After the successful rollout of 5G services for mobile users, Airtel is strategically shifting its focus to industrial G for future growth. Recognizing that innovations in the mobile space have reached a plateau, the telecom operator sees the potential for significant advancements in industrial applications, particularly in the Internet of Things (IoT) arena. A top source at Airtel emphasizes that instead of concentrating on 6G, the emphasis should be on industrial G, tapping into the opportunities presented by IoT and the ongoing deployment of a digital infrastructure.
While both Reliance Jio and Bharti Airtel are expected to complete the rollout of their 5G networks by the end of the year, direct-to-customer use cases on the 5G network are yet to materialize substantially. Airtel’s next-generation IoT business is reportedly experiencing the fastest growth among all verticals in its B2B (business-to-business) segment. Although IoT is currently smaller in scale compared to Airtel’s communication business on the enterprise side, it represents the fastest-growing segment.
Airtel is actively developing cloud computing and analytics capabilities within its IoT business, along with essential APIs that facilitate the integration of small startups and enterprises into Airtel’s IoT ecosystem, contributing to the end-use case. Instead of creating specific 4G and 5G use cases in the enterprise domain, the company is strategically focused on building platforms capable of accommodating final solutions, according to industry sources.
As Airtel completes the nationwide rollout of its 5G network, there is an anticipation of a reduction in its capital expenditure (capex) for 5G by the next year. While sources indicate that Airtel has entirely shifted its capex focus from 4G to 5G, the company does not foresee meaningful end customer or business-to-consumer (B2C) use cases for 5G in the immediate future.
In a bid for innovation during this relatively subdued phase in the telecom space, Airtel is exploring the creation of a data layer or platform that consolidates all of its digital capabilities, including payments and billing. This initiative aims to enhance customer accessibility to Airtel’s diverse digital services. Sources reveal that Airtel’s digital businesses, such as Airtel’s Payments Bank, Airtel’s CPaaS (Communication Platform as a Service) solution Airtel IQ, its data center business, and cybersecurity business, collectively contribute nearly ₹4,000 crore to the company’s revenue. Notably, this digital segment is also the fastest-growing segment for the telecom operator, accounting for ten percent of its incremental growth.
