Bharti Airtel Limited

Satisfactory Essays
Bharti Airtel Limited

Bharti, based in Delhi, India is a family owned telecommunication business, founded by Sunil Mittal in 1995. Mittal saw an opportunity for his business because the Indian telecom market allowing companies to bid for a government license to operate the first private mobile telecom service in Delhi. Bharti won the bid and became the first private provider in Delhi. In 1998 they were the first to make a profit from their services in India. As Bharti continued to grow they began gaining licenses for mobile telecom operations in 15 out of 23 geographical regions also called circles. Bharti expected to achieve full cover in India by 2005. .” (Applegate, Austin, & Soule)

When Bharti went public in 2002 with the India National stock exchange they raised $172 million and by the end of 2002 they raised over $1 billion through direct investments.

Bharti was faced with many competitors by 2002 and 2003. The total Indian telecom revenue was “8.5 billion and growing rapidly at 17 percent per annum.” (Applegate, Austin, and Soule) To be a top competitor in this market a company would have to lower their unit cost while their shared increased through acquisitions and bankruptcies of other companies. Bharti had several major competitors which were: BSNL, MTNL, Hutch-Essar, Tata, Idea Cellular, and Reliance. In order for Bharti to be competitive in this market that was going to have to provide value services. Services like games, ring tones, and text messaging to name a few. These services needed to be efficient and reliable. They were going to need the best technologies that were available to them. With the constant growth Bharti need a way to be competitive in the growing industry. Akhil Gupta, the former CFO and current managing director, recognized that the company was not able to handle its growth and maintain high customer service along with having to manage its ever changing IT and network services. His proposed idea to handle the challenges Bharti was faced with in their IT and network services was to outsource those areas in which Bharti was not completely competent in. Could outsourcing be the way of the future for Bharti?

Success Factors for Growth in the Indian Telecom Market

In India’s highly competitive market Bharti must be mindful of how to keep its core competency ahead as well as trying to develop new ones.
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