In Short:
India’s top telecom companies, Reliance Jio and Bharti Airtel, are intensifying competition in the business-to-business (B2B) segment, with Vodafone Idea also involved. Jio focuses on enterprise growth through services like Cloud and IoT, while Airtel implements a strategic plan to boost its B2B offerings. The market aims to expand into small and medium businesses, enhancing services beyond just connectivity.
Intensifying Competition Among Telecom Giants
NEW DELHI: The competitive landscape within India’s business-to-business (B2B) segment is poised for significant changes as major telecom operators Reliance Jio and Bharti Airtel intensify their efforts, with Vodafone Idea (Vi) also entering the fray. Jio has articulated its strategy of actively displacing competition in the enterprise sector, while Airtel has implemented a comprehensive three-pronged “structural action plan” aimed at capitalizing on B2B opportunities. This shift suggests that the forthcoming rivalry between these leading players will predominantly manifest outside the consumer mobility domain, aligning with their aspirations to evolve into ‘technology companies’ or techcos.
Growth Drivers in Enterprise Business
The ongoing growth of enterprise business for private carriers is largely fueled by advancements in Cloud computing, Internet of Things (IoT), and Software-Defined Wide Area Networking (SD-WAN). These operators are also extending their reach to cater to small and medium businesses (SMBs) and enhancing their connectivity services. Neil Shah, Vice President of Counterpoint Research, mentioned, “The enterprise revenue potential is significant for telcos if they become techcos, and we are already witnessing this shift with Bharti Airtel and Jio.”
Execution Challenges and Opportunities
Despite the promising landscape, Shah noted that most telecoms struggle with execution in delivering intelligent, connected solutions across various sectors, rather than focusing solely on connectivity. Interestingly, 5G has not been prominently featured in these discussions, despite its low latency and high-bandwidth capabilities that suit enterprise needs.
Anshuman Thakur, Head of Strategy at Reliance Jio Infocomm, stated during the company’s Q1FY25 post-earnings analyst call, “We are now successfully displacing competition wherever we are getting opportunities… we have expanded our wallet share beyond connectivity.” He emphasized that Jio is witnessing growth in value-added services, such as cloud solutions and IoT applications, particularly within the education, manufacturing, and hospitality sectors, as well as in the financial services industry.
Airtel’s Strategic Initiatives
Meanwhile, Airtel’s structural action plan aims to revamp its go-to-market (GTM) strategy, enhance infrastructure, and strengthen digital product capabilities, thereby reinforcing core connectivity and managed services for greater customer retention. Gopal Vittal, the company’s MD & CEO, has echoed these sentiments, indicating an increase in sales capacity and digital tools to bolster the expansion of SMB coverage nationwide.
Collaborations and Future Outlook
Airtel is also engaged in co-developing an end-to-end managed service offering in collaboration with global partners, integrating connectivity with SD-WAN solutions. Additionally, a recent partnership with Google Cloud aims to deliver a suite of cloud-managed services to a diverse clientele of over 2,000 large enterprises and one million emerging businesses. Notably, Airtel’s B2B unit, Airtel Business, reported an 8% year-on-year revenue growth, reaching Rs 54,765 million in Q1FY25.
For Vodafone Idea, CEO Akshaya Moondra emphasized the importance of the enterprise sector, leveraging existing relationships with clients and the expertise of Vodafone Group Plc. “Our evolution from telco to techco for our enterprise offerings is progressing successfully,” Moondra remarked, noting their strategic expansion beyond traditional services into areas such as hybrid SD-WAN, IoT, and Cloud services.
Market Potential and Future Strategies
According to Counterpoint, telecom operators have lucrative opportunities to partner with vendors for solutions across cloud, software, and application services. Exploring key enterprise verticals—like retail payments, smart utilities, and public sectors—could potentially add $100-$500 million annually to telecom revenues. As 5G technology matures, discussions around its applications for enterprises are anticipated to gain traction in the coming years, particularly as the rollout of 5G standalone (SA) is implemented more broadly.
