Why Bharti Airtel Should Enter Into Smartphone Segment


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.

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Visionary Leader with 22 years of multi-functional experience - combine astute tactical, strategic, business, technology and industry skills in ICT domain at domestic and international level (Wired/Wireless/ networks /platforms/ connected device) .... More

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