Demand is softening for Bharti Airtel, but the company expects a rebound in June.

In the fourth quarter, there was also a higher level of competition among operators for new customers. The organisation is “in sourcing” its entire SME sales force, which was previously outsourced, for the enterprise market.

During the second wave of Covid, Bharti Airtel, the country’s second-largest telecom operator, is experiencing some softening of demand. As migrants return home, resulting in SIM consolidation and reduced new customer acquisition as most physical stores are closed.

Bharti, on the other hand, anticipates a rebound in June. Gopal Vittal, MD and CEO, India and South, said there was a lot more fear and insecurity during the second wave, and 90 percent of India was in complete lockdown, with a decline in economic activity, during an analyst call following the company’s Q4 performance.

Business connectivity was a priority for the company. Over 55 million low-income customers will receive a free Rs 49 bundle, according to the company. The pack includes Rs 38 in talktime and 100 MB of data with a 28-day validity period. Rivals Reliance Jio and Vodafone Idea have both made similar deals to their low-end customers. At the height of the pandemic last year, all of the telecom operators offered similar deals to their low-end customers, as most of the recharge stores were closed.

The capex for FY21 was Rs 19,200 crore. While capex will remain unchanged, as the organisation prepares for 5G, further investments will be made in the transportation network as well as broadband. Capex for 4G radio has started to level off. With over 3 million subscribers, the company’s wireline broadband sector is gaining momentum.

In the next few years, the company hopes to have 20-25 million home broadband subscribers. Although the company’s average revenue per user (Arpu) for home broadband fell marginally to Rs 684, owing primarily to the Rs 499-entry level package, it does not anticipate any further dilution in the future.

In the fourth quarter, there was also a higher level of competition among operators for new customers. The organisation is “in sourcing” its entire SME sales force, which was previously outsourced, for the enterprise market.

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