Lack of stability at telecom operators such as Reliance Communications and Tata Docomo has the potential to assist Bharti Airtel, Vodafone and others to improve their revenue from enterprise communications market.
Tata Teleservices recently announced its decision to sell its mobile business in 19 telecom circles to by Airtel. Tata Teleservices customers will start transitioning to the Airtel mobile network under an Intra Circle Roaming (ICR) arrangement. TTSL customers in UP (West), Bihar, and West Bengal will be shifting to Airtel network now and customers in other circles will join gradually.
Tata Teleservices is not selling its enterprise business to Airtel. Tata Teleservices has nearly 1,800 employees in its enterprise business division with strong presence in more than 60 cities across India.
Reliance Communications is stopping its 2G and 3G services and will focus on 4G services in India. Reliance Communications will continue to focus on enterprise business for both Indian and foreign countries.
Vodafone and Airtel are the two top telecom operators who can sign business customers from Tata Docomo and Reliance Communications.
Vodafone India has generated total service revenue of INR 19,002 crore during the first half of fiscal 2018. Vodafone Business Services now contributes to 19 percent of service revenues.
Airtel generated INR 5,601.8 crore revenue enterprise business services in the first six months of fiscal 2018. Airtel has made an investment of INR 344 crore in its enterprise business. Airtel business has 1,743,000 enterprise customers in India.
Airtel Business segment reported revenue of INR 2,823 crore against INR 2,981 crore in the same quarter last year, showing a decrease of 5.3 percent. Reduction in low margin revenue streams has led to net revenue growth of 6.6 percent.
Airtel’s enterprise mobile revenue was INR 2,750 crore in the second quarter, representing 16.4 percent of the total India revenue.
Vodafone Business Services recently said it is growing more than the industry growth, led by strong enterprise portfolio catering to large enterprises, SME, Start Up and Government segments.
Vodafone has presence in the Indian Internet of Things (IoT) solution market. It is also investing in Cloud (SaaS) with the addition of Workforce Essentials and Vodafone CRM. Smart city is a focus area for Vodafone.
Vodafone Business expanded wireline services with the introduction of SuperWifi, enterprise grade managed wifi service and recently launched Ready Start-up proposition for start-ups.
Airtel focuses on providing fixed line, data and voice, wholesale voice and data to enterprise users.
Airtel is also offering fixed-line voice (PRIs), data and other connectivity solutions like MPLS, VoIP, SIP trunking. Airtel offers audio, video and web conferencing solutions.
Airtel says Cloud portfolio is also an integral part of its office solutions suite, which offers Storage, compute, Microsoft office 365, ecommerce package through shopify and CRM packages on a pay as you go model.
Airtel has submarine cables and satellite network enabling its business customers to connect across the world. Airtel said its network runs across 250,000 Rkms, covering 50 countries and 5 continents.
Global Cloud Xchange (GCX), a subsidiary of Reliance Communications, offers solutions customized for carriers, enterprises and new media companies. GCX owns 67,000 route kms of undersea cable system integrated with Reliance Communications’ 200,000 route kms of domestic optic fiber backbone.