extended the pre-paid pack validity for the customers who the customers for validity pack pre-paid the extended Airtel also during the lockdown. recharge not able to were time in the pre-paid talk additional H 10 of an extended or calls make to them enable to customers Mn 80 of accounts ones. loved with their connected stay SMS and therefore send customers Airtel navigated recharges, facilitate In addition, to open. and the offline digital channels to which were channels including bank activated also new channels were Several through Self-care stores. pharmacies as well as grocery ATMs, call centers given doubled down, IVR and Thanks app was Network capacity. lower at a significantly operating were in capacity boost network to advanced were investments consumption and ensure in data tackle the upsurge to order and retail its to connectivity broadband mobile uninterrupted customers. enterprise customers on quality Airtel its focus continued year, During the networks and with superior and maintained its obsession airtelThanks program the customers. to experience seamless through experience a differentiated offer enhanced to was at the putting customers By ecosystem. owned and partner the into heavily invested the company strategy, the heart of and video experience best provide able to networks and was download speed experience. various yielded area focus being the other Financial discipline efforts enhance the balance sheet strength. to deleveraging position through leverage maintained a healthy The Company The deleveraging initiatives. and organic strategic a mix of rights issue in India and the largest one of included initiatives in India. player a private QIP by the largest the Company makes and financial strength Operational lifetime a in once this on capitalize to poised well truly industry. in the Indian telecom transformation Airtel significant dynamics provide market favourable Africa’s capitalize opportunities to mobile data and mobile money with geographies in underpenetrated on. With presence and tele-density, demographics macroeconomics, promising its African operations. gain from Airtel stands to Global GDP continued its trend with a growth of 2.9% in of with a growth Global GDP continued its trend weakness in global trade despite year, vs. 3.6% last 2019 affecting widespread, This weakness was and investment. – and Area the Euro economies – particularly both advanced (EMDEs). The Economies & Developing Market Emerging uncertainty and weighed on policy heightened saw year the due to confidence, and investment trade, international between United disputes rising trade period of prolonged Economic Review Economic Integrated Report and Annual Financial Statements 2019-20 Report Statements Financial and Annual Integrated Bharti Airtel Limited

During the last quarter of the financial year, the whole world year, the financial of During the last quarter pandemic. India witnessed struggled with the coronavirus when the March, the pandemic in the month of the impact of lockdown decided a country wide proactively government virus. During the lockdown, the of the spread reduce to again underscored. yet was sector the telecom importance of the economic as the backbone of acted infrastructure Telecom business time when every during the challenging activity its location. Airtel demonstrated remote from operating was all the time connected all its customers keep commitment to assist low income group to undertaking special measures by Company The crisis. COVID-19 the by impacted customers The year gone by was an eventful year during which the year an eventful was gone by year The much the seen having point; an inflexion at was sector besides certain judiciary initiatives unfortunate needed repair taking of move a long awaited The industry took outcomes. players Telecom mobile customers. prepaid for upwards tariff from definition case on the AGR verdict an unfavourable faced continues to Court. The government Supreme the Hon’ble and approved the sector by faced the stress of be cognizant the annual the payment of defer to the telcos the option for years two financial next spectrum auction instalments due for payments unchanged. of tenure the overall while keeping tariff a floor seeking the industry from on the plea based Also, year. during the a consultation paper on data; TRAI floated During this period of turbulence, Bharti turbulence, Airtel has been able During this period of This share. its market holding on to by its ground defend to being not simply of strategy the Airtel’s to can be attributed of but being an ecosystem connectivity a pipe providing across customers win quality digital services with an aim to all touch across them brilliant experience verticals and offer and a reliable investments network strong very points. Equally, in well even very has held the company brand trustworthy times. testing Telecom sector, which is the backbone of any economy, is economy, any of which is the backbone sector, Telecom the phase change. Post a transformational going through been have years last few price competition, aggressive of structure with the industry, in the consolidation by marked now a structure to players value than 8 more changing from has sector The operator. government and one private three of past 30 months with industry for times turbulent gone through the surviving by capex unprecedented collapsing, revenue internet India’s usage. voice and data of and explosion players, the by this period, propelled over rapidly has grown base user smartphones of availability and increasing cost decreasing prices. With this, at affordable and high-speed connectivity telecommunication largest India has become the second users internet of highest number and has the second market in the world. Overview 158

AND ANALYSIS AND MANAGEMENT DISCUSSION DISCUSSION MANAGEMENT

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States and China. With the agreement for partial rollback of stress in non-banking financial sector and decline in credit tariffs, the financial markets sentiments improved by the end of growth, having a trickle down impact on the whole economy. the year. During the year, major central banks loosened policy, The year witnessed efforts and policy changes including with interest rates in many advanced economies reaching significant easing of monetary policy with the repo rate cut, unprecedented lows last year. Financial conditions in EMDEs speeding up the insolvency resolution process under Insolvency improved in parallel, except in economies perceived as risky. and Bankruptcy Code (IBC), easing of credit in sector with major hit, reduction in the corporate tax rates, GST rate rationalisation Economic activity in advanced economies grew by 1.7% and some PSU & private banks merger / restructuring. in 2019 as compared to 2.2% in 2018. The slowdown was due to weak manufacturing activity and policy uncertainty Similar to other countries globally, India is also impacted associated with trade tensions. Growth in United States by coronavirus and as it tries to fight with the spread of decelerated amid slowing investment and exports, while coronavirus with measures to contain the virus, its economic consumption was resilient with unemployment being near a growth is projected to drop to 1.9% in 2020. IMF predicts five decade low along with a solid wage growth. Uncertainty the growth to bounce back to 7.4% 2021 with the recovery concerning Brexit and weakness in industrial and automobile through fiscal and monetary policy measures. India may sector had an impact on the growth in Euro area. benefit due to substantial correction in the crude oil prices overs last few months, while some of which will be diluted due Emerging Market and Developing Economies (EMDEs) grew to a steep depreciation of rupee against dollar. by 3.7% during 2019, led by India & China. The growth came at a backdrop of EMDEs continuing to experience substantial weakness, with industrial production, trade flows, and investment decelerating sharply during the year. 7.4% Economies that are deeply integrated into global and regional Projected GDP growth production and trade networks – most notably in Asia and rate for 2021 Europe – particularly suffered from global trade tensions and decelerating trade flows during the year. African Economy The year 2020 has started with the COVID-19 pandemic which is inflicting high and rising human costs worldwide. As a result The Sub-Saharan Africa economy grew by 3.1% in 2019 vs. of the pandemic, the global economy is projected to contract 3.3% last year. The economic activity in Sub-Saharan Africa sharply by (negative) 3% in 2020, while as pandemic fades was impacted by softening external demand, heightened in the second half of 2020, the global economy is projected global policy uncertainty, and falling commodity prices. to grow by 5.8% in 2021. As per IMF, effective policies are Domestic fragilities in several countries further constrained essential to forestall worse outcomes. The pandemic impact activity. The growth was driven majorly by countries like is expected to have two phases: a phase of containment Nigeria, Gabon, Chad, Ghana, Côte d’Ivoire, Ethiopia, Kenya, and stabilization followed by the economic recovery phase. Tanzania, Uganda, and DRC. The economic growth for 2020 may get impacted in the With the recent crude oil price drop, dollar appreciation and first phase due to necessary measures required to reduce global coronavirus impact, economic growth in Sub-Saharan contagion and protect lives. The recovery phase in late 2020 Africa is expected to drop to -1.6% in 2020, followed by is expected to mark substantial targeted fiscal, monetary, and a pickup to 4.1% in 2021. IMF expects sectors such as financial market measures to support affected households construction or services to lead the growth recovery in 2021. and businesses.

Actual Projections Global Growth 2018 2019 2020 2021 4.1% Trend (%) Projected GDP growth rate for World Output 3.6 2.9 -3.0 5.8 African economy - 2021 Advanced 2.2 1.7 -6.1 4.5 Economies Sources: Emerging Market 4.5 3.7 -1.0 6.6 World Bank Global Economic Prospects 2020: http://www. and Developing worldbank.org/en/publication/global-economic-prospects Economies IMF World Economic Outlook 2020: https://www.imf.org/en/ China 6.7 6.1 1.2 9.2 Publications/WEO India 6.1 4.2 1.9 7.4 India Economic Survey 2019-20: https://www.indiabudget. gov.in/economicsurvey/ Sub-Saharan Africa 3.3 3.1 -1.6 4.1

Source: IMF World Economic Outlook April 2020 Megatrends that Drive Our Business Indian Economy India’s demographic advantage in terms of young As per IMF, Indian economy grew by 4.2% in 2019, which is population is proving as a big boost to the mobile data among the fastest in the world but lower than last year growth penetration. Data usage per subscriber is growing more of 6.1%. India witnessed a slowing cycle of growth with the than 30% Y-o-Y.

92.98 92.84 90.11 87.45 Customer Base (Mn) Base Customer (%) Density Tele 1,206.22 1,194.58 1,177.02 1,183.51 Airtel Africa’s Services & Network Airtel Africa’s telecommunications of Airtel Africa is the leading provider countries 14 in services, presence a with mobile money and Africa. and West Africa and Central in East in Africa, primarily telecommunications of suite AirteloffersAfrica integrated an and data voice including mobile its subscribers, to solutions and servicesservices both nationally as well as mobile money a simple and continue providing and aim to internationally customer streamlined through experience customer intuitive journeys. and post-paid pre business line comprises voice The Mobile as well as fixed- roaming services, international voice wireless mobile data business line services. Africa Airtel’s line telephone services,communications data and,3G 2G, including comprises March 31, 2019. March Density: India (%) Tele FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20* India) of Authority Regulatory Telecom (Source: 31, 2020) Data as on January Subscription Telecom (*2019-20 represents Indian Telecom Sector Indian Telecom 1,177.02 Mn as on at stood base customer total India’s consolidation the of 2020. The completion January 31, private large three into Market within the Indian Telecom drop leading to the SIM consolidation accelerated players 1,183.51 Mn as on March 0.5% from by base in customer to contracted also tele-density the Consequently, 2019. 31, stood The urban tele-density year. 90.11% last 87.45% from at 58.03% stood tele-density the rural at 144.16%, whereas as on January 31, 2020. Himachal Pradesh metros, excluding Among the service areas Kerala by followed (148.29%) has the highest tele-density Nadu (108.21%), (122.77%), Tamil (128.09%), Punjab (98.76%), Haryana Pradesh (98.88%), Andhra Gujarat (83.98%). Kashmir (97.04%), Rajasthan (84.48%), Jammu & On with 280.11% tele-density. Delhi tops Among the metros, (53.07%), such as Bihar hand, the service areas, the other (67.15%) and Pradesh (67.1%), Uttar Pradesh Madhya low tele-density. comparatively have (68.57%) Assam at 20.58 Mn at the stood base customer The wire-line vis-à-vis 21.70 Mn at the end of January 31, 2020 end of Industry OverviewIndustry Integrated Report and Annual Financial Statements 2019-20 Report Statements Financial and Annual Integrated Bharti Airtel Limited With Mission Digitization, DTH operators are likely to to likely are operators DTH With Mission Digitization, market higher and base subscriber rising a from benefit in paid TV Innovations services, migration penetration. – consumption of increased have HD boxes SD to from opportunities and HD services, offeringsmart more TV’s service operators. to Convergence of fixed and wireless technologies is technologies and wireless fixed of Convergence provide with possibilities to useful becoming more Wi-Fi of with the use calls experience voice enhanced Wi-Fi). over calling (Voice With government push towards cashless economy and cashless economy push towards With government payments digital transactions, of acceptability increasing inclusion. Telecom driving financial via smartphones are is best network distribution established an with industry, this opportunity. capture placed to While implementation and rollout of 5G looks to be some some be to looks 5G of rollout and implementation While on 5G and ecosystem the standards however time away, cases use and more pace with more gathered has already started have players The telecom picture. coming into spectrum Deployment trial 5G with the cases use testing and consumer various in Things (IoT) of Internet of smart tracking, such as asset solutions enterprises and surveillance is appliances, smart security metering, Increased and telcos. developers of attention grabbing with cloud devices, combined affordable of penetration is expectations analyticscomputing, rising consumer and will Telecom market. the IOT of growth driving the rapid and solutions connectivity in providing a critical role play in this market. The role of telecom companies is no longer restricted to to restricted longer no is companies telecom of role The and the right price plan. It is now the “pipe” just providing digital services (music, of an ecosystem about creating data, and leveraging payments and much more) content, services. these deliver to network, and distribution assets platform (OTT) The Top Over of in usage Rapid growth including content all. Regional opportunities for creating the country. across video and music is gaining attraction Post COVID-19 related lockdown, the work from home from the work lockdown, related COVID-19 Post thus organisations, many become a new normal for may telecommunication different opportunities for creating line, broadband, fixed the spectrum- servicesacross mobile connectivity besides pure solutions enterprise As per IDC, Indian smartphone market, second largest largest second smartphoneIDC, Indian market, As per with a an 8% annual growth witnessed in the world, Migration in 2019. Mn units 152.5 shipment of total smart fuel to phones continues to phones feature from rural Rising smartphonethe country. the in shipments is providing tele-density rural increasing income and the telecommunications for a significant opportunity in India on make government push by Aggressive industry. of manufacturing the cost of can help in reducing front smartphones, fuelling smartphone thus produced locally adoption in the country.

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Integrated Report Statutory Reports Financial Statements Management Discussion and Analysis 161 increasingly, 4G data services, and other value-added services TRAI recommended that in case a telecom service for mobile subscribers. The Airtel Money business line comprises provider (TSP) acquires spectrum in 3300-3600 a mobile commerce service that is accessible 24 hours a day, MHz band in more than one licensed service area 7 days a week through customers’ mobile devices. Working in (LSA), same frequency spots should be assigned to partnership with local financial institutions, this service enables it in all those LSAs, subject to feasibility. Airtel Money customers to send and receive money and to make payments for utility bills and, in certain countries, to pay for goods Issue of Consultation Paper on KYC of DTH Set Top and services, to deposit and withdraw funds through a linked Boxes: TRAI released a consultation paper on KYC of DTH bank account, to make card-less withdrawals from partnered Set Top Boxes on July 19, 2019. Key proposals include: ATMs and to access microloans, which are facilitated by the Filling of KYC form and verification of Aadhar Card Group and accessible through its mobile network in partnership may be mandatory for any customer purchasing DTH with third-party loan providers. equipment. In order to check location, in accordance with customer ID /Card ID, location-based services Double Digit would have to be active in DTH Set-Top-Boxes. GPS enabled Set-Top-Box (STB) with geo-fencing to full year revenue growth Indian coordinates only may be used to restrict the in Africa illegal DTH run in other countries.

With the overall growth story remaining strong with a full Clarifications issued regarding import of equipment year witnessing a double-digit revenue growth, the company to the service providers sharing the active has embarked on a journey of cost consolidation and service infrastructure: Department of Telecommunications diversification in-order to further improve profitability and (DoT) on September 18, 2019 has issued clarifications enhance competitive edge. Diversification and digitization of regarding import of equipment to the service providers offerings along with continued investment towards enhancing sharing the active infrastructure. The following guidelines customer experience through high speed LTE network has led are to be followed by the respective Regional Licensing to a strong growth in Mobile Data and Money in addition to Officer (RLOs) for granting the license to import the Voice. equipment under such sharing agreement amongst service providers: Development in Regulations All the signatory service providers must have The year saw several regulatory changes and developments. frequency authorization in at least one of the access The significant regulatory changes were: service frequency bands.

India It should be ensured that the sharing service providers hold spectrum in at least one of the bands Issue of recommendations on Auction of Spectrum supported by the equipment being imported. Such in various bands to DOT: Telecom Regulatory Authority equipment should not support a frequency band in of India (TRAI) released clarifications / reconsideration of which none of the sharing service providers holds its ‘Recommendations on Auction of Spectrum in various any spectrum. bands’ to Department of Telecommunications (DOT) on July 08, 2019. Key features of the same were: The sharing partners need to submit a joint undertaking that the applicant service provider TRAI recommended Reserve Price (per MHz) of is importing these equipment as per the relevant 800 MHz & 900 MHz paired band in circles where sharing agreement entered amongst them; however, spectrum is becoming available. the use of the imported equipment by the individual The minimum amount of spectrum that an existing service providers will be strictly limited to the licensee is required to bid in 900 MHz and 1800 MHz respective spectrum holdings. bands be revised downwards from 0.6 MHz to 0.2

MHz. Recommendations on Review of terms and conditions for registration of OSPs: On October 21, 2019 TRAI has The entire administratively allocated spectrum in released its recommendations on ‘Review of terms and 800 MHz, 900 MHz and 1800 MHz bands (except conditions for registration of Other Service Providers for BSNL & MTNL) whose validity is going to expire (OSPs).’ The salient points include: by December 31, 2021 may be auctioned in the Only voice based outsourced OSPs need to have forthcoming auction. registration at par with existing process. Data/ No roll out obligations should be mandated for internet based OSPs would need to furnish spectrum in 3300-3600 MHz band. Further, lock- intimation only. in period for spectrum in this band for becoming Provision of services for captive purposes i.e. Captive eligible for spectrum trading should be same as contact centers have been kept out from the scope in other bands i.e. 2 years instead of the earlier of OSP. They would require furnishing intimation only. recommended 5 year period.

TRAI has released MNP Per Port Port MNP Per TRAI has released Telecom Service Provider will be liable to pay pay will be liable to Service Provider Telecom not financial disincentive of way an amount, by each wrongful rupees for thousand ten exceeding porting, as the Authority for the request of rejection direct. order by may, for mechanism a up set shall Provider Access Every its subscribers SMS from receiving of the purpose the to the same a UPC and forwarding for requesting belongs. which the mobile number to MNP zone the mechanism for query response of Introduction Code (UPC) Unique Porting of & delivery generation The category. corporate except all the cases for (MNPSP) Service Provider Portability Mobile Number on real Operator the Donor of will query the database UPC. of the delivery time basis and ensure The porting timeline of 2 working days has been kept days has been kept 2 working The porting of timeline numbers & (Intra-LSA) Service Area Intra-Licensed for numbers and corporate Inter-LSA 4 working days for Code (UPC) Unique Porting of validity The category. 15 days. place of 4 days in has been kept

the next date of hearing, which is pending disposal. The The disposal. pending which is hearing, of date the next is still being matter the and given without prejudice Group, Court, continued has Supreme Hon’ble the by considered obligations under its manner, in the same recognize, to orders. the judgments/ Amendment to MNP Per Port Transaction Charge Charge Transaction Port MNP Per Amendment to (Second Regulation (PPTC) and Dipping Charge Amendment): (PPTC) and Dipping Charge Charge Transaction which the Amendment) as per (Second Regulation each porting request for charge Transaction Port Per H 4. The regulation H 6.46 from to has been changed 11, 2019. TRAI November from force will come into Amendment) (Seventh Portability number of implementation of 2018: The date Regulations, (Seventh Portability Mobile Number “Telecommunication been extended 2018” has Amendment) Regulations, implementation the earlier 11, 2019 from November to the points of 13, 2018. The salient December of date as follows. are regulation has decided to consider reviewing the PPTC after one after the PPTC reviewing consider has decided to required. if year, Further, on February 26, 2020, TRAI also issued direction issued direction 26, 2020, TRAI also on February Further, in Code (UPC) Unique Porting of validity to in respect & Kashmir Jammu belongs to operator the recipient case if that states (LSA). The direction ServiceLicensed Area finds that Service Providers Portability Mobile Number LSA Jammu & Kashmir belongs to operator the recipient than other LSA any to belongs operator donor the and validity North the and Assam; East Jammu & Kashmir, shall be deemed the UPC in such porting requests of UPC shall be counted of validity be fifteen days and to UPC is made by for the request on which ignoring the day the subscriber. Mobile Telecommunication Implementation of

The Supreme Supreme The Integrated Report and Annual Financial Statements 2019-20 Report Statements Financial and Annual Integrated Bharti Airtel Limited CCSP/HCCSP to be given 3 months’ time to get 3 months’ time to be given to CCSP/HCCSP after registration/license necessary themselves DoT. by the policy of declaration one within single company of Multiple OSP centers as be registered (LSA) can service area licensed single OSP. Contact Center Service Provider (CCSP)/Hosted (CCSP)/Hosted Service Provider Contact Center providing (HCCSP) Service Provider Contact Center registration. under brought as a service are platform telecom of in reselling involved The CCSP/HCCSP operators Virtual network would require resources (VNOs) license. Requirement of agreement of bank guarantee guarantee bank of agreement of Requirement domestic between infrastructure sharing of for has company same OSP of and international been removed.

Supreme Court ruling on AGR matter: matter: Court AGR on ruling Supreme Court through its judgment and order dated October October dated its judgment and order Court through a long to Judgment”), in relation 24, 2019 (“AGR view considered upheld the industry dispute, outstanding (DoT) in respect Telecommunication Department of by (“AGR”) Revenue Gross Adjusted the definition of of parties the affected deposit the amount to and directed the In compliance. report and months’ three within due accounted has the Group reliefs, potential any of absence 31, H 366,178 Mn till March of a liability/provision for 2020). made in February the payments 2020 (excluding Court in a Supplementary Order Supreme The Hon’ble parties the affected pay to directed date the same of Telecommunications Departmentamounts due to of months, which ended on three (‘DoT’) within a period of January 23, 2020. the Court to Judgment, DoT had issued Subsequent 03, 2020 and February 13, 2019 November dated letters the liability of carry out own-assessment to the Group to compute to certainand afforded guidelines/clarifications Supreme on the Hon’ble based the amounts payable 2020, the in February Court Judgment. Accordingly, of and assessment on its interpretation based Group down laid principles the and guidelines/clarifications, the in the court Judgment, made payments aggregating and an additional H 50,000 Mn the DoT, H 127,490 Mn to adjustment) refund/ subsequent to (subject deposit a as re-verification/ from resulting differences cover to DoT. by reconciliation 16, 2020, the DoT had filed an application On March the affected time to giving reasonable to with respect on unpaid with 8% interest years 20 parties (a period of and to value) the net present protect duly amounts to particular a after interest applicable currently the cease Court, in a hearing on March Supreme The Hon’ble date. re- self-assessment/ of that no exercise 18, 2020, ordered placed be done and the dues which were is to assessment and be paid including interest the Court to have before Court Supreme hearing, the Hon’ble At the same penalty. on that the DoT application would be considered stated

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Amendment to Quality of Service regulations: On Flexibility to Distribution Platform Operators (DPOs) November 11, 2019 TRAI released Amendment to Quality to declare different NCFs for different geographical of service (QOS) regulations defining duration of alert for regions/areas within its service area, to offer the called party w.e.f. November 15, 2019. The regulation promotional schemes at par with Broadcasters and defined time duration of alert for an incoming voice call to offer discounts on NCF and Distributor Retail Prices on Mobile to be 30 seconds for Terminating Exchange & (DRP) on long term subscriptions with duration of 6 90 seconds for Originating Exchange and the same on months and above. Landline to be 60 seconds on Terminating Exchange and 90 seconds on Originating Exchange. Provision of discounts on NCFs for multi TV homes. DPOs shall not charge more than 40% of declared Issue of order on the Framework of Publishing Mobile NCF per additional TV for 2nd TV connection and Number Revocation List: On November 20, 2019 TRAI onwards in a multi TV home. issued an order on the “Framework of Publishing Mobile Number Revocation List” to all the telecom service These amendments have been challenged by providers to facilitate publishing of the Mobile Number Broadcasters before various High Courts and the matters Revocation List (MNRL) of permanently disconnected are pending without any interim relief. mobile numbers on monthly basis on the TRAI’s website. Amendment to Telecommunication Consumers Amendment to the Telecommunication Education and Protection Fund (Fifth Amendment) Interconnection Usage Charges (Fifteenth Regulations, 2020: On January 16, 2020, TRAI issued Amendment): On December 17, 2019, the Telecom amendment to the Telecommunication Consumers Regulatory Authority of India (TRAI) issued “The Education and Protection Fund (Fifth Amendment) Telecommunication Interconnection Usage Charges Regulations, 2020. The service provider will deposit (Fifteenth Amendment) Regulations, 2019” which any unclaimed consumer money of any form such as prescribes revision in the date of applicability of Bill and access charges, security deposit, plan charges of failed Keep (BAK) regime in respect of wireless to wireless activations, or any amount belonging to a consumer, which domestic call termination charges. Key features are: service providers are unable to refund to consumers, to the fund after providing time of twelve months or period For wireless-to-wireless domestic calls, termination of limitation specified under law, whichever is later. charge would continue to remain as H 0.06 (paise six only) per minute up to December 31, 2020. Implementation of the Telecom Commercial Communications Customer Preference Regulations From January 01, 2021 onwards the termination (TCCCPR), 2018: On January 20, 2020, TRAI issued charge for wireless to wireless domestic calls shall direction regarding implementation of the Telecom be zero. Commercial Communications Customer Preference Regulations (TCCCPR), 2018 and had inter-alia directed Amendment to the DTH regulatory framework – Telecom Service Provider’s (TSP’s) to take certain actions the Telecommunication (Broadcasting and cable) including the following: Services (Eighth) (Addressable Systems) Tariff (Second Amendment) order, 2020: On January 01, Any commercial communication from TSP network 2020 TRAI issued amendment to the DTH regulatory to be allowed using registered headers assigned to framework – The Telecommunication (Broadcasting the registered senders. and Cable) Services (Eighth) (Addressable Systems) Tariff (Second Amendment) order, 2020. The salient To give due publicity to make customers aware and points include: to register all new consents of subscribers in the new system. Introduction of twin conditions for pricing of bouquets by the Broadcaster: To ensure that Principal Entities are not able to send promotional messages or calls to the subscribers The sum of the a-la-carte rates of the pay if they have not shared subscribers’ consent with channels (MRP) forming part of a bouquet shall access providers. not exceed one and a half times the rate of the bouquet of which such pay channels are a Amendment to the Unified Access Service License part; and (UASL) and Unified License (UL): On February 05, 2020, the Department of Telecom (DoT) issued an amendment The a-la-carte rates of each pay channel (MRP), to the Unified Access Service License (UASL) and Unified forming part of a bouquet, shall not exceed three License (UL) and gave the Licensees an option to defer times the average rate of a pay channel of the the payments of spectrum auction instalments due for bouquet of which such pay channel is a part. the year FY 2020-21 and FY 2021-22, either for one or both years. These deferred amounts will be spread equally Increasing the number of SD channels within the in the remaining instalments to be paid by Licensees Network Capacity Fee (NCF) of H 130/- per month without any increase in the existing time period specified from 100 to 200 and capping the NCF for more than for making the instalment payment along. Additionally, 200 SD channels at H 160/- per month. interest will be charged to protect the Net Present Value

0.35 paisa per minute to to minute per 0.35 paisa 0.30 per minute to forbearance regime regime forbearance to minute 0.30 per 0.65 paisa per minute effective from May 01, 2020. It has May from effective minute per 0.65 paisa Further, in a similar matter on a petition filed by another another a petition filed by on matter in a similar Further, vide its order TDSAT, the Hon’ble service provider, telecom levy for the DoT order aside 04, 2019, has set July dated issue to DoT effect asked and retrospective with OTSC of given. direction of terms per as any, if demands, revise filed an appeal in the service provider telecom The said the of the order India against Court of Supreme Hon’ble Court Supreme the Hon’ble 2020, 16, On March TDSAT. and service provider the telecom appeal of the dismissed appeal judgement. DoT’s with the TDSAT did not interfere on Spectrum the levy for Order TDSAT against the said prudence, out of below 6.2 MHz is pending. Accordingly, H 56,420 of charge aggregate an recorded the company as at item as an exceptional Mn which is disclosed 31, 2020. March of the group, inter-alia, the above demand amounts amounts demand above the inter-alia, the group, of issued in the licenses of financial terms of alteration to in petition a filed company the therefore and past the order its vide which Bombay, CourtHigh of Hon’ble the respond DoT to the directed 28, 2013, had January dated date next the until action coercive any take to not and is matter this and reply its filed has DoT The hearing. of Bombay. High Court of pending with Hon’ble currently aggregating demands on the company The DoT revised 2018, including a retrospective H 84,140 Mn in June initial the of expiry the till charge prospective a and charge demand revised The said licenses. respective the of terms within the ambit brought been also has subsequently the Hon’ble by action no coercive of order the earlier of continue to to intends The Group Bombay. High Court of pursue its legal remedies. H that an Access Service mandated Provider also however, everyone to ITC of rate the non-discriminatory shall offer Distance Long International its own associated i.e. to standalone ILDOs. (ILDOs) as well as to Operators parliament, which in Kenyan A new bill has been debated business any for group a separate form to Telcos requires services. Airtel telecom Kenya engage outside core they business from money of separation initiated has already business. telecom core Amendment to the Telecommunication Telecommunication the to Amendment (Sixteenth Charges Usage Interconnection 2020: On April 17, 2020, Amendment) Regulations, (TRAI) revised India of Authority Regulatory the Telecom Termination International fixed of regime the present @ H (ITC) Charges H of range within a prescribed the replace to In Zambia, Finance Ministry has proposed 9% for of 16% with a Sales Tax of system VAT current implementation earlier of domestic supplies. The date to delayed 01, 2019 which has been July was proposed participation parliamentary in for allow to 2019, 1, Sep the legislation. Consultation with ZRA the enactment of about specifics is ongoing.

Africa

To provide such infrastructure items, equipment equipment items, such infrastructure provide To and terms agreed on mutually and systems in fair, eligible service provider conditions to manner. and non-discriminatory reasonable To provide only such infrastructure items, items, such infrastructure only provide To on lease/rent/sale equipment and systems which for serviceeligible an provider to basis from has an authorization that service provider India, and of the Government Integrated Report and Annual Financial Statements 2019-20 Report Statements Financial and Annual Integrated Bharti Airtel Limited

The IP-I registration holder should be authorized: should be authorized: holder The IP-I registration The expanded scope of the IP-I registration should the IP-I registration of scope The expanded all own, establish, maintain, and work include to systems and equipment, items, infrastructure such Access establishing Wireline for required which are and (RAN), Access Network Radio (WAN), Network it shall not include core Links. However, Transmission Mobile Switching as Switch, elements such network (HLR), IN etc. Register (MSC), Home Location Centre should include, the IP-I Registration of The scope Duct Space, Optical Way, Right of to, but not limited Station, In- Base cable, Antenna, Feeder Tower, Fiber, System Antenna Building Solution (IBS), Distributed India. part of within any etc. (DAS), Bank Guarantee against One-time Spectrum charges charges Spectrum against One-time Guarantee Bank Company Transferor from should be taken (OTSC) since it is the Company Transferee of instead is which Company, Transferor spectrum holding of company. the transferee changing hands, and not of which the final approval of a merger is delayed, is delayed, a merger of which the final approval should be excluded. holding substantial Equity/cross from An exemption as extended more or year one a period of for clause that the should be modified such the Licensor, by Holding substantial equity/Cross from exemption a period till transfer/ for only is provided clause the Licensor. by on record licence is taken of merger For calculation of one year i.e. time period allowed year one of calculation For the time approval, post NCLT transfer/merger for litigation on account of any spent in pursuing

In respect of levy levy of In respect (‘OTSC’): One Time Spectrum Charge the DoT has raised (‘OTSC’), one time spectrum charge of in January 2013. In the opinion demand on the company Recommendations for the Enhancement of Scope of Scope of of the Enhancement for Recommendations Category-I (IP-I) Registration: Providers Infrastructure for TRAI issued its recommendations 13, 2020, On March Providers Infrastructure Scope of the Enhancement of points include: The salient Category-I (IP-I) Registration. Recommendations for “Reforming the Guidelines the Guidelines “Reforming for Recommendations On Licenses”: Telecom of on Transfer/Mergers its recommendations TRAI released 2020, 21, February of on Transfer/Mergers the Guidelines “Reforming for includes: points The salient Licenses”. Telecom (NPV) of the payable amount during the moratorium moratorium the during amount payable the of (NPV) years. 2 period of

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Pursuant to the requirement of New Telecommunication Exchange on February 24, 2020. Accordingly, with effect Act in Malawi, it was made mandatory for companies from the date of such transfer the group has recognized holding electronic communication licenses to have a non-controlling interest equivalent to 20% of the net 20% local shareholding. To give effect to this, the assets of Airtel Malawi. The excess of carrying value group has transferred by way of a secondary sale, its over consideration received from non-controlling interest 20% shareholding in Airtel Malawi plc (Airtel Malawi), a (‘NCI’) amounting to USD 20m, has been recognized in wholly owned subsidiary of Airtel Africa plc, to the public the ‘transaction with NCI reserve’, within equity. and consequently Airtel Malawi listed on Malawi Stock

SCOT Analysis:

Strengths

Market Leadership: One of the leading telecom players in Large Distribution Platform: Robust platform enabling India and among top 3 worldwide in terms of total mobile company to offer services like Mobile Money, OTT connection based on consolidated subsidiaries. Market applications - Wynk Music, Airtel Xstream and Airtel Books leadership (Rank 1 & 2) in 12 of 14 African countries QuadPlay: Only operator to leverage quad play: Mobile, Brand: Strong and recognized brand in all the geographies Fixed Voice, Broadband and DTH of presence Strong Network: Future proof network across access, Scale of Operation: Presence in 18 countries serving over transport and core layers. Pan India 4G/3G spectrum. 423 Mn customers with presence in different segments Rated as the network with the India’s best video experience including mobile services, home broadband, digital TV, and best download speed experience (Opensignal Awards enterprise business, passive infrastructure and mobile India: Mobile Network Experience Report April 2020). Well- money paced to participate in Digital India wave

Challenges

Integration of Operations: Geographically varied Fast Changing Customer Needs: Understanding evolving presence, integrating operations across India, South Asia customer perceptions in fast-changing multi-cultural and and Africa leveraging common platform multi-lingual environment

Opportunities

Customer Uptrading: Low mobile broadband penetration Digital payments: India’s digital payment space is (~57%) and smartphone penetration in India provides expected to grow the segment by about five-fold to USD opportunity in form of customer uptrading from feature 1 trillion by 2023. Underpenetrated banking opportunity phone to smartphones in Africa as well

Acting more than just pipe: Creating an ecosystem of Content: On an average a person is spending 4hours digital services (music, content, payments and much on mobile, majorly consuming videos or music. Video more) and leveraging data, network, and distribution consumption contributes to >70% of data consumption assets to deliver these services to the capture future & India’s video streaming industry is all set to grow at a growth CAGR of ~22%

Strong Partner Ecosystem: Possibilities to have a host of Other non-mobile businesses: Less than 10% fixed strategic partnerships leading to differentiated customers broadband penetration in overall 250+ Mn households in experience in order to win customers India. Digitization to uplift DTH homes which are currently just 40% of overall Remote Working: With work from home becoming popular in India in addition to the higher disposable income and Improved industry dynamics: Improved industry habit changes, the existing homes broadband footprint dynamics due to the consolidation with recent mergers can be leveraged upon to capture the opportunities & exits of various telcos and the recent tariff hike in the industry 59 0.01 (268) (495) (483) (253) (751) (662) 4,430 2,987 3,768 1,835 7,101 (0.06) 11,567 (1,152) USD Mn* USD Mn* FY 2018-19 FY 2018-19 0.96 G Mn G Mn 4,095 (4.36) 309,545 208,670 262,937 128,182 807,802 496,060 (18,692) (34,193) (33,747) (17,318) (52,439) (46,606) (80,488) Any pandemic or natural disaster in in disaster natural or pandemic Any (369) 5,616 4,257 5,246 2,917 7,680 (0.90) (1.00) 12,377 (4,550) (5,103) (1,722) (2,111) (6,058) (7,214) (1,340) USD Mn* USD Mn* Volatility in currencies due to global due to in currencies Volatility Exposures: Currency and uncertainties,tensions trade global macro-economic pandemics Pandemic/Disaster: operations have the company the geographies

FY 2019-20 FY 2019-20 G Mn G Mn (63.41) (71.08) 397,172 301,106 371,053 206,315 543,171 875,390 (26,121) (94,791) (321,832) (360,882) (121,823) (149,327) (428,466) (510,209) Integrated Report and Annual Financial Statements 2019-20 Report Statements Financial and Annual Integrated Bharti Airtel Limited Uncertainties around political and Changes: Uncertainties around Regulatory along with any regions across economic environment adverse verdict litigation Pressures on Average Revenue Revenue on Average Pressures Competition: Increased or price competition increased (ARPU) due to User Per operate company the in the markets new player entry of in

Earnings per share (In H / USD) share per Earnings (In H / USD) share per Earnings Profit for the year the for Profit year the for Profit Tax expense Tax expense Tax Profit before tax before Profit tax before Profit Profit before exceptional items and Tax and items exceptional before Profit Profit before exceptional items and Tax and items exceptional before Profit Interest, Depreciation & Others before exceptional exceptional & Others before Depreciation Interest, items Interest, Depreciation & Others before exceptional exceptional & Others before Depreciation Interest, items EBITDA before exceptional items exceptional before EBITDA EBITDA before exceptional items exceptional before EBITDA Gross revenue Gross Gross revenue Gross Particular Particular Particular Particular Threats 69.86 for financial year ended March 31, 2019) ended March year financial H 69.86 for 31, 2020 (1 USD = ended March year financial for Rate *1 USD = H 70.73 Exchange comparison) Y-o-Y impact for Merger Tikona take to (FY 2018-19* has been reclassed Standalone Figures 69.86 for financial year ended March 31, 2019) ended March year financial 31, 2020 (1 USD = H 69.86 for ended March year financial for Rate *1 USD = H 70.73 Exchange periods. previous with not comparable 01, 2019 are periods commencing April of the results April 01, 2019, 116, effective IndAS With the adoption of Note: Consolidated Figures Consolidated Financial review Financial review 166

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Adoption of Indian Accounting Standards (IndAS) 116 Mn for the previous year. The underlying effective tax rate in ‘Leases’ w.e.f. April 01, 2019 India for the period was at 35.3% vs 34.9% for the full year ended March 31, 2019. The Ministry of Corporate Affairs (MCA) issued the Companies (Indian Accounting Standards) Amendment Rules, 2019 on Exceptional items during the year accounted for impact of March 30, 2019 notifying the leasing standard IndAS 116 H 288,123 Mn (net of tax). Exceptional items hits majorly ‘Leases’, which replaces the existing standard (IndAS 17). comprises of charge on account of license fees and SUC IndAS 116 is applicable to Companies from financial year including interest there on (AGR matter), accelerated beginning on or after April 01, 2019. The Company’s financial depreciation on 3G network equipment/operating costs on results presented in this report for the year ended March 31, network re-farming and up-gradation program, hit pertaining 2020 are in accordance with the new leasing standard IndAS to customary indemnities to a clutch of investors of Airtel 116. This standard is adopted in full form IFRS 16 without any Africa plc, charge on account of re-assessment of regulatory carve out and will make the financials of Indian companies cost based on a recent judgment on an OTSC related matter. comparable with global peers. Under the earlier standard IndAS 17, operating leases were treated as revenue expenses After accounting for exceptional items, the resultant whereas the finance leases were capitalized and amortized consolidated net loss for the year ended March 31, 2020 over the period of the lease with corresponding liabilities came in at H 321,832 Mn as compared to net income of recorded as finance lease obligation. H 4,095 Mn in the previous year.

The Company’s consolidated revenues stood at H 875,390 The capital expenditure for the full year was H 253,586 Mn Mn for the year ended March 31, 2020, as compared to (USD 3.6 Bn) as compared to H 287,427 Mn in the previous H 807,802 Mn in the previous year, an increase of 8% (an year (a decrease of 11.8%). increase of 11% on an underlying# basis). The revenues for Return on Capital Employed (ROCE) has declined to (negative) India and South Asia (H 643,598 Mn for the year ended March 9.8% from 5.2% in the previous year. 31, 2020) represented a growth of 7% compared to that of previous year (growth of 10% on an underlying basis). The The following table shows a summary of sector specific key revenues across 14 countries of Africa, in constant currency ratios: terms, grew by 14%. Key Ratios Units FY FY Y-o-Y% The Company incurred operating expenditure (excluding 2019-20 2018-19 access charges, cost of goods sold, license fees and CSR costs) of H 314,670 Mn representing a decrease of 16% Capex Productivity % 41.9% 40.6% 1.3% over the previous year. Consolidated EBITDA at H 371,053 Opex Productivity % 35.9% 46.4% -10.4% Mn increased by 41% over the previous year. The company’s Interest Coverage Times 3.41 2.84 20.0% EBITDA margin for the year increased to 42.4% as compared Ratio1 to 32.5% in the previous year. Depreciation and amortization Net Debt to Times 1.54 1.58 -2.6% costs for the year were higher by 29.7% to H 276,893 Mn. Shareholders’ Consequently, EBIT for the year at H 92,447 Mn increased Equity by 94.1% resulting in margin of 10.6% vis-à-vis 5.9% in EBITDA Margin % 42.4% 32.5% 9.8% the previous year. The cash profits from operations (before Net Profit Margin2 % -36.8% 0.5% -37.3% derivative and exchange fluctuations) for year ended March 31, 2020 was H 254,951 Mn vis-à-vis H 167,777 Mn in the Return on % -35.5% 0.6% -36.1% previous year. Shareholders’ Equity3 Net finance costs at H 123,819 Mn were higher by H 27,926 Note: With the adoption of IndAS 116, effective April 01, 2019, the ratios Mn compared to previous year mainly due to higher interest of periods commencing April 01, 2019 are not comparable with previous on lease obligation due to adoption of Ind AS 116 and higher periods. forex losses during the year. 1. Higher Interest coverage ratio is driven by higher EBITDA during the year. Consequently, the consolidated loss before taxes and 2. Drop in Net Profit Margin is attributable to lower Net Profits during the exceptional items at H 26,121 Mn compared to loss of year. H 46,606 Mn for the previous year. 3. Drop in Return on Net worth is attributable to lower Net Profits during the year. The consolidated income tax expense (after the impact on exceptional items) for the full year ending March 31, 2020 was (negative) H 121,823 Mn, compared to (negative) H 34,193

#The term ‘Underlying’ refers to DTH reporting change effective April 01, 2019 pursuant to New Tariff Order, leading to content cost becoming a pass through expense and impact of accounting policy change deferring activation, installation & rental revenue over the life of the customer. 10 to their prepaid talk-time talk-time prepaid their to 10 H Our business continuity plans came into into plans came continuity business Our Given the lockdown, most shops were shut. most shops were the lockdown, Given In these challenging times, our network remains remains network times, our challenging In these Our topmost priority is the health and wellbeing is the health and wellbeing priority topmost Our Airtel decided to pay the basic income for April to April to the basic income for pay Airtel decided to its distribution partners of 25,000 employees nearly To ensure that our customers were able to recharge, we recharge, able to were customers that our ensure To new channels – Pharmacies, Groceries, several activated Offices recharges enabled and Post and ATMs Bank during the be available at points that continued to customers all our we encouraged Further, lockdown. several undertook the digital channels. We use to and online pay/recharge to users educate to campaigns others. for recharge to customers encouraged also assist low-income to Airtel announced special measures crisis. Airtel the COVID-19 by impacted customers group 80 Mn customers over for validity pack pre-paid extended additional an extended and send calls or make seamlessly to enabling customers ones. loved with their connected stay SMS and therefore of our employees, partners and customers, and we have partners and we have customers, and employees, our of We safety. their ensure to steps all the necessary taken on workforce our to essentials sanitation provided have teams (two staff distributed we have the field. Further, to capacity reduced days) and working on alternate are We facilities. essential distance in our maintain social awareness help raise to with the government working also as to means so several through practices best and share help people in need. effect even before the lockdown. We have a war room to to room a war have We lockdown. the before effecteven meetings daily and supervise all developments closely employees, our of safety monitor to the CEO by chaired service business and network, customer review performance. the main source for many people for social interactions, interactions, social people for many for the main source an seen already have and entertainment. We work sure make is to priority in data traffic, and our increase brilliant experience. enjoy continue to customers that our continue installation/ on the field to people were Our up and that networks were activities and ensure repair that made sure We during the lockdown. running, even as centers and Engineering Operating Network all our with minimum could be operated well as data centers also We virtually. enabled were and rest on site workforce be ready at the NOC to arrangements made all necessary all eventualities. for

Distribution: Governance: Governance: Safety: Network: Raised through a combination of rights issue, rights a combination of through Raised bond, QIP and FCCB Africa IPO, perpetual rapidly evolving. The pandemic made telecommunications telecommunications made pandemic The evolving. rapidly it providers, As connectivity ever. than relevant services more its customers keep to on the company responsibility is a great connected. and the nation USD 8+ Bn

Integrated Report and Annual Financial Statements 2019-20 Report Statements Financial and Annual Integrated Bharti Airtel Limited COVID-19 an unprecedented saw year the financial of The last quarter is and the situation COVID-19 of with the outbreak scenario The year witnessed massive fund raise initiatives totaling totaling initiatives fund raise massive witnessed year The India’s started with one of year USD 8 Bn. The than more to Mn H 249,390 raised the company biggest rights issue where shares paid up equity 1,134 Mn fully issuing approximately by the deleveraging towards materially and utilizing the proceeds enthusiastic response an issue saw sheet. The rights balance In oversubscribed. and the issue was the investors from the initial public offering concluded June 2019, the company and Exchange Stock Airtel London Africa plc on the (IPO) of of net proceed and raised Exchange the Nigerian Stock the premium to admitted USD 674 Mn. Airtel Africa plc was was and later Exchange Stock London of listing segment 2019, company’s In October 250 index. the FTSE added to USD 750 raised i2i Limited wholly-owned subsidiary Network Securities. The Perpetual Subordinated 5.650% Mn through offering securities hybrid inaugural company’s was transaction G3 hybrid telecommunications play the 1st pure and was 1st subordinated and (ex-Japan) Asia Pacific from securities India. The out of Corporate Grade an Investment by perpetual hybrid inaugural our for response, a strong issue received and Europe Asia, across investors offering, from securities of potential growth underlining the future States the United Securities Perpetual Subordinated the business. The same In Mn. USD 250 raise further to issued later additionally were USD 3 Bn through raised successfully January 2020, company The Bn). 1 (USD FCCB and Bn) 2 (USD QIP of combination a and FCCB Equity dual tranche the largest was transaction sector a private QIP by the largest in Asia-Pacific, offering ever an India offering from FCCB in India and the largest ever issuer the offering re-opened FCCB The years. 12 last the in issuer such issuances. of absence a 3-year after market Indian FCCB many by and anchored oversubscribed Both the offerings were long Global the large of Several and new shareholders. existing Funds, Domestic Mutual Funds, Wealth funds, Sovereign only Companies participated in the offering. The and Insurance investors, long-only to pre-dominantly allotment was overall base the shareholder of diversification ensuring also thereby demonstrate Bharti initiatives fund raising Airtel. All these of participants helped the and have market support of the strong its balance sheet strength. in improving company Liquidity & Funding Liquidity had cash and cash the company 31, 2020, As on March of and short H 135,507 Mn investments term of equivalents 31, 2020, the March ended year Mn. During the H 137,679 H 117,466 cash flow of free operating generated company obligations lease excluding net debt Mn. The consolidated 31, March stands at H 882,512 Mn as on the company for 31, 2019. March H 1,082,346 Mn as on to 2020 compared including the impact the company net debt for Consolidated 31, 2020. March stands at H 1,188,590 Mn as on leases of and including the (Annualized) ratio The Net Debt-EBITDA at 3.20 times was 31, 2020 as on March leases impact of The Net 2019. 31, on March 4.30 times as to as compared as 31, 2020 March at 1.54 times as on was ratio Debt-Equity 31, 2019. 1.58 times as on March to compared 168

Integrated Report Statutory Reports Financial Statements Management Discussion and Analysis 169

and retail franchise network to help them tide over the Awards and Recognition unprecedented situation arising out of the ongoing lockdown to contain the spread of COVID-19. Airtel ranked 4th in the category of “The top 10 most valuable Indian brands 2019” as per WPP Kantar Survey. Airtel Business extended its support in adopting robust and flexible business continuity arrangements Airtel bagged top honors at the Frost and Sullivan to continue to communicate and collaborate securely, ICT Awards. Airtel Business has been awarded as the through bandwidth upgrades, work-from-home solutions “Enterprise Data Service Provider of the Year” and the based on DSL and 4G, Collaboration services and security “Enterprise Telecom Service Provider of the Year” in the solutions. large enterprise segment.

Airtel enabled free access to thousands of titles on In October 2019, Airtel has been ranked #1 by its e-books platform – Juggernaut Books (formerly OpenSignal as having India’s Best Video Experience known as Airtel Books) to all its customers. Airtel in its Mobile Network experience report. OpenSignal is customers can access top books and novels for free an independent mobile analytics company specializing by simply downloading the Juggernaut Books app on in quantifying mobile network experience. It also said their smartphones while they are at home during the in April 2020 that, Airtel has demonstrated best video nationwide lockdown to curb the spread of COVID-19. experience, voice app experience, download speeds and latency experience. (Opensignal Awards - India: Mobile Airtel and Apollo 24/7, the digital arm of Apollo Hospitals Network Experience Report published in April 2020). Group, launched a free digital self-assessment tool on the airtelThanks app that allowed users to check their Airtel Finance shared services team has bagged the COVID-19 risk profile by answering a few questions. coveted Digital Initiative Award by HDFC bank in the Based on the user responses, the digital tool generates Large Customer Category. a risk score and suggests follow-up actions, including airtelThanks campaign won Bronze at EFFIES 2020 for free online consultation on Apollo 24/7, non-prescription its marketing campaign effectiveness. The EFFIE Award helpline number, self-care tips, social distancing norms is a pre-eminent award in the advertising industry, which and other preventive actions. recognizes all forms of marketing that contributes to a Airtel launched a new prepaid data pack for the people brand’s success. in quarantine. The H 401 data pack comes with a free subscription to Disney + Hotstar VIP with a validity of 365 Segment-wise Performance days and 3GB data per day for 28 days. B2C services Airtel has kept its commitment to onboard 50 summer interns from top business schools for its flagship Airtel Mobile Services: India Young Leaders Summer Internship Programme. Airtel has Overview redesigned its internship program to make it completely virtual. Right from induction to mentorship to final reviews, During the year ended March 31, 2020, operations pertaining the entire program will run virtually. to optical fiber were transferred from the company to its wholly owned subsidiary Telesonic Networks Limited with effect Airtel rolled out Airtel Super Hero feature on its from August 01, 2019 under the Scheme of Arrangement. airtelThanks app that allows users to enroll themselves as Subsequently the business was reorganised, whereby, superheroes and earn commission on recharging other assets and liabilities pertaining to bandwidth capacities were Airtel numbers. allocated to Mobile, Airtel Business and Homes segment. As a responsible corporate, Bharti Enterprises and its Previously, these operations were part of Mobile segment and companies Bharti Airtel, Bharti Infratel and others have bandwidth capacities were billed by Mobile services segment committed over H 100 crore for India’s fight against to Airtel business and Homes services segments. COVID-19. A significant portion of the corpus was To serve the evolving needs of millions of customers in the contributed to the PM - CARES Fund and the balance rapidly digitizing economy, Airtel continued to re-farm its 3G amount has been directed towards sourcing of masks, spectrum for 4G and modernize it for increasing 4G coverage PPE and other key equipment. and capacities thereby providing its customers with an industry leading network experience. As on March 31, 2020, the Company had 283.7 Mn customers in India. The churn decreased to 2.5% for the current year, compared to 3.3% during the previous year. The minutes on the network have increased by 8% to 3,035 Bn. The Company had 148.6 Mn data customers at the end of March 31, 2020, of which 136.3 D100+ crores Mn were mobile 4G customers. The increased penetration Committed by Bharti Enterprises and its companies through bundles with high inbuilt data has also led to the total Bharti Airtel, Bharti Infratel in India’s fight against MBs on the network grew by 79% to 21,020 Bn MBs. COVID-19 2 lakhs. The partnership aims to leverage Airtel’s Airtel’s H 2 lakhs. The partnership leverage aims to Airtel announced the induction of Bengaluru based tech tech Bengaluru based Airtel the induction of announced Airtel Program. Startup its Accelerator into startup Vahan with them and partnered in Vahan a stake acquired vision of their achieve to in building significant scale users. internet billion the next enabling jobs for launch to Insurance Life AirtelHDFC with hands joined in-built life an with comes bundle The bundle. prepaid a HDFC H 4 lakhs from plan) of (term cover insurance calling and 2GB data/day. voice along with unlimited Life (HCIL), a Airtel and Hughes Communications India Ltd. (HUGHES) LLC Systems, Hughes Network of subsidiary VSAT combine their to an agreement into entered in India. operations Terminal) Small Aperture (Very enhanced scale, benefit from will The combined entity reach. efficiencies market operational and wider improved leverage be well positioned to will The combined entity growing rapidly in a connectivity secure the demand for approvals is subject to The transaction digital economy. authorities. relevant by As an effort to contribute to the Digital India vision and vision the Digital India As an effort to contribute to their in Pradesh Uttar of Government the with partner Airtel agenda, designed and digital transformation Network Wide Area State ready a future implemented 2.0’. called ‘UPSWAN government the state for (SWAN) across (PoPs) Presence of 885 Points of It comprises high-speed secure, provide designed to and is the state services to Government of delivery for connectivity network. Group User a Closed over citizens launch to & Homes collaborated Hotels Airtel and OYO can on airtelThanks App. Airtel customers Store OYO accommodations on the airtelThanks app book seamlessly Bank. via Airtel Payments the booking payments and make Airtel, in partnership with Bharti Insurance, Life AXA cover insurance life Bundle with built-in launched Prepaid of to distribution reach leadership and deep innovation accessible & affordable. more insurance make Airtel announced a partnership leader with global content subscription premium (the international Lionsgate from content bring premium Starz) to from platform India. The in Airtel subscribers to Play Lionsgate deep a to access partnershipAirtel customers gave Lionsgate and beloved acclaimed critically portfolioof on made available was This content film content. feature app and web platforms. the Airtel Xstream transform Faridabad into a Smart City. Airtel will work Airtel will work a Smart into City. Faridabad transform high ready a future and deploy design with FSCL to closely to solutions connectivity of and a range network capacity city. enabled Faridabad build a digitally

Mergers & Acquisitions: Mergers its as a part of M&A transactions Airtel concluded a host of harness economies of and to strategy and diversification growth consolidations: from resulting scale % 45% 11% Y-O-Y Y-O-Y Growth 3,035 Voice usage (Bn Mins) usage Voice G Mn (57,511) 415,541 21,020 2,811 FY 2018-19 G Mn 11,733 1,946 (31,853) 459,663 415,541 Mn in the previous year. The year. previous the in Mn 415,541 H Data usage (Bn MBs) Data usage FY 2019-20 3,902 Integrated Report and Annual Financial Statements 2019-20 Report Statements Financial and Annual Integrated Bharti Airtel Limited Airtel has been chosen as the strategic Network Solution Network as the strategic Airtel has been chosen (FSCL) to Limited Smart City Faridabad by partner Airtel strengthened its strategic partnership with ZEE5 its strategic Airtel strengthened for experience content world-class digital a enable to partnership, As partAirtel all mobile customers. of complimentary unlimited got Airtel Platinum customers their partas catalogue content of vast ZEE5’s to access airtelThanks plan benefits.

Airtel continues to forge business partnerships with an aim forge Airtelto continues value greater with experience customer seamless provide to end users. to proposition Strategic Alliances & Partnerships: Alliances & Partnerships: Strategic Key Highlights Key EBIT Gross Gross Revenues FY 2019-20 FY 2017-18 Data and Voice Usage Usage Data and Voice Particulars During the year, revenues increased by 11% to H 459,663 to 11% by increased revenues year, During the to compared as Mn The Company continues to expand its reach within the digital the digital within its reach expand to continues The Company #1 music- Music as India’s Wynk Annie ranked space. App in October Users Active Daily of app in terms streaming user the massive metric underlines performance 2019. The consuming music when it comes to Music Wynk for preference 2020. Mn installs in March, 170 on smartphones. It crossed video and the known as Airtel TV, formerly Airtel Xstream, 138 Mn installs Airtel, crossed LIVE TVfrom app streaming amongst popularity 2020, underlining its growing in March, digital content. destination for smartphone as the go to users TV 400+ Live a rich assortment channels, and over It features and TV 14 languages. Movies shows across of compared towers, had 194,409 network The Company total the of Out year. last the in towers network 181,079 to towers. mobile broadband 192,068 are towers, of number at 503,883 the stations were (MBB) base Mobile broadband year. last 417,613 at the end of to compared year, the end of 170 36.9% to margin in the EBITDA increase witnessed segment EBIT year. the last in 22.7% to compared year, the during 6.9%, compared (negative) to increased year the for margin year. 13.8% in the previous (negative) to FY 2018-19

Integrated Report Statutory Reports Financial Statements Management Discussion and Analysis 171

Merger of Consumer Mobile Business of Tata Jammu & Kashmir. This will further augment Airtel Teleservices (Maharashtra) Limited and Tata 4G quality and experience, boost network capacity, Teleservices Limited with Bharti Airtel Limited and significantly improve outdoor coverage and drive Bharti Hexacom Limited - On July 01, 2019, Airtel more voice traffic on VoLTE to serve its customers in all completed the acquisition of the consumer mobile these regions. business of Tata Teleservices (Maharashtra) Limited (TTML) and Tata Teleservices Limited (TTSL) with Bharti The Company renewed and enhanced its on-going Airtel Limited and Bharti Hexacom Limited following the relationship with Nokia to boost its network capacity and Hon’ble TDSAT order and the approval of the schemes customer experience, in particular 4G. The rollout will also of arrangement by Hon’ble NCLT, Delhi and Hon’ble lay foundation for providing 5G connectivity in the future, NCLT, Mumbai. Airtel has integrated Tata’s operations with approximately 300,000 radio units deployed across across circles and has added 142.50 MHz of unpaired several spectrum bands, including 900 Mhz, 1800 Mhz, spectrum to its portfolio. All the Tata customers have 2100 Mhz and 2300 Mhz. been transitioned seamlessly and continue to enjoy Airtel has launched 4G services in Lakshadweep uninterrupted services with the same SIM and same Islands. With this, Airtel has become the first mobile plan/pack benefits. operator to launch high-speed data services on the The Hon’ble NCLT, New Delhi, Principal Bench, vide its tropical archipelago. order dated July 02, 2019 has sanctioned the Scheme Bharti Airtel has collaborated with Cisco to launch India’s of Arrangement between the Company and Telesonic largest 5G-ready, 100G IP and optical integrated network Networks Limited (‘Telesonic) for the transfer of the designed to enhance network availability, capacity Optical Fibre Cable business of the Company and vesting and scale. The deployment is part of Bharti Airtel’s of the same with Telesonic and has become effective on initiatives to build a 5G ready network that continues to August 03, 2019 consequent to the filing of Certified True serve the growing demand for high speed data services Copy of the Order of the Hon’ble National Company Law in the country. Tribunal sanctioning the Scheme, with the concerned Registrar of Companies. In one of the fastest uptakes of a new network technology in India, Airtel Wi-Fi Calling crossed five million users Airtel acquired a strategic stake in Spectacom Global Pvt in March 2020. Bharti Airtel was the first mobile Ltd (“Spectacom”) under the Airtel Start-up Accelerator operator to introduce Voice over Wi-Fi across India. Program, which focuses on supporting growth of The new technology has dramatically improved indoor early stage Indian start-ups. Spectacom has been network experience for Airtel mobile customers through conceptualised to produce path breaking digital content seamless coverage. on health & fitness training programmes. Airtel will work closely with Spectacom to help increase awareness and Digital Innovations & Customer Delight: adoption this platform. In the face of rapidly changing customer demands, Airtel consistently remained on the path of digital innovations to 142.50 MHz nurture its customer journey across all touch points and to have a highly engaged customer force by providing exceptional of unpaired spectrum added to the portfolio customer experience with Tata Teleservices acquisition NEFT Facility - Airtel Payments Bank enabled the use of National Electronic Funds Transfer (NEFT) facility for all its Network Expansion & Transformation: users. The facility would be available to customers on 24x7 Airtel remains committed to deliver a world-class network basis even on holidays, allowing them to send or receive experience to the high value customer through its various funds to any bank from anywhere, anytime. initiatives: Airtel redefined international roaming with yet another As part of its strategy to offer high speed 4G across the innovation that allows customers to track usage real time country, the company has moved forward on its plan and enable / disable IR service with one click on airtelThanks to phase out its 3G services and further augmented its app. Furthermore, customers can pre-book IR packs (also 4G services, Airtel has deployed state-of-the-art L900 available for prepaid customers) covering most travelled technology in the 900 MHz band to complement its 4G countries. services in the 2300 MHz and 1800 MHz bands. Airtel announced the launch of its converged digital Bharti Airtel launched high speed 4G along with 2G entertainment play. Airtel Xstream, which offers a range services in 26 villages in Ladakh. Airtel is the first operator of connected devices, applications and services. As part of to bring high-speed mobile broadband to these villages the Airtel Xstream device portfolio, Airtel has launched an and connect them to the digital superhighway. android based OTT smart stick and an Android based 4k Hybrid Smart Box that offers satellite TV and OTT content. Airtel deployed the superior LTE 2100 MHz spectrum Airtel also launched Airtel Xstream app, which is a revamped band across Delhi-NCR, Haryana, Himachal Pradesh, version of Airtel TV app.

airtelThanks program was extended to Home Broadband Broadband Home to extended was airtelThanks program The benefits above. H 999 and of plans for customers Prime membership with full Amazon include one-year entertainmentto access benefits, and online shopping Airtel Xstream and all of ZEE5 from content premium content. premium home offering cities in 10 been launched has Integrated the new offering, our 31, 2020. Under as on March Airtel i.e. multiple services from for can opt customers Customers bill. one under DTH and Broadband Postpaid, – benefits the following eligible for are this scheme under visits, Wi- service complimentary one bill & one call centre, discount at box Airtelcost, Xstream extra no at router Fi box. on DTH warranty and extended space, the in Broadband the cities Airtel is not present For services through has launched its broadband company markets. in those opportunity tap the tie-ups to franchise been launched in have 2020, operations March As of Airtel will been wired. 11 cities and ~180K homes have cities and in newer its presence increase continue to launched cities. enhancement in the capacity through The new plans also provide customers with an ability to to an ability with customers provide also plans The new to and upgrade month H 299 per of fee an additional pay data. unlimited

Digital TV Services Overview in television development regulatory a key saw year The the New TRAI implemented industry wherein broadcast allows 31, 2019. The NTO March w.e.f. (NTO-1) Order Tariff to want the channels and bouquets they select to customers has complied Company The accordingly. and pay to subscribe and has welcomed implementation for the deadline set with of wave in the next usher to as it has the potential the move the country and is in line with its across broadcasting digitized tariff new the to Subsequent first. customer putting of ethos for only responsible are the service providers (NTO-1), order content control not in a position to and are re-transmission the to is only revenue the Gross and pricing. Accordingly, payments received i.e. customer retained value net of extent w.e.f. charges) (erstwhile content fee broadcaster’s net of April 01, 2019. acquisition of its accounting policy has reviewed The company the deferred business and accordingly in DTH revenue the of the life over revenue installation and rental onboarding, the same FY 2019-20 for year full impact for The customer. in Q4’20. considered was its customers, entertainment services to modern-day deliver To Box Airtel Digital TV 4K Android launched the Airtel Xstream 111 Cities Across India receive fixed-line telephone and telephone fixed-line India receive Across home services for broadband

% 54% 0.3% Y-O-Y Y-O-Y 2.41 Growth 2.27 2.17 22,391 Mn in Mn 22,391 H G Mn 3,330 22,391 FY 2018-19 G Mn 5,129 6,000 as part of their plan benefits. plan their 6,000 as part of 22,451 FY 2019-20 Integrated Report and Annual Financial Statements 2019-20 Report Statements Financial and Annual Integrated Bharti Airtel Limited got free access to one- access to got free Airtel Platinum customers In line with the “high speed and high value acquisition value In line with the “high speed and high identity a new brand unveiled the company strategy”, services. the home broadband for Fibre’ Xstream ‘Airtel plans are With simplified offerings, broadband all home The current umbrella. the new brand under now available and data lies under connectivity high speed offering of H 799 to starting from markets plans in all major four 3999/month offering speed up to 1 Gbps. The new offering speed up to H 3999/month 100 up to speeds offers month plan users H 799 per Airtel all of 150GB and access to Mbps with a FUP limit of content. premium Xstream from the from courses online to access free Airtel offered Shaw - Shaw Academy. online educator renowned globally practical on developing offersfocused courses Academy music, language, fitness subjects include skills and popular etc. worth courses H year

EBIT Gross Gross Revenues the previous year, increase of 0.3%. EBITDA margin improved improved margin EBITDA 0.3%. of increase year, the previous in the 48.3% to 50.4% as compared to year during the year. previous 22,451 Mn for the at H 22,451 Mn for Homes services stood from Revenues to compared as 2020, 31, March ended year The need for a robust and reliable fiber network has grown grown has network fiber and reliable robust a for need The high end online 4KHD content, of proliferation with growing home. During the working from of ways gaming, IoT and new new out rolling by coverage our increase we continued to year, Further, operations. our cities of major across network Fiber FTTH continued to Copper from network of overhauling 31, as on March The Homes business had 2.4 Mn customers Mn 2.3 to as compared 6.3% of a growth representing 2020, year. previous at the end of The Company provides fixed-line telephone and broadband broadband and telephone fixed-line provides The Company India. homes in 111 cities across services for higher enjoy customers that our ensure to year during the speed and connectivity. Overview Homes Services Key Highlights Key FY 2017-18 Particulars 172 FY 2019-20 FY 2018-19 Homes Subscribers : (Mn) Homes Subscribers

Integrated Report Statutory Reports Financial Statements Management Discussion and Analysis 173 during the year. The Xstream box is essentially an Android TV B2B Services Box that has been modified to accept both satellite TV signals as well as to serve content from modern day OTT platforms Airtel Business such as Airtel Xstream app, Netflix, Amazon Prime Video, Overview YouTube and Airtel Store (for advanced gaming with high-end graphics) and to stream more than 500 TV channels with Airtel Business is India’s leading provider of ICT services with access to Google Play store and Google Assistant. a network spanning across India, USA, Europe, Africa, the Middle East, Asia-Pacific, and other SAARC countries. Airtel With operations in 639 districts across the country, the Business serves over 1200 global customers, 2000 large and customer base crossed the 16 Mn mark during the year. The 500,000 medium/small businesses across India. We offer a Company has witnessed a step up in customer additions on diverse portfolio of products and services covering voice, data, back of its premium HD content. Airtel Digital TV has 16.6 Mn collaboration, work-from-home solutions, cloud, data centre, customers on its Direct-To-Home (DTH) platform as of March security, IoT, network integration, managed services, enterprise 31, 2020. mobility, and digital media. Through this diverse portfolio, we The Company currently offers 645 channels including 85 HD are pushing the boundaries in digital service delivery with a channels (including 1 HD SVOD service), 27 SVOD services, 7 key focus on enhanced end-user experience, round-the-clock international channels and 3 interactive services. infrastructure availability, and superior service quality.

Reported revenues for the year stood at H 29,238 Mn for the Revenues in this segment comprise of: a) Enterprise & year ended March 31, 2020, as compared to H 41,001 Mn in Corporate Fixed Line, Data and Voice businesses, and b) the previous year, a decrease of 29% (an increase of 16% on Global Business, which includes wholesale voice and data. an underlying basis). Global Business, the international arm of Airtel Business, offers an integrated suite of global and local connectivity solutions, Particulars FY 2019-20 FY 2018-19 Y-O-Y spanning voice and data to the carriers, Telcos, OTTs, large Growth multinationals, and content owners globally. It’s international G Mn G Mn % infrastructure includes the ownership of i2i submarine cable Gross 29,238 41,001 -29% system, connecting Chennai to Singapore and consortium Revenues ownership of submarine cable systems like South East Asia - Middle East - Western Europe - 4 (SWM4), Asia America EBIT 11,330 7,410 53% Gateway (AAG), India - Middle East -Western Europe (IMEWE), Unity, Europe India Gateway (EIG) and East Africa Submarine DTH Subscribers Base (Mn) System (EASSY). Along with these seven owned subsea cables, Airtel Business has a capacity on 27 other cables across various geographies. FY 2017-18 14.2 Its global network runs across 250,000 Rkms, covering 50 FY 2018-19 15.4 countries and 5 continents, 33 international cables, and 65 Global PoPs (Point of presence). This is further interconnected FY 2019-20 16.6 to its domestic network in India, and direct terrestrial cables in SAARC countries, Myanmar and China helping accelerate India’s emergence as a preferred transit hub.

Leveraging the direct presence of Airtel Mobile operations 639 districts in 16 countries across Asia and Africa, Global Business also Across the country are covered and receive offers mobile solutions (ITFS, Signalling hubs, and messaging), Digital TV services along with managed services and SatCom solutions. Global Business is also providing advanced consumer solutions like IoT to global customers. Key Highlights Particulars FY 2019-20 FY 2018-19 Y-O-Y Airtel announced a partnership with CuriosityStream, an Growth award-winning global media company that provides best- G Mn G Mn % in-class factual entertainment content, to offer its content on Airtel Xstream Mobile app, web and TV platform. Gross 132,331 124,538 6% Airtel is the first partner to bring CuriosityStream to India, Revenues directly to viewers. EBIT 31,754 27,466 16%

During the year, the company collaborated with Sony Key Highlights to bundle Airtel Xstream Stick, revamped regional pack offerings in select markets. The company also 1) Airtel Enterprise Hub: Airtel Business launched Enterprise collaborated with TV panel makers – Samsung and Mi, to Hub - a one-stop digital platform offering self-care services bundle TV and DTH sales. to its enterprise and SMB (small and medium business) % -1% 12% Y-O-Y Y-O-Y Growth G Mn 21,257 68,185 FY 2018-19 G Mn 23,724 67,423 FY 2019-20 Africa Overview -19 COVID the of spread the operate, we where countries the In is the world. The situation of has lagged the rest COVID-19 in Africa have governments and several evolving, rapidly contagion, of the risk reduce actions to decisive taken also flights, closing educational including banning all commercial establishments, all non-essential case and in some facilities distancing social gatherings and encouraging limiting social home. and working from have governments times, unprecedented these During industry as a critical and essential the telecoms recognized people keep with them to working closely are service. We turning. the economy and the wheels of connected African in events with significant marked been has year The IPO. the intended to related primarily operations Airtel Africa plc IPO: On June 28, 2019, Airtel Africa plc its IPO on the London of pricing the successful announced The offer share. at 80 pence (NGN 363) per Exchange Stock (637,178,959 shares 676,406,927 new shares comprised Nigeria and outside of investors institutional to available investors qualified institutional to available 39,227,968 shares trading in Nigeria). Unconditional and high net worth investors 03, began on July Exchange Stock on the London the shares of 09, 2019. on July Exchange 2019 and on the Nigerian Stock of global network global of EBIT Gross Gross Revenues Passive Infrastructure Services Infrastructure Passive Overview leading is India’s (Infratel), Ltd Bharti Infratel subsidiary, Our and it deploys, infrastructure and related tower of provider communication and towers manages telecom owns & equity 42% holds It operators. mobile various for structures, Group, with Vodafone venture a joint in Indus towers, interest who hold 42%, 11.15% and and Providence Vodafone-Idea portfolio consolidated The Company’s 4.85% respectively. its own of which includes 42,053 towers, 95,372 telecom of in Indus interest its 42% equity and the balance from towers infrastructure tower the largest it one of makes Towers, circles. 22 telecom in all presence with the country in providers in adopting green pioneer has been the industry The Company on is listed Bharti its operations. Infratel for initiatives energy NSE and BSE. exchanges, the Indian stock 250,000 Rkms 250,000 Particulars Integrated Report and Annual Financial Statements 2019-20 Report Statements Financial and Annual Integrated Bharti Airtel Limited Network Security (Security Vendor) (Security Security Network Vendor) & IT Infrastructure Colocation (Data Center Telecom Carrier, International Access (Telecom Access (Telecom International Carrier, Telecom Services Vendor) Services Lines (Telecom Leased Carrier, Telecom Vendor) Unified Communication & Collaboration (Software (Software Unified Communication & Collaboration Vendor)

Airtel Business has bagged the top honors at the Carriers Airtel Business has bagged the top – “Best categories 2019 in 2 prestigious Awards Worlds Global Carrier” and “Best IoT Initiative”. Airtel Business bagged five prestigious awards at the CIO awards prestigious Airtel Business bagged five 2020, namely, Choice Awards Airtel Business won three prestigious awards at Global awards prestigious Airtel Business won three Best Global Wholesale 2019, namely, Awards Carrier – Emerging Service Innovation Best Voice – Voice, Carrier Solution. and Best Security Markets award at award Airtel won the “Best Partnership” Business partnering 2019 for Awards East Middle World Telecoms Egypt. with Telecom customers. Customers can now seamlessly access a host access a host seamlessly can now Customers customers. account services, and complete bill payments including of sign-in. with a single on a single interface management with the customer closely more align To Verticalisation: vertical-specific Airtelneeds, now offers Business & Distribution, BFSI, IT/ITeS, in Manufacturing solutions domain. & Logistics Hospitality E-commerce, Media, Retail, an end- Airtel Business is creating on new businesses: Focus experience, a seamless for enterprises for ecosystem to-end service. In this endeavour, customer superior by backed businesses on new focus Airtel business has continued to and IoT. Cloud & Data Centre, Security, Cyber like Airtel partnership & Google Cloud announced a boost to in and digital transformations productivity collaboration, apps intelligent of set (a AirtelIndia. offeringis suite G small and to and more) Calendar – Gmail, Docs, Drive, its in India as part business (SMBs) of medium sized and communication technology Information integrated and collaboration portfolio(ICT) designed with real-time and help bring people together to machine intelligence and safer. smarter them work based LTE private offer Airtel to partnered and Nokia The partnership enterprises. to Industry 4.0 solution enterprises of requirements the emerging addresses (BFSI), financial services banking, and insurance across enabled services (ITES), media technology information distribution with and and services, manufacturing artificial intelligence such as cloud, IoT, technologies concepts. In and machine learning, and edge computing the development addition, the two companies will explore the enterprises. for 5G use-cases of

174 2) 3) 4) 5) and Recognition Awards

Integrated Report Statutory Reports Financial Statements Management Discussion and Analysis 175

FTSE 250 inclusion: On September 09, 2019 it was Group entities will not be subject to any tax in connection announced that Airtel Africa plc would be added to the FTSE with any of the transactions described above; 250 index as from September 23, 2019. AT will pay to GOT, approximately USD 0.4m every month Airtel Malawi plc: On February 24, 2020, Airtel Malawi made for a period of 60 months, effective April 01, 2019 for the its debut on the Malawi Stock Exchange as the largest IPO support services provided and in Malawi’s history. The listing, which debuted at a price of AT will pay a special dividend (‘Special Dividend’) to its MK12.69 (USD 2 cents) per ordinary share consisted of shareholders in proportion of their shareholding of upto secondary offer of 2.2 Bn shares, representing 20% of issued 25% EBITDA based on its audited financial statements share capital. Gross proceeds amounted to MK27.92 Bn for the financial year ending December 31, 2019 subject (USD 37.5 Mn) and the price implies a market capitalisation to applicable laws. on admission of MK139.59 Bn (USD 187.4 Mn). Post the agreement following matters have been resolved: During the year ended March 31, 2020, the government of Tanzania (‘GoT’), Bharti Airtel Tanzania B.V. (‘BATBV’), Bharti TRA’s tax claim of approx. USD 874m, TCRA’s imposition Airtel International (Netherlands) B.V. (‘BAIN’) and Airtel of approx. USD 183m and various tax claims against AT of Tanzania (‘AT’) executed agreements to resolve all disputes. approx. USD 22m have been vacated without any liability. These mainly cover the following: Since the group did not carry any provisions for these matters, no accounting implications have arisen due to New shares to be issued by AT to the GoT at no cost such such resolution. that the GoT will own 49% of the entire share capital of AT and BATBV will own 51%; On November 29, 2019 AT issued 36,176,471 shares to GOT at zero effective cost thus increasing GOT’s Tanzania Revenue Authority’s (TRA) tax claim of shareholding in AT to 49%. The group has thus recognized approximately USD 874m on BAIN will be treated as non-controlling interest to the extent of 9% of carrying settled without any liability (no provision has been value of net assets of AT. recognised currently); Corporate tax return for carried forwards tax losses of AT Tanzania Communications Regulatory Authority’s has been concluded until December 31, 2016. Compliance Decision of April 20, 2018 imposing on AT a fine of approximately USD 183m too will be treated The completion of all other steps set out above are still as settled without any liability (no provision has been in progress at the date of authorization of the financial recognised currently); statements.

TRA’s various tax claims against AT of approximately USD As on March 31, 2020, the Company had 110.6 Mn 47m will, subject to verification and consideration of the customers in Africa across 14 countries as compared to 98.9 records, be treated as settled without any liability (no Mn customers in previous year, an increase of 11.9%. provision has been recognised currently); Customer churn for the year remained flat at 5.0% as compared AT will be issued a one-time tax clearance certificate in to the previous year. Total minutes on the network during regard to tax disputes in respect of all historical tax claims the year increased by 20.6% to 250.1 Bn. Data customers up to December 31, 2018; increased by 5.4 Mn to 35 Mn accounting for 32.0% of the total customer base as compared to 30.4% in the previous In all cases this shall not be construed as an admission year. The total MBs on the network has increased by 81.0% to of fact or law or as a concession or admission of any 710.5 Bn MBs with usage per customer increasing from 1,192 wrongdoing, obligation, liability by any party; MBs to 1,863 MBs. Total sites in Africa as on March 31, 2020 AT, subject to verification and consideration of the records were 22,909 of which 20,378 were mobile broadband towers, by the TRA will be allowed the carry-forward tax loss representing 89.0% of the total sites. balance as recorded in AT’s corporate tax return for the In reported currency, Airtel Africa revenues grew by 13% to tax year ended December 31, 2017; H 242,171 Mn as compared to H 215,026 Mn in the previous Parties will cooperate to effect the sale of towers and year. The Company’s continued focus on running the the proceeds thereof will be distributed in a pre-defined operations efficiently and cost effectively has resulted in manner towards repayment of AT’s shareholder loan, to be EBITDA of H 107,259 Mn for the year as compared to H 83,632 retained in AT and balance as a special one-time payout Mn in the previous year, increase of 28%. Consequently to the GoT. On receipt of its share of the proceeds from EBITDA margin improved by 5.4 p.p. to 44.3% compared to sale of towers, BATBV will waive the balance shareholder 38.9% in the previous year. Depreciation and amortization loan; charges were at H 42,786 Mn as compared to H 31,234 Mn in the previous year. EBIT for the year was at H 64,131 Mn as A valid Listing Waiver will be provided to AT and the group compared to H 52,107 Mn in the previous year. PBT for the entities in AT in accordance with the laws of Tanzania. full year was at H 37,439 Mn as compared to H 30,315 Mn in Furthermore, in case of listing, the BATBV shares in AT are the previous year. The full year capex was at H 45,838 Mn as not subject to listing; compared to H 44,376 Mn in the previous year.

Lionsgate, BBC and NBC Universal as well as local well as as NBC Universal and BBC Lionsgate, has Hollywood content Nollywood. primarily content, and trailers, promotions marketing high-quality brought loyalty. and product registrations increasing Airtel DRC has launched 4G services for its customers its customers has launched 4G servicesAirtel DRC for The launch is an important towards step year. during the drive. digitization nation’s In November 2019, Airtel Networks Limited (Airtel Nigeria) 2019, Airtel Networks Limited In November in Nigeria Limited, with Intercellular signed an agreement an additional 10 MHz spectrum in the 900 acquire to order USD 70 Mn, of a consideration MHz band in Nigeria for the Nigerian Communications as per fees NCC excluding The Guidelines. Trading Spectrum (NCC) Commission expand additional spectrum will allow Airtel Nigeria to The the country. across network its LTE and strengthen NCC. by approval regulatory acquisition is subject to launch 4G network to is now the first operator Airtel Niger be a growth to The 4G Launch is expected in the country. equitable accelerate will and economy, Niger for driver 4G Airtel’s The launch of economic growth. and inclusive digitization as an important in the country’s is seen step in the service everywhere broadband provide to process country. an additional spectrum has been allocated Airtel Tanzania of 10 MHz in 1800 MHz band with an annual fee of In March 2020, Airtel Networks Limited (Airtel Nigeria) 2020, Airtel Networks Limited In March 10 MHz Nigeria Limited Intercellular from acquired 70 Mn, excluding USD spectrum in the 900 band for (USD 94 Mn the Nigerian Communications Commission Spectrum trading in line with the NCC fees, including NCC guidelines). 20MHz in additional spectrum of obtained The Group and Chad in band 1800 in 5MHz Nigeria, in band 2600 10MHz in 2100 band in Malawi in H1’20. been has Airteladdition, In Mn. 0.6 USD Tanzania Communications Regulatory the Tanzania by authorized MHz band for 10 MHz in the 700 use to (TCRA) Authority of The license 21, 2019 onwards. October 8 months from a total completion of post be issued MHz band will 700 authorities in the regulatory USD 12 Mn payment to of June, 2020. In January 2020, the Group signed a strategic partnership signed a strategic 2020, the Group In January customers Union. This will allow Airtel Money with Western transfers money international receive and send reliably to wallet. mobile money phones using our their from directly the to further cater Airtel Africa to for the way This paves move members to and global community local needs of payments. cross-border and enable international money part an active This partnership take helps Airtel Africa to business that happens transfer money in the international countries. its operating and from to

Network Transformation & Digital Innovations Transformation Network % 23% 13% Y-O-Y Y-O-Y 110.6 Growth 98.9 89.3 G Mn 52,107 215,026 FY 2018-19 G Mn 64,131 242,171 FY 2019-20 Integrated Report and Annual Financial Statements 2019-20 Report Statements Financial and Annual Integrated Bharti Airtel Limited

In Nigeria the Central Bank has approved the name the has approved Bank In Nigeria the Central the Airtel payment service for be used to “Smart Cash” bank. 2019, we launched Airtel TVIn February in Uganda. a million installations than half more Now we have launched also We Zambia. and Uganda Nigeria, across on content international Hollywood and premium and TV MGM, with movies platform, shows from our On October 22, 2019 the Group announced partnership 22, 2019 the Group On October customers enable Mobile Money which will with Finablr Mobile phones, in their their to directly money receive to the than 160 countries around more from wallets, Money world. On October 21, 2019 the Group announced a partnership announced 21, 2019 the Group On October Mobile Money which will allow millions of with Ecobank their improve to Africa across customers Ecobank and financial services. mobile access to On October 09, 2019, the Group announced a partnership 09, 2019, the Group On October customers Airtel which allows Money with Mastercard, virtual Airtel using a online payments globally make to those even customers, Airtel Money Mastercard. Money in-person make able to also phone, are using a feature are there date, payments at outlets using QR codes. To Africa that accept Mastercard 1 Mn shops across over in Nigeria, our 700,000 are QR payments. Approximately a payment applied for we have where and market largest license. service bank

EBIT Gross Gross Revenues FY 2018-19 Wireless Subscribers: AFRICA(Mn)-14 Countries Subscribers: Wireless FY 2017-18 ~23% Partnerships Key Highlights Key FY 2019-20 Note: During the financial year 2017-18, Bharti Airtel Limited divested 1 2017-18, Bharti divested Airtel Limited year the financial During Note: for table has been shown the above unit in Africa. Accordingly, operating 14 countries only. remaining In Reported Currency In Reported Particulars 176 growth in EBIT as compared to to in EBIT as compared growth year the previous

Integrated Report Statutory Reports Financial Statements Management Discussion and Analysis 177

Awards & Recognition South Asia

Airtel Uganda won the award for best Digital customer Overview experience in financial services, IT and Telecom segment. Full year revenue of South Asia was at H 4,552 Mn as compared Airtel Zambia won the award for best “ICT Exhibit” in to H 4,436 Mn in the previous year. EBITDA for the year was at an event organized by Zambia show society. (ICT – H 430 Mn as compared to H 126 Mn in the previous year. EBIT Information Communication and Technology). losses for the year reported at H 1,055 Mn as compared to loss of H 1,069 Mn in the previous year. Capex for the year was Airtel Nigeria won the Business Day “Next Bulls” Award H 1,025 Mn as compared to H 1,185 Mn in the previous year. for contribution to economy and job creation. Nigeria’s leading Business and Economic Newspaper, “Business Particulars FY 2019-20 FY 2018-19 Y-O-Y Day” in collaboration with the Nigerian Stock Exchange Growth has honored Airtel Nigeria for its contributions to the G Mn G Mn % economy and for creating employment opportunities across the country. Gross 4,552 4,436 3% Revenues EBIT (1,055) (1,069) 1%

Share of Associates/Joint Ventures

A) Robi Axiata Limited

Robi Axiata Limited is a joint venture between Axiata Group Berhad, of Malaysia, Bharti Airtel Limited, of India and NTT Docomo Inc. of Japan. Axiata holds 68.7% controlling stake in the entity, Bharti Airtel holds 25% while the remaining 6.3% is held by NTT Docomo as of March 31, 2020.

Robi is the first operator to launch 4.5G service in all the 64 districts of the country and has also successfully conducted the trial run of 5G and Voice over LTE technology.

On March 02, 2020, Robi submitted an application to the Bangladesh Securities and Exchange Commission, for its proposed public offering on the Dhaka Stock Exchange Limited and the Chittagong Stock Exchange Limited in Bangladesh. The proposed IPO would represent 10.0% of the enlarged issued and paid-up share capital of Robi.

Key operational and financial performance:

Bangladesh Unit Quarter Ended Dec-19* Sep-19* Jun-19* Mar-19 Operational Performance Customer Base 000’s 49,004 48,194 47,939 47,341 Data Customer as % of Customer Base % 63.8% 63.8% 62.8% 61.3% ARPU BDT 121 125 124 122 Financial Highlights (proportionate share of Airtel) Total revenues H Mn 3,957 3,945 3,823 3,844 EBITDA H Mn 1,245 1,495 1,748 1,117 EBITDA / Total revenues % 31.5% 37.9% 45.7% 29.1% Net Income H Mn (203) 354 (66) 24

*Financials for the quarter are post IFRS 909 131 13.1 8307 (722) (755) (928) 4,821 1,247 59.1% 10.5% -79.4% Jun-19 Jun-19 853 164 13.2 9895 (811) (843) (655) 4,811 1,224 61.3% 13.4% -95.0% Sep-19 Sep-19 149 13.1 1030 (943) (992) (530) 4,888 1,212 Quarter Ended Quarter Quarter Ended Quarter 59.2% 12.3% 12208 -91.5% Dec-19 Dec-19 Outlook from last year > Emerging year last from Outlook - 179 14.2 1006 4,727 1,334 61.3% 13.4% 14055 (1083) (1131) Mar-20 Mar-20 -107.6% some of these countries have, implemented social distancing social implemented have, countries these of some orders and issued lockdown restrictions other norms, imposed of movement others, restricting among thereby, areas, in many offices, commercial shops and of people and mandating closure such of duration of establishments. Uncertainties in respect Besides, looming large. still are orders and lockdown restrictive resulting fragile, also countries are a few in the political systems % % % Unit Unit GHS H Mn H Mn H Mn H Mn H Mn H Mn 000’s 000’s Integrated Report and Annual Financial Statements 2019-20 Report Statements Financial and Annual Integrated Bharti Airtel Limited Regulatory and Political Uncertainties (Legal & Compliance) and Political Regulatory 1. Airtel Payments Bank Limited Bank Airtel Payments Operational Performance Operational users Active Financial Highlights (proportionate share of Airtel) of share Financial Highlights (proportionate revenues Total EBITDA EBITDA / Total revenues / Total EBITDA Net Income* Ghana Operational Performance Operational Base Customer Data Customer as % of Customer Base Customer as % of Data Customer ARPU Financial Highlights (proportionate share of Airtel) of share (proportionate Financial Highlights revenues Total EBITDA EBITDA / Total revenues / Total EBITDA Net Income* The Company operates in India, Sri Lanka and 14 African operates The Company within countries) regions countries (or these countries. Some of pandemic and other civil unrest, political instability, by affected are COVID-19 of the declaration following Lately, tensions. social Health Organization, the World a global pandemic by outbreak Definition Bharti Airtel (the Company), has thrived globally by building a culture of innovation and high performance. The Company explores new explores The Company and high performance. innovation of building a culture by Bharti globally has thrived Airtel (the Company), new strategic into engagement; enters and stakeholder customer of new ways the world; evolves and business models across markets a universe unveil initiatives While these efficiencies systems. partnerships; and builds exponential in existing adopts new technologies; up be picked signals need to The distress business environment. volatile risks and uncertainties in a possibilities, potential arise of in its management framework risk a robust has created the Company Therefore, smooth operations. for with urgency and addressed identify to practice has a sound risks. The Company and climate operational legal, financial, strategic, to that caters landscape operating and mitigating impact the Company risks that may mitigation. The key plans for action relevant and prioritize the Group risks across key comprise: the Company by actions undertaken Risk & Mitigation Framework Risk B) Bharti Airtel Limited Ghana hold effectively Both the entities and MIC Africa B.V. between Bharti Airtel B.V. Africa venture Bharti is a joint Airtel Ghana Limited entity. in the merged 49.95% share performance: and financial operational Key 178 C) Airtel Payments Bank Limited Bank C) Airtel Payments 01, 2018. November Bharti w.e.f. Airtel Limited of has become an associate Limited Bank Airtel Payments and financial performance: operational Key *The share of loss in JV has been restricted to the remaining value of the investment. of value the remaining to in JV has been restricted loss of *The share *The share of loss in JV has been restricted to the remaining value of the investment. of value the remaining to in JV has been restricted loss of *The share

Integrated Report Statutory Reports Financial Statements Management Discussion and Analysis 179 in regime uncertainties; hence, the risk of arbitrary action. Such Industry (CII), Associated Chambers of Commerce of India conditions tend to affect the overall business scenario. In addition, (ASSOCHAM), GSMA, Internet Service Providers Association regulatory uncertainties and changes, like escalating spectrum of India (ISPAI) and Federation of Indian Chambers of prices, subscriber verification norms and penalties, EMF norms Commerce & Industry (FICCI) on espousing industry issues among others are potential risks being faced by the business. e.g. penalties, right of way, tower sealing amongst others.

Mitigating actions: Regulatory team along with legal and networks keeps a close watch on compliances with regulations and laws As a responsible corporate citizen, the Company engages and ensures the operations of the Company are within the proactively with key stakeholders in the countries in which it prescribed framework. operates; and continuously assess the impact of the changing political and social scenario. The Company contributes to the Company has proactively implemented business socio-economic growth of the countries in its area of operation continuity plan and effectively enabled work from home through high-quality services to its customers, improved facility for all the employees by providing necessary IT connectivity, providing direct and indirect employment, infrastructure and network security. Further, considering and contributing to the exchequer. These activities are that the Company is engaged in the business of providing covered in detail through its annual sustainability report. It telecommunication services, which are recognized as also maintains cordial relationships with governments and ‘essential’ services, through various interventions, the other stakeholders. The Country MDs and Circle CEOs carry Company has engaged with Government authorities and direct accountability for maintaining neutral Government ensured that requisite support by way of permissions for relations. Through its CSR initiatives (Bharti Foundation etc.), movement of employees or engineers, network equipment, it contributes to the social and economic development of supply chain etc., is extended by Government to facilitate community, especially in the field of education. continuous and unabated operations and maintenance of telecom network for continuity of services. Company The Company actively works with industry bodies like Cellular has devised effective communication plan and support Operators Association of India (COAI), Confederation of Indian mechanism for safety and security of its employees.

2. Economic Uncertainties (Operational) Outlook from last year > Stable

Definition: data, Airtel Money, Digital Services and value added services helps widen its customer base. The Company’s strategy is to focus on growth opportunities in the emerging and developing markets. These markets To mitigate currency risks, it follows a prudent risk are characterized by low to medium mobile penetration, low management policy, including hedging mechanisms internet penetration and relatively lower per capita incomes, to protect the cash flows. No speculative positions are thus offering more growth potential. However, these markets created; all foreign currency hedges are taken on the back fall under countries which are more prone to economic of operational exposures. A prudent cash management uncertainties, such as capital controls, inflation, interest rates policy ensures that surplus cash is up-streamed regularly to minimize the risks of blockages at times of capital and currency fluctuations. Since the company has borrowed controls. It has specifically renegotiated many foreign in foreign currencies, and many loans are carrying floating currency denominated operating expenditure and capex interest terms, it is exposed to market risks, which might contracts in Africa and converted them to local currency, impact its earnings and cash flow. These countries are also thereby reducing foreign currency exposure. affected by economic downturns, primarily due to commodity price fluctuations, reduced financial aid, capital inflows and To mitigate interest rate risks, the Company is further remittances. Slowing down of economic growth tends to spreading its debt profile across local and overseas affect consumer spending and might cause a slowdown in sources of funds and to create natural hedges. It also telecom sector. enters in interest rate swaps to reduce the interest rate fluctuation risk. Mitigating actions: Finally, the Company adopts a pricing strategy that As a global player with presence across 16 countries, is based on principles of mark to market, profitability the Company has diversified its risks and opportunities and affordability, which ensures that the margins are across markets. Its wide service portfolio including voice, protected at times of inflation, and market shares at times of market contraction. Outlook from last year > Stable year last from Outlook Outlook from last year > Stable year last from Outlook migration from legacy 2G/3G networks to high speed 4G high to 2G/3G networks legacy from migration offline mode of from simultaneously networks, but also an online one. to recharge efforts also include transformation of the microwave the microwave of efforts include transformation also / links and rings networks, secondary fibre transmission, consistently The Company submarine cable networks. in the network, and congestion systemic eliminates a quality through failures technical of causes removes embedding as well as programme, improvement network upon reinforced SLAs are Tighter redundancies. Team Network The Company’s delivery. their partners for stability, on network based is measured, performance benchmarking. The and competitor experience customer policy cover insurance a conservative follows Company the replacement equal to cover, value a that provides floods and against risks, such as fire, assets of values disasters. natural other The same driving factor of acquiring 4G share has driven has driven acquiring 4G share of driving factor The same MNP for money of in huge amounts pour to competitors get even to is expected The push acquisitions programs. Information Security is managed by dedicated IT dedicated is managed by Security Information on automated the huge dependency given professionals, is privacy that customer ensure as well as to systems, protected. a high push through is seen 4G share Competition for retain to order in operators, by device upgrades for may This networks. 4G their on customers maximum on top- new 4G device purchase subsidies for to rise give get smartphone which would sustain or selling brands, aggressive. more The Company’s philosophy is to share infrastructure with with infrastructure share is to philosophy The Company’s outsourcing SLA-based into and enter operators, other sharing seeking proactively been have We arrangements. and data centres VSAT, fibre, towers, on relationships to Africa in towers of disposal The infrastructure. other companies and independent and well-established tower with them will ensure arrangements lease long-term on the passive and maintenance assets of high quality in place redundancy has put The Company infrastructure. and breakdowns, cuts, VSAT outages, fibre power plans for generators, as such backups appropriate through on, so are approaches Similar links, among others. secondary capacities; and and software IT hardware for deployed the reassess continuously teams IT architecture internal IT systems. of effectiveness

Integrated Report and Annual Financial Statements 2019-20 Report Statements Financial and Annual Integrated Bharti Airtel Limited Fiercely competitive battleground (Operational) battleground competitive Fiercely Poor quality of networks and information technology including redundancies including redundancies technology and information networks of quality Poor (Operational) recoveries and disaster Customer mind-sets and habits are shifting rapidly, shifting rapidly, and habits are mind-sets Customer of in terms expectations ever-rising in their reflected and pricing. The competitive features variety, quality, as operators dramatically, changing is also landscape revenue and customer capture to another one with vie customer accelerating This is not only shares. market Network Planning is increasingly being done in-house, being done in-house, Planning is increasingly Network is on architecture control that intellectual ensure to to seeks It continuously the Company. within retained drops, call coverage, issues (congestion, indoor address among data speeds, of and upgrade modernisation network. Recent of quality better ensure others) to The Company has state-of-the-art Network Operations Operations has state-of-the-art Network The Company time real monitor both India as well as Africa to for Centre immediate and proactive take to and activity network network. of maximum uptime ensure action to

4. 3. Prepaid market continues to be highly competitive & price competitive be highly continues to market Prepaid the simplicity in the industry, With consolidation sensitive. plans & industry is of number in offering lesser has kicked the trade to solutions offering tech-enabled towards moving & customers. Definition: Mitigating actions: The Company’s IT systems are critical to run the customer- critical to are systems IT The Company’s besides running internal operations, and market-facing facing IT of quality the states, or geographies In many systems. which affects unreliable, or erratic is sometimes connectivity query, customer services e.g. recharges, of the delivery In several billing, etc. activation, servicing, customer distributor is rudimentary, IT staff of countries, the quality developing delays and / or IT systems of failures instances of leading to to changing due is ever landscape The systems in recoveries. price innovations, for and ‘patches’ upgrades versions, newer for on IT staff changes, among others. Hence the dependence is huge. such projects of turnaround The Company’s operations and assets are spread across across spread are and assets operations The Company’s risks subject to networks are The telecom wide geographies. wilful or human errors, partner failures, failures, technical of spare and failures, delays Equipment disasters. natural acts or cuts, fibre errors, fuel shortages, or software shortages, energy and fallback, recovery disaster paths, weak redundancy of lack of examples few are among others absenteeism, partner staff happen. failures how network Definition: 180

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stronger with increasing adoption of 4G phones by the denomination. Now customers don’t need to purchase customers and a good & affordable network experience different packs; rather one pack will provide all benefits. on those becoming a key factor for them. In order to derive higher extraction & enhance ARPUs from Further, with an increased number of customers using the the dormant base that enjoyed free services, company online mode – our app as well as 3rd party apps – the introduced plans with minimum recharge commitment, importance of giving a push through these channels may which required customers to do a monthly recharge in go up. One of the key drivers on these platforms could be order to use the services. The same was done keeping extending pricing discounts through cashbacks, etc. the affordability factor in mind at a minimum monthly price of H 23. The Company might see heightened competitive intensity in its non-wireless businesses on account of irrational The acquisition processes were further strengthened pricing by potential new entrant leading to erosion of by launching mandatory first recharge. Emphasis was revenue & customers. In mobility business, the Company laid on acquiring customers on unlimited bundle packs. may face a risk of deeply discounted Volte feature phone Continued monitoring of customer acquisition process pricing from new entrant. Content is becoming a major like new customer acquisition churn, high acquisition deciding factor for a customer to choose the operator. recharge denominations, direct distribution, trade margins structures have yielded good results. Mitigating actions: Further, with an increased number of customers using In a major step towards simplification of customer journey, the online mode – our app as well as 3rd party apps shall the Company had envisioned the task to streamline the gain importance and we must stay competitive & ahead product portfolio. Over the years, lot of redundancies of the curve in this space. Technology shall play the role of which got created in the product portfolio were simplified a huge enabler. by eliminating over 60% of unused products. We are currently driving discounts consistently through The simplification drive was initiated with the introduction our own app and have created a lot of awareness of Smart Combo recharges, starting at an affordable price about the same. With third party apps also growing in point of H 35. These all-in-one packs provide the benefits importance, we are looking at strategic partnerships to of Data, Tariff and talktime to the customers in a single create stickiness.

5. Data Loss Prevention (Operational) Outlook from last year > Stable

Definition Mitigating actions:

Personal data is any information relating to a customer, The customer base of Bharti Airtel limited has been expanding at whether it relates to their private, professional, or public life. In a tremendous rate. We also collect and process a large amount the online environment, where vast amounts of personal data of personal information belonging to employees, temporary staff are shared and transferred around the globe instantaneously, and third party personnel. These facts, coupled with introduction it is increasingly difficult for people to maintain control of their of new innovative value added services, have led to increase in personal information. This is where data protection comes in. the personal information handled by Airtel. We are committed to ensure that privacy of personal information is maintained Data protection refers to the practices, safeguards, and during its entire lifecycle, through the implementation of stringent binding rules put in place to protect your personal information processes and relevant technologies. and ensure that you remain in control of it. In short, you should be able to decide whether or not you want to share “Bharti Airtel Information Privacy Policy (BIPP)” is in some information, who has access to it, for how long, for alignment with the Information Technology (IT) Rules 2011 what reason, and be able to modify some of this information, and best practices of industry and GDPR. Airtel’s privacy and more. Data protection must strike a balance between policy provides management direction and support to ensure individual privacy rights, while still allowing data to be used privacy of personal information collected by Airtel, in order for business purposes, whilst adhering to data privacy norms to allow collection, processing, retention, dissemination and and regulations. destruction of the personal information in accordance with the appropriate laws, regulations and contractual obligations. Efforts to update regulations regarding privacy and personal data protection are underway in several countries and regions, BIPP is applicable to all employees of Airtel and all third parties most notably the European Union, which has introduced (including strategic partners) of Airtel who have access to the General Data Protection Regulation (GDPR) package. personal information of customers, employees and vendors. Compliance requirements for operators are in flux, particularly The BIPP is applicable across all business functions of Airtel as regulators seek to strike a balance between consumer and across all geographies of Airtel in India including Airtel protection and national security needs. India is also close to center office, 13 B2C circles and three Airtel Business Regions. having its own data protection law. Outlook from last year > Stable year last from Outlook Outlook from last year > Stable year last from Outlook business units and countries. All functions / business units /business units and countries. All functions / and cost efficiencies. cost reductions targeting countries are optimization capex on focus to continues Company The fibre ICR, tower-sharing, like programmes various through co-build. or IRU sharing through Airtel is the first operator in India to deploy 4G in licensed deploy in India to Airtel is the first operator access) assisted band using LAA (Licensed and unlicensed The Company has been progressively maintaining to keep keep maintaining to has been progressively The Company it has andend this To acceptable levels. at levels debt the funding of sources decisions on inorganic take continues to of divestment QIP etc. shares, including rights issue of stakes. and DTH Infratel Airtel is layer, 4G FDD as coverage Having deployed across expansion capacity for TDD layer on the leveraging five to up has which in India first network the It is network. the capacity generate to on 4G network, with capability layers deployed Airtel has also traffic requirement. in cells as per help its subscribers to layers these across aggregation carrier layers. these across in getting best in class experience being are solutions innovative expansion, capacity For and small cells in including mMIMO, split sectors deployed to consumption. Airtel is the first operator with hyper areas used widely (technology mMIMO solutions wide scale deploy gains. All of 3x capacity in 5G networks), which is giving up to 30PB by increase to capacity network effortsthese our led to own building our we are alone. Going forward, year in the last cloud which will further help us meet thestate-of-the-art telco subscribers. our demand from capacity higher Digitization and automation with significant programmes with significant programmes and automation Digitization less acquisition, e-bill penetration, paper on self-care, and digital conversion outdoor to indoor online recharges, through monitored continuously are interactions customer etc. initiative WoW our

Should a potential violation be detected, an alert is generated alert an generated is be detected, violation a potential Should time. Similar in real is blocked request the data transfer and/or and gateway email central on the deployed are solutions traffic bound and internet emails monitor to gateway, web the alerts reviews team monitoring A centralized respectively. action. and resulting investigation for an incident and raises in a time bound manner. closure to tracked All incidents are closure and their all incidents of review a monthly Additionally, the refine regularly to enable the organization to is conducted, policies. existing Integrated Report and Annual Financial Statements 2019-20 Report Statements Financial and Annual Integrated Bharti Airtel Limited Inability to provide high quality network experience with exponential growth in growth with exponential experience network high quality provide to Inability data demand (Strategic) Increase in cost structures ahead of revenues thereby impacting liquidity impacting liquidity thereby revenues ahead of in cost structures Increase / Strategic) (Operational Airtel is expanding its broadband network footprint to fulfill to footprint network its broadband Airtel is expanding competition. the of ahead of and stay experience customer 2G like technologies legacy spectrum from has re-farmed It Liberalized & capacity. coverage get better 4G, to & 3G to provide 4G to to spectrum in 900MHz band has re-farmed spectrum in 2100MHz Similarly, in-building coverage. better re-farmed been has 3G) for used being was (which band circles barring few capacity, additional providing 4G for to 2100 band exists. 5 MHz of only where The Company has institutionalized the War on Waste on Waste the War has institutionalized The Company cost-reduction an enterprise-wide Programme, (WOW) all functions, out across This has been rolled programme.

7. 6. All Airtel endpoints are equipped with specialized software. software. with specialized equipped All Airtel are endpoints data leakage. potential channels for various This helps monitor is a strategy for making making for strategy (DLP) is a protection leakage Data not do information sensitive of possession in those that sure outside the that information share inadvertently or advertently is also term network. The the corporate virtual boundaries of organizations help that products software describe to used leakage data The transfer. can users end what data control protect at Airtel has been designed to strategy prevention points i.e. at the endpoint, vulnerable most at their information and at the email layer. at the web layer, Mitigating actions: In order to keep pace with rising data demand of customers pace with rising data demand of keep to In order companies traffic, telecom parity competitive ensure and to capacitiesin building data heavily invest to required be will adopting are Operators expansion. coverage and broadband data and significant voice unlimited provide to new strategies is looking at customer today’s Additionally, customers. benefits to agnostic. and is technology experience mobile internet seamless Definition: Mitigating actions: Across markets, costs structures have been increasing been increasing have costs structures markets, Across rate capacity) and/or rollouts, sites (new volumes both from hikes, impacts, wage exchange (inflation, foreign increases pricing market operator, new of entry the With etc.). energy and cash on margins has been dampened putting pressure Increased debt (leverage). increased leading to flows thereby service, continued of quality ensure to in network investment class customer spends on distribution and maintaining world levels. debt heightening thereby remain to expected service are Definition: 182

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technology, which would help in tapping unlicensed band Airtel is continuing to step up backhaul readiness and spectrum (over & above licensed band spectrum) for capacities on sites with increased fiberization, increased generating capacity. MPLS pop locations and expansion of transmission backbone to aggregate capacity to cater additional data load. Pan India VoLTE footprint and roaming across circles on VoLTE has been established because of which 37% of the voice Technological evolution in telecom has been quite rapid traffic has been offloaded from legacy core to 4G (HD) voice. and next few years we will witness wide scale commercial First of its kind in India, Airtel launched VoWifi technology in deployment of 5G. We are future proofing for such scenarios Delhi in Dec 2019 and pan-India in Jan 2020. Close to 6mn and are building up for 5G network deployment. subscribers are already using this service which carries voice calls on indoor / outdoor WiFi networks as per the Airtel is investing in digitization of its operations using user location. This has helped to improve indoor experience automation and machine learning practices. This would help considerably and by offloading traffic from existing spectrum, us in real time network orchestration and self-optimize to get it has helped de-congesting our networks as well. the best of capacity and user experience on a deployed base.

8. Gaps in internal controls (financial and non-financial) (Operational) Outlook from last year > Stable

Definition: as well as a ‘maker-checker’ division of duties to identify and rectify deviations early enough. The company The Company serves over 423 Mn customers globally with a has implemented a “Compliance Tool” which tracks monthly average of 278 Bn minutes of voice on our network and provides a comprehensive list of all the external and huge data carried on wireless networks across more than compliances that the company needs to abide, function- 219,000 towers. Gaps in internal controls and / or process wise. The Compliance Tool’s ownership lies with the head compliances not only lead to wastages, frauds and losses, but of the respective function with an oversight by the Legal can also adversely impact the Airtel brand. team to ensure compliance.

Mitigating actions: The Company has Internal Financial Controls and the Corporate Audit Group has tested such controls. The The Company’s business philosophy is to ensure Audit Group has asserted that the Company has in compliance with all accounting, legal and regulatory place adequate tools, procedures and policies, ensuring requirements proactively. Compliance is monitored orderly and efficient conduct of its business, including meticulously at all stages of operation. Substantial adherence to Company’s policies, safeguarding of its investments in IT systems and automated workflow assets, prevention and detection of frauds and errors, processes help minimize human errors. accuracy and completeness of accounting records; and Besides internal audits, the Company also has a process timely preparation of reliable financial information. of self-validation of several checklists and compliances

Outlook from last year > 9. Lack of Digitization and Innovations (Strategic) Emerging

Definition Mitigating actions:

Digitization is reshaping the telecom sector and will be a Digitization for our customers continues to be the prime area key driver for innovation within the Company as companies of focus for FY 2020-21, with several digital initiatives being compete in a digital ecosystem away from a pure connectivity undertaken. based environment. Further evolving technologies result in change in customer value propositions. Digital content and As a part of our core digital initiatives, we continue to apps have now become the favorites for mobile customers. invest in our platforms - Data, Distribution, Network Digital Mobile money technologies, innovative mobile apps, and Payments to strengthen core businesses such as Cloud, M2M, SaaS and other technology-based SAS products Mobility, B2B, and DTH as well as new businesses such are also evolving. Such rapid technology evolution may as Advertising. With investment into core platforms, the impact the functionality of existing assets and accelerate intent is to enter a digitally secure future for the company. obsolescence. Keeping pace with changing customer To further strengthen our digital footprint in the country, expectations is a big agenda for the telecom sector. Lack of we have launched new age programs such as: Digitization of internal business processes may render the company in-able or lethargic in turning to respond to customer One Airtel (erstwhile Homes) needs. Rapidly evolving technologies like robotics, block chain, app automation for internal processes in Customer, Finance, Superhero Recharge Program Supply Chain and HR can render the company slow in decision Airtel Workforce Management solution making and reacting to new and emerging customer, vendor, and partner expectations. Outlook from last year > year last from Outlook Emerging Reputational Risks: Rising expectations of customers customers of Risks: Rising expectations Reputational a business organization from stakeholders and other a us to expose a low-carbon economy, to contribute to risk. reputational of certain degree regulatory increased due to expenses operational Higher cost of such as increased and compliance requirements, obligations, as GHG emissions and emission reporting to exposed assets for premiums insurance well as higher risks. climate and in new technologies capital investment Increased solutions. energy green capacity operational decreased from Impact on revenue interruptions. other or failure network due to weather extreme of intensity and frequency Increased disrupting by supply materials our interrupting events transport. modes of health the impacting adversely temperatures Increased to with the potential facilities, at our workers of and safety revenue. and decrease disrupt operations With focus on planned innovation by investment in investment by innovation on planned With focus such as Advertising, Surveillance and businesses as ‘New vertical termed Financial Services, a new Airtel Services Digital has under Ltd Business Incubator’ streams. work these to cater been launched to and frequency increased of Because Risk: Physical is a greater there events, weather extreme of severity and physical infrastructure network our damage to of risk such weather. to exposed assets change might climate impacts of Risk: Adverse Market example, (for customers some of the livelihoods impact to capacity their reducing thereby areas) in rural those services. our afford Significant investment on B2B in the field of digitization digitization of field in the on B2B investment Significant improve to in order orders of fulfillment acquisition to from return improve thus, business and overall of the efficiency on investment.

Impact: translate to the potential risks have related climate The above Airtel: impacts for the following into Mitigation: impact that climate negative the considerable realize We identified ‘Energy, business and have on our change can have high our as one of Optimization’ Change & Resource Climate the measures of some are issues. Following material priority and build risk emerging this mitigate to taken that we have resilience: climate Integrated Report and Annual Financial Statements 2019-20 Report Statements Financial and Annual Integrated Bharti Airtel Limited Climate Change (Strategic) Change Climate Technology Risk: The need to transition to lower emission lower to transition Risk: The need to Technology market or regulatory by necessitated technologies, existing of retirement early might lead to environment, guidelines issued by Telecom instance, Green For assets. equipment and services products, all telecom DoT require and certified assessed and performance be energy to ratings. utilizing the ECR Passport’, ‘Green Policy and Legal Risk: Following the Green Telecom Telecom the Green Risk: Following and Legal Policy (DoT), Telecom the Department of guidelines issued by of in the use an increase India, calling for of Government sector, in telecommunication technologies energy green that can factor as a potential change is emerging climate operational, strategic, our of with the realization interfere financial and compliance objectives. Focus on enhancing payment infrastructure to not only not only to infrastructure on enhancing payment Focus transaction also but rate success transaction the improve customers. our for experience establish to pillar is a key data science in Investment empowering both by the company impact across on return as well as improve businesses and new existing deployment. network on investment The focus is to strengthen on digital reach by powering powering by reach on digital strengthen is to The focus Airtel - Thanks, Wynk, digital properties Xstream the core active monthly Mn 100 at stand properties the (together Airtel and for distribution play maximize to in order users) its partners.

10. We foresee climate change manifesting in the form of the of in the form change manifesting climate foresee We years: business in the coming our risks to following Bharti Airtel Limited is a member of the taskforce created by by created the taskforce of Bharti is a member Airtel Limited cleaner towards move to GSMA, supporting the endeavor efficient networks. Consequently, energy and more operations risks posed identify potential us to need for is an urgent there be to impacts on the company, change and their climate by At Airtel, Climate own mitigation strategy. our develop able to centralized our part of an integral considered change risks are management. risk enterprise Over the last decade, climate change has emerged as a change has emerged the last decade, climate Over including business sector, almost every to risk credible carbon industry’s Telecom sector. telecommunication the continue markets as developing increase to likely is footprint and companies move traffic increases, network grow, to this, GSMA (Global System address to 5G. In order towards a constituted recently Mobile Communications) has for the telecom Plan for Action Climate develop to taskforce This is Agreement. Climate the Paris in support of industry, methodologies that will develop to objective the by driven targets based science set to the industry members enable sooner. 2050 or carbon emissions by net zero and achieve a leadership position in take the industry to This will facilitate economy. a carbon positive towards transcending Definition 184

Integrated Report Statutory Reports Financial Statements Management Discussion and Analysis 185

Adopting green energy solutions through installation of Other initiatives aimed at creating green data centers, rooftop solar panels at Main Switching Centres (MSCs) equipment optimization, outdoor BTS sites, minimizing and using advance VRLA batteries to reduce the running e-waste and paper waste. of Diesel Generator sets in our operating sites. Airtel is ISO 22301 (Business Continuity Management Reducing our energy consumption through measures system) certified to reduce the likelihood of occurrence, such as Solar-DG hybrid systems, energy efficient lighting prepare for, respond to, and recover from disruptive and equipment at our facilities and power purchase incidents when they arise. agreements, among other things. For detailed information on our initiatives and measures to Working closely with network infrastructure and facility address climate change risks, please refer to the section on management to facilitate a shift to green mobile tower ‘Natural Capital’, Integrated Report 2020. technologies that consume less power.

Internal Controls oversees the scope and coverage of the IA plan, and evaluates the overall results of these audits during the quarterly Audit The Company’s philosophy towards internal control is based Committee meetings. Additionally, separate quarterly Audit on the principle of healthy growth and proactive approach to Committee meeting are also held to review the progress risk management. Aligned to this philosophy, the Company has made on previous gaps identified by Internal Assurance. deployed a robust framework of internal controls that facilitates During these meetings, functional Directors are invited from efficient conduct of business operations in compliance with time-to-time, to provide updates on improvements on controls the company policy; fair presentation of our financial results and compliance within their respective functions and update in a manner that is complete, reliable and understandable; on the progress of any transformational projects undertaken. ensure adherence to regulatory and statutory compliances; Internal Assurance also assesses the effectiveness of Internal and safeguards investor interest by ensuring the highest Financial Controls (IFC) and no material weaknesses in the level of governance. The Internal Control framework has design or operation were observed for the current financial been set up across the company and is followed at the circle year. and country level. This framework is assessed periodically and performance of circles and countries are measured via A CEO and CFO Certificate forming part of the Corporate objective metrics and defined scorecards. Governance Report, confirm the existence and effectiveness of internal Controls and reiterate their responsibilities to report Accounting hygiene and audit scores are driven centrally deficiencies to the Audit Committee and rectify the same. The through central financial reporting team and Airtel Centre Company’s code of conduct requires compliance with law and of Excellence (ACE), both teams responsible for accuracy of Company policies, and also covers matters such as financial books of accounts, preparation of financial statements and integrity, avoiding conflicts of interest, workplace behavior, reporting the same as per the company’s accounting policies. dealings with external parties and responsibilities to the Regulatory and legal requirements, accounting standards, community. and other pronouncements are evaluated regularly to assess applicability and impact on financial reporting. The relevant The Airtel Centre of Excellence (ACE) based in Gurugram financial reporting requirements, documented in the Group and Bengaluru, is the captive shared service for financial Accounting Manuals, are communicated to relevant units accounting, Revenue Assurance, SCM and HR processes. and enforced throughout the Group. This, together with Digitization of ACE is being aimed as a part of the the financial reporting calendar evidencing the tasks and transformation agenda and includes initiatives like system timelines, forms the basis of the financial reporting process. based reconciliation, reporting processes with vividly defined segregation of duties. We operate on a single instance of Deloitte Haskins & Sells LLP, the statutory auditors, have Oracle across all operating units which ensures uniformity done an independent evaluation of key internal controls over and standardization in ERP configurations, chart of accounts, financial reporting (ICOFR) and expressed an unqualified finance and SCM processes across countries. We continuously opinion stating that the company has, in all material respects, examine our governance practices to enhance investor trust adequate internal control over financial reporting; and such and improve the Board’s overall effectiveness. Initiatives internal controls over financial reporting were operating such as virtual desktop interface for ultimate data security, effectively as on March 31, 2020. self-validation checks, desktop reviews and regular physical verification are producing measurable outcomes through The Company has in place an Internal Assurance (IA) function substantial improvement in control scores across India and headed by Chief Internal Auditor. EY and ANB & Co (ANB) Africa. Oracle Governance Risk & Compliance (GRC) module are the Assurance Partners of the Company who conducts has been implemented for India and Africa to strengthen financial, compliance and process improvement audits on existing controls pertaining to access rights for various ERPs, a periodic basis. The internal assurance plan for the year is ensuring segregation of duties and preventing possibilities of derived from a bottoms-up risk assessment and directional access conflicts. inputs from the Audit Committee. The Audit Committee Continuous learning is in Airtel’s DNA so that we remain we remain that so DNA Airtel’s is in learning Continuous To landscape. technology in the ever-evolving relevant all accessible by easily are avenues learning our ensure learning - integrated iLearn we re-launched employees, our by employees our learning to on-the-go provides application and in LinkedIn Coursera, like platforms from bringing content the 60% of in one single application. together content house learning. Along access mobile app to leverages organization to initiatives taken also new launches, we have with above paperless. become (incl. expenses) all HR transactions ensure leaders future create to in talent Investing people, we have behind our in investing journey On our and retain we hire, ensure to initiatives launched several we launched purpose, With the same leaders. future develop FY 2018-19. in Airtelprogram, leadership Academies (ALA) in leadership training provide aims to umbrella The academy up critical that can take leaders future of build pipeline to order the participants and process is a rigorous Selection roles. that journey and development feedback a structured undergo that on-the-job projects to exposure enables self-discovery, as well as leadership exposure the organization critical to are from programs management development and a customised universities. world-renowned and Future Advanced of launched the first batches We participants 98 select to (ALP & FLP) for Program Leaders Basis the exhilarating vertical head & roles. build pipeline for becoming truly Airtelare Academies received, feedback Emerging of launched the first batch also We aspirational. build a ready to objective (ELP), with an Program Leaders and roles first time manager talent for internal pipeline of to (XLP), with an objective Program Leadership Executive roles. CEO talent for groom developmental to been exposed 380+ leaders have in framework the Airtel Academy as a partinterventions of that ensure to and we endeavour batches FY 2019-20 across including all participants holistic development experience leadership skills and role-specific common functional skills, key on the job experiences. on functional and focus continued our also have We – the – ‘CRACKING we initiated year, Last learning. behavioural on focusing programs, classroom of a suite CODE’, GROWTH middle junior, business & leadership skills for building essential our widened N-Rich have and LeGo management. senior and new and products growth portfoliofunctional learning across Gurucool learning through Peer-to-peer technologies. network helped the experts have internal our by and Product-school learning gene grow. learning mode of be a popular Online modules continued to LinkedIn Coursera, completions across with 19,000+ course Sight and Airtel 101. learning, Plural premier from graduates talented hire continued to Airtel also viable as a and establish itself the country across campuses and engineering on B-school brand career and promising Airtel offered Program, Leader its Young As partcampuses. of Integrated Report and Annual Financial Statements 2019-20 Report Statements Financial and Annual Integrated Bharti Airtel Limited Engage, new hiring platform, provides candidate centric candidate provides Engage, new hiring platform, engagement and has helped us in increasing personalised mobile-first pre-boarding Our frequency. onboarding our to engagement prior application has enabled candidate This journey. smooth pre-boarding digitized, joining and a fully about Airtel and the work app has helped joiners learn more the Airtel a part of like feel that they joining so to we do prior join. At Airtel we believe the moment they from ecosystem and integrating must start journey green all employee that new-joiners set to crucial is Airtelthe within them ecosystem effort, same the parta As success. mobile- launched we of for called New Bee. This app offersfirst induction platform a roles their to which is tailored induction experience digital programs generic classroom need for the and eliminates has This initiative becoming redundant. increasing that are 60% joiners by new workstation for time to helped in reducing in people time the freed-up focus to free and new joiners are visits and shadowing leaders. market interactions, Along with building a robust digital business, Airtel is also business, Airtel digital is also Along with building a robust enjoy that employees ensure the HR function to strengthening In this continued journey people experiences. digital seamless, across digital processes HR, Airtel has initiated of digitization of be application continued to While Hive lifecycle. the employee knowledge about Airtel, gather to solution the one stop-shop our improve further to platforms other in invested also we pre-boarding, journey, the candidate across people experience induction and learning. Transforming HR digitally Transforming Airtel’s digital arm - Airtel X Labs is transforming Airtel into an Airtel into digital arm - Airtel X Labs is transforming Airtel’s customer exciting creating From beating digital force. industry and markets across enabling intelligence to experiences, is devices and services, the digital team building connected build to Airtel telecommunications of the scale leveraging lives. customers’ our transform can that solutions unique that truly solutions on delivering focusses this team Today that building products by the customers of enrich the lives and internet, the to devices connect entertaininform, and Data Servicesdeliver and around capabilities key develop touchpoints. across engagement customer improved highly cross- of in the form collaboration This arm works in close to and business teams marketing functional squads with our achieved. goals are that organizational ensure Material Developments in HR Developments Material with the connect customers the way Airtel has transformed data and entertainment consume services. organization, effort made a conscious has accelerate to The organization strategic achieve to and tools a digital processes adoption of has technologies latest Implementation of goals. operational essential a lot of and streamline automate enabled Airtelto to processes traditional a shift from make To processes. it is organisation, and data driven empowered a digitally the part of a large Today, employees. important empower to enable the to in digital projects involved is actively workforce, on attracting focus Airtel’s internet. join the to billion users next a create to enabler talent, has been a key and honing the right organisation. ready future 186

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49 budding management leaders from top B schools to join changed working environment will increase the acceptance of and onboarded 98 engineers as part of its Young Technical working from home and remote working. The new normal will Leader Program. Airtel’s flagship B-school case competition be facilitated by the digital highways i.e. the mobile broadband - iCreate witnessed an overwhelming response from MBA infrastructure created by the telecommunications sector. students across the country with over 14,000+ participants. These will act as another driver to the Indian telecom industry which is the second largest in the world and has started Cultural change: witnessing exponential growth in the last few years primarily driven by affordable tariffs, wider availability, roll out of Mobile At Airtel, we believe in winning customers for life. Our Number Portability (MNP), expanding 4G coverage, evolving employees, those who serve our customers and those who consumption patterns of subscribers and a conducive serve those who serve our customers – truly embody the spirit regulatory environment. In addition, the increasing rural tele- of “I am Airtel”. We are institutionalising this commitment to density and overall smartphone penetration will open up new our customers and cement this into our culture through key opportunities for growth in digital mobile banking, content 3 behaviours of GPS – start Green, deliver Promises and streaming and e-commerce. Solve problems. This will ensure that each employee puts the customer at the centre. Africa telecom sector continued to have a positive outlook with an increasing purchasing power, rapid urbanization, rising We are also making efforts to create an environment of middle class and growing smartphone penetration. Increasing transparency and open dialogue for development with adoption of data services with enhanced high speed 3G/4G programs like ‘Elevate’. Elevate has enabled experienced people connectivity in the region is fuelling the growth of the mobile managers to have developmental conversations, continuous broadband segment. Also, the focus on improving financial feedback and coaching conversations with their teams. inclusion in the region is creating opportunities for mobile money services. Outlook With presence in different emerging and high potential Global and India’s economy growth is expected to be impacted geographies, Bharti Airtel stands to gain by being a one-stop for some part of the 2020 due to the coronavirus pandemic, telecommunication solution provider. With a robust legacy, the but is expected to bounce back once the virus fades away. company is now 25 years young and is just getting started Apart from the short term economic impact, the lockdown to build on a well-established network, recognised brand and and new social distancing norms are expected to bring long unparalleled focus on customer. term changes to how day-to-day tasks are carried out. The