Airtel, Vodafone have 3G edge over other players

In contrast, Vodafone marketing head Harit Nagpal said that Vodafone has already rolled out 3G services in Egypt, parts of Africa and Turkey—markets similar to India. “With a global subscriber base of 280 million, Vodafone’s 3G expertise is unmatched. We have the capability of handling migration of customers from 2G to 3G in markets like Egypt and Turkey. We will also see such migration in India. Moreover a strong leadership presence in metro cities, will give us an advantage over others,” he said.

Interestingly, Vodafone and Bharti Airtel are competitors in India, but this has not stopped the companies from extending their alliance to markets abroad. Jersey Airtel and Guernsey Airtel, subsidiaries of Bharti Enterprises, last year entered into an agreement with Vodafone to jointly offer telecom services in Jersey and Guernsey (islands in Europe, close to UK). (Bharti was granted licenses to operate 2G and 3G mobile services in Jersey and Guernsey in 2006.)

While the two rivals have partnered globally, they may not replicate the same model in India. Meanwhile, Bharti Airtel and Vodafone will begin selling the new generation 3G-enabled iPhone from August 22. This will also give them an additional edge over other operators.

Bharti and Vodafone, which account for a significant number of the high ARPU (average revenue per user) subscribers in India, will have a further edge as a large segment of their high end users already have 3G compatible handsets.

Interestingly, the move to partner Airtel and Vodafone marks a major shift in Apple’s global strategy of ‘one country-one operator’. With India emerging as the fastest-growing cellular market, Apple wanted to maximize its exposure here as Airtel and Vodafone have a combined subscriber base of over 120 million.