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The revenues from the enterprise services for the financial<br />
year were Rs 84,386 mn, representing a growth of 1% over<br />
the revenues in the previous financial year.<br />
Key financial results for the year ended March 31, 2010<br />
Particulars Financial Year Y-o-Y<br />
2009-10 2008-09 Growth (%)<br />
Gross revenue (Rs mn) 84,386 83,417 1<br />
EBIT (Rs mn) 34,248 31,637 8<br />
Digital TV Services<br />
Bharti <strong>Airtel</strong>’s Digital TV Services is amongst the frontrunners<br />
in DTH domain. In addition to a superior viewer’s experience,<br />
the Company offers innovative packages like pay per view<br />
content and interactive services. It launched digital TV<br />
recorder, enabling customers to record live TV content<br />
through their mobile phone.<br />
With a customer base of 2.5 mn; and services spreading<br />
across 5,000 towns and 15,000 villages; Digital TV services is<br />
well placed to increase its customer and market share, and<br />
eventually emerge as the market leader.<br />
Passive Infrastructure Services<br />
Bharti Infratel Limited, a subsidiary of Bharti <strong>Airtel</strong>, provides<br />
passive infrastructure services on non-discriminatory basis to<br />
all telecom operators in India.<br />
Bharti Infratel deploys, owns and manages passive<br />
infrastructure in 11 circles of India and also holds 42% share<br />
in Indus Towers (a joint venture between Bharti Infratel,<br />
Vodafone and Idea Cellular). Indus operates in 16 circles<br />
(4 circles common with Infratel, 12 circles on exclusive basis).<br />
Bharti Infratel has 30,568 towers in 11 circles, excluding the<br />
35,066 towers in 12 circles for which the right of use has been<br />
assigned to Indus with effect from January 01, 2009. Indus<br />
Towers has a portfolio of 102,938 towers including the<br />
towers under right of use.<br />
Key financial results for the year ended March 31, 2010<br />
Particulars Financial Year Y-o-Y<br />
2009-10 2008-09 Growth (%)<br />
Gross revenue (Rs mn) 70,082 50,913 38<br />
EBIT (Rs mn) 6,327 3,204 97<br />
RISKS AND CONCERNS<br />
Bharti <strong>Airtel</strong> has a robust process to identify key risks and<br />
prioritise relevant action plans that can mitigate these risks.<br />
Key risks that may impact the Company’s business include<br />
• Changes in regulatory environment<br />
Despite being a regulated and competitive sector, Indian<br />
telecom sector is maturing fast and continues to offer<br />
level playing field. Larger players control majority of<br />
market share and regulatory authorities keep consumers’<br />
interest at the forefront. All this makes India a promising<br />
telecom market. Private players have instrumented the<br />
telecom growth in the country and Bharti <strong>Airtel</strong> has led<br />
from the front. In the process, it has created a large pool<br />
of loyal customers and talented human resource capital,<br />
in addition with a vibrant <strong>Airtel</strong> brand.<br />
• Technical failures or natural disaster damaging<br />
telecom networks<br />
The Company maintains insurance for its assets, equal to<br />
the replacement value of its existing telecommunications<br />
network, which provides cover for damage caused by fire,<br />
special perils and terrorist attacks. Technical failures and<br />
natural disasters even when covered by insurance may<br />
cause disruption, however temporary in its operations.<br />
The Company has been investing significantly in business<br />
continuity plans and disaster recovery initiatives which will<br />
enable it to continue with normal operations under most<br />
circumstances.<br />
• Change in existing technology increasing capital cost<br />
In order to remain competitive, the Company consistently<br />
introduces sophisticated new technologies. If the new<br />
technologies it has adopted, or which it intends to adopt,<br />
fails to be cost effective and accepted by its customers,<br />
the Company’s ability to remain competitive could be<br />
affected.<br />
The Company has prudently deployed new technologies<br />
after assessing the experience, its international partners<br />
have had in deployment processes before choosing to do<br />
itself.<br />
• Increased competition bringing tariff down<br />
temporarily<br />
Telecom industry in the year gone by has witnessed entry<br />
of various new players in the telecom space which has<br />
resulted into stiffening of competition and drop in tariffs.<br />
The Company foresees this to be a short term to a medium<br />
term phenomenon.<br />
• Talent acquisition and retention<br />
The growth of the Indian economy, coupled with entry of<br />
new players in the telecom space has led to an increased<br />
requirement for talented managerial personnel. The<br />
Company believes that talented manpower is a key<br />
strength. Given the track record and success of its<br />
employees, other companies often look to Bharti <strong>Airtel</strong> as<br />
a hunting ground for talent.<br />
As a retention strategy, the Company has issued many<br />
schemes including ESOPs. Further, in order to mitigate the<br />
risk it places considerable emphasis on development of<br />
leadership skills and on building employee motivation.<br />
Acquiring right talent which aligns with current resource<br />
pool and needs arising from emerging technologies is<br />
equally important as retaining existing talent. The<br />
Company has a stringent process in place for acquiring<br />
new talent with right competency and leadership traits.<br />
There is concerted focus on building right capabilities in<br />
current and new businesses through intensive training<br />
and development of employees at all levels.
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