Airtel eyeing to take advantage of Idea Vodafone merger
The leading telecom operator Bharti Airtel is serious about taking advantage of Idea and Vodafone Merger. During the merger process and post completion of Idea and Vodafone
consolidation, there will be switching of customer to another network as there might be problems in the network.Hence, Airtel wants to make full use of this opportunity and increase their customer base while maintaining their Revenue Market Share. For this reason, Airtel has planned to invest Rs 24,000 as capital expenditure in Financial Year 2019 in order to improve the infrastructure further for providing world class service to it's customers. Airtel has designed best tarriff plans and lucrative incentives for distributors for promoting sales of it's products and services. Moreover the top management is also putting in their best efforts and for this reason MD Gopal Mittal and COO Ajai Puri are travelling all over India to motivate circle heads and other team members for working hard to capture the customer base that could switch away after Idea Vodafone Merger.After all, there would be tough competition from Jio as well.
Hence,Airtel's plan to increase the Revenue Market Share will.be backed by various attractive offers for the customers and once again The buyer will be the king.Moreover, there will be fierce competition from other leading telecom players like Jio. The market share for now according to telecom regulator is as follows:
1. Airtel - little above 31%
2. Vodafone and Idea combined - 37.5%
3. Jio - 14.5%
4. Others - 17%
Hence, we can see from.above stats that Jio would be closest competitor for Airtel in order to capture the customer base switching from result of Idea Vodafone Merger. So folks, the whole scenario would be quiet interesting to see Airtel deals with the distributors and customers. As distributors would also be expecting huge incentives from Airtel and as per Major Airtel Distributor from Metro Area, such incentives could be in form of "lump sum payouts of Rs 10,000-12,000 for achieving more number of new customer activations,First recharges of high value or even Adhar Linked Verifications." However, Airtel declined to make any comment while stating that company is observing a silent period as of now ahead of 4th quarter results.The idea Vodafone Merger is expected to end by May and as per analysts, around 400-450 bps of the RMS of the Idea-Vodafone combined.entity would be vulnerable amid network disruption because of integration process of the companies.
According to Deutsche Bank Estimates,Airtel's market share could rise from 31.8%in FY18 To 35% by FY23.Well, how Airtel will achieve their target Will depend on how all the above mentioned factors work positively for the company.As, there would be fierce competition from other companies and Jio is just one among them.Moreover, the Telecom policies also keep changing at times affecting the marketing and distribution tactics which affects sales.However, the Telecom.regulating authorities efforts to ease up process of Mobile Number Portability
Will also drive RMS gains for both Airtel and Jio.The Idea-Vodafone customers wanting to switch to Airtel can easily send 'port' message to the number designated for porting and then go to Airtel's outlet or any authorized sim card dealer.After Adhar verification the customers will get their mobile.number ported to Airtel Network.