Is Bharti’s virtual MNO model a glimpse of the future?
Faced with limited disposable income from India’s population, Bharti Airtel has had to develop a new business model to drive down costs to support new subscriber adds. “The lowest tariffs in the world needs the lowest costs in the world,”Kohli said, adding that: “The lowest cost needs the highest degree of innovation to sustain growth.” The basic premise of Kohli’s strategy is not to optimise its own operations and streamline its cost base, but instead to go to its vendors for the ask. Instead of buying equipment, building networks and the maintaining services, the operator now lets its vendors do all the work, while ironing out a new model for payments. Using the size of its customer base – and its potential – as a bargaining chip, Bharti has managed to negotiate a whole new model for outsourcing services, one that is based on usages, quality and performance KPIs, one that also encompasses its entire back-end infrastructure, including IT and customer service. According to Kohli, the n
