It's an irony of the ecosystem that the company who changed the Indian telephony system with their innovative base telephony devices. Mr. Sunil Bharti Mittal vision, predictions and insight about Indian Telecom sector never went wrong. Bharti Enterprise at one point of time through their base telephony device in the Indian market forced global player like Panasonic to Sony to look for cover.
Post mobility revolution,
organization moved their focus more on the services side while forging market
disruptive methodology of hardware attached revenue share which is now the
trend of the industry. In the last 23 plus years, Bharti Airtel positioned
itself as de-facto brand in Indian geography while entered into Africa. Many
are predicting the potential failure in African Market in coming years but I
differ completely with Critique and will come back with reference based article
very soon.
The rush for use acquisition post
new service provider in India during last 8 years helped Airtel to consolidate
its competitiveness and enhanced its workforce determination to weather any
threat to their business be it pricing to performance.
I truly admire Mr. Sunil open
admission about Reliance Jio entry and its implication on the pricing as he is
also predicting Reliance Jio play which I mentioned in my
previous article about the reliance jio. Reliance Jio is getting aggressive
in their push to capture the device market with an intention to create an
ecosystem but again as I pointed out in my previous article's is reliance
jio betting to be google of India that Reliance Jio must learn from the
failure of Reliance Communications.
In my point of view, Bharti Airtel should turn the tide towards
the Competitor by launching their own device supported with their multiple
application such as Airtel Wync Music, Wync Movies, Wync Games for which they
are spending user acquisition $. It will again a disruptive move by Bharti
Airtel an how
The Management & Promoters understand
the manufacturing to distribution market basis their background.
Many ex- Distributor's of their basic
telephony system is now the owner of Smartphone companies and it may help them
to acquire some of the struggling domestic companies with their facility and
rebrand the Device with Quality.
Bharti Airtel Userbase is more than 225
Million and more than 70 Million user on their network are active Smartphone
user's using data.
The Total market size of Indian Smartphone
will hover around 95 Million to 105 Million during FY 17
The one of biggest beneficiary of MNP (
Mobile Number Portability )
The lowest Churn rate in Telecom Industry
Wide reach of Bharti Airtel Store is in place
The above mentioned points are
some of the pointer which Bharti Airtel may consider to turn the tide as device
manufacturer works with a margin of 3 to 4 on net level and generate maximum
revenue from VAS revenue. The net profit margin of 7 to 8 % can easily be
reached given their strongly coupled services, platform and Application layer.
I won't be surprised if it comes sooner than later.
