- The Indian telecom industry is the second largest in the world, with over 960 million telephone users as of 2013. It has grown over 30 times from 2001 to 2013. - The telecom sector includes telephone services (both fixed and wireless), broadband services, and broadcasting. Wireless services dominate, with over 929 million subscribers in 2013. - Key players in the fixed telephone segment include BSNL, MTNL, Bharti, Tata, and Reliance. The wireless segment is led by Bharti Airtel, Vodafone, Reliance, Idea, and BSNL. Broadband services are primarily provided by BSNL, Bharti, and

2. Industry Overview
of Telecom Industry

3. An Overview
 India is the second most populous country in the world with the Overall
GDP of $1.85 trillion (10th overall)
 World’s largest democracy system with multi party model at its core.
 Indian telecom industry is the second largest in the world (behind
china) on the basis of telephone users (Both fixed and wireless).
 The Industry grew over 30 times from 37 million users in 2001 to 960.09
million (Both fixed and wireless) in 2013.
 Fixed lines stood at 31.53 million in May 2013.

4. An Overview
 Total mobile phone active were at 929.37 million in 2013.
 Total Wireless Teledensity were at 79.37% in 2013.
 Total monthly additions were at 8.35 million by May 2013. (Both fixed
and wireless lines).
 Fixed line rural density is at 33 % as of May 2013.
 Projected Wireless Teledensity is at 84%.
 The Industry in India is rapidly transforming into Next Gen Network
through various telephone exchange, mobile switching centers and
media gateways using optical fiber or microwave radios.

5. An Overview
 1.18% of household in India have broadband access.
 There were 14.31 million internet users in India as of May 2013.
 Lowest mobile tariffs in India due to high competition.
 Total revenue generated in 2014 by telecom sector to be estimated upward of
US$50 billion.

6. Types of Services
•Telephone
•Broadband services
•Broadcasting

7. Telephone

8. Types of Services
 Telephone (Fixed and Wireless).
 Fixed connections: - Based on copper or optical fibers.
 The cost per connections depends upon the regions with northern sectors being the cheapest.
 Besides adding future connections the introduction of FDI also adds to the demand for wired
connections.
 Digitization in fixed lines were recently introduced.
 Bulk of the population rely on landline for their internet connections thus adding to the future
demand.
 Interconnectivity charges to be paid to BSNL.

9. Fixed Telephone
 With 31.6 million connections in India
following are the key players
 BSNL
 MTNL
 BHARTI
 TATA
 RELIANCE
 QUADRANT
 SISTEMA
 VODAFONE
68.86
11.07
10.49
4.04
0.61
4.04
0.16
SHARE
0.07
BSNL MTNL
BHARTI TATA
RELIANCE QUADRANRT
SISTEMA VODAFONE

10. WIRELESS

11. WIRELESS
•Subscriber base of more than 929 million.
(second largest in world)
•Cost per user fluctuates at $1.7 to $2.2.
•India has 7,36,354 base transreceiver stations
. 20% of them can handle 3G services.
•India has 75 million Smartphone users.
•Smartphone's will grow at a CAGR of over
30% (US$18 billion)
•Wireless handset service grew 16.7% in 2013
with revenues adding up to Rupees 2,88,882
crore or US$ 64.4 billion.
20.58%
16.88%
14.83%
1.85%
12.77%
8.66%
10.93%
7.26%
0.58%
4.64%
0.53%
0.34%
0.17%
MARKET SHARE
BHARTI
VODAFONE
RELIANCE
IDEA
BSNL
TATA
AIRCEL
UNINOR
SISTEMA
MTNL
VIDEOCON
LOOP
HFCL

12. Wireless
•Third highest Teledensity in world with bulk in urban areas,
marked by high prospect of growth in rural areas.
•3G and broadband services were auctioned at US$19.2 billion
in 2010.
•4G services have been slow to roll out due to high price,
unforeseen policies. Indian government requires local
operators to partner with global giants to ease the burden of
the costs.
•Private sector hold 88.49% of the market share; whereas
government held agencies account for remaining 11.51%.
•High competition with at least 7 to 12 companies in the same
circle.
•GSM is the dominant form of technology with around 80% and
CDMA being at 20% of total wireless consumers base.
•Wireless alone generates revenue of upwards US$31.6billion of
estimated US$35.6 billion.
•Lowest ARPU among fellow nations fostered by stiff
competition and govt. regulation policies.

13. BROADBAND SERVICES

14. BROADBAND SERVICES
Introduced in 1995.
•Current users at 14.82 million from 14.62
million. Increase of 1.37%
•Annual growth of 16.78%
•The global trend of offering internet as
valued added services being followed
in India.
•Government mandated 256Kbps as a
requirement, however India still ranks at
110Kbps in Internet speed.
7.20%
19.70%
MARKET SHARE
9.30% 63.90%
BSNL BHARTI
MTNL OTHERS

15. BROADBAND
SERVICES
N
O
O
F
NO OF CONNECTIONS (IN MILLIONS)
10 9.47
5
C
O
N
N
1.37 E
1.06 0.68 C
0.37
T
0
I… NO OF CONNECTIONS (IN MILLIONS)
• Bulk of these users are
concentrated in urban areas,
whereas rural areas have
limited exposition.
•155 Internet service providers
in India.
• Internet services have grown
in 2013 with the advent of
mobile payment services in
India.
•User subscription rate to go
over 20 million by 2015.
•About 75% of the connections
are landline based.

16. PRESENT TELECOM MARKET SHARE
Indian Telecom (Includes phone, broadband and broadcasting subscriptions) in 2013
23%
10%
12% 10%
15%
5%
12%
AIRTEL
IDEA
VODAFONE
RELIANCE
BSNL
TATA
OTHERS

17. •Bharti Airtel Limited is a leading global telecommunications company with operations in
20 countries across Asia and Africa.
• Headquartered in New Delhi, India, the company ranks amongst the top 4 mobile
service providers globally in terms of subscribers.
• In India, the company's product offerings include 2G, 3G and 4G wireless services,
mobile commerce, fixed line services, high speed DSL broadband, IPTV, DTH, enterprise
services including national & international long distance services to carriers.
•In the rest of the geographies, it offers 2G, 3G wireless services and mobile commerce.
Bharti Airtel had nearly 287 million customers across its operations at the end of Dec 2013

18.  Bharti Airtel Limited is a leading global telecommunications company with operations in 20
countries across Asia and Africa
Bharti Airtel had over 269 million customers across its operations at the end of March 2013
Business Divisions
Mobile services Telemedia services
Airtel business Mobile services

20. 
0.32
0.73
Current ratio
0.31
0.67 0.65
0.80
0.70
0.60
0.50
0.40
0.30
0.20
0.10
0.00
2013 2012 2011 2010 2009
Current ratio
Debt Equity ratio
0.494106696 0.502690695 0.484135692
0.372535196
0.610197327
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
2013 2012 2011 2010 2009
Debt Equity ratio

21. 
0.24
Payable t/o
0.22
0.23
0.24
0.26
0.27
0.26
0.25
0.24
0.23
0.22
0.21
0.20
0.19
2013 2012 2011 2010 2009
Payable t/o
Total asset t/o
0.068659455 0.069330445
0.054775608
0.053922758
0.06024973
0.08
0.07
0.06
0.05
0.04
0.03
0.02
0.01
0
2013 2012 2011 2010 2009
Total asset t/o
Receivable t/o
2.313635858
2.070202908
2.131753953
1.52998088
2.5
2
1.5
1
0.5
0
2013 2012 2011 2010
Receivable t/o

22. 
69.7%
GP Margin
61.9%
70.9% 70.8%
69.1%
72.0%
70.0%
68.0%
66.0%
64.0%
62.0%
60.0%
58.0%
56.0%
2009 2010 2011 2012 2013
GP Margin
EBITDA Margin
38.8% 39.3%
35.1%
32.8%
29.7%
45.0%
40.0%
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
200 2010 2011 2012 2013
EBITDA Margin
EBIT Margin
28.9% 27.8%
23.0%
18.6%
14.7%
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
2009 2010 2011 2012 2013
EBIT Margin
23.8%
PBT Margin
29.9%
23.0%
16.7%
14.2%
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
2009 2010 2011 2012 2013
PBT Margin

23. 
137115.0
126927.0 132154.0
114378.0
138847.0
-151754.0
-106018.0 -109750.0
-126118.0
-107259.0
20648.0
-25393.0
56465.0
14008.0
-31857.0
200000.0
150000.0
100000.0
50000.0
0.0
-50000.0
-100000.0
-150000.0
-200000.0
2009 2010 2011 2012 2013
CFFO CFFI CFFF

24. 
6939
22726
-175602
-20397
119,988.00 109,428.00
289,980.00
159,244.00
400000
300000
200000
100000
0
-100000
-200000
2009 2010 2011 2012 2013
CAPEX Free Cash Flow

25. !dea

26. 0.90
0.80
0.70
0.60
0.50
0.40
0.30
0.20
0.10
0.00
2009 2010 2011 2012 2013
CURRENT RATIO
DEBT-EQUITY RATIO
2.00
1.80
1.60
1.40
1.20
1.00
0.80
0.60
0.40
0.20
0.00
21009 22010 32011 42012 52013

27. 35.00
30.00
25.00
20.00
15.00
10.00
5.00
-
Receivables Turnover Inventory Turnover
2010 2011 2012 2013
190.00
185.00
180.00
175.00
170.00
165.00
160.00
2010 2011 2012 2013
2.50
2.00
1.50
1.00
0.50
0.00
TURNOVER RATIOS
Payable Turnover Total Asset Turnover
2010 2011 2012 2013
0.66
0.64
0.62
0.60
0.58
0.56
0.54
0.52
0.50
2010 2011 2012 2013

28. 150,000.00
100,000.00
50,000.00
-
-50,000.00
-100,000.00
-150,000.00
2009 2010 2011 2012 2013
CFFO
CFFI
CFFF

29. 100000
80000
60000
40000
20000
0
-20000
-40000
2010 2011 2012 2013
CAPEX
Free Cash
Flow