The Indian wireless telecoms operator, Airtel, included a whole range of different partners in order to reach as many customers as possible in rural India.

Airtel is a wireless telecom operator in one of the fastest growing and most intensely competitive markets in the world – India. Airtel is the largest with over 100 million consumers. Their revenues were $ 5.5 billion in 2008 growing at around 40%. Their goal is 250 million consumers in five years. In January 2009, it had the largest market capitalization of any company in India. It is also one of the most profitable telecom operators in the world. The CEO says this of their success: “we have broken all the paradigms of telecom”.

They have partnered with a wide variety of firms - LM Ericsson (for the network), IBM (IT services), retail stores, call centres, and passive infrastructure. They work with large global firms (IBM and Nokia), microfinance institutions and more than a million local shop owners (small Kirana shops spread across the country). They have thus accessed world-class technology and local distribution and have become the lowest-cost provider of talk time (less than 1 INR or $0.01- 0.015/minute) in a typically capital-intensive industry.

By focusing on clear agreements, constant review, creating a “win-win” contract, and making sure all players have “skin in the game”, Airtel has been able to work with a large ecosystem of global and local players and access expertise. Further, they have been able to convert lumpy investments (such as networks) into variable costs by paying a percentage of revenue to the partners. Airtel is creating unique value for customers. The very poor can afford to get connected. They provide the lowest cost, high tech solution to all. They have also reduced their risk in making technology bets. They can continually upgrade their technology solutions because of their partners.

Source: Prahalad & Krishnan (2009)