Tuesday 14 April 2015

Double whammy for telco

Flipkart's walkout from the Airtel Zero plan stunned the country's biggest mobile operator and came as a shock at a time when it was preparing to steadfastly hold on to the scheme - seen to be in violation of the principles of net neutrality - despite mounting criticism both online and offline.

While the company sought to put up a brave face in the wake of Flipkart's withdrawal and blamed it on "some misconceptions", sources said the telecom major is worried about the fallout of the development, especially as its brand is being dubbed by some as regressive and anti-net freedom in today's age of viral social media campaigns.
 
Airtel, however, hasn't taken its controversial Airtel Zero plan off the market. "Airtel fully supports the concept of net neutrality. There have been some misconceptions about our toll-free data platform - Airtel Zero. It is a not a tariff proposition but an open marketing platform," it said in a statement. A source said Airtel is still trying to stitch up alliances with companies for Airtel Zero hoping it may be able to gather some support around it.

This is the second major reversal for Airtel in recent times. Last December, the company had to pull the plug on its plans to charge higher tariffs for internet telephony or calls made through services like Skype, Viber and Line. It did this after a severe hammering on social media platforms and because none of its telecom peers such as Vodafone or Idea Cellular was ready to join its ranks.


Sources said that top Airtel officials are "in a huddle" to assess any possible damage to its brand from the fiasco. Its marketing and advertising campaigns have regularly focused on the younger generation and company insiders feel its recent moves may have dented its image in this critical gen-next segment.

Viral campaigns on social media platforms and criticism of Airtel Zero have the potential to wean some of its lucrative, high data-consuming customer base towards its rival.

Industry analysts expressed surprise over the company's plans to introduce the Airtel Zero package at a time when Trai and the telecom department are studying threadbare the concept of net neutrality.


Some analysts said Airtel should have been cautious after the widespreadcriticism it received following its internet telephony plan. "The least it could have done is to wait for the Trai recommendations as well as the findings of the DoT committee," a top industry official said.

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