Airtel, one of India’s largest telecom companies, is shifting its focus away from being a telecom provider, according to chairman Sunil Mittal. Instead, the company will be more involved in the digital services space, including entertainment, e-commerce, and fintech. Mittal made the comments during the company’s annual general meeting. He said that the telecom sector was “not a great space to be in” and that the company was “pivoting to other businesses.” The shift is part of Airtel’s broader strategy to diversify its revenue streams and reduce its dependence on the highly competitive telecom market.
The company has already made significant investments in digital services in recent years, including acquiring a stake in digital payments platform Paytm and launching its own digital entertainment platform, Airtel Xstream. The company has also partnered with e-commerce giant Amazon to offer Amazon Prime memberships to its customers.
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Mittal said that the company’s foray into the digital services space was a natural evolution for Airtel, given the rise of internet usage and the increasing demand for digital services. He said that the company was well-positioned to leverage its customer base and network infrastructure to offer a wide range of digital services.
Despite the shift in focus, Airtel’s telecom business remains a significant part of the company’s operations. The company is investing heavily in upgrading its network infrastructure to support the growing demand for data services, particularly in rural areas where internet penetration is still low.
The company’s decision to pivot away from telecom has been met with a mixed response from analysts. Some have praised the move, saying that it is a smart strategy given the challenges facing the telecom sector. Others have raised concerns about the potential risks of diversifying into unfamiliar business areas.
For Airtel, the move into digital services is a calculated bet that the future of telecom lies not in traditional voice and data services but in the broader digital ecosystem. With its deep pockets and vast customer base, the company is well-positioned to become a major player in the digital services space. Only time will tell if the bet pays off.
