INTERVIEW: Bharti Airtel CEO Gopal Vittal (pictured) insisted the operator’s strategy of allocating capital to fewer areas to improve service quality has been key to its financial turnaround.
In an interview with Mobile World Live at MWC25 Barcelona, Vittal said Airtel is “obsessed about experience” and seeking partnerships which add value for customers.
He noted management is certain the market will consolidate, adding Airtel made a “very brave call” in deciding to go after 40 per cent of the customers which account for almost 80 per cent of revenue.
Once the industry was restructured, he believes it will come out of a downturn.
“We genuinely felt it was a once in a lifetime opportunity.”
Vittal was blunt in describing the environment before consolidation as “a competitive onslaught”, with industry revenue collapsing 30 per cent and ten players exiting the market under various circumstances.
At one stage, for every $100 of revenue it was spending $50 on capex, he stated, noting this was before even looking at operating costs.
India today features three large private players along with two small government operators.
The CEO noted Airtel had gone from a 29 per cent share of revenue to a little more than 40 per cent in the past eight-to-nine-years, with its market capitalisation growing from $20 billion to nearly $120 billion.
Comments