Early April, Bharti Airtel became the first telecom operator to introduce 4G services in India. The services, launched in Kolkata, not only offer rich content, but also allow superfast access to video streaming, multiple chatting, instant photo uploading, etc. Further, 4G is expected to facilitate provision of services such as e-governance, e-health and e-education.
?The launch is a major milestone for India and Airtel. Over the past 15 years, Airtel has been at the forefront of the Indian telecom revolution and has set the technology trends in the country by aligning with global standards. High speed wireless broadband has the potential to transform the Indian telecom space by providing a robust platform for building the country?s digital economy and empowering the masses. With a large pool of young people, India will see a massive growth in the consumption of data and content over mobile devices as well as the proliferation of mobile commerce. We look forward to Airtel playing a pivotal role in shaping this exciting future for India,? noted Sunil Bharti Mittal, chairman, Bharti Airtel.
In 2010, Airtel had successfully bid for broadband wireless access (BWA) licence spectrum in the Kolkata, Karnataka, Punjab and Maharashtra (excluding Mumbai) circles. The company is now working towards rolling out networks in the Karnataka and Maharashtra circles. It has already awarded the contract for long term evolution-time division duplex (LTE-TDD) deployment in Maharashtra to Nokia Siemens Networks.
Since its 4G services were kicked off on cutting-edge LTE-TDD networks, this makes India one of the first countries in the world to commercially deploy this technology. ?We are confident that others will follow in this direction and participate in our pioneering efforts in making LTE-TDD the de facto 4G standard in India,? Mittal said.
Having got a headstart over its rival Reliance Infotel, Bharti Airtel plans to leverage its first mover advantage. Available on both prepaid and post-paid connections, Airtel currently offers three plans ? Breakfree, Breakfree Max and Breakfree Ultra ? with rentals ranging from Rs 999 to Rs 1,999. According to industry experts, the services seem to be targeted at high-end customers with the rentals and charges being fairly steep. While most operators currently offer 6 GB of 3G data with a speed of 3.6 Mbps at Rs 850 per month, Airtel offers the same at Rs 999. Moreover, while other operators offer 10 GB of data download at Rs 1,250 per month, Airtel is offering 9 GB of high speed data for around Rs 1,400 per month and 18 GB of 4G data for nearly Rs 2,000 per month.
Also, since the 4G ecosystem is still untested, 4G devices are not easily available in the market. Airtel will be offering services initially through a USB-based 4G data card dongle and a Wi-Fi gateway, also priced on the higher side, at Rs 7,999 and Rs 7,750 respectively. According to analysts, the average cost of 3G or EVDO dongles in India ranges from Rs 1,500 to Rs 2,500.
Price may, therefore, become an inhibiting factor in the adoption of 4G services. ?For smooth adoption of 4G services, affordability and availability of devices are going to be key determinants. While data plans are being offered at competitive rates, the 4G dongle price is nearly eight times that of an EVDO dongle and three times that of a 3G dongle,? says Abhishek Chauhan, senior consultant, ICT Practice, Frost & Sullivan. However, as Chauhan observes ?With the increase in competition, this should be taken care of. The current pricing of Airtel?s 4G services at such high tariffs is to ensure the coexistence of 3G and 4G as well as the monetisation of 3G services. Moreover, 3G also benefits from a better developed ecosystem in comparison to LTE as the ecosystem for the latter is at a nascent stage.? Most analysts expect 4G tariffs to decline significantly in the next six months as more players launch these services.
In the broadband arena, Airtel?s biggest competitor will be Reliance Infotel, Mukesh Ambani?s vehicle for re-entering the wireless space. With an investment of Rs 220 billion earmarked for its broadband business, Ambani will join the fray, with ambitious targets and competitive plans.
Reliance Industries Limited (RIL) bought Infotel Broadband, the only company to win pan-Indian 4G spectrum, a day after the auctions. In contrast, Bharti has 4G licences for only four circles, and its attempts to add more through buyouts and tie-ups have not materialised so far due to regulatory hurdles.
Besides, Reliance Infotel followed up the licence acquisition with a string of content tie-ups through 2011. These include a Rs 40 billion deal that provides RIL preferential access to all of Network18s content.
Concerned about its limited presence, Bharti Airtel has requested the government to hold another round of BWA spectrum auctions later this year. The Cellular Operators? Association of India has lent support to Bharti Airtel?s demand for a quick auction.
Meanwhile, the company is reportedly in talks to buy US-based chipmaker Qualcomm?s 4G spectrum for Rs 60 billion, an acquisition that will facilitate the launch of its 4G services in the key markets of Delhi and Mumbai
