Whalesbook
Bharti Airtel's new "Priority Postpaid" plans represent a significant move to create a premium tier for its 5G services by employing network slicing. This technology allocates dedicated bandwidth and prioritizes traffic, potentially setting a new standard for mobile service delivery.
Dedicated Network Access
Shashwat Sharma, MD and CEO of Bharti Airtel India, described "Priority Postpaid" as an innovation powered by 5G slicing. It aims to provide customers with a more stable and dependable connection, which is essential for business calls, streaming live events, or using data in busy urban areas. The telecom industry is exploring network slicing for various 5G uses, including fixed wireless access and improved mobile services, positioning Airtel to offer a prioritized "fastlane" to its key users.
Boosting Efficiency and Capacity
Airtel's network upgrade is designed to improve efficiency and capacity. By segmenting network resources, the company can dedicate more power to priority customers, ensuring consistent service even when the network is busy. This targeted resource allocation is expected to enhance the overall performance and reliability of its 5G network for this customer segment.
Global Practices and Pricing
Network slicing is already in use globally in countries like the US, Singapore, the UK, and Malaysia. Airtel's new plans are priced from Rs 499 to Rs 1,749 (excluding GST) and include bundled subscriptions to streaming services such as Amazon Prime and Netflix. Some plans also offer Apple TV+ and JioCinema, reflecting a growing trend of adding value through bundled services in the competitive telecom market.
Net Neutrality Concerns
Tiered network access through slicing raises questions about net neutrality. Experts suggest that prioritizing overall speed for a group of users might not violate principles, but differentiating pricing for app access or specific app speeds would be problematic. A key concern is whether this prioritization could lead to a reduction in service quality for non-priority Airtel subscribers, which regulators and consumers will likely monitor.
Competitive Landscape
As Bharti Airtel introduces this strategy, competitors like Reliance Jio and Vodafone Idea are also investing in their 5G infrastructure. The success of Airtel's Priority Postpaid will depend on its ability to prove superior performance and manage any negative reactions to service tiers. Competitors are also looking at differentiated service models. India's telecom market is growing strongly, driven by 5G adoption. However, maintaining profitability relies on average revenue per user (ARPU), and service differentiation could be a strategy for increasing ARPU from premium offerings.