Surely a great news for telecom startups – Bharti Airtel has launched telecom innovation fund with an initial corpus of Rs. 200 crores.
The objective of the fund is to provide opportunities to the entrepreneurs to undertake innovation in the field of telecom with regard to content, software and technologies – ET
This is definitely a great initiative for Airtel to tap on increasing entrepreneurial efforts in Telecom Industry, but at the same time, it would be great if Indian telecom operators go ‘easy’ on money sucking deals with startups/smaller players (ask any VAS content player for details).
What’s your opinion?
Related: OnMobile’s Developer Network
it would be better if Airtel and other ISP share more revnue with VAS content player, the way Docomo is doing Japan.
for eg:
” If a user downloads a game from an i-mode site, for example, Docomo keeps about 10% of the fee for itself. The content provider gets the rest, while the user conveniently pays the total via the monthly phone bill.
This means the business of operators and content providers alike is based on a 3-pillar kiosk model.
Carriers provide:
stable connectivity and technical infrastructure
system of timely and correct payment flows (for subscribers and content providers)
willingness to share revenues” src
A gr8 move by Bharti…..After blunderous iphone launch(with senseless price and data plans),they have done something really gud for themselves
rightly said mahesh – rather than try the investment route – airtel could try the higher rev-share route, and innovation would automatically follow – this is the least risky way to enhance value to all in the value chain. investing in telco businesses without making any structural changes might not do the entire ecosystem a lot of good.
of course, structural changes happen at an industry level and not at an individual player’s – all that might take time – so i guess airtel’s done its bit here!
Guru ,Mahesh
I guess increasing revenue share is not the right way . it will be like redistributing the Fixed Pie . Whats needed is something which increases the size of pie . this initiative will if executed well might bring a lot of shakeup in Mobile industry . but again i don’t know the details/fine prints . will they create a silo for Airtel only distribution/ deal ? any info abt that ?
Its a good move no doubt.
Absolutely agree with Ashish regarding the VAS revenues almost 80% of the money is taken by the operator just for providing the service which is ridiculous.
If there is less rev sharing among vas players, how one could survive, and there will be less no. of mobile startups, because if wannabe entrepreneur want to start mobile startup he will think twice before doing so because he has to share 80% of money with these ISP and with 20% of money he cant do anything more. This is exactly opposite to Japan’s Docomo which keeps only 10%.
If ISP shares more rev with VAS players there will more startups in VAS area and if airtel starts sharing more rev with vas players then chances are airtel will get more customer base because there will more vas players under airtel umbrella
and there will more startups which will support airtel because airtel will share more rev than other isp’s.
Its all about content in Mobile Era, if less content, then there will less usage of GPRS mobile phones and there will less startups in mobile area.
Correct me if i am wrong in the above words
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For further info Download Case Study of DoCoMo.
Its really aasam decision for new enterpreuners
ONE WAY FOR VAS PLAYER TO MAKE MORE MONEY = MNP
With mobile number portability, users will gravitate to the carrier that offers better value. The new carriers (e.g., Loop, Datacom, Unitech, S Tel and Swan) can increase the payout % to VAS. The VAS player can reduce the price that has to be paid by customers. This will result in customers gravitating to the new carrier. All three win (VAS player, customer and new carrier). It’ll be a great way for the new carriers to increase customers, for VAS to make more money and for customers to lower costs (of using VAS).
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