Airtel is not in a hurry, will wait and watch Reliance Jio’s tariff plans before changing its rates
Advertisement
Bharti Airtel is waiting for Reliance Jio’s welcome offer to end and see its tariff plan. Airtel is in no hurry and will change its pricing of services after Reliance Jio makes a move.
Airtel India CEOGopal Vittal told ET amid pressures on pricing and realisations due to the entry of Jio, Airtel is still adding to its revenue market share, and expects to gain more in the quarters ahead.
"Right now, the new entrant is offering stuff completely free and at some point they will begin to price it, because you can't endlessly give free services, and that time we will look at what the right pricing should be,” Vittal told ET.
Reliance Jio’s 'welcome offer' will conclude by December end.
"The new entrant, which is well capitalised, will look at pricing as a lever. We need to be competitive and need to see what we can do internally to our processes to reshape customer experience, strip out waste, among other things,” Vittal told ET.
Meanwhile, Airtel is going to focus on retaining its high ARPU customers-those contributing 1.5 times its current ARPU of around Rs 190.
"In all industries, businesses, 20% of customers account for 60% of revenue, that's no different in our business. Identifying that 20%, making sure that churn is low and we get a disproportionate share of their wallet, is very important,” he said.
"We have to do all of these things to win, in a competitive dynamic,” said Vittal.
Advertisement
Airtel India CEO
"Right now, the new entrant is offering stuff completely free and at some point they will begin to price it, because you can't endlessly give free services, and that time we will look at what the right pricing should be,” Vittal told ET.
Reliance Jio’s 'welcome offer' will conclude by December end.
"The new entrant, which is well capitalised, will look at pricing as a lever. We need to be competitive and need to see what we can do internally to our processes to reshape customer experience, strip out waste, among other things,” Vittal told ET.
Advertisement
"In all industries, businesses, 20% of customers account for 60% of revenue, that's no different in our business. Identifying that 20%, making sure that churn is low and we get a disproportionate share of their wallet, is very important,” he said.
"We have to do all of these things to win, in a competitive dynamic,” said Vittal.
Advertisement
- I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
- Saudi Arabia wants China to help fund its struggling $500 billion Neom megaproject. Investors may not be too excited.
- Colon cancer rates are rising in young people. If you have two symptoms you should get a colonoscopy, a GI oncologist says.
- FSSAI in process of collecting pan-India samples of Nestle's Cerelac baby cereals: CEO
- Narcissistic top management leads to poor employee retention, shows research
- Audi to hike vehicle prices by up to 2% from June
- Kotak Mahindra Bank shares tank 13%; mcap erodes by ₹37,721 crore post RBI action
- Rupee falls 6 paise to 83.39 against US dollar in early trade