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
   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
            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
             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
    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
       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
     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
       special discounts for health check-ups
       facility to club bills with that of their children
   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
   All these benefits increase the capacity of Airtel
    to handle more customers effectively and
   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
       Semi-cyclical: Less affected, like food
       Countercyclicality: Inversely affected, like alcohol
   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
        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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