iWorld

Sunil Mittal advocates hiking minimum tariff, strategic content deals for ARPU growth

Mittal also said Airtel is not going to venture into content creation

http://www.indiantelevision.com/sites/default/files/styles/smartcrop_800x800/public/images/tv-images/2019/01/24/sunil.jpg?itok=ibTyl7q_

MUMBAI: India’s telecom industry has been bleeding losses for some time now. The entry of Reliance Jio in the market has only made things even more challenging. Airtel’s Sunil Bharti Mittal thinks 2020 could be the year when this haemorrhaging may stop. He also thinks that taking the lower table of tariff up and strategic content deals with online video platforms can help the industry to improve ARPUs which has been sliding continuously.

In an interview with BloombergQuint at the World Economic Forum, Mittal said that getting more customers is necessary for telcos to drive up ARPUs. He mentioned Airtel’s recent move of limiting its minimum to Rs 35. If customers positively respond to the step, then Airtel may take it up to Rs 60 or 80.

“There’s got to be a minimum ARPU coming in. Even for Reliance Jio, their minimum pack is Rs 50, there’s nothing below that. So you’ll have to keep taking the lower table up. And those people who are gouging a lot of data will have to start giving more than Rs 399. They were comfortably giving Rs 500-800,” Mittal added.

Mittal also pointed out that right segmentation is a necessity and providing high-end customers access to content platforms like Netflix, Amazon, Zee or Wynk for music will also help telco players. He is also hopeful that the trend of ARPUs going up will be visible from 2019.

After disrupting mobile broadband sector, Jio is now prepping up for its grand entry in fixed line broadband also. Although Mittal thinks there will be some turbulence in the sector, he is confident about surviving the upcoming storm on the back of previous experience. Despite the segment being a small part of the business, Airtel is planning to grow there. “We have been reducing our tariffs from Rs 1100 to now around Rs 700. So it will settle at around Rs 500 depending on where Jio comes in with pricing,” he commented.

In the changing scenario, many telecom players both in India and outside India are eying on building a content library while some of them are venturing into content creation. Though Airtel is striking strategic partnerships with various OTT players, it isn't interested in investing in content creation.

“We are not going to develop content on our own but we are partnering with Netflix, Amazon, Eros, Zee, Hulu. We are becoming the partner of choice as a telecom carrier for all the content players. That’s our strategy. We are not going to make investments in the areas we don’t understand very well. Similarly, we will go for e-commerce. Eventually, if that plays out then there are enough e-commerce companies who will seek us out,” Mittal commented on partnerships over acquisition of digital content.

Latest Reads

http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/02/20/amazon.jpg?itok=9feRZpOO
Prime Video reveals the first character posters for Prime Original Series – Made in Heaven

Amazon Prime Video has the largest selection of latest & exclusive movies and TV shows, stand-up comedy, biggest Indian and Hollywood films, US TV series, most popular Indian & international kids’ shows, and award-winning Amazon Prime Originals, all available, ad-free, with a world class...

iWorld Over The Top Services
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/02/20/netflx.jpg?itok=KUVXVO-X
Netflix releases official trailer for cricket fever: Mumbai Indians

Cricket Fever: Mumbai Indians follows the Indian Premier League’s superstar team Mumbai Indians on the road through the course of the 2018 IPL season, as they sought to defend their 2017 IPL crown.

iWorld Over The Top Services
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/02/19/sonyluv.jpg?itok=1AsbRZba
SonyLiv brings a bunch of all new international shows across genres

To live up to the promise of bringing the best of international shows, SonyLiv, India’s first premium video on demand (VOD) service, has brought an all new line-up of shows.

iWorld Over The Top Services
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/02/19/Manish_Aggarwal-800.jpg?itok=90ndAOVP
ZEE5 targets 20x-30x increase in subscription numbers in next one year

To mark its first anniversary, ZEEL’s OTT platform ZEE5 recently announced plans to produce 72 new Originals on the platform by March 2020. Despite being part of a media and entertainment conglomerate, the super streamer continues to garner all the spotlight largely thanks to the effective progress...

iWorld Over The Top Services
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/02/18/hotstar.jpg?itok=Tbkn0-13
Monday gets happier with 'Pyaar ke Papad'

Have you spent a Monday binge watching a rom com with a twist? For the first time on Indian television, Star Bharat is taking the initiative to launch the first five episodes of its one-of-a-kind rom-com show ‘Pyaar Ke Papad’ on Hotstar.

iWorld Over The Top Services
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/02/18/amazon.jpg?itok=1u-tqDAv
Amazon Prime Video Greenlights a new prime rriginal series - Bandish Bandits

Amazon Prime Video today greenlit an all new Prime Original Series, Bandish Bandits, a romantic musical created by Still and Still Media Collective.

iWorld Over The Top Services
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/02/18/tvf.jpg?itok=NRMThEgH
TVF launches MX original series 'ImMature'

The Viral Fever (TVF), known for creating path-breaking digital content, will now extend its footprint to provide content across different platforms, kick-starting with An MX Original Series - ImMature.

iWorld Over The Top Services
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/02/15/voot.jpg?itok=bDhBAchU
Voot unveils five new short films

Deviant desires, wicked love, and tangled truths, VOOT Originals ‘SHORTCUTS’ Produced by Tipping Point, a Viacom18 Studios Production, has unveiled the next set of five short films.

iWorld Over The Top Services
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/02/15/eros.jpg?itok=WyGGqS90
Eros Now, Jean-Claude Biguine India collaborate

Eros Now, the cutting-edge digital over-the-top (OTT) South Asian entertainment platform owned by Eros International, a global Indian entertainment company, has announced a special partnership with French salon and spa chain, Jean-Claude Biguine (JCB).

iWorld Over The Top Services

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories