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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