Aircel Partners With ZTE For 4G, To Give Reliance Jio–Bharti Airtel Nexus A Tough Fight?

Indian telecom service provider Aircel has sought assistance from Chinese multi–mode telecommunications and networking equipment maker ZTE, to roll out its 4th Generation or 4G services within India.

Aircel Logo

ZTE will deploy the necessary infrastructure for Aircel in a few zones initially. The zones that will be the first to gain 4G Capability are Chennai, rest of Tamil Nadu (RoTN) circle and few other business critical circles.

Will Aircel offer a competitive environment to the Reliance Jio–Bharti Airtel Nexus?
Reliance Jio Infocomm had been aggressively expanding its 4G Coverage across India. Besides, it is the only company to have won 4G Spectrum License in all of the 22 Telecom Circles. Apart from Reliance Jio, Bharti Airtel was the other company that was speeding ahead to offer 4G Connectivity. Both these companies had achieved a few critical milestones in the deployment phases.

However, in a landmark twist, both these companies have now officially come together and will deploy 4G Services that will piggyback on each other’s networks, wherever possible. Many industry insiders speculate that this network sharing agreement will result in lowering of tariffs, but these companies could easily monopolize the 4G Market.

Though, with ZTE’s help Aircel could offer a competition, it may not matter much. This is because; Aircel has won 4G License in only 8 circles. ZTE was the preferred choice because this company has helped Aircel in the past, to erect 2G as well as 3G networks.

Interestingly, Aircel isn’t looking to compete with the likes of Reliance Jio or Bharti Airtel. With 4G, the company is aiming to offer speed augmentation to the enterprise segment. ZTE will deploy 4G network which is capable of offering initial speeds up to 65 Mbps. Being 16 times more than the top speed of 4 mbps available for landline retail customers in the country; Aircel could indeed offer a much faster network. But Aircel will have to price the same very competitively to garner and retain large corporate customers. What do you think?

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