Bharti Airtel is fighting back and attempting to take on one of the largest telcos in the Indian market. The telecommunication company is going to adopt a new strategy to take on Reliance Jio. Airtel is going to focus on serving the needs of its premium customers and expanding its broadband service to the top 100 cities in India. Instead of jumping on the fibre-optic bandwagon like what Reliance Jio has done, Airtel is going to focus on high-income customers.
This strategy isn’t a new one as Airtel has been considering it for a while. A month ago, Airtel made its strategy known to the public. In an attempt to weed out low-paying customers, the company has decided not to concentrate on users who purchase recharge plans of less than INR 35 per month.
Airtel Takes On A Different Strategy To Take On Reliance Jio GigaFibre
Airtel is adopting a different strategy to compete with Reliance Jio’s GigaFibre. The company has decided to build on its existing wired broadband connections instead of investing in a new technology which would not only be expensive but extremely time-consuming. A fibre-optic connection might be easy when routed between short distances. However, over longer ranges such as from house to house, the cost steadily increases, thereby decreasing the profits for the company. Its newly adopted business model is more logical as well as economical. Focusing on what it knows and does best will lead to additional revenue and minimize risks involved in adopting the new fibre technology.
The launch of Reliance Jio’s GigaFibre is a testimony to how far telecommunication has progressed in India. Its GigaFibre as the name implies uses a fibre optic network to deliver lightning fast download and upload speeds. The commercial launch of Reliance Jio GigaFibre is bound to share the wired and wireless market. Reliance has set its sights on connecting 50 million homes and businesses through this new fibre-optic technology. However, the company is still yet to announce its internet plans and pricing.
It’s quite clear that both companies are taking a different approach towards increasing revenue. While Reliance Jio’s plan seems farfetched, Airtel’s plan is short-sighted. In simple terms, Airtel isn’t willing to take the same risk as the one which Reliance Jio is undertaking by launching its GigaFibre. Airtel is sticking to tried and tested networks and mainly focusing on well-paying customers. Investing in the deployment of fibre will only gain returns in the long run and only if the technology actually becomes popular among many in the Indian market. Since Airtel provides mobile, home broadband, and DTH services, it is attempting to provide additional benefits for customers who subscribe to all three of its services.
Airtel May Team Up With Vodafone Idea To Jointly Own Fibre Network
Airtel joining hands with Vodafone Idea to jointly own their own fibre networks is more of a possibility rather than a certainty. However, Airtel is considering it as a possibility as one of its top officials said:
“We will be delighted to share and create one company. We have already built a lot of fibre with Vodafone Idea and over the past two years, a lot of sharing has happened between the two companies.”
This seems like a mutually beneficial joint venture as both companies are looking to add to their existing revenue channels. Over the past two years, both companies have felt the financial burden owing to intense competition. Could this be Airtel’s solution to overtaking Reliance Jio and its GigaFibre? Share your views with us in the comments section below!
The post Airtel Broadband is Taking A Different Route to Take on Reliance Jio GigaFiber, Plans to Partner Vodafone Idea appeared first on MySmartPrice.
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