Bharti Airtel Slashing 4G Tariffs – May Not Trigger Higher Subscription


In an attempt to increase 4G subscriber base, Bharti Airtel slashing its 4G tariff plan( ET) to 3G tariff level. New scheme include free data usage of 2GB, 3GB and 4GB under monthly subscription plan of INR 450,650 and 750 targeted for entry level subscriber. New tariff will not cover auto subscription of Bharti Airtel 4G entertainment service and will be offered to subscriber subscribed under higher data plan starting from 999 and more. The move from Bharti Airtel is viewed as an attempt to kick-start mass adoption of 4G adoption as well as to set minimum tariff threshold for any new entrants such as Reliance Jio. Slashing tariff also indicate slow adoption of subscriber for high speed network and their willingness to pay higher tariff. Even after huge marketing push and post 5 years into offering, most of the broadband companies are struggling to increase subscriber number. The current broadband and mobile services subscriber base of 15.2 Mn and 868 Mn clearly indicate that Indian subscribers are voice centric and India failed to increase adoption of Broadband. It translates to one point; It would be too optimistic as assumption that wireless broadband is going to attract many more subscribers than current broadband subscribers. Even after having all pre-requisite Networks, Resources, Tool, Sales through Team, Brand and first mover; if Bharti is facing issues in increasing their 4G subscriber base; it would be interesting to see how Reliance Jio is going to capture multi million subscribers and claim of Industry dynamic change

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