Airtel resource audit

University Degree Business and Administrative studies

Human resources

Airtel has a long-term human resources

The Company values its human resource and is committed to adopt the best HR
practices. The employees of the Company are presently benefited from two
ESOP Schemes under 2001 and 2005, Employee Stock Option Policy. The policy
also helps in retention of well-performing employees, who are contributing
to the growth of the Company.

A structured and robust training schedule for its employees.

Highly self motivated employees.

Revenue of 373,521 mn rs

Profit after tax 78,590

Return on capital employed 30.5%

Year-on-year (Y-o-Y) growth of total customer base by 65% resulted in a

47% increase in revenues, 53% increase in EBITDA and 57% growth in net

profit.

Share holder equity up by 20%

Huge availability of funds

Physical

14 foreign subsidaries

services with presence in all the 22 licensed jurisdictions (also known as
Telecom Circles) in India, and in Sri Lanka. The Company served an
aggregate of 96.6 mn customers as of March 31, 2009

First operator in India to cross the total customer base of 96 mn.

Mobile Network is present in 5060 census towns and 414,906 non-census
towns and villages in India, thus covering approximately 81% of the
country's population.

* Focus on rural penetration and customer affordability has led to mobile
tariffs of 1.2 cents/minute, one of the lowest in the world.

* Expanded its international footprint by launching mobile operations in
Sri Lanka on a state-of-the-art 3.5G network

* Made its television debut by launching Airtel Digital TV, its Direct-to-
Home (DTH) satellite TV service.

High quality service

Intangible

Goodwill

Brand

Customer loyalty

Leadership

This is a preview of the whole essay

High quality service

Intangible

Goodwill

Brand

Customer loyalty

Leadership

OPPORTUNITIES AND THREATS:

Opportunities:

The rural landscape:

The Indian telecommunication industry is now the 2nd largest wireless
market in the world after China and is poised to deliver solid growth
forward. The focus on rural penetration and customer affordability will be
instrumental in driving the next phase of growth in India. The majority of
the wireless net additions have started to come from the rural segment.

The telecom industry plays a pivotal role in transforming the lives of the
rural households which account for 70% of India's population. An increasing
number of rural customers is contributing to the growth in telecom sector.
The rural segment is witnessing a growth of 8-10% every month - giving a
substantial boost to the telecom sector.

With rural teledensity still below 15%, the opportunities are immense and
Airtel is leveraging its fast mover advantage to reach the hinterlands.
Currently, more than 60% of our new customers come from rural India.

New technologies and paradigms:

As growth in data traffic accelerates with the proliferation and adoption
of web services the telecom operators will evolve their infrastructure
through upgrading their access transmission infrastructure from the base
stations to the core switching network. With increasing bandwidth and data
demands, advanced technologies like HSPA, WiMAX and WiFi will be deployed.
3G and BWA auctions will be held in the 2nd half of the year. Convergence
will be a vital phenomenon to support all network and IT services, using IP
as the strategic technology.

Infrastructure sharing may extend to active infrastructure, resulting in
opportunity to reduce the costs to deploy mobile network infrastructure.
The Enterprise Segment will see increased emphasis on managed services and
MPLS technology which provides differentiated and assured Quality of
Service (QoS).

Triple Play services (Voice, Data and Video) will gather momentum with
telecom operators getting into media space through DTH and IPTV platforms.
The DTH market will evolve further as the low levels of reach, quality and
service standards of existing cable operators, coupled with growing demand
for digital content and introduction of CAS (conditional access system) by
the Government of India will all work together give a boost to this
segment. Airtel will strengthen its position as an integrated player
through offering services across all technologies.

Bharti Airtel will participate in the discussions on the feasibility and
the model for adopting 3G and other NGN (Next Generation Networks) related
technologies in the Indian context.

Our entry into the Sri Lankan market for telecom services in January 2009
is very encouraging. Our experience in the Indian Market and unique value
based low cost business model is suitable for the Sri Lankan customer and
we hope and expect to establish a strong presence in Sri Lanka, and create
value for the Sri Lankan customers.

Strong strategic partnerships:

We have a strategic alliance with SingTel, which has enabled us to further
enhance and expand our telecommunications network in India to provide
quality service to our customers. The investment made by SingTel in Bharti
is one of their largest investments made in the world outside Singapore.

We have also established strong alliances with equipment and technology
partners who share our drive for development of innovative solutions.
Ericsson, Nokia Siemens and Huawei are equipment partners supporting our
aggressive expansion plans by deploying state of the art technology across
our networks. IBM has been working closely with us to transform our IT
systems, key business processes and establishing an enterprise integration
platform. Telephone services and long distance networks equipment partners
include Siemens, CISCO, WIPRO and Tellabs among others. Nortel, IBM Daksh,
Mphasis, Firstsource, Teleperformance, Aegis and HTMT are associated with
us for providing excellent customer experience through dedicated call
center operations. We have a strategic partnership with Infosys to provide
a suite of products, including devices, application servers and interactive
applications to enhance digital lifestyle for our customers. We work with
globally renowned organizations such as On Mobile, Comviva, Yahoo, Google
and Cellbrum among others to provide each of our customers with a unique
experience in the areas of CRBT(caller ring back tone), Music on Demand,
Email services and other Airtel Live applications.

We are considering a joint venture with Alcatel Lucent for managed services
for our broadband and fixed line/telephone services. This is the first
Managed Services partnership for Broadband and Telephone Services in India.
The joint venture when executed will provide services for Airtel's
migration to Next Generation Networks (NGN) to offer advanced services like
highspeed internet, Triple Play, media-rich VAS, MPLS, VPN for both retail
and business customers.

Threats:

Economic Meltdown:

There is a global economic slowdown that has severely impacted the largest
economies and the effect is cascading down to the smaller and emerging
economies. Governments across the globe are offering bailout packages to
stimulate growth, infuse consumer confidence and provide employment
opportunities. Large multinational corporations are struggling to grow
their top-lines. As a result, the Enterprise business may be affected by
this but we expect revival of this segment in the second half of this
fiscal year. However, the India growth story continues, backed by a strong
rural economy.

Increased competition may reduce market share and/or revenue:

The wireless market in the year 2008-09 saw the entry of many existing
players into newer circles along with operators migrating to GSM from CDMA
technology. The coming year will see competition intensify as the market
will grow to 550 mn customers.

The market also saw the entry of many international and national long
distance operators. This may lead to some tariff erosion and pressure on
marketing expenditure in the coming year. Bharti Airtel, with its
integrated portfolio of product and service offerings will emerge stronger
and retain its leadership.