Airtel quietly swapped its Perplexity AI bundle for Adobe Express in Bengaluru stores after just four months. The quick replacement spotlights the struggle telcos face converting cheap data users into high-ARPU subscribers using AI. Jio's Google Gemini deal continues, but AI companies face uneven returns from these distribution plays.
How We Got Here
Telcos spent 2025 bundling AI services, seeking new revenue streams as Bharti Airtel Vice Chairman Gopal Vittal noted low ARPU. Airtel linked with Perplexity and Jio with Gemini, leveraging telcos' 900 million subscriber base for distribution.
The Numbers
- Bharti Airtel Vice Chairman Gopal Vittal recently complained that wealthy Indians still pay too little for internet access.
- Between them, Airtel and Jio serve nearly 900 million subscribers, making them "distribution kings" in mobile-first economies.
- SK Telecom in South Korea bundled Perplexity AI Pro for subscribers and invested $100 million in Anthropic.
- Operators like Vodafone and Verizon are also bundling Gemini subscriptions inside their premium plans.
- OpenAI is wary of such telco deals, despite missing its own internal revenue and user growth targets.
What Happens Next
🇮🇳 Why This Matters for India
For founders building consumer AI products in Bangalore and Mumbai, the Airtel-Perplexity outcome confirms distribution alone from telcos doesn't guarantee sticky user growth.
The Take
The real losers here are early-stage AI startups who believe telco reach can solve their customer acquisition problem. User-product fit remains king, even when bundled for 900 million users.
Source:
The Ken ↗