Mar 14, 2010

Bharti Airtel Limited

Bharti Airtel Limted

Bharti Airtel Limited is the largest telecom player in india with a pan india presence in Bangladesh and Srilanka. In the years bharti has been a leader in technology and has changed the face of indian telecom sector with its innovations.

With 116 million subscribers, Bharti is the 10th largest telecom firm in the world in a list topped by China Mobile Ltd (508 million) and Vodafone Group Plc (427 million).

In the bid to expand its telecom business bharti started looking at markets like asia and africa were the telecom penetration is low. Bharti acquired controlling stake of 70% in Warid Telecom International, the fourth largest telecom player in bangladesh.

Bharti had Set its eyes on africa's leading telecom company MTN but the deal failed twice due to regulatory issues in both india & africa.

Bharti has again revived its plans for africa and is now looking to buy Zain telecom's africa business for which both companies are in exclusive talks till 25th March 2010. The markets has not been very happy with the move to acquire zain telecom's africa business due the valuations being on the higher side. Bharti stock price has reacted negatively on this news & many analyst are not sure about the future of outcome.

Bharti Airtel Other than telecom has a very diversified business portfolio which includes...

- Bharti Teletech Limited

Bharti Teletech is India’s leading telecom & allied products company. It is one of the largest manufacturers of landline telephones in the world. With a strong distribution network across the country, the company is also the primary distributor of IT and Telecom products from interntional brands such as Motorola, Blackberry, Thomson, Polycom, Transcend, and Logitech.

- Bharti Infratel Limited

Bharti Infratel, a wholly owned subsidiary of Bharti Airtel, provides passive infrastructure services on a non-discriminatory basis to all telecom operators in India. The listing of bharti infratel in near future will see a hugh value unlocking for bharti airtel & its shareholders

- Indus Towers Limtesd

Bharti Infratel also holds approximately 42% stake in Indus Towers, a joint venture between Bharti, Vodafone and Idea to offer passive infrastructure services.The listing of indus towers in near future will see a hugh value unlocking for bharti airtel & its shareholders.

Business Divisions...

Other than its telecom business bharti airtel under its umbrella has many business which have started contributing to companies revenue and are poised to grow in near future..

- Broadband Services ( Wired & wireless )
- Land line services across 94 cities.
- Bharti Digital TV ( DTH Service in more than 150 cities )
- Enterprise Solution
- Digital Media Services
- Data & IP solutions
- Data centers

In Near future Bharti airtel will be one of the main beneficiaries of 3G auction & MNP implementation by Government of india. 3G services will help bharti to scale up its revenue as it will be able to provide high speed data transfers & other host of services like video calling, social media which are fast getting popular among customers.

Also Services in future like Wimax & 4G will see more business for the company and thus help profitability.

Overall Growth Story in Bharti airtel remains intact and is a good long term investment in current scenario.

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