How Bharti Airtel changed telecom paradigm: Top 7 power points

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New Delhi | Updated: August 10, 2015 4:40:11 PM

Bharti Airtel has launched its 4G services in 296 cities across 14 circles beating Reliance Jio by at least a few months.

Bharti airtel, Gopal VittalGopal Vittal, MD & CEO, Bharti Airtel announcing the commercial launch of 4G services. (PTI)

Bharti Airtel has launched its 4G services in 296 cities across 14 circles beating Reliance Jio by at least a few months. But the move goes beyond just beating a rival to the launch. Here are 7 points about what the launch entails for consumers in terms of usage – from voice calls, data to smartphones:

1. Bharti Airtel launch junks, at the top end of the market, the famous minute-factory model where the emphasis is to churn out as many minutes as possible to customers. Under the new model, to be expected given how data ARPUs have risen, Bharti Airtel is now offering free voice minutes bundled with data packages above a certain value, much like what is done in mature markets like the US. The new emphasis is to concentrate on getting higher per-customer revenues.

2. Bharti Airtel’s Rs 999 infinity plan offers 3GB of data bundled with unlimited voice calls, albeit on an Airtel-to-Airtel network.

3. The Rs 1,499 plan which comes with 5GB of data, removes the restriction on calling Bharti Airtel networks and, as you go higher up the price chain, even STD and roaming is bundled in for free.

4. Entertainment is going to be core part of rival Reliance Jio’s offering, To counter this Bharti Airtel has bundled a lot of entertainment through its Wynk services. At some point, Airtel will have to look at offering all the programmes it is offering on its DTH platform – how soon depends on how much customers are willing to pay for the exclusive content.

5. While Bharti Airtel has no plans to offer bundled plans for 2G/3G services as of now, a lot will depend upon how the market takes to the service. With Reliance Jio expected to roll out by December, other telcos will follow suit – Vodafone’s Mumbai head has announced that its 4G services would be available in that city by the end of the year. As in the case of 3G services some years ago, telcos cannot be caught without such services as their top-end customers are likely to migrate if they don’t.

6. The speed at which bundled-data packages will be offered will also depend upon the price at which 4G-enabled smartphones are made available at reasonable prices. While such phones cost around Rs 25,000 a year ago, they are now retailing at around Rs 6,000-7,000 – while 5 million 4G handsets are likely to be shipped this quarter, the number is estimated to rise to 50 million in the next 12-15 months.

7. As such bundled offers rise, the net neutrality debate which was largely focused around using cheap VoIP calls using apps like WhatsApp and Viber becomes irrelevant since voice calls will now be free.

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