- January 16th, 2012
- Dafiq Hussein
India has been the centre of much controversy in the world of telecommunications recently due to the ongoing scandal case, however, today we are bringing you some positive Indian telecoms news. That is the news that a new deal has been struck between Bharti Airtel and Mogae Media.
Bharti Airtel is a rather large telecommunications firm with operations in 19 countries across Asia and Africa.
Bharti Airtel has announced that it will outsource all its advertising inventory management and mobile-commerce initiatives to Mogae Media. This will mean that Mogae Media will sell all possible advertising space on mobile, DTH and broadband services. Mogae Media is a firm that is being promoted by former Dentsu India Chairman, Sandeep Goyal, who confirmed the deal but would not reveal any financial details.
Analysts have suggested that this is the first time a telecoms service provider has collected and outsourced the entire advertising inventory in the country, and Prashant Singhal, the telecoms leader at Ernst & Young, has been commenting: “No one has done that in India so far.”
Mr Singhal went on to add the following: “The model has high potential since the mobile phone is the only medium to reach out to 800-900 million people.”
Furthermore, an analyst has said that Bharti Airtel could now generate around 40-50% of the industry’s revenue based on the pure enormity of its post-paid customer base. Who knows whether this will lead to Bharti Airtel lowering their rates? This could in turn lower rates when making cheap calls to India.
It has also been announced that Bharti Airtel’s deal with Mogae will work on a revenue-sharing model, whilst a spokesman for the telecoms firm said that the company would not comment on market speculations and partner relationships.
This deal is a first in the Indian telecoms industry, and it will be interesting to see the difference it will make to Bharti Airtel’s operations.