Just as the debate continues as to whether Sponsored Content affects net neutrality, Bharti Airtel, a global telecommunications company with operations in more than 20 countries, introduces the 'Airtel Zero', which allows customers to enjoy a variety of mobile apps with data charges completely waived.
Sponsorship of user charges or 'toll-free data' has become quite popular in the recent year, and is present in two versions - sponsored data and sponsored content. Sponsored data is about free bytes of data given away to consumers who then use the free data to access any content they wish, while sponsored content gives free access to a pre-selected bucket of contents. Sponsored data is used by advertisers to deliver marketing content/messages, for example, a video ad; by certain organizations or government bodies to provide access to critical information to communities via mobile devices; and by mobile operators who turn the excess capacity on their networks into rewards/loyalty give-aways for customers. Sponsored content on the other hand is offered by content providers - online publishers, video and music service providers, app providers etc - as means to introduce their content to more people and also to package their content with connectivity in their bid to remove the uncertainty on their subscribers' end on the connection charges they pay when they access online content via their mobile data connection.
The move by Bharti Airtel, which is essentially a Sponsored Content offering, will see App providers hosting their applications on Bharti's open marketing platform - the 'Airtel Zero', with 319 million of its subscribers accessing these Apps at zero connection charges, allowing even those with zero balances in their accounts to continue using mobile data. The zero connection charges however, cover only the connectivity. App users will still have to pay for premium services, for example in app-purchases such as purchase of stickers or a movie download, upgrades to premium versions and for premium content accessed on these Apps.
Bharti's Sponsored Content program combines two elements - a marketing service and bundling of delivery. The first one is no different than how publishers run sponsored content or broadcasters run sponsored shows. Any App provider can 'pay' to be included in the 'Airtel Zero' platform, which will attract scores of subscribers for the free content it offers, providing instant visibility for the App provider's brand and products. The second element, bundling of delivery, is akin to how a home delivery pizza service or free shipping on an online purchase is provided. Consumers need not worry about delivery charges which can vary depending on a number of factors, while merchants bulk source their delivery service from transport (in this case, connectivity) providers, taking advantage of the economies of scale and imputing the benefits into their content prices, if any.
The move will also not affect net neutrality as long as the Apps provided on the Airtel Zero platform do not receive any prioritization in terms of bandwidth and quality of delivery. According to the recent ruling announced by the Federal Communications Committee (FCC) of US, sponsored content programs that do not involve content providers purchasing access to 'fast lanes' or better quality of service do not contravene with net neutrality, and allows Mobile Operators and Internet Service Providers to offer their pipes for advertisers and content providers to provide zero-rated content to subscribers.
According to Bharti, ‘Airtel Zero’ can work as a highly efficient marketing mechanism for small developers or startup shops that face budget constraints towards driving promotions and app downloads. More importantly, says Bharti, it provides an equal opportunity to both new and established companies, big and small businesses to reach out to customers in India and across other markets.
Srini Gopalan, Director – Consumer Business, Bharti Airtel (India)
We are excited to launch ‘Airtel Zero’ as an open and non-discriminatory marketing platform for all developers in India – irrespective of the size of their business. We believe that this platform is consistent with India’s vital Digital Inclusion agenda and also contributes to the country’s incredible ‘Make in India’ vision”. The results of our pilot program indicate that ‘Airtel Zero’ can deliver the same results as traditional digital marketing channels at 1/3rd the cost – thus underscoring the immense value it can deliver for developers across. Following an extremely successful pilot phase, we are seeing a lot of interest from businesses across the board (including several small startup firms), and expect a large number of applications to sign on. We invite all application developers to register their interest in ‘Airtel Zero’ and see the compelling reach it can deliver to Airtel’s 200 million plus customers across India.
