• Language
  • App
  • Subscriptions
  • Specials
  • Sign-In
  • Register
GeStepAhead Realasset Realasset
moneycontrol.com

Home » News » Business

Apr 24, 2010, 12.35 PM | Source: Forbes India

Bharti's Minutes Factory moves to Africa

Bharti Airtel changed the Indian mobile scene with its prepaid minutes model. It faces a tough challenge as it tries to take it to Africa through Zain

Like this story, share it with millions of investors on M3

Bhartis Minutes Factory moves to Africa

Bharti Airtel changed the Indian mobile scene with its prepaid minutes model. It faces a tough challenge as it tries to take it to Africa through Zain

Post Your Comments

Share Cancel

Bhartis Minutes Factory moves to Africa
Bharti Airtel changed the Indian mobile scene with its prepaid minutes model. It faces a tough challenge as it tries to take it to Africa through Zain.

My history is that I’ve been constantly proving people wrong. I did that in 1995, 2000 and 2005. It’ll be the same in 2010 too.” Sunil Bharti Mittal, chairman and managing director of the Bharti Group, has been telling his senior managers and partners in recent meetings.

Meanwhile, his top lieutenants Manoj Kohli, CEO (International) & joint MD, Bharti Airtel, and Akhil Gupta, deputy group CEO and managing director of Bharti Enterprises, are busy zipping across Africa, to ensure their boss’ naysayers are proven wrong this time too.

Bharti Airtel brings to Zain Africa a strong balance sheet, marketing savvy, and managerial talent. All of these attributes will come into play only if Kohli and Gupta can ship to Africa Bharti’s treasure chest: The Minutes Factory.

Totally homegrown and yet in tune with the latest management theories, the Minutes Factory enabled Bharti to change the telecom business. And all eyes are on how it teleports this model to Africa.


What is the Minutes Factory? First, here is what it is not. It is not a “subscriber-led” model. The description comes from richer economies of the developed world that were the first to launch mobile phone services, Europe in particular. Since it was a new technology, the cost of setting up a network was high. In the 1990s, most mobile operators wanted well-heeled customers who would be willing to pay $1 a minute. They were also very selective in rolling out the network. “Even today in many cities in Europe you may not get a mobile signal if you are in a slightly less frequented part of the city,” says Arvind Mahajan, executive director, KPMG. Mobile companies then spent a lot of money attracting high-paying customer.

For almost seven years, the Indian market and mobile operators used the same “subscriber-led” model and nobody could make money.  While the cost of setting up the network remained high, very few subscribers signed up because the cost of making or receiving a call remained very high: About eight rupees a minute.

1 2 3 4

Ads by Google

Buy, Hold, Sell ? Hear it first on M3
Bhartis Minutes Factory moves to Africa
Silver Member
3 Followers

See all

Get started using your favorite social network

or

Login using moneycontrol ID

Username
Password

Need help logging in? Reset password.

Don´t have an account? Sign Up

Get started using your favorite social network

or

Simply sign up using this short form

* mandatory

UserName*

Username should be atleast 4 character

Password*

Password should be 8 or more characters,
atleast 1 number, 1 symbol & 1 upper case letter

Alert

Your Password should contain
  • 8 or more characters
  • At least 1 number
  • At least 1 symbol
  • At least 1 upper case letter
Confirm Password*
Email
Already have an account? Login