Bharti Airtel, the pioneers of a new business model in telecom industry – Outsource network operations to third party has take an new step this time again. Wireline [includes Broadband] CAPEX is likely to be outsourced to Alcatel Lucent. Wireline as a segment is on decline in India and Wireless has all the momentum for Voice and Wireline is mostly used for DSL Internet access.
This is a good news that folks at Airtel have finally realized the strength of broadband for the company’s bottomline as ARPUS have started falling in the Cellular business. This is also a blessing for the ailing Alcatel Lucent to make some money.
Going forward we believe that the Emerging Markets will offer substantial business to Western Telcos as the latter have the technology and the complete know how about the next generation networks. You can recollect how Sprint-Nextel in it capacity is acting as a consultant to push wireless internet in India.