NEW DELHI: Bharti Airtel’s top management comments during the second quarter post-earnings analysts’ call indicates that the company sees the home broadband segment to become a significant driver of growth.
So far, the Indian fixed-line broadband segment has remained one of the smaller segments in terms of user base, with a penetration of less 10 per cent-far below comparable economies. However, with Reliance turning its focus to the under-penetrated sector with the launch of Jio Fiber, and rivals such as Airtel rushing to defend their turf, the market has been steadily heating up.
According to Bharti Airtel MD and CEO Gopal Vittal, the company is extremely bullish on the segment. “With Covid as the trigger point, we are seeing a rapid increase in work from home, in online education and in streaming services. All of these need reliable high speed broadband.
We are therefore doubling down on broadband”. He also added that Airtel had seen a surge in home broadband connections (129,000 net increase) due to these trends. With JioFiber having triggered a mild price war this summer by slashing rates sharply, Vittal pointed out that the impact of falling prices in the wired broadband segment would only be visible in the next quarter.
Airtel also had success with its pilot projects to use local cable operators for home broadband in smaller towns, he said, adding Airtel has started to offer broadband in 29 towns.
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