Airtel Partners with Microsoft Teams for Integrated Calling, Raises Mobile Money Fees
Bharti Airtel, India’s premier communications solutions provider, made two major announcements that will significantly impact its business and customers.
First, Airtel has collaborated with Microsoft to integrate calling capabilities into Microsoft Teams. This allows enterprises to make and receive calls through Teams using Airtel’s network. The integration, called Airtel IQ for Microsoft Teams, is a plug-and-play solution requiring minimal setup. Organizations can eliminate the costs of purchasing additional hardware since Airtel’s network handles call routing.
Airtel IQ brings the telco’s connectivity together with Microsoft’s technologies for improved reliability, cost savings, ease of management, and scalability. The service resolves significant pain points enterprises face regarding managing platforms for IP telephony and collaboration. It also provides flexibility for remote work and lessens the need for major capex investments for uniform collaboration.
Secondly, Airtel increased fees for certain Airtel Money mobile financial transactions. The hikes come after the government implemented a 15% excise duty tax on fees charged for money transfers by mobile operators.
For cash withdrawals of Ksh101-500 ($1-$5) across networks, the fee rises from Ksh22 to Ksh25 ($0.22 to $0.25). Free Airtel to Airtel transfers remain unchanged. But sending Ksh501-1000 ($5-$10) now costs Ksh11, up from Ksh10.
Withdrawing Ksh501-1000 from Airtel Money agents increases from Ksh23 to approximately Ksh25. The managing director of Airtel Money Kenya said, despite the increases, Airtel’s rates remain affordable compared to competitors. She reaffirmed Airtel’s commitment to delivering unmatched customer experiences through innovative solutions.
The fee hikes come as Airtel Kenya reported a Ksh1.7 billion net loss in 2021, 7.7% larger than 2020’s Ksh1.6 billion deficit. This occurred despite higher total revenues.
Experts say the Airtel-Microsoft partnership creates a more robust, cloud-based communications system for enterprises. But the mobile money fee increases could discourage user adoption if too expensive long-term.
Overall, the two moves show Airtel prioritizing high-margin corporate customers over consumer mobile financial services. The coming months will indicate whether this strategy successfully grows revenues.
Airtel continues cementing itself as an innovator in India’s telecom market. The Microsoft Teams integration competes with Jio’s partnership with Meta for video calling via WhatsApp. Airtel’s spectrum acquisitions over the past year also ready it for 5G services.
But like other Indian carriers, Airtel must balance revenue growth with affordable offerings for the price-sensitive Indian consumer. As it expands upmarket corporate solutions, the telco cannot risk alienating its core subscriber base.
The coming year will test Airtel’s skill at threading this needle. Its management acumen in balancing high-end and low-end customers will determine if the company can achieve sustainable long-term profitability.