Bharti Airtel doubles broadband speed at no extra cost

News Analysis-
India's largest private telecom service provider Bharti Airtel Ltd. has decided to double their broadband speed at no extra cost.There will be an automatic upgradation of the existing speeds ie. 256 kbps,512 kbps and 1 Mbps to 512 kbps,1 Mbps and 2 Mbps at no extra cost respectively.Bharti Airtel also launched their latest offering in the market in the form of 4 Mbps connection @ Rs.899 per month,the lowest price in the respective category in India.There are various features associated to the product such as 6 GB free download per month,no fluctuations in the speed etc.The various reasons behind launching of the product are increase in demand for high speed among Indian customers and an increase in the internet usage by 40% in India last year.Bharti Airtel is providing the service at 40-50% cheaper rate as compared to its competitors.This will help them in generating a long term benefit in the form of cost reduction.As Bharti has already gone for global collaboration with Zain telecom network in Africa,Warid in Bangladesh and has planned to integrate their telecommunication and satellite network ,such a strategic move is not a surprise.It is time to wait and watch how the other players respond to Bharti's move in order to sustain in the cut-throat competitive telecommunication market.