Indian Telecom: A "World War" Like No Other
Sunil Bharti Mittal, the visionary Founder and Chairman of Bharti Enterprises, has offered a stark assessment of the Indian telecom battleground, describing it as a relentless "world war." Speaking on the 'Leaders with Francine Lacqua' podcast, Mittal reflected on the tumultuous period that followed Reliance Jio's disruptive market entry, which he called the "mother of all" launches.
"Telecom has been a real battleground. In India, if you look at the trajectory of telecom, it's been a world war. It's just never stopped. It's been relentless," Mittal stated, emphasizing the continuous challenges faced by operators.
Airtel's Existential Crisis and Strategic Survival
Mittal candidly shared that his company, Airtel, faced an "existential crisis" in the wake of Jio's aggressive pricing and market penetration around 2016. He recalled a period where the question was not if, but when, Airtel might go out of business. The industry saw approximately $100 billion of standing investments rendered useless as numerous companies disappeared from the scene.
To navigate this unprecedented storm, Airtel adopted a strategic approach. Mittal revealed that the company made bold moves, acquiring other firms and securing crucial spectrum. A significant part of their survival strategy involved raising substantial capital. "I raised $18 billion in 34 months, against all odds," Mittal explained, adding that he had to reduce his personal stake in the company from 51 percent to 25 percent to secure the necessary funds.
"And I knew one thing, that if we can be the last man standing in this town, we will become a very valuable company." — Sunil Bharti Mittal
Despite the immense pressure on the board and shareholders, Mittal praised the resilience of Airtel's employees, who remained committed to fighting through the crisis. Ultimately, Airtel emerged from this period as a robust and valuable enterprise.
Lessons from International Expansion and Risk-Taking
Mittal also touched upon Airtel's foray into the African market, an expansion that transformed the company into a multinational overnight. While acknowledging that they "misjudged" some dissimilarities between the Indian and African markets initially, he noted that Africa has since become a great success story for Bharti Enterprises.
Reflecting on the broader business landscape, Mittal highlighted that Indian and Asian markets, in general, are still not very forgiving of failures. He advocated for a shift from merely taking risks to managing them, while cautioning against becoming risk-averse. Large corporations, he believes, should be prepared to invest billions of dollars in new ventures and innovation to foster growth.