Tag: Telecom operator

  • The Success Story Of Bharti Airtel: A Case Study

    Bharti Airtel is a public limited company commonly known as Airtel. It is an Indian telecom company, which is currently operating its business across South Asia, Africa, and the Channel Islands. It provides GSM in all the countries including 2G and 3G services. Due to its operations in more than 18 countries, Airtel is currently known as the 3rd largest mobile network operator across the globe with over a billion users and the 2nd largest mobile network operator in India.  

    Bharti Airtel’s Indian Customer Base, as of March 31, 2020, looked like this –

    • 283.7 million Mobile Services
    • 2.4 million homes
    • 16.6 million Digital TV Services

    Along with being one of India’s largest integrated telecom providers in India, Airtel is also famously ranked by Millward Brown and WPP plc in the first-ever Brandz ranking as the most valuable brand. At the end of September 2020, Airtel had around 440 Mn customers across its operations. It was known as the 3rd largest cellular service provider in India after beating China Unicom with 303 million subscribers, when reported back in August 2015.

    Along with the telephony network that Airtel provides, where the company offers prepaid and postpaid networks, it also offers broadband and DTH services for its customers. It also acts as a carrier for national and international long distances communication services. The company has a submarine cable landing station in Chennai which connects the submarine cable between Chennai and Singapore. One of the other services provided by Airtel is the Airtel Money (commerce platform in collaboration with Infosys).

    Airtel is also hailed as the first Telco to launch Multiplex in Metaverse, a milestone it achieved when it unveiled Metaverse multiplex on the PartyNite Metaverse platform, which is the first Metaverse multiplex in India.

    On this note, let’s look at this StartupTalky Bharti Airtel company profile, which brings the Airtel case study, competitions, Bharti Airtel subsidiaries, products, Airtel employees, Airtel telecom founded in, Airtel net worth, hiring culture, policies, Airtel’s history, Airtel’s customer base, achievements, and more.

    Bharti Airtel Case Study
    Who dominates Mobile Subscription?

    Bharti Airtel – Company Highlights

    Company Name Bharti Airtel Limited
    Established July 7, 1995 (as a Public ltd. company)
    Corporate Office New Delhi
    Funding $5.1+ Bn (2022)
    Revenue US$14 billion (2021)
    CEO Gopal Vittal
    Founder Sunil Bharti Mittal (Net Worth – $13.20 bn)
    Listed in BSE and NSE
    Stock Exchange Symbol NSE – BHARTIARTL, BSE – 532454
    Subsidiaries Wynk, Airtel Digital TV, Airtel Xstream & more


    About Bharti Airtel
    A Brief History of Bharti Airtel
    Bharti Airtel – Name, Tagline and Logo
    Bharti Airtel – Mission and Vision
    Bharti Airtel as The Market Champion
    Bharti Airtel – HR Strategies
    Bharti Airtel – Service Rule and Regulation of Employees
    Bharti Airtel – Promotion Policy and Wage Structure
    Bharti Airtel – Training and Development of Employees
    Bharti Airtel – Hiring Process
    Bharti Airtel – Incentives and Benefits
    Bharti Airtel – Partnerships
    Bharti Airtel – Awards and Recognition
    Bharti Airtel – Future Plans
    Recommendations


    Sunil Bharti Mittal | Founder & Chairman of Bharti Enterprises | Bharti Airtel | Bharti Foundation |
    Sunil Bharti Mittal is an Indian entrepreneur who serves as the Founder andChairman of Bharti Enterprises. The company has diversified into telecom,insurance, real estate, hospitality, malls, Agri, foods and other businesses aswell. Bharti Airtel [https://startuptalky.com/case-study-bharti-airtel/…


    About Bharti Airtel

    The name “Airtel” is something that is not only popular in India but has been a buzzword since the company was founded back in 1995. Headquartered in New Delhi, India, Bharti Airtel is a multinational telecommunication company with roots in the Indian subcontinent, which currently serves users of over 18 countries. The telecom giant has provided 2G, 3G, 4G+ and 4G LTE networks, fixed-line broadband connections, and voice services, which are based on the country of operation. Besides, it has also launched the Volte service.

    The Bharti Airtel company outsources all of its business operations except marketing, sales, and finance and is often credited with being the pioneer of such a business model. Besides, many of today’s telecom service providers also look up to Airtel for the same, which are now working on similar business models. Besides, Airtel is also hailed as the pioneer of the minutes’ factory model of low-cost and high volumes. The equipment that Airtel uses are provided for and maintained by companies like Ericsson, Huawei, and Nokia Networks. On the other hand, its IT support is provided by Amdocs.

    A Brief History of Bharti Airtel

    The Airtel founder, Sunil Mittal had primarily set up his business Bharti Overseas Trading Company in 1980, which was an import enterprise where he dealt with generators and more. Then he saw a push-button phone in Taiwan in 1984, seeing that he eventually started to assemble similar phones. Focusing on the same, he founded Bharti Telecom Limited in the early 1990s. Though he started with manufacturing fax machines, cordless phones, and other telecom gear, he soon discovered that the Indian government was inviting bids for mobile telephony in 1992, and Sunil was successful in bidding for one of the four mobile phone network licensed auctioned.

    He later went for collaborating with the French telecom group Vivendi, which eventually agreed to do business with him in spite of Mr Mittal being a small timer at that time. This led him to launch his cellular services in Delhi in 1995. Thus, Bharti Cellular Limited was formed to offer cellular services under the brand name AirTel. In 1996, cellular service extended to Himachal Pradesh. In 1999, the Bharti Enterprise went on to acquire control of JT holdings and extended cellular operations to Karnataka and Andhra Pradesh. Then, in 2000, Bharti acquired control over Skycell communications in Chennai.

    In 2001, the company acquired control of the Spice cell in Kolkata. Next, the company got listed on the Bombay Stock Exchange and National Stock Exchange. In 2003, all the cellular phone operations of the company were summed up under the single brand of Airtel. Airtel then acquired control over Hexcom and entered Rajasthan in 2005. It then extended its network all across India in 2005 and launched its first international mobile network in Sri Lanka.

    It was under the direction of the company’s Founder, Mr Sunil Bharti Mittal that the company became very successful and within a few years, AirTel turned into the first telecom company to cross the 2-million mobile subscriber mark.

    On 13th February 2008, Bharti Airtel Limited, the leading telecommunication company in India, crossed the 60 million customer mark. The wireless segment constituted 96% of BAL total customer base. The valuation of BAL then stood at $40 billion in 2008. BA was the fastest in the world and added 8 million customers in 2008. This puts Bharti Airtel among the top telecom companies in the world. Its next target was to reach 100 million mark by 2010. This was also crossed by the company. Airtel is currently standing with a subscriber base of around 354.40 million subscribers in 2021.

    Bharti Airtel Brand Value
    Bharti Airtel Brand Value (Source: statista.com)

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    Airtel’s actual name was Bharti Cellular Limited (BCL), the company which later began to offer cellular services under the brand name AirTel.

    “AISI AZADI AUR KAHAN” is one of the prominent taglines adopted by Airtel.

    Airtel Logo
    Airtel logo

    Bharti Airtel – Mission and Vision

    “Hunger to win customers for life” is the mission of Airtel.

    Our vision is to enrich the lives of our customers. Our obsession is to win customers for life through an exceptional experience.” – says the Vision statement of the brand.

    Bharti Airtel as The Market Champion

    Airtel strives to align its HR strategies with its corporate strategy. The HR team makes sure to see if the organization teams have the same attitude that would help employees realize the vision of the company. The company emphasizes recruiting young people with an average age of 26 years. This is done because the company wants to bring in young entrants and would them as per the business organization and at the same time, enhance their interaction and creativity.

    Senior management was advised by the HR management as they are encouraged to put forward their views openly in order, to play a more proactive role in team-building efforts. This was further augmented by a reward and recognition system along with a strong training program. As a part of the planning process, the entire organization is measured on five performance parameters, which includes its financial performance, profitability, market share, customer satisfaction, and employee satisfaction.

    Bharti Airtel – Growth

    Bharti Airtel has grown hugely throughout the years in the telecommunication sector. The company is currently spread across 18+ different countries including those in South Asia, Africa, and the Channel Islands. Building a big name for itself, Airtel is currently known as the second-largest mobile network in India along with being the second-largest mobile network in the world.

    Along with offering an efficient mobile network, Airtel also brings a wide array of products and services to its customers:

    • Broadband
    • Digital television
    • Banking
    • Business
    • Android-based tablet

    Airtel unveiled on June 14, 2022, it’s first, which is, in fact, India’s first Metaverse platform on the PartyNite Metaverse platform. Xstream multiplex, which Airtel launched, is designed as a 20-screen platform and will be an extension of Airtel’s Xstream Premium offering. Such a platform will leverage the content library of Airtel and will offer many more layers of engagement, thereby allowing the users to interact on the PartyNite Metaverse. This new Airtel multiplex will offer a sampling of the original shows and movies in many other languages along with those in English and Hindi.

    Airtel and Jio, it seems, are quite locked together to gain market share in India. According to the TRAI data for April 2022, Jio held a 35.5% market share in the wireless telecom market of the country whereas Airtel was positioned at the second spot with a market share that equalled 31.61%.  

    Google has picked up a minor and non-controlling 1.28% stake in Airtel for $700 mn, as per the reports dated July 1, 2022. The deal comes after around 5 months since it was proposed. This deal is part of the larger Google For India Digitisation Fund, which the CEO of Google, Sundar Pichai, announced in July 2020. The tech behemoth also said then that it would keep an additional $300 mn worth of funds for potential multi-year commercial agreements with Airtel. This investment in Bharti Airtel marks the second Google investment in India. The first was when Google invested $4.5 bn in Jio in 2020, picking up a 7.73% stake in the company. This investment from Google will help both Airtel and Google to ramp up the telco’s enterprise cloud solutions, which are being operated currently with Amazon. The deal would also help both parties to work unitedly to create an array of affordable Android devices in partnership with the device manufacturers. Moreover, the deal would also help them develop 5G use cases specific to India and create multiple network solutions. The shares of Airtel were allocated on July 14, 2022, when Bharti Airtel approved the allotment of more than 71.17 crore shares to Google at an issue price of Rs 734, which includes a premium of Rs 729 per equity share. In the conclusion of this, Google’s stakes in Airtel stand at 1.20% of the total post-equity shares or 1.17% of the telecom company on a fully-diluted basis.

    Airtel Financials and Revenues

    The average revenue per user of Airtel rose to Rs 178 crore in the January-March quarter of 2022. This rise was mainly due to the strong user additions, higher tariffs, and one-time gains. The consolidated net profits of Airtel increased by 164% to become Rs 2008 crore in FY22.


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    Bharti Airtel- Service Rule and Regulation of Employees

    In Airtel, you are an at-will employee, this means you are working at your own will without any force or pressure before you join the company. You must sign terms and condition agreement that will state the corporate governance of the company which is:

    • Employees must report to their superiors and maintain disciplinary work.
    • All employees will be paid monthly by cheque procedure.
    • In case of leave, employees must draft a detailed application mentioning the reason for leave.
    • A lunch break of 1 Hour will be provided.

    Bharti Airtel- Promotion Policy and Wage Structure

    AirTel engages a policy under which an employee gets his/her due promotion in the organization, which is a reward for an excellent performance. Under the rules that govern the promotion, AirTel states that the employee must have successfully completed 6 months to be eligible for promotion in Airtel. The internal application process is carried out and all the previous records are checked and the performance is analyzed.

    The internal relationship between different jobs and wages helps the firm to decide its wage structure. 60% of its employees have a variable pay structure where they get paid according to the work done. The company considers factors such as performance and maintains internal equity to ensure people at the same level are paid for the same amount of work.

    The success story of Bharti Airtel

    Bharti Airtel – Training and Development of Employees

    Airtel has a vast pool of human resources that are upgraded from time to time in terms of leadership and technical skills through various outsourced and in-house training and development activities such as process and project management skills and technical skills. By providing world-class resources and combined efforts by Airtel many employees are being trained to become future leaders. The company’s HR is continuously working on launching various initiatives like on-job training, programmed learning, simulated development, and computed-based training.

    The on-job training is where a person learns a job actually doing it. Every employee from the mailroom, from a clerk to the CEO, gets job training when they join the company. Informal learning is used as 80% of the employees learn on the job they learn not through informal training, including performing their jobs on a daily basis in collaboration with their colleagues.

    The company provides a job instruction training program that takes place every month in Airtel in which a logical sequence of steps is taught step by step. On a quarterly basis programmed learning is followed by Airtel in which self-learning methods consist of Presenting questions, facts, or problems to the learner and allowing the person to respond.


    Airtel Launches Startup Accelerator Program to Support Startups
    New Delhi, October 25, 2019: Bharti Airtel (“Airtel”), India’s largestintegrated telecommunications company, today announced the launch of its StartupAccelerator Program to support growth of early stage Indian tech startups. Withthe advent of its Start-up Accelerator Program, Airtel aims to suppo…


    Bharti Airtel – Hiring Process

    • Application – In Airtel existing openings are monitored and accordingly position procedures are being carried out matching candidates’ profiles and areas of interest.
    • Screening – Matching of the profile is done by the company with respect to its requirements and needs.
    • Assessment – An aptitude test is required for the job of the front line sales. For considering the middle and senior-level job occupational personality questionnaire was done.
    • Interview – Airtel takes 1 to 3 rounds for the interview process. Then the final appointment letter is being offered with the company’s terms & conditions memo, which every employee must sign.

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    Bharti Airtel – Incentives and Benefits

    Airtel has an incentive pay scheme managers often use two terms synonymously incentive plan for the employees that are applicable to sales over the target achieved. Merit pay as incentives is generally done by the company for excellent performance by the employee in the last term of his/her employment. The other non-monetary incentives include Employee recognition, Gifts, Special events, merchandise incentives, and free training programs.

    When it comes to the benefits, they are indirect financial and non-financial payments employees receive for continuing their employment. They include things like health and life insurance pensions, time off with pay, and child care assistance.  The company also provides Life and Health insurance for families and dependents. Different types of leaves like study leave, extraordinary leave, petrol allowance, and family holidays.

    Along with helping the employees on many different fronts, Airtel also cares for others as well, especially the startups of today.

    Airtel Launches Startup Accelerator Program to Support Startups

    Bharti Airtel (“Airtel”), India’s largest integrated telecommunications company, announced the launch of its Startup Accelerator Program on October 25, 2019, to support the growth of early-stage Indian tech startups. With the advent of its Start-up Accelerator Program, Airtel aims to support the creation of a vibrant startup ecosystem that contributes to “Digital India”.

    Through Airtel’s Startup Accelerator, early startups get access to Airtel’s online and offline distribution network, deep market understanding, and ecosystem of global strategic partners. In addition, Airtel has also developed strong in-house capabilities around machine learning and artificial intelligence, which could be leveraged to aid the growth of startups. Furthermore, startups also get access to advisory services from Airtel’s executive team.

    Vahan was the first to join Airtel Startup Accelerator. Airtel announced the induction of Bengaluru-based tech startup Vahan into its Startup Accelerator Program. Airtel will acquire a stake in Vahan and partner with them in building a significant scale to achieve their vision of enabling jobs for the next billion internet users. Founded in 2016 and backed by Y Combinator and Khosla Ventures, Vahan leverages advanced Artificial Intelligence to match job seekers with employers inside messaging apps such as Whatsapp. It is focused on finding blue collar jobs for millions of young Indians in Delivery, Driving, Retail, BFSI, BPO and Hospitality sectors with companies such as Zomato, Swiggy and Dunzo as clients.

    Adarsh Nair, Chief Product Officer, Bharti Airtel said:

    Today, early stage startups in India have some very exciting ideas but face multiple challenges in scaling up. With Airtel’s scale and digital capabilities around distribution and payments, we have the potential to drive accelerated growth of emerging startups that are solving hard problems. The team at Vahan is doing some incredible work to bring jobs to millions of people through AI based technology. We are excited to partner with them on this vision.

    Madhav Krishna, Founder and Chief Executive Officer, Vahan, said: “

    Airtel will be a key partner for us as we look to solve a hard problem for Bharat. Most blue-collar job seekers are unaware of the opportunities that exist in the market, especially new-age on-demand jobs. Airtel’s distribution channels will help us reach the very depths of the country and in turn, help millions of Indians take control of their economic destiny. We are incredibly excited about this partnership.

    Bharti Airtel – Partnerships

    Bharti Airtel has seen a considerable number of partnerships and collaborations to date. Some of them are mentioned below:

    • Bharti Airtel partnered with Apollo Hospitals and Cisco on April 28, 2022, in order to help in the development of state-of-the-art ambulances that will be equipped with Airtel 5G.
    • The company partnered with Mavenir for open radio access network-based 5G field trials. The first Open RAN-based 5G NSA validation was done on April 5, 2022.
    • Airtel and Tech Mahindra partnered together to “build and market innovative solutions for India’s digital economy by bringing together their core strengths”, said an Airtel PR dated March 31, 2022.
    • A PR rolled out by Airtel on December 14, 2021, stated that the company partnered with Capgemini to announce 5G-based enterprise-grade solutions to the Indian market.
    • Bharti Airtel and TCS collaborated to build a 5G-based remote working technology using robotics on December 2, 2021.
    • BlueJeans – Bharti partnered with Verizon to launch BlueJeans, a video conferencing platform like JioMeet. The platform can accommodate 50,000 attendees and is simple and intuitive to use. With the launch of BlueJeans, Airtel and Verizon tend to provide a safer video conferencing experience to the customers. Hans Vestberg, Chief Executive Officer of Verizon, said during a virtual press conference that the data of all the customers will be hosted in India and stored within the data centres all over India. The per-call costs have also been dropped to INR 0.50. It is also having the Airtel Auto Bridge feature, which allows users to benefit from an unlimited calling feature within the National/International range. This new feature also consists of HD video calling with Dolby voice support. It also allows users to schedule, join or host the meets with the one-click feature. With the involvement of ‘Smart Meetings’ feature in BlueJeans it will allow the user to get hold of the important points and assign certain actions to the people. They are also trying to add certain packages for the enterprises in the upcoming days. Vittal said in a statement, “We will have three kinds of packages for our consumers one for large enterprise, the second one for medium, and the third for tiny or small business. We will reveal packages for BlueJeans over the next few days.” The company is also sure that the prices will be competitive. Airtel has been a new entry in the video conferencing sector shortly after the launch of JioMeet by Reliance Jio. Players from the telecom Industry entering the video conferencing sector will be interesting. It is making a great competitive market in this industry. BlueJeans was founded by Krish Ramakrishnan and Alagu Periyannan, in India only. The first prototype was tested back in 2009 and 2012 in Pune at the company’s research and department centre. However, Verizon, in May 2020, tried to acquire it and give it a boost. It will be interesting to see how things go in the upcoming days and brings us interesting content.

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    Bharti Airtel – Awards and Recognition

    Some of the major achievements and milestones earned by Bharti Airtel are listed below –

    • AirtelThanks App was recognized as one of the most innovative mobile application in the prestigious ET Telecom Awards 2020.
    • Airtel won four awards in each category of Video Experience, Games Experience, Voice App Experience and Download Speed Experience in the Open Signal Report in September 2020, for the second time in a row.
    • Airtel Xstream Fiber won the Best Broadband Service Provider in ET Telecom Awards 2020.
    • Airtel ranked 4th in the category of “The top 10 most valuable Indian brands 2019” as per WPP Kantar Survey.
    • Airtel Business won the “Best Partnership” award at Telecoms World Middle East Awards 2019 for partnering with Telecom Egypt.
    • Airtel Business won 3 prestigious awards at Global Carrier Awards 2019, namely, Best Global Wholesale Carrier – Voice, Best Voice Service Innovation – Emerging Markets and Best Security Solution.
    • Airtel Finance shared services team has bagged the coveted Digital Initiative Award by HDFC bank in the Large Customer Category.
    • Airtel Business has been awarded as the “Enterprise Data Service Provider of the Year” and the “Enterprise Telecom Service Provider of the Year” in the large enterprise segment at the Frost and Sullivan ICT Awards
    • App Annie ranked Wynk Music as India’s #1 music streaming app in terms of Daily Active Users in October 2019.

    And the list goes on & on…

    Bharti Airtel – Future Plans

    Bharti Airtel is currently planning to launch its 5G services in the country. The Union Cabinet earlier gave its nod for the auction of 72 GHz of 5G spectrum, which is planned to be conducted in July 2022.

    Recommendations

    Bharti Airtel is currently doing incredibly well in recent times it is expected with same quality services and has the prospective to overtake China’s Unicom in a few years making Airtel one of the world leaders when it comes to being a world leader in telecommunication. This is possible because of the company’s expansion in African and Asian countries making it a global company.  Airtel also has good relations with its business partners like Ericsson, Siemens, and IBM.

    The company has strong HR policies that help in maintaining its corporate governance structure. The profit and assets are also increasing at a considerably good rate, making its turnover cross $643.25 bn. Good customer schemes and support services make Airtel capture a major chunk of the competitive market.

    FAQs

    What is the difference between Airtel and Bharti Airtel?

    Bharti Airtel and Airtel are the same company, a subsidiary of Bharti Enterprises.

    Is Bharti Airtel an Indian company?

    Bharti Airtel Limited is an Indian multinational telecommunications services company.

    How many employees are there in Airtel?

    There were over 17K employees in Airtel in 2021.

    When was Airtel founded?

    Airtel was founded on July 7, 1995.

    Who is the founder of Airtel?

    Airtel was founded by Sunil Bharti Mittal.

    What is the Airtel company owner’s name?

    Bharti Airtel is a subsidiary owned by Bharti Enterprises.

  • Reliance Jio Business Model | How does Jio Makes Money?

    Reliance Jio, we all have been hearing a lot about this company for the past few years. Reliance Jio is a well-structured company whose business model is considered ‘the sweetest data bait.’

    Jio has proven itself the icon of international tech and private capital investors. According to estimated data, Jio has raised Rs. 67,194.75 crore from the forthcoming technology investors including Silver Lake, General Atlantic, Facebook, and Vista Equity.

    With the vibrant interest of the foreign investors in the Indian market have signed several deals for Reliance Jio. When it comes to the business model of Jio, the company has opted for very cleverish strategies which have resulted in remarkable profits for the company.

    Reliance Jio holds a very strong position in the market with an immense customer base. Through this article, we will be discussing the business model of Reliance Jio briefly along with its tremendous marketing strategies. Let’s begin!

    About Reliance Jio
    Key Product and Services of Reliance Jio
    Target Audience of Reliance Jio
    Business Model of Reliance Jio
    What is unique about the business model of Reliance Jio?
    How does Reliance Jio make money?
    Conclusion
    FAQs

    About Reliance Jio

    Reliance Jio Logo
    Reliance Jio Logo

    Jio is officially termed as Reliance Jio Infocomm Limited which functions as the Indian telecommunications company. Jio was founded by Mukesh Ambani in 2007 as the subsidiary of Reliance Industries.

    Reliance Jio, which functions as a subsidiary of Jio platforms and telecommunications services providers has its well-established headquarter in Mumbai, Maharashtra, India. Alongside the company operates all 22 telecom circles through the National LTE network. Through this, Jio provides the voice service on its 4G network, that too only from the LTE network.

    Today, Jio is known as the largest mobile network operator across India and the third-largest in the world. The company has over 42.62 crore subscribers. Recently in 2019, Jio launched its service of fiber to the home, where it offers television, telephone, and home broadband services. As of 2020, Reliance Jio raised its funds by selling around 33% equity stake in Jio Partner, worth Rs. 1.65 lakh crore that is, US$23 billion.

    Jio Business Model and the success story

    Key Product and Services of Reliance Jio

    Reliance Jio Services
    Reliance Jio Services

    Reliance Jio offers tons of amazing services through its fiber-to-the-home services. Its key services include telephone services, television, and home broadband services.

    While its key products are Mobile Phones, top-notch internet speed and services, fixed-line telephone, OTT services, and Wireless broadband.

    Target Audience of Reliance Jio

    Reliance Jio majorly concentrates on the audience who are smartphone users. It provides the service of high-speed internet and great android mobile services. Jio targets the urban and two-tier middle and upper-class people. Jio works towards transforming India into a digital nation.


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    Business Model of Reliance Jio

    Jio, being the highest in the market strategizes its business model in a very significant and unique way. It has opted for the formula of ‘Unique Selling Point.’ This basically means Jio offering such unique and advantageous services to their customers that can not be resisted.‌‌ This can be elaborate as when Jio launched the unlimited offer with a 4G server, people of India weren’t encountered 4G at all. And with such a unique offer, how can someone turn it down? And that’s what benefits the company of Reliance Jio.

    Jio offers a broad range of customer-based features and services like high-speed Internet, free voice calls, unlimited texting, and many other. All these are developed to charge money from the customers. Its tariff plans are exclusively built to catch consumers’ eyes.

    Jio has offered some very exclusive services to its customers with a fully served 4G network. Jio was the first to bring on the popularity and use of 4G network while other telecom companies were still working with 3G networks. And with this significant approach, Jio builds the biggest loyal customers base.‌‌ People wanted more things in less price, Jio took the opportunity and provided them that. This unique strategy is what brought Jio where it is now!


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    What is unique about the business model of Reliance Jio?

    Jio has opted for the most powerful and promising business strategies, which has surely brought great benefits and profit to it. Its business model is very simple, yet unique. The most unique thing about Jio is it offers free voice calls to its customers. According to statistics, only 10-15% of the Jio 4G network is used for calling while the other 85-90% is used for data. And when you have this amount of popularity and usage, paying a little price is always worth it. That’s what Jio does!

    In this way, it attracts more and more customers to its services and creates a significant marketing buzz with free offerings. In all manner, it’s beneficial for the company.

    How does Reliance Jio make money?

    Reliance Jio generates its money from two major options- Charging extra per unit and selling more units. And as compared to other telecom companies, Jio sells way more of its units to generate more money.

    For those who refer to Jio as a cheap telecom service provider, they are talking about its per-unit cost. But apart from this, the company charges its customers INR 154 for ARPU. And this amount is higher than any other telecom operator company.

    So, the Jio customers are actually paying more for the cheap products. Jio does not provide the facility of paying just INR 10 per month as compared to other telecom companies. Jio majorly focuses on generating more money through all its plans.


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    Conclusion

    ‌‌With its incredible marketing strategy of generating money through Jio tariff plans that come in 4G network brings great profit for the company. Jio follows different pricing options and makes enormous customer deals.

    They offer various applications, devices, and fiber services to multiply their revenue. This helps Jio to win numerous business verticals. And with such marketing strategies and development, Jio’s market value and position are unbeatable.

    FAQs

    What is the revenue of Reliance?

    Reliance has a revenue of 7.27 lakh crores INR (US$100 billion, 2021).

    Who is the CEO of Reliance Jio?

    Atul Kansal is the CEO of Reliance Jio.

    When was Relinace Jio founded?

    Mukesh Ambani founded Reliance Jio in 2007.

    Who are the top competitors of Reliance Jio?

    Some of the top competitors of Reliance Jio are:

    • Airtel
    • Vi (Vodafone Idea)
    • AT&T
  • The Success Story of Vodafone

    Since its entry into India in 2007, Vodafone has established itself as a trusted mobile service provider in the country. After the launch of Reliance Jio, the company is facing tough competition in India, and some are even speculating the shut down of the company in India. Besides India, Vodafone has its operations in over 30 countries worldwide, and despite its ups and downs, Vodafone has managed to hold a significant share of the telecommunications market in many countries across the world. Vodafone is yet another example of a business that started small and went on to make a mark worldwide. Here is how Vodafone started and rose to become a leading player in the global telecommunication sector.

    Vodafone – Company Highlights

    Startup Name Vodafone Group Plc
    Predecessors Racal Telecom (1981–1991), Voda-Racal Telecom (1985–1991)
    Headquarters Newbury, Berkshire, England, UK
    Industry Telecommunications
    Founders Ernest Harrison, and Gerry Whent
    Founded 16 September 1985
    Areas Served Worldwide
    Current CEO Nick Read
    Website www.vodafone.com

    About Vodafone
    Vodafone – Latest News
    Vodafone – Industry
    Vodafone – Name, Logo, and Tagline
    Vodafone – CEO & Founders
    Vodafone – Startup Story
    Vodafone – Mission and Vision
    Vodafone – India
    Vodafone – Products and Services
    Vodafone – Business Model and Revenue Model
    Vodafone – Investments
    Vodafone – Acquisitions
    Vodafone – Growth
    Vodafone – Competitors
    Vodafone – Challenges Faced
    Vodafone – Future Plans
    Vodafone – FAQs

    About Vodafone Group

    Racal Strategic Radio Ltd, a component of Racal Electronics, Britain’s biggest manufacturer of military radio equipment, launched a joint enterprise with American telecommunications company Millicom in 1981, which evolved into the modern Vodafone.

    Today Vodafone provides a wide range of products and services for consumers, businesses, and Governments.  Besides mobile services, Vodafone offers fixed broadband and television services, cloud and hosting, internet protocol-virtual private network services, roaming, and unified communications services.

    Vodafone’s M-Pesa is a mobile financial and mobile payment service that allows customers to access their bank accounts to receive or send money, purchase stuff, make bill-payments, save funds, and get simple loans; and Vodafone One Net is a converged fixed and mobile communications service for big multinational companies as well as small and medium enterprises.

    Vodafone also provides machine-to-machine services, as well as tablets,  smartphones, and telematics commodities/services. It has roughly 16,000 retail locations, distributors, and third-party merchants selling its products.

    Vodafone – Latest News

    Vodafone’s first-quarter revenue for FY2021-22 increased by 1.4 percent in Germany which is its biggest market. In the UK, as international travel reopened, the telecoms behemoth benefited from visitors to the UK utilizing its network. A marginal increase in Vodafone’s revenue also came as it levied roaming fees as a result of the UK’s withdrawal from the EU. Overall, the Vodafone group made revenue worth $51.169B in FY 2020-21 which is 2.32% more than in FY 2019-2020 revenue.

    Since the pandemic, Vodafone has experienced a resurgence in mobile phone sales, with greater customer loyalty across Europe, according to the company.

    Vodafone – Industry

    Companies in the telecommunications sector make communication possible on a worldwide scale, whether it’s through the internet or phone, over waves or wires, or digitally. These businesses built the infrastructure that allows data to be transferred anywhere in the globe in the form of text, speech, audio, or video. Telephone (both landline and wireless) operators, satellite companies, cable companies, and Internet service providers are the main corporations in the industry.

    Telecommunications has grown in importance as a fundamental business, which speaks well for its prospects for the future and expansion. Continuous advancements in high-speed mobile networks and Network connectivity across devices continue to fuel industry invention and rivalry. Most of the industry’s attention is focused on delivering quicker data solutions, particularly in the field of high-resolution video. The driving causes are essentially faster and crisper services, improved connection, and multi-app utilization.


    How did Vodafone Idea lost 2.3 million subscribers
    According to reports published by TRAI, Vi had added more subscribers but the recent reports don’t suggest so, Let’s understand the complete situation


    Vodafone – Name, Logo, and Tagline

    Company logo of Vodafone
    Company logo of Vodafone 

    Vodafone is an acronym for VOice DAta FONE (a dramatic spelling of “phone”), which was selected by the firm to “represent the availability of telecommunication services through mobiles.”

    Saatchi & Saatchi, a well-known worldwide advertising business, created the Vodafone logo in 1997. Conversation and voice communication is represented by the apostrophe in the logo. It brilliantly delivers a classic telecom brand that conveys its intended message in an aesthetically attractive manner.

    Vodafone’s tagline says, “Together We Can.”

    Vodafone – CEO and Founders

    Vodafone was founded by Ernest Harrison and Gerry Whent in 1985.

    Ernest Harrison

    Sir Ernest Thomas Harrison OBE (11 May 1926 – 16 February 2009) was a British entrepreneur who was best known for being the first chairman of Racal’s spin-off mobile phone section, Vodafone.

    Gerry Whent

    Sir Gerald Arthur “Gerry” Whent CBE was the founder and first CEO of Vodafone. He was born on March 1, 1927, in Ferozepore, India, and died on May 16, 2002, in Chilton Foliat, Wiltshire.

    Nick Read

    Nicholas Jonathan Read aka Nick Read is the current CEO of Vodafone group. Born in 1964, Nick is a Certified Management Accountant. Prior to joining the Vodafone group, Nick worked for United Business Media Plc and Federal Express Worldwide. At Federal Express Worldwide, Nick worked as the Chief Finacial Officer for Europe, the Middle East, and the Africa region.

    Nick joined Vodafone UK as the finance director in the year 2001 and became the CEO of the Vodafone group in 2018.

    Ravinder Takkar

    In India, Ravinder Takkar is the MD & CEO of  Vodafone-Idea. He was the Ex- CEO of Vodafone Romania.

    Vodafone – Startup Story

    Based in Newbury in the United Kingdom, Vodafone has been offering its services since 1985. Vodafone’s story dates back to 1981. British Electronics company Racal Electronics and American company Millicom Inc joined hands to bid jointly for UK’s second cellular radio license.  The joint venture between the two companies was named Racal-Millicom Ltd. In December 1982, Racal-Millicom Ltd. was successful in earning the second Mobile phone network license of the UK.

    The Network was named Vodafone as the network lets its users transfer voice and data over the mobile phones. Racal-Vodafone (Holdings) Ltd became the holding company of Vodafone replacing Racal-Millicom Ltd. Racal held the majority shares in Racal-Vodafone (Holdings) Ltd. Meanwhile, Racal’s radio division earlier called Racal Strategic Radio was renamed Racal Telecommunication group limited.

    In December 1986, Racal Electronics bought the entire shares of Vodafone from the minority shareholders, and thus Racal became the sole owner of the Vodafone brand.

    In September 1988, Racal Telecommunication group limited was renamed Racal Telecom. In October 1988, when Racal Telecom went public, it came out that Racal Telecom was valued much more than its parent company Racal Electronics. This led to the de-merger of Racal Telecom from Racal Electronics, and Racal Telecom was renamed again as the Vodafone Group. Gerry Whent became the first CEO of Vodafone Group.

    Vodafone – Mission and Vision

    Vodafone’s mission statement says, “To connect for a better future and our expertise and scale gives us a unique opportunity to drive positive change for society.”

    Vodafone’s vision is, “To be the communications leader in an increasingly connected world and to enrich our customer’s lives through the unique power of mobile communication.”

    Vodafone – India

    Vodafone India (previously Vodafone Essar Ltd, Huchison Essar Ltd) is the Indian subsidiary of the UK-based Vodafone Group plc and a telecommunications service provider in India, having its operating headquarters in Mumbai. Vodafone India has a market share of 21% as of March 2018, and after merging with Idea, the Vodafone Idea network now has around 375 million members, making it India’s third-biggest cellular mobile provider.

    The advent of Jio in the Indian telecom business in 2016 prompted a flurry of mergers and corporate restructuring. In March 2017, it was reported that Idea Cellular and Vodafone India will be consolidated. In July 2018, the Department of Telecommunications approved the merger. The Vodafone-Idea merger received final approval from the National Company Law Tribunal on August 30, 2018. On August 31, 2018, the merger was finalized, and the newly formed company was named Vodafone Idea Limited.

    As per September 2021 data, Vodafone Idea Limited is the third-largest mobile communication network in India on the basis of the number of subscribers. The Vodafone Group owns 45.2 percent of the merged firm, the Aditya Birla Group owns 26 percent, and the remaining shares are held by the general public.


    The Business Model of Airtel – Diving deep into how exactly Airtel makes money
    Airtel is one of the biggest telecommunications service providers in the globe. But what’s its secret to success? Here we explore the business model of the brand!


    Vodafone – Products and Services

    Vodafone is well known as a mobile service provider, but there are many more categories that Vodafone has entered into. Vodafone offers broadband and wifi services. Another popular service is Vodafone TV. Vodafone TV has been designed to offer an all-round entertainment option to the viewers. On Vodafone TV, viewers can access live TV, Video on Demand and can also access platforms like Netflix and Amazon Prime Video. Vodafone TV comes with attractive features like Ultra HD picture quality, intelligent voice search and smart replay of games, etc.

    Vodafone released Vodafone 360, a new internet provider for mobile, PC, and Mac, in October 2009. After low hardware sales, this was canceled in December 2011. This followed the resignation of the Director of Internet Services in September 2010, who tweeted, “5 days until I leave Vodafone, freedom beckons.” Vodafone launched, Vodafone 150, which is the world’s cheapest mobile phone, in February 2010. Vodafone intended to sell ‘Vodafone 150’ for less than $15 (£10) in underdeveloped countries. It began in India, Turkey, and eight African countries, including Lesotho, Kenya, and Ghana.

    Some other services offered by Vodafone are –

    • Payment through mobile phone – Safaricom, Kenya’s biggest mobile communication operator and a Vodafone joint venture, released Vodafone-developed digital payments software in March 2007. M-PESA, Kenya’s mobile money transfer service, had 1.6 million users by February 2008. By 2011, there were fourteen million M-Pesa accounts, with 40% of the country’s savings saved in them. Vodafone launched a global collaboration with Visa in February 2012.
    • Health Services – Vodafone launched a newly developing market sector in November 2009 (the application of mobile communications and network technologies to healthcare). Several of its early accomplishments is the Novartis-led “SMS for Life” project in Tanzania, for which Vodafone designed and developed a message-based system that allows all of Tanzania’s 4,600 public healthcare facilities to report their levels of anti-malarial medications so that accurate inventory data can be seen centrally in legitimately, allowing for quick and efficient re-supply of stock.
    • Vodafone Foundation – With the tagline “Connecting for Good,” the Vodafone Foundation is a well-known charity that supports and initiates programs that employ mobile technology as a means to assist the needy. They frequently collaborate with other philanthropic organizations.

    Vodafone – Business Model and Revenue Model

    Various economic variables have an influence on the industry’s enterprises, including high infrastructure costs, price wars in various market forces, and enmeshed mobile telephony sector, and government restrictions. Government laws, such as the recent Vodafone-Hutch transaction, which the Indian government sanctioned for tax evasion. Vodafone uses a mix of segmentation tactics to divide its mobile network services, enterprise services, and internet services. It makes use of geographic, demographic, and psychographic segmentation.

    Coming to Vodafone’s revenue model,  a huge chunk of Vodafone’s revenue comes from selling mobile data, voice, financial services, and messaging services to individual and enterprise customers. Vodafone also makes money by offering various other services like cloud and hosting, cyber security solutions, remote working solutions, IoT related services and more to the enterprise customers. As per 2019- 20 reports, the company is aiming to diversify its revenue streams further in segments like financial services, IoT, digital services and enterprise.

    As per some reports, Vodafone’s mobile networks, which allow consumers to call, text, and download files, account for about 70% of its revenues and even more of its earnings. Fixed-line services, which include internet, TV, and voice, make for the majority of the remaining revenue.

    Vodafone – Investments

    Vodafone has made 25 investments in total. Below are some of the recent investments made by Vodafone.

    Date Organization Name Round Amount
    Apr 7, 2021 AST SpaceMobile Post-IPO-Equity $230M
    Jan 20, 2021 FifthIngenium Convertible Note €470K
    Mar 3, 2020 AST SpaceMobile Series B $110M
    Aug 1, 2016 DAZL Seed Round $10.5K
    Jun 30, 2016 Fight The Stroke Seed Round
    Jul 27, 2015 Cognia Venture Round
    Jun 22, 2015 LINKX Seed Round €30K
    Jun 22, 2015 Mentelity Grant €30K
    Jun 22, 2015 Jobtease Seed Round €30K
    Jun 22, 2015 Puffer Seed Round €30K

    Vodafone – Acquisitions

    Vodafone has acquired 32 organizations. Some recent acquisitions made by Vodafone are –

    Acquiree Name About Acquiree Date Amount
    GrandCentrix GrandCentrix develops and provides a platform for suppliers of interactive mobile value-added services Nov 18, 2019
    Liberty Global Liberty Global is an international cable company providing television, broadband internet, and telephony services. Jul 31, 2019 $21.3B
    Hellas Online Hellas Online is one of the leading Greek fixed-line telephony services providers based in Athens Aug 22, 2014 €72.7M
    Cobra Automotive Technologies Cobra Automotive Technologies design, development, manufacture and marketing of electronic systems. Aug 1, 2014
    The Cobra Group The Cobra Group is an Electronics company. Jun 16, 2014 €145M
    ONO Communications and Entertainment Mar 17, 2014 €7.2M
    Kabel Deutschland Kabel Deutschland is the largest cable television operator in Germany. Jun 24, 2013 $10.4B
    Complete Telecom Complete Telecom provides network infrastructure, converged networks, and metro and WAN bandwidth solutions. Oct 1, 2012
    Cable & Wireless Worldwide Cable & Wireless Worldwide is a global telecommunications company. Apr 23, 2012
    Bluefish Communications Consulting and Professional Services Dec 1, 2011

    Vodafone – Growth

    Year Revenue Percentage Increase/Decrease From previous Year
    2021 $51.169B +2.32%
    2020 $50.011B -1.1%
    2019 $50.565B -18.16%

    Vodafone – Competitors

    Vodafone’s top global competitors are :  AT&T, BT, Orange, Telefonica, Deutsche Telekom, Telstra, Tata Communications, Nippon Telegraph and Telephone Corporation, Liberty Global and Telefonica Colombia.

    Vodafone’s top competitors in India are Bhart Airtel, Reliance Jio, Tata Communications, etc.

    Vodafone – Challenges Faced

    Vodafone’s business will almost certainly continue to be hampered by tough regulatory frameworks and adverse demographic trends in its major European countries, particularly in Spain and Italy, which account for over 25% of revenues and have some of the weaker fundamentals.

    Meanwhile, Vodafone’s capital allocation history does not bode well for the company’s M&A (Merger & Acquisition)plan. Since 2009, Vodafone has incurred more than $50 billion in impairment charges, which reflect the fact that an acquired asset is currently worth less than what Vodafone paid for it.

    Vodafone is one of the major telecommunications businesses in the world, having a strong presence in its main European countries. However, due to its increased fragmentation and fewer business-friendly authorities, this is a challenging region to compete in when compared to America.

    In light of Vodafone’s need to continue deleveraging and invest substantially in 5G, cautious income investors may choose to avoid the stock in favor of more stable telecom companies like Verizon (VZ), which have more obvious routes to profitable long-term development.

    In India, Vodafone is burdened by huge dues. In total Vodafone Idea has total debt of ₹1.92 trillion, which includes AGR dues, Spectrum-related dues, and bank loans. Stiff competition from reliance JIO is another major challenge Vodafone (Currently Vodafone Idea) is facing in India.

    Vodafone – Future Plans

    In the March quarter, Vodafone Idea recorded a net loss of Rs 7,022 crore and net debt of Rs 1.7 lakh crore.

    “Financial performance has impacted its ability to generate the cash flow that it needs to settle/refinance its liabilities and guarantees as they fall due,” the company said, “which, combined with its financial condition, is resulting in material uncertainty that casts significant doubt on the Company’s ability to make the payments mentioned therein and continue as a going concern.”

    Vodafone Idea stated in a statement that it is undertaking 5G testing in the cities of Pune and Gandhinagar, utilizing spectrum authorized by the government.

    With its equipment partners in Gandhinagar and Pune, the telecom claimed to have reached peak download rates of 1.5 Gbps utilizing the 3.5 GHz spectrum.

    Jagbir Singh, CTO at Vodafone Idea, said, “We are pleased with the speed and latency results in the initial stages of the 5G trials on the government allocated 5G spectrum bands. Having established a robust 4G network pan-India, delivering fastest 4G speeds and a 5G-ready network, we are now testing the next generation 5G technology to be able to bring a truly digital experience for enterprises and consumers in India, in the future.”

    However, despite all its efforts, ‘Vodafone Idea’ is not in a good position in India. As expressed by Vodafone Group CEO Nick Read, the company has no plans to infuse fresh funds into the ‘Vodafone-Idea’ Venture.

    In its fiscal Q4 and full 2021 earnings statement, Vodafone Group stated that it will focus on growing as “a new generation connectivity and digital services provider” for Europe and Africa.

    The Covid 19 pandemic has proved yet again that connectivity and digital services are crucial to society and Vodafone Group is ready to grab the opportunities that the Covid situation has created in the field of connectivity and digitization.

    As per Vodafone CEO Read, the company is targeting revenue growth and disciplined capital allocation. It is also working on bringing down operating costs by 20% across its European and central Units by the end of the financial year 2023.

    Vodafone – FAQs

    What does Vodafone do?

    Vodafone (based in Newbury, the United Kingdom) is a telecommunication services firm that provides phone, text, and data services via mobile and fixed networks, as well as fixed broadband and television services, cloud and hosting, internet protocol-virtual private network services, roaming, and unified communications services.

    Who founded Vodafone?

    Vodafone was founded by Ernest Harrison and Gerry Whent in 1985.

    When was Vodafone founded?

    Vodafone was founded by Ernest Harrison and Gerry Whent in 1985.

    How does Vodafone make money?

    Vodafone’s mobile networks, which allow consumers to call, text, and download files, account for about 70% of its revenues and even more of its earnings. Fixed-line services, which include internet, TV, and voice, make for the majority of the remaining revenue.

    Which companies do Vodafone compete with?

    Vodafone’s top global competitors are :  AT&T, BT, Orange, Telefonica, Deutsche Telekom, Telstra, Tata Communications, Nippon Telegraph and Telephone Corporation, Liberty Global and Telefonica Colombia.

    Vodafone’s top competitors in India are Bhart Airtel, Reliance Jio, Tata Communications, etc.

  • The Business Model of Airtel – Diving deep into How exactly Airtel makes money

    The success of a company is just the tip of the iceberg below which lies the business model of the company.

    Hard work and dedication to the services, funds from other companies, and robust marketing strategies are some prominent factors that drive a company towards success, but the business model can be deemed as the base of the company, on which the business is built. The business model is nothing but a company’s plan to make a profit which is why it plays a major role in new and well-established companies as well.

    With the world today that is encouraging more and more businesses to grow, only some manage to evolve to their full potential. One of such businesses that have stood up with their robust business model and have become a key player in the telecommunication industry is Airtel. Here, we will walk through their business model and how it helped the company carve a niche for itself.

    Bharti Airtel: An Introduction
    Business Model of Airtel
    How does Airtel make money through its business model?
    Airtel’s competition with other companies
    FAQ

    Bharti Airtel: An Introduction

    Founder: Sunil Bharti Mittal

    Year of inception: 1995

    Bharti Airtel, also known as Airtel, is one of the leading multinational telecommunication service providers of India based out of New Delhi, India. It boasts of over 457 million subscribers, holds second place in India’s mobile networks and third place in the world’s mobile networks. Millward Brown and WPP plc have named Airtel as India’s second most valuable brand in their Brandz ranking. In addition to these, Airtel is the first-ever multinational telecommunication service to launch 4G in India.

    Areas of Operation

    Initially starting from India, Airtel has witnessed significant growth and is now successfully operating in around 18 countries, which includes South Asia, Africa, and the Channel Islands.

    Key Products and Services

    Over time Airtel has expanded as a company and has begun to offer a wide range of services that include 2G, 4G, 4G+ networks, fixed-line broadband, and voice services.

    Here’s a quick rundown along with the main service belts that Airtel offers:

    • Telemedia – Under the Telemedia segment Airtel offers broadband internet via DSL, leased internet lines, MPLS solutions, IPTV, and fixed-line telephone services. Their control over the Telemedia segment allows them to offer differentiated and converged solutions to customers.
    • Television – Airtel is also associated with the provision of the direct television network or DTH (Direct-to-home) TV services across the nation with their Airtel digital TV.
    • Mobile data – Airtel also provides BlackBerry services that work on push-on technology, USB modems, Airtel data cards, easy mail, and its own mobile application that helps its customers monitor all their services and packages bundled in on the app.
    • Airtel business – Airtel Business comprises of six main products, which are, Cloud and managed services, digital signage, NLD/ILD connectivity, dongles for Wi-Fi, voice solutions, and conferencing solutions that serve a range of industry verticals including BFSI, IT/ITeS, manufacturing, hospitality, and government.
    • Android Tablets – With a view to capitalize on the growing demands for cost-effective, portable devices, Airtel has launched its first 7-inch tablet running on the Android operating system in 2011 via Beetel Teletech Ltd.
    • Mobile wallet service – Airtel offers the mobile wallet service which allows Airtel users to make payments for utility bills, goods, and services in addition to money transfers across networks. It is done using the airtel money app that runs on Android, iOS, and windows.

    Target Audiences of Airtel

    Being a telecommunication service provider the target audience of Airtel is really wide and is not influenced by age, gender, place of residence, income, social distinction, and any such factors. Airtel has an array of different services that attract both individuals and companies across varied industries.

    Revenue of Airtel
    Revenue of Airtel

    How Tata is helping Airtel to bring Made-in-India 5G Technology in India?
    The 5G network has been said to come into India in a few years. Jio has beenworking on it for the last year and had also announced about the 5G network inone of their Annual General Meeting. But now Airtel and Tata group have joinedtogether to provide 5G network solutions in the country. In this …


    Business Model of Airtel

    Airtel showcases an exemplary business model for others to follow irrespective of the industry that each belongs to. Airtel focuses mainly on two things: customer acquisition and servicing (retention) and business development or expansion. Their vision and mission clearly state that their ultimate goal is to be a globally admired telecom service and to mainly focus on customer satisfaction and provide them innovative services that tend to be cost-efficient products.

    The other functions that include hardware, network management, backend applications (billing, etc.), and other services are outsourced. This business model has been pioneered by Airtel and inspires many newcomers in the game.

    What is unique in the business model of Airtel?

    As we have already mentioned, Airtel believes in outsourcing everything else apart from their marketing, sales, and finance operations and the ‘minutes factory’ model of low cost and high volumes.

    Airtel is widely recognized as the pioneer of such a strategy, inspiring tens of thousands of other brands and entrepreneurs. The equipment of Airtel is also provided and maintained by other companies namely Ericsson, Huawei, and Nokia Networks; and US-based Amdocs provides Airtel with the IT support that the brand requires.

    In its business model, Airtel has underlined some key points that they term as strategic business pillars for their businesses. These are:

    1. Focus on Quality customers – Airtel aims to provide value for their customers along with the differentiated services that they provide.
    2. Opening doors for new revenues – The brand is now helping its non-mobile wings like Airtel Business, Digital TV, and Broadband services to grow along with an eye to bring in new verticals.
    3. Providing Top-of-the-line services – Airtel aims to bring in the best possible network quality to their customers with the help of cutting-edge infrastructure and advanced automation tools and technology.
    4. Employee-centric culture – Along with investing huge on the digital talent, Airtel makes sure that it hands over significant roles to each of its employees and ensures they grow along with the firm.
    5. Eco-friendly approach – Airtel advocates the reduction of overuse of resources and cutting down its operational expenses to the minimum with an eye on the environment.

    Along with its basic strategies as Airtel business plan, it is working on future strategies, to retain its top position, such as bringing more innovation in its services, exploring new plans and products, providing valuable and quality services to its customers.


    How did Vodafone Idea lost 2.3 million subscribers
    A report published by TRAI in January 2021, earlier said that the Telecomcompany Vi had added more subscribers to their user base but the most recentnews suggests that the company has lost around 2.3 million users in their userbase. Let’s look at the reasons for the changes in data. Vodafone Ide…


    How does Airtel make money through its business model?

    Airtel makes money through all the products and services mentioned above. It uses a B2C model to derive income from its customers and a B2B model, registered under Airtel Business that helps startups and SMEs. Airtel stands out with its unique business model that aims to provide the customers with the best services at competitive prices.

    It is to be remembered that Airtel is not one of the companies that have achieved fast growth but one that stands as a market leader purely because it has innovated things and earned its place. Furthermore, it is also one of the few telecommunications services providers that have realized the importance of value-added services (VAS) right away in the start, which further eased its way.

    Airtel’s competition with other companies

    Airtel snatched the market from Essar by providing services before them and holding the position until them with the help of high usage premium clients.

    Telecommunication services mainly have two important characteristics which are quality and price of the service, with that said, Airtel makes sure that they establish service by giving high importance to the characteristics and being a high-quality service provider with a premium image.

    Conclusion

    Airtel has witnessed gradual growth and has emerged as a promising brand in the telecommunications sector with the help of a foolproof business model, a meticulous understanding of its key concepts, years of hard work, tireless efforts, and absolute dedication. Airtel success story surely is a huge inspiration to legions of other businesses across different domains.

    FAQs

    What is the revenue of Airtel?

    The revenue of Airtel was ₹89,473 crore (US$13 billion) in 2020.

    Who is the CEO of Airtel?

    Gopal Vittal is the current CEO of Airtel.

    What is the debt of Airtel?

    In the financial year 2020, Bharti Airtel Limited reported a net debt of about 1188 billion Indian rupees.

  • How did Vodafone Idea lost 2.3 million Subscribers

    A report published by TRAI in January 2021, earlier said that the Telecom company Vi had added more subscribers to their user base but the most recent news suggests that the company has lost around 2.3 million users in their user base. Let’s look at the reasons for the changes in data.

    Vodafone Idea
    Reason for Subscriber Loss
    Corrected Figures by TRAI
    Speed Reported by TRAI
    FAQ

    Vodafone Idea

    Vodafone Idea Limited is a merged entity. It is an Indian telecommunication company with its headquarters in Mumbai and Gandhinagar. The company is the third largest mobile telecommunication network in India and is the sixth largest mobile telecommunications network in the world.

    In the year 2018 Vodafone India and Idea cellular underwent a merger and the company was called as Vodafone Idea Limited. Currently, Vodafone holds a 45.1% stake in the company and Ravinder Takkar is the current CEO of the company.

    In September 2020 the company had formed a new brand called as Vi. This is a combined brand of the two entities Vodafone India and Idea Cellular. The aim was to build a unified brand from two different companies.

    After the merger in August 2020 Vi had lost a significant number of gross and active subscribers. Vodafone and Idea operated as two different entities until September 2020.

    Vi also provides services such as IoT, Mobile payments, entertainment, and enterprise offerings. The services are accessible through both digital mediums and retail outlets across the country. Vi has a distribution reach of 1.7 million retail outlets and a broadband network of 340,000 sites.

    In the mobile network services, Vi offers 2G, 4G, 4G+, VoLTE, and VoWiFi services across Pan India. Vi provides Wi-Fi and hotspot services in major cities across the country which include Bangalore, Mumbai, and Pune with more than 200 locations.

    Telecom Market Share India
    Telecom Market Share India

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    Reason for Subscriber Loss

    According to reports in January, Vi had added a user base of around 1.7 million in January 2021 and this was the first time in the last 15 months the company has added subscribers to its user base. Also its competitors, Bharti Airtel added a user base of 5.9 million subscribers and Jio which added about 1.95 million subscribers during January 2021.

    According to the report of the Telecom Authority of India (TRAI) in January 2021, Vi had an active user base of 256.3 million which is 89.63 percent of their total users.

    Revised Data by TRAI

    Recently the Telecom Authority of India (TRAI) released a revised telecom subscription data for January 2021. The revised Telecom subscription data showed that the company Vi had actually lost 2.3 million subscribers than gaining 1.7 million in January 2021.

    The company Vodafone Idea has acknowledged earlier about its error in the numbers provided to Telecom Authority of India (TRAI) that the company had added 1.7 million subscribers in the month of January 2021.

    TRAI had examined through the numbers and identified that it was a non-intentional error that was not done through a deliberate planning. TRAI confirmed that the error had taken place by mistake.

    Vi had told the TRAI that it had added a user base of around 3.7 million from Uttar Pradesh west telecom circle alone. There is a total of 22 telecom circles in India and the company has reported that it lost subscribers in 18 telecom circles and gained subscribers in the rest of 4 telecom circles.

    Vi had sent the correct numbers to TRAI. Vi had noted on its website saying that they had found an unintentional error on their subscriber data for January 2021 which was submitted to TRAI. They also said that they had corrected the error and had reported the revised data to the Telecom Regulatory Authority of India (TRAI).

    Corrected Figures by TRAI

    As per the corrected figures of the Telecom Regulatory Authority of India Vi had lost 2.3 million wireless users in the month of January 2021. Whereas its competitors Airtel gained 5.9 million subscribers and Reliance Jio had gained 2 million subscribers.

    Reliance Jio had the highest wireless subscriber numbers with a base of 410.7 million and Airtel in the second position with a subscriber number base of 344.6 million. Vi had taken the third position with a total subscriber number of 281.9 million.


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    Speed Reported by TRAI

    The Telecom Regulatory Authority of India had reported that Vi had the highest upload speed in the month of February 2021. Vodafone India’s upload speed for the month of February 2021 was 7.2 Mbps which was 6.7 in January 2021.

    Idea Cellular upload speed for the month of February 2021 was 6.4 Mbps which was around 6 Mpbs in January 2021. Vodafone India and Idea Cellular was also ranked as the best in the TRAI’s report for voice call quality charts of February 2021.

    The Telecom Regulatory Authority of India (TRAI) considers the company as two separate entities in its portals for My Calls and MySpeed even after the merger of both Vodafone India and Idea Cellular.

    FAQ

    Will Idea Vodafone survive?

    Rohan Oza, an american businessman and investor believes that Vodafone will survive. “It is unlikely that the company will go bust, as it is in the interest of the government to continue with three players in the market.

    What is the future of Vodafone idea?

    As reporyed by Goldman sachs, Vodafone Idea could potentially save ₹58 billion (5,800 crore) in cash flows annually if the AGR liability were lowered to its self-assessed value.

    Is Vodafone shutting down in India?

    Vodafone Idea, India’s third-largest service provider, plans to shut down its 3G network later in 2021.

    Conclusion

    Vi has been rolling out various strategies and campaigns to capture the market to increase its subscriber base. We will have to wait and see what is going to happen in the future regarding the increase or decrease of Vi’s subscriber base.