Telecom operator Idea Cellular is preparing to launch a range of digital applications across movies, TV, music, gaming and other categories next week, as part of its strategy to transform into a full-fledged digital services company. The move comes as the company steps up competition with new market entrant Reliance Jio Infocomm.
“As we leapfrog from being a voice and data services provider to becoming a full-service digital solutions company, we continue to deliver on our promise of changing lives and act as a catalyst in fuelling the Digital India movement,” said Himanshu Kapania, Managing Director of Idea Cellular.
Kapania said the company aims to cater to India‘s growing base of entertainment-driven and on-the-move digital consumers. Idea had earlier indicated during an analyst meet following its second-quarter results that it would not directly create content but operate as an aggregator instead.
Focus on video and content partnerships
The company’s leadership previously stated that it expects video consumption to drive 60% of total data traffic by 2020. To tap this demand, Idea has signed several agreements to provide access to music and movie content, boosting data usage and customer engagement.
Idea plans to expand its value-added services and launch a suite of branded digital content platforms covering entertainment, information, communication and utility services. It also intends to provide a platform for third-party developers to launch consumer-focused applications.
Idea Cellular eyes digital transformation
Analysts note that the push among telecom operators to develop content-driven services has intensified following Jio’s entry, as the Mukesh Ambani-led 4G operator positions itself as a comprehensive digital content provider.
They added that while content is an important differentiator that can drive data traffic, the primary focus must remain on network quality, as content itself can be easily replicated.
Competitors have already expanded their offerings — Bharti Airtel operates a suite of video and music apps, while Vodafone India offers Vodafone Play.
According to brokerage firm IDFC, as Jio continues to build a robust content ecosystem, rival carriers are expected to strengthen partnerships and increase tie-ups to retain users.
Editor’s note: The article image has been updated.
