Bharti Airtel has its hands in multiple areas. The Sunil Mittal-led company is not only helming the telecom industry but it also focuses on DTH and provides its services to enterprise and business customers as well. Although, Airtel is mostly known as a telecom operator in the country, but it’s the B2B venture of Bharti Airtel that fetches the company most revenue. The new report by ICICI Securities also details the same. Airtel Business has been noted to be contributing 14% to the consolidated revenue and 12% of the EBITDA in FY21.
Airtel Business Focusing on SMEs
As per the report filed by the financial firm, Airtel Business’s revenue has grown with a CAGR of 7.1% in the FY17-21. This growth took the revenue to Rs 144 billion. Also, the EBITDA of the business has grown at 12.9% CAGR to Rs 55 billion. As per the ET Telecom report on the matter, Airtel Business derives its 80% of the revenue from 20% of the customers and it also sees a lot of potential in hunting and farming. Airtel Business is not only focusing on the big enterprises, but it is also looking at Small and Medium Enterprises to offer its services.
In the SME segment, Airtel Business is expanding its services to an in-source SME sales force; along with building omnichannel digital capabilities for customer acquisition and servicing. The company is also into offering data centers, Airtel Secure, Airtel IQ, Airtel Cloud, and Airtel IoT; and revamped teams’ incentive structure with targets for “hunting and farming”.
Various Platforms of Bharti Airtel Adding to the Revenue
Along with data, voice, collaboration cloud, data centres, security, IoT, network integration Airtel Business is also offering other digital services. Airtel Business also has a network of 365-Rkms covering 50 countries. Other digital platforms of Airtel have also been contributing to this growth. The most noteworthy figure of Airtel Business has been in its market share, which has grown by 8% to reach 31%, close to one-third of the total market share. ICICI Securities also noted that the telecom business remains exciting and the new technologies coming up on the horizon will also prove to be well for telcos.