Bharti Airtel reported Dec-2010 quarterly results for its Multinational Operations in India, Africa and other countries. Here are excerpts of the Results & the conference call concluded just a while ago.
- Airtel has 1.42 Mn broadband subscribers with an ARPU in this segment of Rs 934 [ Pure Broadband ARPU could be much higher] Launched IPTV services in Bangalore.
- Compared to Idea Cellular, QoQ wireless voice traffic growth was just 6% while that for Idea was 10%. However, note that as Airtel’s scale of operation is twice that of Idea.
- 2G Spectrum License Fees in India – Management clearly stated that what is being reported in the press is speculative and they would not like to comment on the same. They do not make provisions in Balance sheet based on speculation.
- Cell Site Rollout Accelerated – Due to non-clearance of equipment by DoT and Government in the first half of this year, cell sites roll-out was stalled. However, this picked up in the last 4 months and hence accelerated numbers are reported.
- 3G Services in India: Rolled out in Karnataka and Tamilnadu. Will complete the rollout in all license areas by end of March. Intially will be rolled out in Urban Areas [ Don’t read Metros only] and then the Rural Areas.
- On Mobile Number Portability in India – Positioned to take the best advantage of it. They are confident of being Net Positive. Management dismissed apprehensions of Post-Paid subscribers migrating out and cited that most of its customer base is from Corporate and SMEs who have opted for Multiple Services and thus Airtel is at an advantage being an integrated Telco.
- Airtel Re-branding – Life around us is changing and hence the necessary to Re-Brand to make Airtel appealing to its prospective customers. Airtel will be more focused on the Youth who will drive its usage going forward.
- Airtel App Store – Have around 100,00 Apps, one of the largest in the World already.
- m-Banking – Partnered with SBI for Mobile banking to extend banking facilities to the Unbanked across various parts of India.
- CAPEX Guidance – $1.8 to $ 2 Bn for India and $800 Mn for Africa. pre-paid a debt of Rs 2,000 Cr indicating its intention to deleverage.
- African Operations – In talks with regulators to bring down the Interconnect Charges based on the actual costs and thus pave way for affordable mobile services. Company hopeful of achieving this within the next 2 years [16 countries]. 3G Licenses available in 9 countries and there will be no auction as far as other countries are concerned but license fees will be reasonable and in some countries additional burden of revenue sharing. Passive Infrastructure sharing has began and Airtel will spend its money in the 70:30 Ratio – 70% for expansion into uncovered Areas and 30% for enhancing existing service areas. Manoj Kohli’s Target for African Business 2013 – $5 Bn in Revenues and $ 2 Bn of EBITDA with healthy margins. Airtel will acquire Minority Partners in some countries and the process is on.
- Challenges in Africa – Higher Costs than India and addressing the capabilities of Billing, Training / Re-Training for Customer Care and Developing Leadership at all levels across the 16 countries of operation
Bharti Airtel is not just an Indian Telco anymore and in understanding this I have read a lot about Africa. Ya, maybe its time will cover that region in the context of Airtel. What do you say ? Can Airtel become the first truly Indian Multinational in the consumer business ?