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Tag: Gopal Vittal

  • Airtel lists 32.7 mn paperless Aadhar-based acquisitions in ‘Sustainability Report’

    MUMBAI: Bharti Airtel (Airtel), India’s largest telecommunications company, has released its 2017 India Sustainability Report that outlines its approach towards responsible, sustainable business practices and making a positive impact on all stakeholders including customers, suppliers, local communities, investors, employees and government bodies.

    Bharti Airtel MD & CEO (India & south Asia) Gopal Vittal said, “As part of our governance DNA, we attach a deep sense of purpose to the way we conduct our business and ensure it has a positive impact on all stakeholders. Being a responsible corporate citizen, we have implemented a host of sustainability initiatives across the organization and remain fully committed to building on this strong foundation.”

    Green Initiatives

    81% reduction in CO2 emissions across network infrastructure in the last five years and 27% reduction in the last financial year.
    23% reduction in CO2 emissions per square feet in our facility and 9% reduction in CO2 emissions per rack in data centre operations against 2015-16
    Airtel saved over 1280 million sheets of paper since FY 2011-12 on paperless billing initiatives.
    Adopted Aadhar based instant verification process which is secure and eliminates paperwork
    Managed to recycle 2400 tonnes of e-waste and refurbished over 500,000 direct-to-home set top boxes
    Over 1200 tonnes of paper have been saved since FY 2011-12 with the paperless billing initiative, over 170 millions have opted for e-bills. 191 tonnes of paper was saved across facilities

    Adopted Aadhar based instant verification process which is secure and eliminates paperwork. 32.7 million such paperless Aadhar based acquisitions were completed last year.

    Customer Initiatives

    Unveiled India’s first Open Network, setting a new benchmark for transparency in the industry, by making the entire network information including coverage, site details and signal strength available to customers.
    Doubled mobiles sites in just two years by deploying 180,000 sites. This is the same number deployed over the past 20 years.
    Self-regulation: Airtel will contribute INR 100,000 for every 0.01% increase in call drop rate beyond 1.5% / month against the TRAI prescribed limit of 2%. The amount will be contributed towards education of the under privileged.

    Listening to customers through various touch points – stores, customer care, website and social media. There is 74% increase in online interactions and 10 million social media queries were answered last year.

    Community Initiatives

    The company supports over 254 Satya Bharti School Program, Learning Centers and Quality Support Program through its educational initiatives and benefitted over 43,500 underprivileged children in rural India, impacting over 198,000 underprivileged children cumulatively.

    Benefitted over 3.8 million farmers through the IFFCO-Kisan Sanchar Ltd by undertaking mobile based agriculture awareness Implemented a host of initiatives in the field of disaster relief management, environment protection and other social causes

    Other key interventions

    Deployed a ‘Win with people’ strategy. To help talent grow through strong learning, mentoring and succession planning, started conducting Career Fairs. Over 370 hours of training interventions with over 935,000 man hours of training delivered in FY 2016-17

    Launched Airtel Payments Bank, the first payments bank in India, further consolidating the government’s agenda of digital payments and financial inclusion.

    Enabled over 1000 villages to go cashless across India, through enabling Airtel Payments Bank accounts with over 250000 banking points and onboarding merchants who accept digital payments

  • Airtel mobile & DTH subs up, Jio-hit data customers & rev drop

    BENGALURU: Saying that Bharti Airtel Limited (Airtel), once touted as the largest cellular operator in the country both in terms of revenue as well as subscriber numbers, has had a tough battle with Mukesh Dhirubhai Ambani’s Reliance Jio Infocomm would be making an understatement. Ambani’s largest startup in the world ever has given a run for the money to all its telecom and internet services provider peers in the country.

    As on 31 March 2017 (Q4-17, FY-17 – quarter and year ended 31 March 2017), the company had 273.6 million (27.36 crore) GSM customers in India as compared to 251.2 million (25.12 crore) in previous year, an increase of 8.9 percent. DTH subscribers for Airtel’s Digital TV Services segment (Airtel DTH) increased 9.3 percent to 12.815 million (1.2815 crore) at the end of the FY-17 from 11.725 million (1.1725 crore) at the end of FY-16. The company had 57.4 million (5.74 crore) data customers (21.0 percent of total customers) as on March 31, 2017, representing a decline of 1.5 percent as compared to 58.2 million (5.82 crore) (23.2 percent of total customers) at the end of the previous year.

    The total MBs on the network for the full year FY-17 increased by 47.3 percent to 733.1 billion (733,100 crore) MBs as compared to 497.7 billion (497,700 crore) MBs in the previous year. Mobile Data usage per customer for the full year FY-17 witnessed an increase of 31.0 percent to 1,049 MBs per month as compared to 801 MBs in the previous year. Data ARPU decreased by 4.5 percent to Rs 185 during Fy-17 from Rs 194 in the previous year.

    Revenue from operations (operating revenue) declined 12.1 percent year-on-year (y-o-y) to Rs 2,193.46 crore in Q4-17 from Rs 2,495.96 crore in the corresponding year ago quarter. FY-17 operating revenue declined 1.1 percent to Rs 95,468.3 crore from Rs 96532.1 crore in the previous year. PAT for Q4-17 declined 69.2 percent to Rs 470.6 percent (2.1 percent of operating revenue) from Rs 1,462 crore (5.7 percent of operating revenue) in Q4-16. PAT for FY-17 declined 38.5 percent to Rs 4,241.4 crore (4.4 percent of operating revenue) from Rs 6,893 crore (7.1 percent of operating revenue).

    In its earnings statement, Airtel’s MD and CEO, India & South Asia Gopal Vittal said, “The sustained predatory pricing by the new operator has led to a decline in revenue growth for the second quarter in a row. The telecom industry as a whole also witnessed a revenue decline for the first time ever on a full year basis. The deteriorating health of the industry was compounded by the tsunami of incoming voice traffic from the new operator as a result of which significant investments had to be made just to carry the incoming traffic on our network. The net result of this was a revenue decline of 7.1 percent in Q4 even as EBITDA margins eroded by 2.9 percent. FY-17 saw a muted top line growth of 3.6 percent vs the double digit growth witnessed in preceding years.

    Our long term commitment to provide the best experience to our customers continues to drive all our actions in every single aspect of the business. This belief coupled with brilliant execution of our people has led to acceleration in market share in an industry that is now rapidly consolidating,” he added.

    Airtel’s DTH segment reported 10.4 percent y-o-y growth in operating revenue to Rs 865.7 crore in Q4-17 from Rs 784 crore in the corresponding year ago quarter. Earnings before interest and taxes (EBIT) in Q4-17 increased 35.4 percent to Rs 97.5 crore from Rs 72 crore in Q4-16. The DTH segment’s revenue for fiscal 2017 increased 17.6 percent to Rs 3,430.6 crore as compared to Rs 2,917.8 crore in FY-16. Average revenue per customer (ARPU) in FY-17 increased to Rs 231 from Rs 226 in the previous year.

    The company’s capex in its DTH segment in FY-17 declined to less than half (declined by 52.9 percent) to Rs 138.6 crore as compared to Rs 294.3 crore in FY-16. Cumulative investments in the DTH segment at the end of FY-17 reached Rs 7,351.3 crore.

    Note: The unit of currency in this report is the Indian rupee – Rs (also conventionally represented by INR). The Indian numbering system or the Vedic numbering system has been used to denote money values. The basic conversion to the international norm would be:

    (a) 100,00,000 = 100 lakh = 10,000,000 = 10 million = 1 crore.

    (b) 10,000 lakh = 100 crore = 1 arab = 1 billion…

  • Airtel acquires Tikona’s 4G biz , adds 2300 MHz spectrum in five circles

    MUMBAI: Bharti Airtel Limited, India’s largest telecommunications services provider, today announced that it has entered into a definitive agreement with Tikona Digital Networks to acquire Tikona’s 4G Business including the Broadband Wireless Access spectrum and 350 sites, in five telecom circles. The acquisition is subject to requisite regulatory approvals.

    Tikona currently has 20 MHz spectrum in the 2300 MHz band in Gujarat, UP (East), UP (West), Rajasthan and Himachal Pradesh circles. Airtel plans to roll out high-speed 4G services on the newly acquired spectrum in the five circles immediately after the closure of the transaction.

    As per the agreement, the acquisition of the 4G business in Gujarat, UP (East), UP (West) and Himachal Pradesh will be undertaken by Airtel, while in the Rajasthan circle, it will be accomplished through Airtel’s subsidiary Bharti Hexacom Limited. Post-acquisition, the combined spectrum holding of Airtel in these five circles will be within the spectrum caps prescribed by the Government.

    The proposed acquisition will enable Airtel to fill BWA spectrum gaps in the 2300 MHz band in Rajasthan, UP (East) and UP (West), thereby securing a pan India footprint in the band. The deal will significantly bolster Airtel’s spectrum position in Gujarat and Himachal Pradesh, taking its overall BWA spectrum holding to 30 MHz each in these circles. Post completion of the deal, Airtel will have 30 MHz in the 2300 MHz band in 13 circles giving it tremendous advantage to handle the surging data demand.

    Bharti Airtel MD & CEO (India & South Asia) Gopal Vittal said, “Airtel’s continued focus on strengthening its 4G capabilities across multiple spectrum bands will be complemented with the BWA spectrum acquisition from Tikona. We believe that combining our capacities in TD-LTE and FD-LTE will further bolster our network, and help us provide unmatched high-speed wireless broadband experience.”

  • Airtel makes roaming data & incoming free

    MUMBAI: Bharti Airtel, India’s largest telecommunications services provider, today announced radical changes that redefine the value proposition for domestic and international roaming. With this, Airtel mobile customers will be able to carry their numbers across India and the world and stay connected all the time without having to worry about high call/data charges. Bill shocks will now be a thing of the past.

    National Roaming – Free Incoming Calls
    No Premium on Outgoing Calls
    No Data Roaming Charges

    Starting 1 April, 2017, Airtel customers roaming within India will enjoy free incoming calls/SMS and there will be no premium on outgoing calls allowing them to speak freely wherever they are within the country. Also, there will be no additional data charges on national roaming. Home data packs for customers will apply even while they roam across India.

    Bharti Airtel MD & CEO (India & South Asia) Gopal Vittal said, “This marks the death of national roaming and the whole country will now be like a local network for our customers, who will not have to think twice before making or receiving calls or using data while traveling outside their home base. Airtel has again set the benchmark in delivering best in class value backed by a great network experience.”

    No bill shocks on international roaming

    Airtel has already launched innovative and affordable International Roaming packs for all major countries across the world. These packs come with convenient validity options of 1 day, 10 days, and 30 days and offer loads of benefits including free incoming calls/SMS, calling minutes and texts both to India and the local country as well as generous dollops of data to stay online. These packs have received an overwhelming response from customers, shielding them from any bill shock and eliminating the need for a local country SIM. However, there are still several cases of customers inadvertently failing to choose these packs and suffering bill shocks due to thesteep roaming charges on international networks.

    Starting April 1, 2017, even customers on international roaming Without a Pack will be fully protected from bill shocks through an automatic adjustment that is equal to the daily pack for that particular country. This means that the moment a customer’s billing reaches the price of a one day pack for the country, he/she will be automatically moved to that pack. This will allow our customers to use their devices abroad without any fear. Even post the exhaustion of pack benefits, customers will continue to enjoy extremely attractive rates for calling and data usage. Call Charges have been reduced by up to 90% to as low as Rs. 3/min and data charges by upto 99% to Rs 3/ MB across popular roaming destinations. 

    Here is an example of how Airtel’s new international roaming pricing works. When a customer traveling to the USA without a pack hits the threshold of Rs 649 (the price of the one day pack for USA), he/she will automatically move to the one day pack with free incoming calls/SMS, 100 India and local country outgoing minutes, 300 MB data and a host of other benefits. Similarly, a customer traveling to Singapore will move to the one day pack the moment his/her usage hits the Rs 499 mark.

    Bharti Airtel and GSMA chairman Sunil Bharti Mittal said, “At Airtel, we are changing the international roaming paradigm, which will allow our customers to take their number to every corner of the world. As an industry, operators across the world must collaborate to remove the cost barrier to roaming and offer customers the convenience of staying connected without the fear of exorbitant bill charges.”

  • Airtel to take ownership of Telenor’s India operations

    MUMBAI: Telenor ASA, on 23 February, entered into a definitive agreement with Bharti Airtel Limited (Airtel), whereby Airtel will take full ownership of Telenor India, subject to regulatory approvals.

    Airtel is India’s largest wireless operator with over 269 million subscribers and a revenue market share of over 33 per cent. As the new owner, Airtel will take over Telenor India’s spectrum, licenses and operations, including its employees and customer base of 44 million. Telenor’s operations and services will continue as normal until the completion of the transaction.

    “We believe today’s agreement is in the best interest of our customers, employees and Telenor Group. Finding a long term solution to our India business has been a priority for us, and we are pleased with our agreement with Airtel. The decision to exit India has not been taken lightly. After thorough consideration, it is our view that the significant investments needed to secure Telenor India’s future business on a standalone basis would not have given an acceptable level of return,” says Telenor Group CEO Sigve Brekke.

    Bharti Airtel MD and CEO (India and south Asia) Gopal Vittal says, “The agreement underlines our commitment to lead India’s digital revolution by offering world-class and affordable telecom services through a robust spectrum portfolio spread across multiple bands. On completion, the proposed acquisition will undergo seamless integration, both on the customer as well as the network side, and further strengthen our market position considerably in several key circles. The customers of Telenor India will be able to enjoy India’s widest and fastest voice & data network, and a range of Airtel’s world-class products and services.”

    The transaction will not trigger any impairment. As of fourth quarter 2016, the remaining value of tangible and intangible assets in Telenor India amounted to NOK 0.3 billion (Rs 2.4 billion).

    According to the agreement, Airtel and Telenor India will merge and Airtel will take over Telenor India as soon as all necessary approvals are received. As part of the agreement, Airtel will take over outstanding spectrum payments and other operational contracts, including tower lease.

    The transaction is subject to requisite regulatory approvals, including approvals from the Department of Telecommunications in India (DoT) and the Competition Commission of India. The exposure to claims related to the period Telenor owned the business, will remain with Telenor.

    The transaction is expected to close within 12 months. With effect from first quarter 2017, Telenor India will be treated as an asset held for sale and discontinued operations in Telenor Group’s financial reporting.

    Telenor announced its entry into India in 2008. In 2016, Telenor India’s revenues were NOK 6.0 billion and the operating cash flow was NOK -0.4 billion. Telenor services are commercially available in six telecom circles in India (Andhra Pradesh, Bihar & Jharkhand, Gujarat, Maharashtra, UP East and UP West), and the company also has spectrum in Assam.

    Telenor Group is one of the world’s major mobile operators, with reported revenues of NOK 131 billion in 2016. Bharti Airtel is a leading global telecommunications company with operations in 17 countries across Asia and Africa.

  • Q3-17: Jio affects Airtel revenue; Digital TV segment numbers up

    Q3-17: Jio affects Airtel revenue; Digital TV segment numbers up

    BENGALURU: Indian telecom major Bharti Airtel Limited (Airtel) reported 3 percent decline in total revenue for the quarter ended 31 December 2016 (Q3-17, current quarter) as compared to the corresponding year ago quarter. The drop was partially affected by a drop in revenue due to divestments of its Africa operating units, tower assets sale and merger of Bangladesh operations. However, like in the previous quarter, Reliance Jio’s entry has resulted in a drop in the company’s India mobile revenues which contribute a lion’s share to overall revenue.

    Airtel MD and CEO of India and South Asia regions Gopal Vittal said, “The quarter has seen turbulence due to the continued predatory pricing by a new operator. The present termination costs at 14 paise which are well below cost has resulted in a tsunami of minutes terminating into our network. This has led to an unprecedented year on year revenue decline for the industry, pressure on margins and a serious impact on the financial health of the sector. At the same time our commitment to provide a superior experience to our customers has led to revenue market share crossing a lifetime high of 33 percent. Airtel revenues grew by 1.8 percent Y-o-Y and our non-mobile businesses continue to grow at a healthy clip and now contribute a sizable 24 percent of our total revenues.”

    In consonance with Vittal statement, Airtel’s Digital TV Services segment (DTH segment) reported 17.7 percent year-over-year (y-o-y) increase in operating revenues for the quarter ended 31 December 2016 (Q3-17, current quarter). Also, Operating Profit (Earnings Before interest and Tax – EBIT) of the DTH segment in the current quarter increased 27.1 percent year-over-year (y-o-y).

    Airtel DTH reported revenues of Rs 873.5 crore in Q3-17 and Rs 742.2 crore in Q3-16. EBIT for the corresponding periods was Rs 68.4 crore (7.8 percent margin of the segment’s operating revenue) and Rs 53.8 crore (7.2 percent margin of the segment’s operating revenue), respectively.

    EBIDTA in Q3-17 also increased y-o-y – by 22.3 percent to Rs 302.6 crore (34.6 percent margin of the segment’s operating revenue) in the current quarter from Rs 247.4 crore (33.3 percent margin of the segment’s operating revenue).

    Subscription numbers, ARPU

    Airtel’s DTH segment added 14.82 lakh subscribers between Q3-16 and Q3-17, or a 17.3 percent y-o-y increase. It had 125.88 lakh subscribers as on 31 December 2016. Q-o-q, the segment witnessed a 1.5 percent growth (1.83 lakh adds) in subscribers from 124.05 lakh in Q2-17.

    ARPU in Q3-17 increased to Rs 232 from Rs 229 in the corresponding year ago quarter, but remained flat q-o-q as compared to the immediate trailing quarter.

    Airtel numbers

    Bharti Airtel Limited saw a 3 percent decline in operating revenue to Rs 23335.7crore in Q3-17 as compared to Rs 24065.9 crore in Q3-16.. Profit after tax (PAT) in the current quarter declined to less than half (declined by 54.5 percent) y-o-y to Rs 504 crore (2.2 percent margin) from Rs 1,108 crore (4.6 percent margin). The company attributes decline in profits to net interest costs of Rs 1,810 crore that have risen from Rs 1,360 crore in the corresponding quarter last year largely due to increased spectrum related interest costs. Further, forex and derivative losses for the quarter came in at Rs 126 crore compared to Rs 57 crore in the corresponding quarter last year as well as exceptional items net losses of Rs 114 crore.

  • Q3-17: Jio affects Airtel revenue; Digital TV segment numbers up

    Q3-17: Jio affects Airtel revenue; Digital TV segment numbers up

    BENGALURU: Indian telecom major Bharti Airtel Limited (Airtel) reported 3 percent decline in total revenue for the quarter ended 31 December 2016 (Q3-17, current quarter) as compared to the corresponding year ago quarter. The drop was partially affected by a drop in revenue due to divestments of its Africa operating units, tower assets sale and merger of Bangladesh operations. However, like in the previous quarter, Reliance Jio’s entry has resulted in a drop in the company’s India mobile revenues which contribute a lion’s share to overall revenue.

    Airtel MD and CEO of India and South Asia regions Gopal Vittal said, “The quarter has seen turbulence due to the continued predatory pricing by a new operator. The present termination costs at 14 paise which are well below cost has resulted in a tsunami of minutes terminating into our network. This has led to an unprecedented year on year revenue decline for the industry, pressure on margins and a serious impact on the financial health of the sector. At the same time our commitment to provide a superior experience to our customers has led to revenue market share crossing a lifetime high of 33 percent. Airtel revenues grew by 1.8 percent Y-o-Y and our non-mobile businesses continue to grow at a healthy clip and now contribute a sizable 24 percent of our total revenues.”

    In consonance with Vittal statement, Airtel’s Digital TV Services segment (DTH segment) reported 17.7 percent year-over-year (y-o-y) increase in operating revenues for the quarter ended 31 December 2016 (Q3-17, current quarter). Also, Operating Profit (Earnings Before interest and Tax – EBIT) of the DTH segment in the current quarter increased 27.1 percent year-over-year (y-o-y).

    Airtel DTH reported revenues of Rs 873.5 crore in Q3-17 and Rs 742.2 crore in Q3-16. EBIT for the corresponding periods was Rs 68.4 crore (7.8 percent margin of the segment’s operating revenue) and Rs 53.8 crore (7.2 percent margin of the segment’s operating revenue), respectively.

    EBIDTA in Q3-17 also increased y-o-y – by 22.3 percent to Rs 302.6 crore (34.6 percent margin of the segment’s operating revenue) in the current quarter from Rs 247.4 crore (33.3 percent margin of the segment’s operating revenue).

    Subscription numbers, ARPU

    Airtel’s DTH segment added 14.82 lakh subscribers between Q3-16 and Q3-17, or a 17.3 percent y-o-y increase. It had 125.88 lakh subscribers as on 31 December 2016. Q-o-q, the segment witnessed a 1.5 percent growth (1.83 lakh adds) in subscribers from 124.05 lakh in Q2-17.

    ARPU in Q3-17 increased to Rs 232 from Rs 229 in the corresponding year ago quarter, but remained flat q-o-q as compared to the immediate trailing quarter.

    Airtel numbers

    Bharti Airtel Limited saw a 3 percent decline in operating revenue to Rs 23335.7crore in Q3-17 as compared to Rs 24065.9 crore in Q3-16.. Profit after tax (PAT) in the current quarter declined to less than half (declined by 54.5 percent) y-o-y to Rs 504 crore (2.2 percent margin) from Rs 1,108 crore (4.6 percent margin). The company attributes decline in profits to net interest costs of Rs 1,810 crore that have risen from Rs 1,360 crore in the corresponding quarter last year largely due to increased spectrum related interest costs. Further, forex and derivative losses for the quarter came in at Rs 126 crore compared to Rs 57 crore in the corresponding quarter last year as well as exceptional items net losses of Rs 114 crore.

  • Airtel DTH appoints Mondelez’s Sunil Taldar as CEO & MD

    Airtel DTH appoints Mondelez’s Sunil Taldar as CEO & MD

    MUMBAI: Bharti Airtel has finally got the replacement of Shashi Arora, who after a successful stint of around five years as CEO – DTH, has moved as MD & CEO of Airtel Payments Bank. The company has appointed Sunil Taldar as CEO and director – DTH.

    Taldar will be a member of the Airtel Management Board and report to Bharti Airtel (India & South Asia) MD and CEO Gopal Vittal. In his new role, Taldar will be responsible for driving growth and innovation for Airtel Digital TV, which is a key growth driver within the company’s B2C portfolio.

    Vittal said that Sunil’s rich experience across consumer facing categories would add value to its DTH portfolio. He said would also thank Shashi for his valuable contribution to Airtel Digital TV.

    Taldar has an experience of over 28 years in the FMCG industry with Mondelez (erstwhile Cadbury), where he held several senior leadership positions across multiple geographies, including India, China, and Singapore across sales, marketing, media and general management.

    In his last role, Sunil was the country head – Indonesia for Mondelez, where he played a critical role in turning around the business. Prior to this, he was India sales director for Cadbury where he transformed the company’s go to market capabilities and delivered solid growth.

    Airtel Digital TV had over 12.4 million customers at the end of the quarter ended September 2016 and the business recorded a revenue growth of 21 per cent and customer growth of 17 per cent for the same period.

  • Airtel DTH appoints Mondelez’s Sunil Taldar as CEO & MD

    Airtel DTH appoints Mondelez’s Sunil Taldar as CEO & MD

    MUMBAI: Bharti Airtel has finally got the replacement of Shashi Arora, who after a successful stint of around five years as CEO – DTH, has moved as MD & CEO of Airtel Payments Bank. The company has appointed Sunil Taldar as CEO and director – DTH.

    Taldar will be a member of the Airtel Management Board and report to Bharti Airtel (India & South Asia) MD and CEO Gopal Vittal. In his new role, Taldar will be responsible for driving growth and innovation for Airtel Digital TV, which is a key growth driver within the company’s B2C portfolio.

    Vittal said that Sunil’s rich experience across consumer facing categories would add value to its DTH portfolio. He said would also thank Shashi for his valuable contribution to Airtel Digital TV.

    Taldar has an experience of over 28 years in the FMCG industry with Mondelez (erstwhile Cadbury), where he held several senior leadership positions across multiple geographies, including India, China, and Singapore across sales, marketing, media and general management.

    In his last role, Sunil was the country head – Indonesia for Mondelez, where he played a critical role in turning around the business. Prior to this, he was India sales director for Cadbury where he transformed the company’s go to market capabilities and delivered solid growth.

    Airtel Digital TV had over 12.4 million customers at the end of the quarter ended September 2016 and the business recorded a revenue growth of 21 per cent and customer growth of 17 per cent for the same period.

  • Jio-Apple strike a win-win deal as Airtel plans aggressive 4G offer

    Jio-Apple strike a win-win deal as Airtel plans aggressive 4G offer

    MUMBAI: Even as Reliance Jio is giving a tough fight to the market leader Airtel, and other leading incumbent operators Vodafone and Idea, it is making significant tie-ups with cell-phone makers to up its 4G gameplan. Substantial investments are being made in high-speed telecom networks in India, said Apple CEO Tim Cook citing Reliance Jio’s 4G roll-out although he admitted its smartphone has “not done as well” in the country.

    Airtel meantime is reportedly planning to launch aggressive 4G bundled offers to take on Reliance Jio as India’s No 1 mobile carrier struggles to boost penetration and revive its slowing data revenue growth amid competition. Bharti Airtel managing director – India & South Asia Gopal Vittal agreed that it’s difficult to compete with a free services offer as it expects Jio’s full-fledged price launch to take place in December. Vittal said it will approach the regulator to clear any confusion over interconnection points (PoIs) as it has provided more PoIs to Jio than any other telco.

    Reliance Jio was the first of its kind all-IP network in India with 4G coverage in 18,000 cities and 200,000 villages, Cook said in the company’s fourth quarter earnings call. He said Apple is partnering with Reliance Jio, which is offering a free year of service to purchasers of new iPhones, to ensure “great iPhone performance” on their network. “Our iPhone sales in India were up over 50 per cent in fiscal 2016 compared to the prior year, and we believe we’re just beginning to scratch the surface of this large and growing market opportunity,” Cook said.

    He, however, noted that Apple’s smartphone has “not done as well” in India in general and one of the key reasons for that is the “(high-speed telecom networks) infrastructure hasn’t been there”. The Apple head was optimistic on the efforts being made by the Narendra Modi-led government to create jobs and develop infrastructure.

    Whether India could in future be as big of an opportunity as China for Apple, Cook said it is important to look not only at per capita income in India but also the number of people that are or will move into the middle class over the next decade. He said this class will “really want a smartphone, and I think we can compete well for some percentage of those.

    “I think it’s clear that the population of India will exceed China sometime in probably the next decade or so. I think it will take longer for the GDP to rival it, but that’s not critical for us to have a great success there,” he said.