Airtel to join Google’s Android One plan

BL 14 Sep 14

 

Telecom operators, including Bharti Airtel, and e-commerce firms such as Flipkart and Amazon, are expected to be part of Google’s Android One devices strategy, which will be unveiled today.

Airtel is expected to offer free data plans bundled with handsets, adding to Google’s efforts in making mobile Internet more affordable.

The devices will be marketed by Micromax, Lava and Spice. The handset makers will sell the devices exclusively through e-commerce sites, such as Amazon and Flipkart.

Low-cost smartphones

Google had first talked about the Android One strategy in June. The Internet giant’s objective is to make quality smartphones at lower costs for emerging markets. It has picked India to launch these devices first as the smartphone market here is growing at a record pace.

While the phones are expected to be priced below ₹6,000, the tie-up with Airtel will ensure tariffs do not hinder Internet access.

Under the Android One programme, handset brands will be given a standardised hardware and software design, which until now was available only on expensive phones. Users will also get faster updates of the operating system.

One of the biggest criticisms of Android has been the lack of standards at the lower end. But with the Android One programme, device makers will make phones with minimum specifications.

Google is also bringing multi-lingual capabilities on the devices to enable users from different parts of the country use text or Internet browsing in local languages.

How Google benefits

The Android One plan will help Google reach the next billion users. The more users it gets for its services built into smartphones, the more its ad revenues will rise. Other Internet companies such as Facebook are also strategising to enable cheaper data access.

For instance, Facebook has the Internet.org platform under which it is partnering with telecom firms, device makers and developers to make Internet services affordable. In India, Facebook is offering free access even to users with feature phones.

According to research firm IDC, smartphone sales in India grew almost three-fold to over 44 million in 2013. In the second quarter of 2014, 18.42 million smartphones were shipped. Though Samsung is the leader with 29 per cent market share, Micromax (18 per cent), Karbonn (8 per cent) and Lava (6 per cent) are closing in. The Android One devices could propel the Indian brands further up in the market.

While Android is the dominant OS, the challenge could come from newer platforms such as Firefox. Intex recently launched a phone with the Firefox OS, for ₹2,000. It will be interesting to see how Google responds to this challenge.