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They, however, said that Airtel<\/a> will have to rely on its hardware partners to enable overall device affordability, which is going to be challenging at a time when supply chain issues are persisting at the global level.
Airtel<\/a> is focusing on lending and alliances for smartphone affordability and will bring software capabilities for cashback and incentives. It wants to partner with device makers and ecommerce companies for availability, Airtel CEO Gopal Vittal said, adding that Airtel is using its own data models to predict which customer is going to upgrade.
Vittal clarified that it has no plans to build its own device and has intentions to partner with OEMs.
\"For enabling India’s first time digital consumers to connect to the digital mainstream in vernacular languages, affordable smartphones are key. This is where Airtel will benefit from Google<\/a>’s tailored-for-India software expertise, in solving India's unique challenges,\" Prabhu Ram, Head – Industry Intelligence Group at CMR told ET.
While Airtel will benefit from Google's software expertise, it will depend on how Airtel works with its hardware partners to enable overall device affordability,\" Ram added.
Counterpoint Research's Tarun Pathak said that Airtel and Google might take an indirect approach to Android One-like strategy which didn't work in the past. \"The only way entry level phones can sell well is through bridging the affordability part like being locked in through an operator and paying in EMI with data bundling.\"
Pathak said that the Sunil Mittal-led telecom operator might also come up with soft-SIM bundling partnerships with Chinese players, a move adopted by the telco's bitter rival Reliance Jio<\/a> before the launch of the JioPhone Next smartphone. \"..hardware is difficult to crack, hence partnerships with OEMs with Google's help is a better route for Airtel.\"
According to a Mumbai based senior telecom analyst, the three telcos are finding it difficult to convert the next 100million-150 million subscribers into 4G.
\"No matter what the telcos say, affordability is a big barrier as an entire family is not upgrading their phones and price plans. In low income groups it is typically the bread earner who moves to higher price plans. The prepaid tariffs have gone up and although they are much lower than the 2016 levels, expenses have shot up in other arenas which will mean lower spends on mobile phones. The uptick data consumption does not mean moving up the 4G chart,\" the analyst told ET.