Airtel Case STUDY

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Airtel iCreate 2019

Submission Guidelines

Case Challenge Name

Team Name: The Capitalists


Campus: SVKM's Narsee Monjee Institute of
Management Studies, Bangalore
Members: Hershita Rai
Lakshay Gupta
ARPU Model
MRP 35 130 170 200 400 450
Subscr 70 50 20 20 30 15
iptions
(MN)
Total 2450 6500 3400 4000 12000 6750
Reven
ue

MRP refers to details of various base recharges provided by AlphaTel representing various segments.
ARPU is the Average Revenue Per User
= Total Revenue/Number of Users
=(2450+6500+3400+4000+12000+6750)/(70+50+20+20+30+15)
=171.22
Minimum incremental revenue should be where all segments achieve ARPU.
The segments to be targeted are whose MRP be less than ARPU. Thus, Base Recharge of 35, 130 170
should be targeted.
Target segments :
Top Spenders- Ones who use the scheme twice every month.
Average Spenders: Ones who spend once in every quarter.
Low Spenders: Ones who rarely spend depending upon the scheme offered.
Presentation to the CFO

• In spite of constant R&D expense on own wallets, promoting the


recharge schemes on own platforms would mean higher visibility of
the company
• No need to pay commissions to other wallet systems
• The Goodwill of the company increases with own wallets
• More consumer trust and loyalty
• The Asset Value of the company increases
• Cost saving for business leading transparency in transaction
Financial Modelling

Rs. Subscriber Validity Total before change Shift total after change

35 70 30 2450 63 2205

130 50 30 6500 52 6760

170 20 30 3400 23 3910

200 20 30 4000 20 4000

400 30 90 12000 29 11600

450 15 90 6750 18 8100

3% of all to 250 250 7.5 1875

1% of all to 300 300 1.975 592.5

Total 205 35100 205 39042.5

from app 10.25 ARPU before change 171.2195122 10.7625 ARPU after change 190.4512195

Since ARPU after the shit is more than the shift before the shift, therefore it’s a profitable proposal and can be carried forward.

Cost 250 50 100 675 1888 200 450 3613


How can AlphaTel use its huge market footprints and available data
to generate new avenues of revenue generation while collaborating
with new age digital startups?
• Emerging enterprises are key growth drivers for the company as well as for the economy,
this will
allow emerging businesses to buy connectivity plans through unlimited leased lined
connections. Alphatel should offer new communication and collaboration products that will
enable faster time to market for emerging businesses and enhance ease of doing business.
• The platform will help eliminate multiple layers of traditional processes and allow
businesses to identify and buy connectivity solutions, effectively bringing down the total
time required to order and deploy a solutions. There is an immense opportunity in serving
the vast SMB segment as businesses embrace digital technologies to drive growth.
• The vast network and integrated portfolio backed by experience in serving enterprises will
provide Alphatel with a robust platform to leverage this emerging opportunity
Through its enterprise business, Alphatel will be able to cater to enterprises, government
and SMBs through its various solutions that include corporate-grade connectivity,
collaboration, cloud, Internet of Things, managed mobility, mobile and fixed line services.

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