Summary
Next 100 million - Organic (rural and young), Inorganic (global acquisitions and greenfiwld ventures in Africa and Asia), Technology (M-commerce, VAS, social networking, 3G), Management (Global Talent) and Regulatory (Rural push, Wireless Broadband, Wimax, 3G and IMS). Airtel has reached 100 million subscriber base to become the largest GSM operator in India. The actions taken to secure the next 100 million will be closely watched by old and new competitors in India and around the world as Indian operator make their rightful pitch in global arena (100 million base shall make them among top 10 in the world). Also some of the actions will be significant from the technology, regulatory and market development of sector as well as form the consumer point of view.
Analysis
The market is already crowded now since the new competitors are already here along with some global names. Airtel has to for option play with some options more vigorously based on ROI projects and management confidence.
Here are few options that Airtel may adopt to gets its next 100 million:
Rural penetration is big issue which need rural specific price plan, handset (Airtel co-branded) priced and manufactured with rural terrain in view as well local language support, mico-financing/EMI scheme for handset.
Urban penetration: ARPU increase via VAS incl. M-commerce usinh M-money/wallet, youth market penetration via sub-branding
Global: Greenfield venture in Africa, Inorganic acquisiton in Asia (Schelles has been good experience so far)
Management: Acqusition, holding and grooming global talent (must have learnt from France Telecom, Warburg Pincus and SingTel), i see some global talent getting into the ranks recently.
Technology: IMS is fundamental. 3G and Wimax will provide necessary ecosystem for consumer and SME+Enterprise respectively for the wireless broadband.
Business models: Airtel is already expert in outsouring and management. Now getting into managed service model will be add another feather in its cap.
New Business: Managed services is welcome move. Company is already in software via telesoft. I thing company shall get into partnership in the content adn VAS arena. How about its own branded handsets when it get some exposure in retail post "Walmart" experience
