The biggest event in India’s telecom sector has been witnessed in 2017 due to the significant reason Reliance’s Jio company has only three major players in the entire telecom sector. By the way, this masterstroke of Reliance also forced the merger of established companies like Vodafone and Idea, otherwise they would find it difficult to run the company. In this, Airtel Bharat not only kept itself alive in the market in this time, but today Reliance Jio is standing as a big competitor and that bubble of Reliance has not been that effective anymore.
Sunil Mittal started his business from cycle business till selling telephone parts and finally Bharti Airtel was established. His father, Satyapal Mittal, was a politician who had been a two-time MP, from whom Sunil Mittal started his business by taking 20000 rupees. Seeing the future of the telecom sector, he tried and achieved to acquire the government telecom spectrum by setting up Bharti Airtel.
Reliance Jio’s strategy put all the telecom companies in the market in financial trouble, but Bharti Airtel has stood up again after some time loss and is giving tough competition to Reliance Jio today. Companies like Vodafone Idea were forced to merge and many others had to shut down their business. That’s why we will try to find out what is the business model of Bharti Airtel company which is so strong with this case study.
Bharti Airtel Company Profile –
- Company Establishment – 7 July 1995
- Company Name – Bharti Airtel Limited
- Founder/President – Sunil Bharti Mittal
- CEO – Gopal Vitthal
- Industry – Telecommunication
- Head Office – New Delhi
- Products – Broadband, Satellite Television, Mobile Phones, Digital Television,
Net worth – 4. 16 lakh crore rupees
- Share Price – 643.50
- Market Capital – Rs 4.30 lakh crore (March 2022)
- Employee – 32780 (2021)
- IPO – 28 January 2002
- Company Holdings – Bharti Enterprises – 35.85%, Singtel – 31.7% and Google – 1.28%
- Subsidiary Company – Airtel India, Airtel Sri Lanka, Airtel Africa, Airtel-Vodafone, Robi etc.
Area of Work – 50 Countries
History of Bharti Airtel Company –
In the 1980s, telephones for dialing were changing and press button telephones were being used more in the market, at that time Sunil Mittal ji knew the future of telecom business through this business. Those telephone sets were imported from Singapore base company Singtel, which is today a shareholder company of Bharti Airtel. After the establishment of Bharti Airtel Company in 1995, the production of push button telephone, fax machine cardless phone etc. was started by tying up with German company Siemens Company.
In 1992, Bharti Airtel acquired a mobile phone network license, a deal with French telecom company Vivendi, which required the telecom sector. Sunil Mittal saw that the mobile network business would grow significantly in the future, so it was the first Indian company to start mobile network services in the Delhi region for the first time in 1995. Bharti Airtel attracted two million customers in India within a few days and India became the first company to provide mobile network services.
Bharti Airtel started providing STD and ISD services in India at the same time under the name India One, people who have seen this era understand the importance of this service. Due to the low rate of Shyam, people used to crowd the telephone booths to make their calls in the evening. The “Hello Tune” of the Airtel company became very famous as a market brand, through which the company attracted a lot of customers and by acquiring India’s small companies in the telecom sector, Bharti Airtel established itself as an important telecom company all over India. established himself.
Today Bharti Airtel is successfully working in 50 countries facing the crisis of Reliance Jio and has become the number two telecom company in India and number three in the world.
Business Model of Bharti Airtel Company –
Bharti Airtel has 350 million customers in India who have understood the strategy of how to engage their customers through the Steve Job concept eco system. Entry level – retain – up sale This sales strategy has been very successful through which Reliance Jio has established itself in the market. Bharti Airtel has started using this strategy to end Reliance Jio’s telecom sector dominance, in which its already established business broadband service and satellite services and mobile internet service have been successful in providing customers with good plans through this ecosystem. .
The acquisition of telecom important companies by Bharti Airtel has been the second biggest strategy to achieve internet speed, under which companies like Tata Docomo, Tikona, Aircel, Uninor were bought, under which the government spectrum these companies got, they compete in the market. used to eliminate. The customers of Reliance Jio had increased because of giving this free internet, the same old customers of Airtel were connected with the company due to good service, which again started joining the Airtel company after the free internet services were stopped.
Bharti Airtel did not delay much in understanding the strategy that Reliance Jio used to eliminate the competition from other companies and under this strategy, he has been successful in getting his customers back in the company for the last few days. Bharti Airtel This telecom brand is not only an Indian brand but also an international brand, due to which it was not an easy task to eliminate it. Understanding the mistake of 3G network, the company has also maintained the setup of 5G technology while providing 4G services so that it can learn from the previous mistake.
Bharti Airtel & Share Market –
Bharti Airtel is seen among the 10 best companies in the Indian stock market, which is the favorite company of the investor. The shares of any promoters of Bharti Airtel are not pledged, this is a positive thing from the point of view of the company and the investor. The company suffered a little loss in the 4G revolution of Reliance Jio, but the rest of the business in the telecom sector of the company is an ecosystem, due to which it is not so easy for any competitor to eliminate the company.
Bharti Airtel has a large number of loyal customers in India, who had gone away from the Airtel company for a few days due to free internet services for the last few years, but they have started coming back today. To keep these loyal customers engaged, the company has come up with a complete package of Mobile Internet Services, Broadband and Settop Box Services through an ecosystem, which is showing its impact in the market. The company has established itself not only in India but also in African countries and countries like Sri Lanka and Bangladesh.
The 4G revolution in the Indian stock market drove the old small competing companies out of the market, due to which only three players are seen in the Indian telecom sector today, in which the financial condition of Vodafone Idea is not good. Due to which investors in the stock market look positive from the fundamental and technical point of view to invest in the shares of Bharti Airtel Company. The results of Reliance Jio showed on the company’s profit for two years, but under the new strategy, the company has shown very good performance for the last few months.
Bharti Airtel Vs Reliance Jio –
Reliance Jio’s 4G revolution reduced the entire telecom market from many competitions to only three competing companies, in which Vodafone and Idea merged to save themselves from the economic crisis. Bharti Airtel also suffered losses due to this revolution, but due to the company’s fundamentals being much stronger than other telecom companies, it remained in the market. Reliance Jio invested 2.5 lakh crore rupees in the market for 4G network, the rest of the company had invested a lot of money on 3G network at this time.
Therefore, to set up a 4G network, a lot of money would have to be spent, which had already invested in 3G network technology, leaving Reliance Jio. Reliance Jio had joined telecom companies because of giving free data to the customers, after the scheme was closed, again those customers started connecting more with Bharti Airtel, who also talk a lot. To counter Reliance Jio’s eco system, Bharti Airtel started selling its telecom plans in package form by making eco system, whose success was seen by the company.
Reliance Jio had planned to eliminate competing companies from the market first by suffering losses under the strategy, in which many companies were closed. Vodafone and Airtel got into financial trouble and the CEO of Idea appealed to the Indian government for help, otherwise the company threatened to resign. In such a situation, Bharti Airtel, accepting its mistake in the market, made a program to dominate the market by making a new strategy keeping customers in priority. In which success is being seen to a great extent.
Elon Musk – Starlink and Bharti Airtel Company –
Elon Musk’s Starlink project will launch 42,000 satellites into the Earth’s atmosphere, for which his second company SpaceX will leave this satellite. The internet setup in India’s telecom sector is that of optical fiber cable internet, for which huge investment has to be made for tower and cable setup and for maintenance. The feature of Starlink project is that it will reach internet through internet service even in remote areas where cable internet is not yet accessible.
OneWeb and Bharti Airtel have already started this work to provide internet service by satellite in India, but StarLeak’s satellite launch cost will be much higher than other competitors because SpaceX is owned by Elon Musk. For other companies to provide internet service by satellite, it will cost a lot more money than Sterlink. The third company working on it internationally is ready to launch the Amazon 3200 satellite into space. Due to this, Reliance Jio and Bharti Airtel have to compete with US companies in technology in the Indian telecom sector in the future.
Bharti Airtel is completely dependent on foreign OneWeb company in the matter of amendment, same is the case of Reliance Jio which has to develop technology on foreign company. American companies are ready to take advantage of this in the telecom sector in the future. Sterlink currently has 69,000 customers in the US and this is expected to grow in the future as it enters the Tesla mobile market, which is set to introduce monopoly in its telecom sector through the ecosystem that Bharti Airtel faces. To do.
Success Formula of Bharti Airtel Company –
Bharti Airtel had dominated the market as the number one company in its mobile network services during the time of 3G network, talk time being more important it used to be sold under attractive plans. DTH service and cable internet services Bharti Airtel was running with great success in this major business, after the arrival of 4G network, the company suffered a lot for two years, but the company accepted its mistakes and took advantage of the eco-system to make its business 4G. Re-entered the network.
The specialty of Bharti Airtel company has also been that it had established its business not only in India but in African countries and some important countries of Asia, due to which it has been able to save itself in the Indian market. Bharti Airtel knew that Reliance Jio’s customer is connected through free internet data, so it cannot provide this facility for a long time otherwise it will face loss. So Bharti Airtel waited for the market to stabilize again and as soon as Reliance Jio started increasing its plans, Bharti Airtel again started stabilizing in the market.
If we see the graph of Bharti Airtel after 2014 i.e. after 4G network, then after leaving some time it has been successful in increasing its business. The company has made a tech company like Google a shareholding of the company to develop the technology, so that it is ready to establish 5G network in India through technology in the coming days. The company has always kept debt on the shareholding of its promoters which has been a positive thing for the company. The company has been successful in attracting its customers due to the vast experience and network of the Indian telecom market.
Features of Bharti Airtel Company –
- In 1984, Sunil Mittal began assembling and selling push button telephone sets in India for which he imported the material from Singtel, a Singapore base company.
- Siemens started manufacturing push button telephone sets in collaboration with this German company for the first time in India by setting up a company named Bharti Telecom Limited.
- In 1992, the company applied to the Government of India to provide services in the bar telephone sector,
- through which it first started providing its services in the city of Delhi, which later acquired dominance of Bharti Airtel market by acquiring small companies all over India.
- Bharti Enterprise Company was listed in the Indian stock market under the name Bharti Airtel Limited, under which Airtel this brand was used for the mobile network in the market.
- Hello Tone It became very famous in the Indian marketing market of Bharti Airtel.
- Bharti Airtel achieved 21 lakh broadband subscribers in 2017, which despite the 4G revolution of Reliance Jio, the company has managed to keep itself alive through the rest of its telecom service.
- Bharti Airtel 2022. 30 lakh crores market capital which establishes the company as the 10th largest company in the stock market.
- Bharti Airtel is not only working in the telecom sector of India but has also established its business in African countries and countries like Bangladesh and Sri Lanka.
- In the Indian telecom market, only three companies are providing services at the time of 4G network, in which Reliance Jio is at number one and Bharti Airtel is at number two and Idea-Vodafone is at number three, this company is providing services in times of great crisis.
- There are 400 million customers in the telecom sector of Bharti Airtel in about 50 countries all over the world, who take advantage of services like mobile network service to DTH.
- Bharti Airtel has increased telecom spectrum by buying Indian companies like Tikona, Tata Docomo and Uninor, which will benefit it for good internet speed and network expansion.
- Entry Point – Retain-up Sale Through this technology, the company has made its eco system successful and has attracted its customers.
Critical analysis of Bharti Airtel Company –
In 2015, Bharti Airtel had created an application for the mobile payment system, which was filed in the court as a violation of personal liberty, due to which this facility has been banned. The company paid more attention to the company’s calling plan at the time of 3G network, due to which the company has failed to know the future changes in the internet, due to which the company has suffered a lot. There are only three companies available in the Indian Telecom Market, which seems to be the fear of offering monopoly of these companies.
The rates of mobile internet services seem to be increasing a lot these days. It seems that the Indian Airtel company has invested very little on the research itself in the matters of technology, because in the matter of technology, the company always has to partner with foreign companies like Siemens or Google. In the era of liberalization, foreign companies are spending billions of dollars on their research, it is not so easy to make foreign companies like Bharti Airtel in the telecom sector. The business of Bharti Airtel Company is in all the foreign countries whether it is developing or poor country.
America and European Telecom Business It is completely based on Android mobile and technology today, which means business mind like Elon Musk will bring their new internet technology to India tomorrow if not in India today, which will make Reliance Jio or Indian in technology We really have to understand that Airtel will find it difficult to compete with Elon Musk without Google’s help. So if Bharti Airtel doesn’t improve itself in terms of amendments, it can’t do America’s technology giant telecom sector.
In this way we have seen what is the business model of Bharti Airtel company and what changes we have got to see in the Indian telecom sector after the 4G revolution of Reliance Jio. In the Indian telecom market today, only three companies have their service, in which Vodafone and Idea, this company has been in financial trouble, due to which they are competing with Reliance Jio and Airtel by forming a company. Telecom Sector Being a capital base business, it has to spend a lot of money, due to which there is very less competition in this sector.
In the telecom sector, only three companies are serving the customers today, due to which by setting up a monopoly in the market, this company cheats to fix the rate by forming its own cartel. In India, it is the task of the Government of India to control it through the Competition Commission of India, by implementing which it is the duty of the government to provide services at good prices. So Bharti Airtel may have eliminated the rest of the competitor Reliance Jio but it is competing and fighting for it in court.
Bharti Airtel was started by Sunil Mittal who lived in Ludhiana and his father was an MP from whom he first started the business of selling generators by taking 20000 rupees, which used to import these things which he had to close due to government policy. After doing business from cycle business to selling telephone sets, he started the company of doing business and further learned the future of telecom sector. Therefore, this experience shows that according to experience, it is the most experienced company in the telecom sector and the magic of Reliance Jio is slowly starting to diminish after the end of the free package.
In this way, we have tried to convey information about Bharti Airtel in simple language in Hindi through case studies and hope that you will like it.