A telecom giant's Everest moment

Bharti Airtel's market cap milestone mirrors India's data boom, the telco's pursuit of higher ARPU, and its steadfast industry leadership

- VERNIKA AWAL

On 19 September, Bharti Airtel, one of India’s two major private telecom operators, reached a landmark milestone of scaling a benchmark market capitalisation value of Rs 10 lakh crore, or USD 120 billion. While this pales in comparison with the staggering fact that relatively new AI upstart, the US-based OpenAI, hit a market cap of USD 157 billion in its USD 6.6 billion funding round on 3 October, Airtel’s achievement is no mean feat; it is now only the fourth company ever to reach this lofty milestone.

It also speaks volumes that, of all industries, Bharti Airtel operates in the much-debated telecommunications industry—where the margins are wafer-thin. Still, the volumes are equally high to compensate for the competitive landscape.

On this note, it is interesting to break down Airtel’s growth story in India—which offers a grand narrative of where India’s telecom industry is headed.

THE CONTEXT OF AIRTEL'S GROWTH

At the centre of Bharti Airtel’s meteoric rise is India’s surge in data traffic. Ever since the advent of Airtel’s rival, Reliance Jio, in the market, data costs have declined exponentially. As per a recent press conference by Union Communications Minister Jyotiraditya Scindia, data services have become cheaper by nearly 97% over the past decade.

Yet, over the past year, telcos have consolidated to ward off newcomers in the telecom market and also continue on their stipulated growth trajectory.