Airtel?s Dual Carriage technology: A response to Reliance Jio?

By Rahul Gupta

Through a statement released on 16 January 2017, Airtel deployed a ‘Dual Carriage’ technology across Delhi-NCR under the auspices of Project Leap. This Project is Airtel’s bid to comprehensively overhaul its network capacity and consumer experience. Formally announced on 30 November 2015, it declared an INR 60,000 crore investment in ‘comprehensive network transformation’.

What does ‘dual carriage’ mean and how is it achieved?

Dual carriage will allow consumers to access 4G-like speeds on regular 3G networks. Thus, it will allow more people to utilise 4G speeds without having to alter their handset or SIM card.

It is achieved by simultaneously using two 5Mhz blocks for data transmission.

Data is uploaded or downloaded not as a whole but as various “packets”. Using standard technology, only one block is used for transmission at a time. Often one block is utilised more than the other. Dual carriage makes coordination between different blocks possible. By spreading the load it becomes possible to achieve greater internet speeds. Additionally, it also improves the battery quality of the devices by improving terminal capability.

Jio’s disruptive effect

[su_pullquote align=”right”]The move can be interpreted as a response to Reliance Jio, which offers 4G data free at an incredibly competitive price.[/su_pullquote]

Airtel’s commitment to continuously improve the quality of its existing networks is commendable. The move can be interpreted as a response to Reliance Jio, which offers 4G data free at an incredibly competitive price. It can be understood as an attempt to adapt to the disruptive climate that Jio has created. Idea, Airtel and Vodafone initially responded to Jio by slashing tariffs.

Reliance Telecommunications and Aircel merged in order to remain competitive in the sector. Experts predict even more mergers in 2017.

Jio was launched in September 2016 with much fanfare. The network boasted of connectivity across 18,000 cities and 2 lakh villages. It has committed to over ninety percent connectivity pan-India by March 2017. The network is 4G only, with voice calls being routed via LTE (long-term evolution). It is completely free until 31 March 2017. This “welcome offer” was to allow people to jump on to the network at no cost. After its release, other telecom operators saw a fall in their stock prices, indicating a significant disruptive effect.

Jio has committed to over ninety percent connectivity pan-India by March 2017 | Picture Courtesy – Gizmo Times

The free market in motion

When free competition suppresses prices, it is likely to foster innovation. Cellular networks are important and in general they have allowed disadvantaged sections to access information hitherto constrained to those who could afford to own a computer and a broadband connection.

Airtel seems to target existing customers since new customers already have the option of getting a 4G SIM at no cost. It seems that Airtel wants to limit the migration of its subscribers to Jio.

Providing greater speeds at the same price point would conventionally do this, but given that consumers often buy a Jio SIM in addition to their regular SIM, it seems likely that the consumers will continue to subscribe to Jio.

Telecom operators have definitely strapped up their boots. With healthy competition in the market, regulators need to adopt a minimalist role and allow capitalism to manifest benefits for consumers across the board.


Featured Image Source – Tech 2
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