Bharti Airtel - Business Model

3507 Words Nov 2nd, 2010 15 Pages
Bharti Airtel: Business Model

About Bharti Airtel:

Bharti Airtel is the largest wireless service provider in the country, based on the number of customers as of March 31, 2010. After Zain acquisition, it has become one of the five largest mobile operators in the world. The combined entity has 180 million customers, $12.4 billion in combined revenues, and $4.7 billion in EBIDTA. Along with India, It has presence in Sri Lanka, Bangladesh and 15 African countries now.

Bharti Airtel offers an integrated suite of telecom solutions to enterprise customers, in addition to providing long distance connectivity both nationally and internationally. It also offers DTH, IPTV Services and broadband services. All these services are rendered under a
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5. Outsourcing on the distribution side.
- Bharti Airtel had services in 15 circles in 2003. It was clear that it is not possible to establish showrooms and shops in all cities and villages there. Bharti Airtel outsourced distribution to local entrepreneurs, with know-how of area and entrepreneurial spirit to carry Airtel brand. Today its distribution channels consist of 1.47 million non-exclusive retail outlets.

Overall, this new business model can be summarized as outsource all expertise areas to people who are better than you. Bharti Airtel has kept their core competences with them viz –

Customer management,
Brand management,
People management,
Financing,
Regulation management.
For every other activity there are strategic partners, who have better domain knowledge, skills, and capabilities.

Today in the global telecom sector, the Bharti Airtel business model is looked at as most unique, most viable, and great for all emerging markets.

Current Strategic Partners of Bharti Airtel:
IBM is strategic partner of Bharti Airtel for all business and enterprise IT systems. There are more than 90 hardware, software and service providers serving it through IBM.
On the GSM/Wireless equipment side, Bharti Airtel has partnered with Ericsson, Nokia Siemens for 2G/2.5G network in India & also partnered with Huawei for the supply of 2G & 3G network in Sri Lanka. Recently it has extended agreement with Ericsson and Nokia Siemens Network (NSN) to
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