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How Airtel Will Be The Biggest Gainer Of Current 4G War !

Indian Telecom sector is undergoing turbulent time post Reliance Jio 4G service launch. The tariff plan announced by Reliance Jio is intentional to grab market share in terms of user whereas they don't care of revenue. Even rating agency Fitch in its assessment mentioned that Reliance Jio will barely gain 2% of Telecom revenue which is very bad news for Reliance Jio.

Both Reliance Jio and Airtel is having pan India license as well as network. Both Reliance Jio and Airtel invested heavily in infrastructure whereas vodafone and Idea cellular is also present in certain license zone. When it comes Reliance Communications and Aircel; both the merger by mid of 2017 provided green signal from CCÌ & other regulatory body will be another competitor.

4G network is all IPO network and works on Smartphone which limits the total addressable market size to 550 million as compared to total wireless userbase of more than 1 Bn.
Reliance Jio is currently facing call termination issue due to lack of point of interconnect and it's calling platform quality will be evaluated only and only if it's call drop goes lower than 1% whereas Airtel is not facing any issue related to that.

Even TRAI also confirmed in its report that Airtel 4G network is the best and beating Reliance Jio on most of the KPIS.

When it comes to number of subscribers, I do not agree with Reliance jio claim of 16 million during  1st month as we don't know the calculation methodology which I mentioned in my previous article. Reliance jio is offering 9 SIM against one Aadhar card and will see very high churn rate post they implement commercial aspect with their service offering.

At the same time, the biggest loser of user will be Reliance communications and Aircel as there will be disruption in service quality of service during the network integration and optimization. We also know that Reliance communications customer service is bad and it opens the opportunity for companies like Airtel and vodafone.

It is known fact that Airtel knows how to handle competitor and they demonstrated it by reducing their data plan. Now one can get 10 GB for around 250 INR and in turn challenged Reliance Jio to compete.

In my point of view by the start 2nd half of FY 18, Airtel will be dominating 4G player in India. 

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About Devendra Prasad

20 years plus industry veteran of domestic and international ICT domain with the expertise in Business, Technology, Strategy and Analysis. Specializes in forecasting impact analysis, trends and recommendations for Investments, Technology and Regulations.
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