Operating Efficieny of Telecom Sector

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In 2001, basic service operators were given permission to provide limited mobility services based on code division multiple access (CDMA) technology. However, the limited mobility services were more or less competing directly with fully mobile services. This led to disputes between mobile operators and basic service operators, hampering investments and growth in the sector. Subsequently, to put an end to this dispute, the Telecommunications Regulatory Authority of India (TRAI) introduced the Unified Access Service Licence (UASL) in November 2003, wherein a UASL licence can provide access services based on any technology. The basic service operator can convert to UASL by paying the fees required. All the basic service operators providing limited mobility services converted to UASL and are now providing mobile services based on CDMA technology.

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The GSM mobile subscriber base has increased from 289 million in March 2009 to more than 890 million in December 2014. GSM subscribers accounted for around 94.4 per cent of the total mobile subscriber base in India at the end of December 2014.

CDMA operators were late entrants into the mobile services market. With more and more subscribers opting for GSM, the share of CDMA subscribers has been declining steadily. It came down from 30 per cent in March 2005 to 5.6 per cent in December 2014.

Fixed-Line Services

From 2007-08 onwards, this segment has been witnessing a declining trend in its subscriber base. The fall in the fixed segment can be attributed to the migration of fixed-line subscribers to the rapidly growing mobile segment. At 26.6 million as of March 2015, fixed subscriber base declined by 6.6 per cent y-o-y.

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Bharti Airtel

Bharti Airtel Ltd is an integrated telecom service provider offering multiple telecom services viz. fixed, mobile, International Long Distance (ILD), National Long Distance (NLD), VSAT, Internet and network solutions. The company commenced operations in December 1995 and went on to become the first private player to operate in all 22 telecom circles. Airtel is currently the largest mobile operator in India, with a subscriber base of over 200 million and a subscriber market share of over 22 per cent. In April 2006, the company became 'BhartiAirtel Ltd' from 'Bharti Tele-ventures Ltd'. The company has broadly divided its business into the following segments:

- Wireless services (2G, 3G and 4G)

- Telemedia services (Fixed line, Broadband, IPTV)

- Enterprise Services

- Passive Infrastructure Services

- Digital TV business (DTH services)

Besides India, the company operates in 19 countries across Asia and Africa. It has been providing mobile services in Bangladesh since 2007, after it acquired a 70 per cent stake in Warid Telecom Bangladesh, a subsidiary of the UAE-based Abu Dhabi Group. After acquiring Zain Africa and Telecom Seychelles in 2010, BhartiAirtel expanded its African footprint to 16 countries. Furthermore, in September 2011, the company was granted a license in Rwanda to operate 2G and 3G GSM mobile services, whereby it had a presence in 17 countries in Africa. It has also been providing 2G and 3G services in Sri-Lanka since 2009.

Shareholding Pattern

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Services Offered

Mobile services

As of March 2014, the company's subscriber base at the end of March 2014 stood at 205.4 million, higher than 188.2 million reported in the previous year. Moreover, it enjoys ARPUs and MoUs that are higher than the industry average. The subscriber base increased further to 209.8 million as at July 2014, with a company having a market share of 22.8 per cent. The company is the market leader, in terms of revenue share too, which is at 31.1 per cent for the quarter ended June 2014.

In February 2014, BhartiAirtel entered into a strategic agreement with Loop Mobile to acquire Loop's subscribers as well as some of its assets in Mumbai. As per media releases, the deal size is estimated to be Rs 7 billion. Under the agreement, Loop Mobile's subscribers in Mumbai are to join Airtel's network. Regulatory approvals for the deal are in process.

Spectrum

BhartiAirtel was at the forefront in bidding for the critical 3G spectrum, emerging as the highest spender, paying Rs 123 billion for 3G spectrums in 13 circles. The company also acquired the spectrum in its top revenue grossing circles, which account for around 70 per cent of its total revenues from the wireless segment. However, BAL restrained itself from going all out during the wireless broadband bidding, acquiring spectrum in just four circles for a total payout of over Rs 33 billion.

It also acquired additional 2G spectrum in Assam, for a outgo of Rs 87 million, in the spectrum auctions in November 2012. Bharti introduced 3G services in India by launching services in Karnataka and Tamil Nadu. It expanded its 3G services to over a 1,000 towns covering all 22 service areas in India (excluding Odisha) including roaming arrangements with other mobile operators. The company had 39.3 million data subscribers as at June 2014, of which 12.5 million were 3G subscribers.

At the spectrum auctions held in February 2014, BAL acquired spectrum in both the 900 MHz and 1800 MHz band for a total outgo of Rs 185.3 billion. This included spectrum in the more efficient 900 MHz frequency in the Delhi, Mumbai and Kolkata circles.

Digital TV Services

BhartiAirtel had 9 million subscribers for its direct-To-Home (DTH) platform to as of March 2014, adding 0.9 million customers during the year. The company currently offers 400 channels, including 19 HD channels and also other services viz. 6 games and 3 interactive services.

Fixed line services

In June 1998, Bharti became the first private service provider in India to offer fixed services, launched initially in Madhya Pradesh. Subsequently, it acquired licences and started providing services in various circles. Currently, the company provides fixed wireline services in 14 circles.

The company's wireline subscriber base stood at 3.36 million in March 2014 as against 3.28 million in March 2013.

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