Airtel will beat JIO? What no one is Telling you about the Jio vs Airtel vs Tata Telecom Wars!
Think School・18 minutes read
Airtel has shown resilience in the Indian Telecom industry, transitioning from losses to profits, outperforming Jio in revenue, and focusing on high-value customers to enhance service quality and capture valuable postpaid customers. Airtel's strategies target quality customers with high purchasing power through services like Airtel fiber, postpaid plans, and family bundles at slightly higher prices than Jio, showing significant growth and profitability despite challenges in the market.
Insights
- Airtel's remarkable turnaround from significant losses to substantial profits in FY21 showcases its resilience and strategic prowess in the intensely competitive Indian Telecom market.
- Airtel's strategic focus on high-value postpaid customers, commitment to customer experience, and targeted pricing strategies differentiate it from Jio, emphasizing quality over quantity in its pursuit of sustainable revenue growth.
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Recent questions
How did Airtel perform in FY21?
Airtel transitioned from 12,000 crores in losses to 8,305 crores in profits in FY21, surpassing Jio in revenue in FY23. Despite facing challenges in the Indian Telecom space, Airtel showed resilience and significant growth, marking a successful comeback post-2016 Telecom shock.
What is Jio's strategy for customer acquisition?
Jio targets dark TV homes with its Jio Phone strategy, providing affordable smartphones and services to tap into a vast customer base. By offering cost-effective solutions, Jio aims to attract a wide range of customers and expand its market presence.
How does Airtel differentiate its customer base?
Airtel focuses on high-value customers by prioritizing postpaid subscribers over low-value users. By offering family plans, strategic pricing, and emphasizing customer experience, Airtel aims to capture valuable postpaid customers with high purchasing power.
What is the focus of Airtel's B2B service wing?
Airtel's B2B service wing caters to large businesses like SBI and HDFC, generating 2.2 billion dollars in revenue as of March 2023. With a market share of 33.67% in Enterprise connectivity, Airtel focuses on providing reliable and efficient services to meet the needs of corporate clients.
How do Airtel and Jio target home broadband customers?
Both Airtel and Jio aggressively target home broadband customers due to the potential average revenue per user of over 1000 rupees. While Jio leads in optical fiber coverage and home connections, Airtel focuses on quality customers with high purchasing power, offering premium services at slightly higher prices.
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Summary
00:00
Airtel's Resilience and Strategic Growth in Telecom
- Indian Telecom space has seen intense competition in the past seven years, with Jio's entry leading to mergers and exits of major players like Vodafone Idea, BSNL, Telenor, and Aircel.
- Airtel emerged as a resilient player, showing significant growth and profitability despite challenges.
- In FY21, Airtel transitioned from 12,000 crores in losses to 8,305 crores in profits, outperforming Jio in revenue in FY23.
- Airtel's stock price has consistently outperformed Nifty over the past six quarters.
- Airtel's successful comeback post-2016 Telecom shock raises questions about its strategies and study materials for understanding the business war better.
- Growth School offers free workshops for individuals seeking to enhance their skills and stay ahead in their careers.
- Understanding the Indian market's video consumption segments is crucial for comprehending Airtel and Jio's business strategies.
- Jio targets dark TV homes with its Jio Phone strategy, offering affordable smartphones and services to tap into a vast customer base.
- Airtel focuses on high-value customers, weeding out low-value subscribers and prioritizing postpaid customers for revenue growth.
- Airtel's emphasis on customer experience, family plans, and strategic pricing reflects its commitment to capturing valuable postpaid customers and enhancing service quality.
14:13
Telecom Giants Battle for Premium Customers
- Airtel offers two Sims at 499 and 4 Sims for 6.99, while Jio provides two Sims for 599 and 4 for 9.99, targeting premium customers in the postpaid segment.
- Both Airtel and Jio aggressively target home broadband customers due to the potential average revenue per user of over 1000 rupees, with Jio ahead in optical fiber coverage and home connections.
- Airtel focuses on quality customers with high purchasing power, offering Airtel fiber, postpaid, and family plan bundles at slightly higher prices than Jio.
- Airtel's B2B service wing caters to giant businesses like SBI and HDFC, reporting 2.2 billion dollars in revenue as of March 2023, with a market share of 33.67% in Enterprise connectivity.
