During the recent earnings call for the second quarter ending on September 30, 2023, Gopal Vittal, the Managing Director and Chief Executive Officer of Bharti Airtel, provided valuable insights into the company’s ambitious 5G strategy, 4G network rollout plans, and customer-centric approach. Airtel’s leadership shared key perspectives on these aspects:
5G Strategy: A Bold Move
Airtel made a bold choice by adopting the Non-Standalone (NSA) architecture for its 5G deployment. This decision aligns with Airtel’s vision of offering superior coverage, enhanced customer experiences, lower energy consumption, and reduced capital expenditure. According to Vittal, this strategy has proven successful in the market.
Network Design: Engineering Excellence
Airtel strategically invested in network engineering, resulting in extensive coverage across 5000 cities and approximately 20,000 villages. Vittal emphasized that Airtel is dedicated to delivering the best 5G experience for its customers.
Standalone vs. Non-Standalone: Airtel’s Approach
Airtel clarified its stance on Standalone (SA) architecture for 5G, noting that they will consider transitioning when it becomes necessary and offers additional benefits. Currently, the company sees no compelling reason to shift to SA architecture.
Mid-Band Spectrum Advantage
Airtel enjoys a unique advantage in India due to its access to mid-band spectrum, allowing the effective use of NSA for an exceptional customer experience while maintaining control over capital expenditure.
Strategic Network Investment
Airtel’s strategy prioritizes staying ahead of market and customer demands without unnecessary capital expenditure. The focus is on providing the best user experience rather than claiming the title of the “largest rollout.”
Tariffs and Customer Segmentation
Airtel is committed to offering affordable and high-quality service, without imposing higher tariffs specifically for 5G. The company acknowledges diverse customer needs and plans to provide customized tariff plans.
Growing 5G Customer Base
Despite not currently monetizing 5G due to unlimited data plans, Airtel’s 5G network and customer base continue to expand. Airtel now boasts approximately 55 million unique customers on its 5G network across India.
Rural and Urban Expansion
Airtel is focusing on expanding its presence in both rural and urban areas. In rural regions, the company is deploying over 30,000 sites to extend coverage to around 60,000 villages. In urban areas, Airtel plans to offload significant traffic from 4G to 5G sites after the 5G rollout. This approach aligns with prudent capital allocation.
Need for 5G Applications
Vittal emphasized the need for more applications that can harness the benefits of 5G technology. Currently, fundamental use cases for 5G are limited in India and globally. The widespread adoption of 5G will depend on the development of relevant applications.
Market Approach
Airtel’s CEO expressed confidence in the company’s market approach, emphasizing that they are not in a rush to achieve the largest or fastest 5G rollout. Airtel intends to deploy 5G strategically, considering device availability and the necessity for 4G capacity offloading.
Market Share Growth
Airtel attributes its ongoing market share growth to its focused rural expansion initiatives and the ability to surpass benchmarks related to revenue per site and operating cost per site.
