Strategic outsourcing at bharti airtel limited one year later

A base transceiver station can cover an area of 30 to 40 square kms, but if it is located in a congested area, the coverage is much smaller.

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Its international capacity had been further enhanced by a joint venture it had entered into with SingTel and 13 other telecom groups for the construction of SEA-ME-WE4, the Singapore-France submarine cable.

Broadband services were to be introduced in To them, it represented a major and unfamiliar risk. In order to accommodate the required demand for service by Marchthat number would need to jump to 40, and would require the hiring of over 2, to 3, people to build and maintain them.

Case study on airtel advertisement

Nokia, for example, had very little business with Bharti and was behind Ericcson in terms of market share in India. To meet this objective, towns per month on average were to be brought into the system. Tata also had a one-third stake in the wireless provider Idea Cellular see below. This network spanned 24, kilometers kms and connected almost all the major cities in the country. Private telecom firms could tender for licenses to operate in each of 23 designated circles. Should the proposal be accepted by the vendors, around IT staff and network staff could be transferred out of Bharti. Of course, there were dangers in not signing with Bharti. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of Harvard Business School.

Very soon Bharti Airtel would be back at the negotiating table for the fourth time in 12 months. Upcoming regulatory changes would also allow Bharti to expand wire-line services into any of the circles in which it held a wireless license. In the midst of these wildly unpredictable expenditures, Gupta felt that Bharti badly needed a lean and predictable cost model: We want to exploit the potential of — million Indian phone customers.

Decision Essay: The decision that they are facing is whether to go for outsourcing or not.

Strategic approach adopted by airtel

From the switching center information is communicated either to other base substations in the network, to other mobile systems, or to a fixed-line system for connection to the intended party. In exchange, Bharti agrees to pay the vendor a fee according to the amount of erlang capacity installed. The percentage of revenue shared will progressively decline as overall revenue increases. They look increasingly to its vendors to provide expertise in integrated systems design. Bharti and three others had operations in both the fixed and mobile segments. Bharti Airtel Limited is the largest cellular service provider in India, with more than million subscriptions currently. The family owned business was soon able to generate profits and extend market shares. It took several months, sometimes years, to install a telephone in a home or business, and mobile phones were a foreign luxury. Very soon Bharti Airtel would be back at the negotiating table for the fourth time in 12 months. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of Harvard Business School.

In wire line, Reliance hadcustomers in but was expected to increase its customer base to over 8 million by Strategy Group Dir.

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Strategic outsourcing at Bharti Airtel Limited