Wednesday, January 18, 2012

Positivity for Indian Telecoms

India has been the centre of much controversy in the world of telecommunications recently due to the ongoing scandal case, however, today some positive news has been announced. That is the news that a new deal has been struck between Bharti Airtel and Mogae Media. This deal is a first in the Indian telecoms industry, and it will be interesting to see the difference it will make to Bharti Airtel’s operations.

Bharti Airtel has announced that it will outsource all its advertising inventory management and mobile-commerce initiatives to Mogae Media. This will mean that Mogae Media will sell all possible advertising space on mobile, DTH and broadband services. Mogae Media is a firm that is being promoted by former Dentsu India Chairman, Sandeep Goyal.

It was reported that Goyal confirmed the deal but would not reveal any financial details.

Analysts have suggested that this is the first time a telecom service provider has collected and outsourced the entire advertising inventory in the country.

Prashant Singhal, the telecom leader at Ernst & Young, has been commenting: “No one has done that in India so far.” Mr Singhal went on to add the following: “The model has high potential since the mobile phone is the only medium to reach out to 800-900 million people.”

Furthermore, an analyst has said that Bharti Airtel could now generate around 40-50% of the industry’s revenue based on the pure enormity of its post-paid customer base. Who knows whether this will lead to Bharti Airtel lowering their rates, or whether it could in turn lead to lower rates when making cheap calls to India?

It has also been announced that Bharti Airtel’s deal with Mogae will work on a revenue-sharing model, whilst a spokesman for the telecommunications firm said that the company would not comment on market speculations and partner relationships. 

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