the population today.
Egypts literacy programme
Vodafone Egypt Foundation launched an
accredited mobile literacy app in 2013, which
forms part of its Knowledge is Power initiative,
supporting national efforts to tackle adult illiteracy.
The app uses pictures and a talkback function to
make learning easier and more flexible. The
Knowledge is Power programme uses classroom
and mobile learning to improve literacy skills to
date 187,000 people
have enrolled.
Introduction: Vodafone India
Vodafone India is a member of the Vodafone Group and
commenced operations in 1994 when its predecessor Hutchison
Telecom acquired the cellular license for Mumbai. The company
now has operations across the country with over 150 million
customers. Vodafone India has firmly established a strong
position within the Vodafone Group too, making it the largest
subscriber base globally.
Vodafone India has been awarded the Most Admired Telecom
Operator and Best 3G Operator at the recent Telecom Operator
Awards 2012. The company has also received the globally
recognized prestigious Product of the Year 2012 consumer
award for Vodafone Apps Store in the Mobile Services Category.
In another survey conducted by Nielsen, Vodafone India was the
only telecom player in the Top 10 Most Exciting Youth Brands in
India. Vodafone India also features in the Top 10 Most Trusted
Brands in India for 2011, in a survey conducted by a leading
financial daily.
PRODUCTS
Prepaid Cellphone
connection
Prepaid recharge card
top-ups
Vodafone Postpaid
Calling Cards
Vodafone PCO
Vodafone Handyphone
I-phone 3G
Magic box Handset
World Calling Cards
Competitors in the Market
MARKET SHARES OF KEY
PLAYERS
Vodafone India rejigs
organisation
structure

Vodafone India took a major
restructuring of its management
with an eye on the next phase
of growth. The company, which
is also looking at an Initial
Public Offering in the country,
said that the reorganisation has
been done to be future fit'.
These changes would help
strike a better balance between
operational intensity and the
need to focus on emerging
areas for the company. It will
allow for better opportunities for
our teams to take on larger
roles and prepare ourselves for
the future.
Vodafone rethinks strategy to drive
growth in India

After years of focus on voice-based business, British telecom
company Vodafone is slowly changing course to include new areas
such as IT solutions and mobile payments to drive growth in India, as
the telecom business evolves and more players join the business, the
company knows voice-based service is not going to be leading the
way.
To pitch the right tool to the right customer, Vodafone has segmented its
customer as those having revenue over Rs 250 crores and the small
and medium enterprises (SMEs) having sales between Rs 10 crores
and Rs 250 crores.
In addition to enterprise solutions, mobile money transfer and payment
services are another of the companys focus areas. With the Reserve
Bank of India allowing profit-making companies to become banking
correspondents who can deliver cash to customers, Bharti Airtel, Idea
Cellular and Vodafone have announced mobile wallet service to provide
an alternative to the money order service through the governments
post office network.
A part of Vodafone's strategy also includes promoting the use of data
among its customers as there is a huge growth opportunity here as 75
million subscribers have handsets which are data-enabled. Also unlike
the developed world, the mobile phone is becoming the primary
interface for Internet for a large number of customers who do not have
access to personal computers or notebooks.


Company Growth
Total Assets
2009 2010 2011 2012 2013
Total Assets 35,357.62 41,776.12 54,344.70 63,559.00 67,126.00
0.00
10,000.00
20,000.00
30,000.00
40,000.00
50,000.00
60,000.00
70,000.00
80,000.00
A
x
i
s

T
i
t
l
e

Bharti Airtel (Rs Crore)
Total Assets
2010 2011 2012 2013 2014
Total Assets 156.99 151.22 139.58 138.32 121.84
0
20
40
60
80
100
120
140
160
180
A
x
i
s

T
i
t
l
e

Vodafone (Rs Billion)
Net Worth
2009 2010 2011 2012 2013
Bharti Airtel 27,643.97 36,737.18 44,111.60 49,429.60 54,146.20
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Bharti Airtel (Rs Crore)
Net Worth

2009 2010 2011 2012 2013
Vodafone 89.82 87.56 78.21 72.48 70.94
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Vodafone(Rs Billion)
Market Capitalization
Market Capitalization
Company Date Amount (Rs
Crore)
Bharti Airtel Ltd. 04-07-2014 135311.99
Vodafone Group 07-07-2014 85770.00
Stock Performance
Stock Performance

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Apr-10 Apr-11 Apr-12 Apr-13 Apr-14
Adjusted Closing Price 298.4 378.8 310.3 318.75 327.65
Adjusted Closing Price for Bharti Airtel
Stock Performance
Stock Performance
2010 2011 2012 2013 2014
Vodafone 153.09 186.27 189.67 215.33 212.42
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Adjusted Stock Value for Vodafone
Stock Performance
Annual Sales
Sales
01 March 2008 01 March 2009 01 March 2010 01 March 2011 01 March 2012
Vodafone 18677.1 21572.87 25028.48 25688.04 30703.64
Bharti Airtel 25703.51 34014.29 35609.5 38017.7 41603.8
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Chart Title
Analysis of Sales
Airtel (Rs
Crore)
YOY
Increase
Vodafone
(Rs Crore)
YOY
Increase
March
08
25703.51 18677.1
March
09
34014.29 32.33% 21572.87 15.5%
March
10
35609.5 4.68% 25028.48 16.0%
March
11
38017.7 6.76% 25688.04 2.63%
March
12
41603.8 9.43% 30703.64 19.52%
Creditors
Creditors (No of days)
FY 08 FY 09 FY 10 FY 11 FY 12
Bharti Airtel 258 220 214 192 172
Vodafone 152 152 148 152 159
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Chart Title
Debtors
Debtors (No of days)
FY 08 FY 09 FY 10 FY 11 FY 12
Bharti Airtel 51 45 44 36 32
Vodafone 22 29 33 26 14
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Chart Title
Employee Turnover Ratio
Employee Turnover Ratio
Company 2009-10 2010-11 2011-12
Bharti Airtel 8% 8% 7%
Vodafone 13% 15% 15%
FINANCIAL RATIOS
USE OF IFRS ACCOUNTING RULES
EBTIDA = 29.4% which is 1.1% lower than the
last year.
Dividend per share = 11% which is an 8%
increase YOY.

2010 2011 2012 2013 2014
LIQUIDITY RATIO 42.15% 42.10% 43.97% 47.60% 47.09%
Column1
Column2
39.00%
40.00%
41.00%
42.00%
43.00%
44.00%
45.00%
46.00%
47.00%
48.00%
49.00%
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LIQUIDITY RATIO
EQUITY MULTIPLIER
1.6
1.65
1.7
1.75
1.8
1.85
1.9
1.95
2010 20111 2012 2013 2014
Series 1
Series 1
NET MARGIN
2010 2011 2012 2013 2014
Series 1 19.44 17.37 14.99 0.97 154.52
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RETURN ON EQUITY
2010 2011 2012 2013 2014
% 9.79 8.96 8.46 0.58 83.29
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%
2010 2011 2012 2013 2014
CURRENT RATIO 0.5 0.63 0.83 0.75 0.99
QUICK RATIOS 0.35 0.48 0.65 0.6 0.81
DEBT- EQUITY RATIO 0.32 0.32 0.37 0.41 0.3
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RATIOS
BALANCE SHEET ANALYSIS
CASH AND SHORT TERM
INVESTMENTS

2010 2011 2012 2013 2014
IN BILLIONS 4.81 6.93 8.46 12.88 14.55
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IN BILLIONS
ASSETS TOTAL GROWTH
Category 1 Category 2 Category 3 Category 4
Series 1 -3.67% -7.70% -0.90% -11.92%
-14.00%
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-8.00%
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0.00%
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ASSET TOTAL GROWTH
NET PROPERTY PLANT
AND EQUIPMENTS
2010 2011 2012 2013 2014
in billions 20.64 20.18 18.66 17.58 22.85
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in billions
2010 2011 2012 2013 2014
OPERATING INCOME -41.67 61.86 -40.97 99.91 -57.74
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OPERATING INCOME YOY
REVENUE YOY
2010 2011 2012 2013 2014
REVENUE 15.67 8.42 3.18 1.16 -4.25
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2010 2011 2012 2013 2014
TOTAL ASSETS 156.99 151.22 139.58 138.32 121.84
TOTAL LIABILITIES 66.18 63.66 61.37 65.84 50.06
GOODWILL 51.84 45.24 38.35 24.39 23.32
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ANNUAL REPORT
ANALYSIS
With 434 million customers globally, they are one of
the biggest mobile operators in the world.
The majority and the growing share of their mobile
customers are in emerging markets. They also have
over nine million fixed broadband customers, and
most of these are in Europe
Mixed operational performance


AIRTEL
OPERATING PROFIT
MARGIN
2010 2011 2012 2013 2014
OPERATING PROFIT
MARGIN
30.94 33.15 33.58 40.63 41.33
NET PROFIT MARGIN 2.8 3.08 11.95 21.78 20.88
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LIQUIDITY RATIOS
2010 2011 2012 2013 2014
DEBT EQUITY RATIO 1.45 1.36 1.16 0.26 0.47
QUICK RATIO 0.44 0.47 0.32 0.68 0.64
CURRENT RATIO 0.44 0.38 0.44 0.65 0.6
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2010 2011 2012 2013 2014
ASSET TURNOVER
RATIO
0.69 0.71 0.79 0.92 1.1
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ASSET TURNOVER RATIO
BALANCE SHEET ANALYSIS
CASH AND SHORT TERM
INVESTMENTS
2010 2011 2012 2013 2014
CASH AND SHORT
TERM INVESTMENTS
362.7 481.2 133.2 54.89 153.44
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TOTAL ASSETS
2010 2011 2012 2013 2014
TOTAL ASSETS 67,126.00 63,559.00 54,344.70 41,776.12 35,357.62
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TOTAL ASSETS
TOTAL LIABILITIES
2010 2011 2012 2013 2014
TOTAL LIABILITIES 67126 63,559.00 54,344.70 41,776.10 35357.62
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2010 2011 2012 2013 2014
NETWORTH 54,146.20 49,429.60 44,111.60 36,737.18 27,643.97
TOTAL DEBT 12,979.80 14,129.40 10,233.10 5,038.92 7,713.65
RESERVES 52,247.40 47,530.80 42,212.80 34,650.19 25,627.38
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ANNUAL REPORT ANALYSIS
ANNUAL REPORT ANALYSIS
Bharti AirteL continued to be among the top four
mobile service providers globally with presence in
20 countries.
The Company's diversified service range includes
mobile, voice and data solutions using 2g, 3g and
4g technologies.
Its service portfolio also comprises of providing
long-distance connectivity in India, Africa and rest
of the world. The Company also offers Digital TV
and IPTV services in India.
During the quarter ended March 31, 2014, the
Company made additional equity investments in
its following wholly owned subsidiaries:
i) USD 30 Mn (Rs 1,818 Mn) in Bharti Airtel
International (Mauritius) Limited
ii) Rs 550 Mn in Airtel M Commerce Services
Limited
iii) USD 18.60 Mn (Rs.1,152 Mn) in Network i2i
Limited, by way of transfer of its co-ownership
rights in a sub marine cable

In January, 2014, the Company transferred its co-
ownership rights in a sub marine cable to Network i2i
Limited, a wholly owned subsidiary of the Company
in exchange of 18.60 Mn equity shares of USD 18.60
Mn (Rs.1,152 Mn).

During the quarter ended December 31, 2013, Bharti
Airtel Employee Welfare Trust (a trust set up for
administration of ESOP Schemes of the Company)
transferred 237,597 shares to the employees upon
exercise of stock options, under ESOP Scheme
2005. As of December 31, 2013, the trust held
1,472,374 equity shares.