Bharti Airtel seems to have taken cues from its results and has thus decided to focus more on its telemedia customers. WATBlog earlier predicted the future focus area – the telemedia services like broadband and DTH would see renewed focus and could do wonder for the telecom giant.
Mr K. Srinivas, Joint President, Telemedia Services, Bharti Airtel, told Business Line, “Our internal survey has revealed that subscribers are using more and more bandwidth. From just an average usage of 4Gb a month, broadband users are now using up to 8 Gb. Clearly this kind of usage needs higher speed. The reduction in tariffs is to present ‘true and rich’ broadband experience by making high speed broadband more affordable and offering VAS content on broadband that enriches the customer’s experience.”
Bharti Airtel currently has a million broadband users and its Telemedia division logged revenues of Rs.856 crores in June quarter. The ARPU was in excess of Rs.1000 per subscriber.
Decline in broadband tariffs:
Airtel has brought down the broadband tariff across its list of plans. It is now offering 512 kbps unlimited connection at Rs 1,099 a month instead of Rs 1,599 earlier.
The tariff for 1Mbps speed connection is also down from Rs 2,999 to Rs 1,699 a month. Airtel has also increased download limits on its higher speed plans-limits on 8 Mbps and 16 Mbps plans have been doubled to 50 GB and 100 GB respectively.
The company at the same time would also provide Rs.600 per month of freebies (including calling value, gaming coupons, anti-virus etc) with its 1 mbps broadband plans. The freebies would be available for other plans too albeit of different worth.
The declined tariffs are currently in-line with current tariff war started by regional players in a quest to capture market share but such action from Airtel’s side would see magnanimous effect as it is a pan-Indian Operator and its tariff decline would attract similar actions from its competitors.
TRAI recently recommended increasing the minimum limit of broadband from current 256+ kbps TO 2mbps. The broadband tariff war has till date seen negligible action from telecom biggies like BSNL and Reliance.
The Airtel tariff move would certainly propel further tariff decline as telecom biggies would now rush towards their Telemedia divisions for growth. For users, the series of actions taken place in recent months, with few big bang Internet launches and price decline has certainly put hope for better speeds and lower broadband prices in the future.