Industry Profile Airtel

Topics: Mobile phone, GSM, Mobile network operator Pages: 12 (3888 words) Published: July 2, 2011

The Indian telecommunication industry, with about 600.69 million mobile phoneconnections as of February 2010, is the third largest telecommunication network in the worldand the second largest in terms of number of wireless connections of 563.73 million. TheIndian telecom industry is one of the fastest growing in the world and is projected that Indiawill have 'billion plus' mobile users by 2015. Projection by several leading globalconsultancies is that India’s telecom network will overtake China’s in the next 10 years. Forthe past decade or so, telecommunication activities have gained momentum in India. Effortshave been made from both governmental and non-governmental platforms to enhance theinfrastructure. The idea is to help modern telecommunication technologies to serve allsegments of India’s culturally diverse society, and to transform it into a country oftechnologically aware people.


The Mobile telecommunications system in India is the second largest in the world andit was thrown open to private players in the 1990s. The country is divided into multiplezones, called circles (roughly along state boundaries). Government and several privateplayers run local and long distance telephone services. Competition has caused prices to dropand calls across India are one of the cheapest in the world. The rates are supposed to go downfurther with new measures to be taken by the Information Ministry. The mobile service hasseen phenomenal growth since 2000. In September 2004, the numbers of mobile phoneconnections have crossed fixed-line connections. India primarily follows the GSM mobilesystem, in the 900 MHz band. Recent operators also operate in the 1800 MHz band. Thedominant players are Airtel, Aircel Uninor, Reliance Infocomm, Vodafone, Idea cellular andBSNL/MTNL. There are many smaller players, with operations in only a few states.International roaming agreements exist between most operators and many foreign carriers.

Major players and their market share

Landline service in India is primarily run by BSNL/MTNL and Reliance Infocomm thoughthere are several other private players too, such as Touchtel and Tata Teleservices. Landlinesare facing stiff competition from mobile telephones. The competition has forced the landline

services to become more efficient. The landline network quality has improved and landlineconnections are now usually available on demand, even in high density urban areas. Thebreakup of wireline market share in India as of february 2010is given below.


Bharat Sanchar Nigam Limited (known as BSNL, India Communications CorporationLimited) is a state-owned telecommunication company in India. BSNL is the sixth largestcellular service provider, with over 57.22 million customers as of December 2009 and thelargest land line telephone provider in India. Its headquarters are at Bharat Sanchar Bhawan,Harish Chandra Mathur Lane, Janpath, New Delhi. It has the status of Mini Ratna, a statusassigned to reputed public sector companies in India. BSNL is India's oldest and largest Communication Service Provider (CSP). Currently has acustomer base of 90 million as of June 2008. It has footprints throughout India except for themetropolitan cities of Mumbai and New Delhi which are managed by MTNL. As on March31, 2008 BSNL commanded a customer base of 31.55 million Wireline, 4.58 million CDMA-WLL and 54.21 million GSM Mobile subscribers. BSNL's earnings for the Financial Yearending March 31, 2009 stood at INR 397.15b (US$7.03 billion) with net profit of INR 78.06b(US$ 1.90 billion). BSNL has an estimated market value of $ 100 Billion. The company is planning an IPO within 6 months to offload 10% to public in the Rs 300-400 range valuing the company at over $100 billion.

Bharti Airtel formerly known as Bharti...
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