tangible by abhishek4u01

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									           Tangible Value Drivers
   Cost structure
   New models
   Product segmentation
   Capacity
   Cyclicality
                       Cost Structure
   Cost-effective outsourcing business model
       Example: Customer care outsourced to Nortel
        India. Key features:
            24x7 Interactive Voice Response solution
            Network Operations Center (NOC) in New Delhi for
             handling overall customer care
       Benefits
            Single number
            From anywhere
            Many languages
            Transparent routing to free agents across the country
            Innovative per call approach to payment, which scales
                        Cost structure
   Other examples:
       Tie-up with the eight-member Bridge Mobile
        Alliance (BMA) to provide seamless cross-border
        mobile services to its customers across the Asia-
        Pacific (APAC) region.
       Tie up with Nokia siemens for network and telecom
        gear. Order worth 900 million dollars. Benefit
            Coverage in international markets
            Can provide international calling card services.
            1.8 million lines for National Long Distance and
             International Long Distance Network
            adding 4.5 million new users capacity
                        Cost Structure
       Ericsson of Sweden has bagged a $2-billion
        contract from Bharti Airtel for expanding Bharti
        Airtel's GSM/EDGE network and providing capacity
        management.
   Comverse Kenan Billing and Order
    Management Expertise
       Operate, Align and Transfer Model
            operator’s longer-term self-sufficiency by building a
             model that would not rely on third parties for support.
       Decentralized Billing Services for handling large
        number of customers effectively
           New models - Blackberry
   Launching Blackberry having features
       QWERTY keyboard
       Trackball navigation
       Bluetooth
       MicroSD Cards
       GPS
       Wi-Fi support
              New Models - Concierge
   Concierge services:
       Extension of customer care
       SIM card replacement
            home delivery of new card
       Call forwarding to local prepaid card
            advice on how to use same while international roaming
       Handset recommendations and purchase
        promotions
            list of recommended dealers
            Buy handsets from concierge counters
New models – Concierge (contd...)
    Assistance on roaming and technical inquiries
         Roaming rates (For phone calls, SMS and GPRS)
         Roaming destinations / network coverage
         Handset configurations for GPRS and MMS
    Weekly health tips from Self magazine
    Makeup tips from Allure
    Fashion trends from Style.com
    News alerts from Wired.
New models – Concierge (contd...)
    Travel advice from Concierge.com
         Best shopping
         Dining
         Nightlife
         Wallpapers
         Hotel locations
         Tourists spots
         Travel guide
            New Models - Misc.
   Google search services
   Yahoo messaging services
   Hotmail mail sending and receiving through
    SMS
             Product segmentation
   Current penetration:
       Women – 48% population, 16% mobile user base
       Youth (15-19 years) – 3% only
       Senior (60+) - 1% only
   This is very less than developed countries
    where this percentage range from 40% to 80%.
   Hence, products targeted specifically for
    women, youth and senior citizens are being
    launched.
    Product Segmentation - Women
   Offers for women:
       receive special beauty and lifestyle tips
       special discounts on subscription to Cosmopolitan
        and Good Housekeeping magazines.
       call three local Airtel numbers at just 50 paise per
        minute
       send SMS to them at 50 paise per message,
        subject to a maximum of 25 messages per month.
       Affordable rental 150 Rs. month
        Product segmentation - Youth
   Offers for youth:
       `Friendz' package for the youth whereby
        subscribers are allowed to transfer mobile recharge
        both talktime and validity
       Closed User Group of up to 5 friends and make
        calls at 50 paise a minute.
       India first 64K pre-paid sim card
       send SMS to up to 15 friends simultaneously at Rs
        3.
     Product Segmentation - Senior
   Offer for senior citizens:
       `Seniors Plan' with a monthly rental of Rs 150.
       Discount on one STD number and one local Airtel
        number.
       special discounts for health check-ups
       facility to club bills with that of their children
                         Capacity
   Towers
       Doubled towers to 40,000 in 2006
       Aim to double towers to 80,000 by end of 2007
       Especial attention to rural areas
   Others equipment and offices like optical fiber,
    customer care centers, regional offices etc. are
    also increased.
              Capacity - Comverse
   Comverse Kenan Billing and Order
    Management Expertise improved:
       Rating Timeliness Increased by 90%
       Zero Billing Delay Environment
       Quick Order Times: 60% reduction, from 12
        minutes to less than 5 minutes
       Operational Intelligence: Automated tools improved
        business reporting intelligence
       Improved Cash Flow and Resource Utilization:
       Implemented Industry Best Practices
        Capacity – Comverse (contd..)
       Sharpening the Competitive Edge: The sales and
        marketing teams developed strategies to
        significantly improve Airtel's competitive advantage
        at little to no additional cost by using tools such as
        rate plans, discounts, payments, and revenue
        treatment.
   All these benefits increase the capacity of Airtel
    to handle more customers effectively and
    efficiently.
                        Cyclicality
   Meaning: Things that follows general trend that
    others are following
       Example A cyclical stock is one that typically
        performs well when the economy is good and badly
        when than when the economy is weak.
   Other things:
       Non-cyclicality: Not affected by economy, like
        health
       Semi-cyclical: Less affected, like food
       Countercyclicality: Inversely affected, like alcohol
                    Cyclicality
   Telecom is one of the few industries that are
    genuinely non cyclical, unlinked to crude oil
    prices and interest rates.
   This itself gives about 30-40% extra valuation
    premium.
        Competitor Analysis - Global
   Total Telecom Base – 214 Million
       Amongst top five in the world
   Wirless sub base – 168 Million
       Third largest in the world
   Wireless penetration – 15%
       Lowest in the world
   ARPU(revenue generated per customer per
    month) < USD 10
       Among lowest
        Competitor Analysis - Global
   Mou/Sub/Month ~ 460 minutes
       2nd Highest in the world
   Realized RPM ~ 2 US cents per minute
       Lowest in the world
   Fixed line sub base – 46 Million
   Broadband sub base – 2 Million
       Large potential market
Competitor Analysis - Global
Competitor Analysis - India

								
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