According to a company official, Bharti Airtel is now focused on entering the 5G market with a strategic investment of approximately Rs 27-28,000 Cr.
According to an unnamed official, “In the next three years, Airtel will spend the same amount. A rapid rollout of 5G may cause it to fluctuate– around Rs 27000-28000 crore. We may see an increase in one year and then moderate around the same level,”
Several countries have tried to charge a premium for 5G services, so the company plans to increase capital expenditures within the bracket of 10-15 per cent.
Capex earlier ranged for Bharti Airtel was bracketed within 24-25,000 cr INR, mostly inclined towards radios (mobile antennas), fiber, broadband, and enterprise technology data centres. However, Bharti Airtel is now equipped with approximately 3,293 5G base stations. Depending on the market, the company may increase mobile service rates. Across Haryana and Odisha, Airtel has raised the price of its minimum recharge of Rs 155 for 28 days plan. The company no longer offers a Rs 99 minimum recharge plan.
An Airtel officer reported that the pilot run of the new tariff is formulated, and the disarrangement seems to be much lower than expected. The Rs 155 plan is wrapped with an unlimited calling facility and 1 GB of data with 300 sms counts. It will take the company six weeks to determine whether to roll out the pilot in other telecom circles once they understand it better. The official added that Airtel isn’t interested in charging a premium for 5G services and hasn’t tried charging higher prices anywhere in the world for 5G services.
As consumers switch from 2G to 4G, pre-paid to postpaid, and postpaid customers purchase Airtel’s broadband and direct-to-home plans, he said the company sees much business coming in.
With the business aim to achieve and retain good customers, upgradation of feature phones to smartphones and data monetisation, The revenue, compared to the last year, which was 153, now stands at Rs190 per user for the period of July-September 2022.
Besides cloud services, cyber security, and communication platform-as-a-service, Airtel believes there is a market of approximately Rs 50,000 crore for these verticals. We stand in the market of around Rs 45,000 crore with a neighbouring market of Rs 50,000 crore.
The alliance holds a strong grip on its enterprise business. However, it is also busy implementing its resources and intellectuals into its business niches, such as communications platforms as a service (CPaas), cyber security, and cloud computing.
With an array of offerings, including adjacency services, Airtel is now reaching out to new customers, with 80 per cent of the revenue in the enterprise segment coming from 20 per cent of customers.