4G going the 3G way?

Last week, Airtel launched its third 4G service in Pune (incidentally, Maharashtra’s first). Like it did during its 4G roll-outs in Bangalore and Kolkata, Airtel has promised fantastic upload-download speeds of 15-20 Mbps at prices ranging from Rs999 to Rs2,999.

Additional benefits included free one-month rental for a six-month plan to a free device bundled with a one-year pack and a free trial for Airtel customers. Then there are the usual 4G attractions: lightning-fast net surfing, ‘uninterrupted HD video streaming’, Airtel broadband TV and games-on-demand. To top it all, just two days before the launch, Airtel launched India’s first 4G handset.

At the Pune launch, K Srinivas, president of consumer business at Bharti Airtel, said: “We are optimistic about the traction that 4G will see in the months to come and look forward to rolling out our services in other circles soon.”

But some sceptics wonder: is 4G as it is offered in India really a steal, or is it all just hype?

According to Srinivas, the average revenue per user for 4G is already around $20. However, as of August, Airtel had only around 4,000 4G subscribers as against its seven million 3G subscribers at May-end.

This seems to beg the question whether Airtel’s 4G strategy would go the 3G way where, even after three years, the company is still struggling to make an impact.

Airtel is unfazed and intent on rolling out 4G services in Delhi and Mumbai in December, ostensibly for the first-mover advantage, even though it would be 4-5 years before there is any real return on investment.