Cost Model

July 29, 2009 (LBO) – The Sri Lankan unit of Bharti Airtel, which entered the island in January triggering a price war, says it is confident of making money with its low cost business model. “When we look at countries like Sri Lanka, we feel that the model we used in India can be replicated here (in Sri Lanka) because there are similar behavioral patterns.

In the end what’s good for the customer is good for the company.”

Kapoor said Airtel Lanka’s cost structure is sustainable as the company only has 200 employees.

“We want to keep costs down to a bare minimum,” Kapoor said. “We will outsource the rest.”

Sri Lanka’s largest celco in terms of market share, Dialog Telekom, has shed staff through a voluntary retirement scheme.

Millicom International Cellular, which owns Sri Lanka’s Tigo said it was selling out of Asia.

Kapoor declined to confirm whether Airtel has put a bid for Tigo assets.

“Any opportunity across the globe which is value creating in nature, we will always be interested in. I can’t comment more than that.”

“We have led the affordability movement in Sri Lanka,” Sanjay Kapoor, deputy chief executive of Bharti Airtel told report