Posted by Mumbai: When it comes to GenAI monetisation, India is increasingly seen as a big greenfield opportunity for global tech companies offering AI services to both enterprises and consumers.
However, with the recent entry of telecom operator Airtel through its partnership with Perplexity, the GenAI landscape is shifting. India is now likely to witness strong competition around GenAI monetisation and its distribution.
Telco’s entry into the GenAI game
The Airtel–Perplexity partnership represents a major change in GenAI monetisation and distribution. Until now, platforms such as ChatGPT, Claude, or Perplexity relied on direct-to-consumer subscriptions, often priced at $20 per month — an expensive proposition in a price-conscious market like India.
By bundling Perplexity Pro (valued at ₹17,000 or $197) as a complimentary 12-month service for its 360 million subscribers, Airtel has created a new monetisation layer that shifts the model from B2C to B2B2C.
Rather than individuals paying for access, telcos pay the AI providers and then scale distribution across their user base. For GenAI firms, this significantly lowers customer acquisition costs. For telcos, it offers value-added services to boost customer stickiness in an otherwise commoditised market.
According to GlobalData’s Telecom Analyst Kantipudi Pradeepthi, this approach redefines the role of telecom operators. “By removing cost and access barriers, the partnership can help accelerate AI adoption across various demographic and regional segments, especially in the semi-urban and rural areas which make up a significant part of the Indian market,” she says.
Redrawing monetisation models
Airtel’s bundling signals a shift not just in distribution but also in the monetisation of AI tools. For Perplexity, this marks the first full-year subscription tie-up with an Indian telecom provider. For Airtel, the move is about more than offering AI. It is about redefining digital services to include intelligent tools that can improve productivity, engagement, and customer experience.
Pradeepthi notes that this bundling model could prompt other telcos to explore similar strategies. “The Airtel–Perplexity partnership may encourage other telecom operators to integrate GenAI services into their portfolios to drive new revenue and maintain competitiveness,” she says.
Global GenAI revenue forecast to grow from USD 10.1 billion in 2023 to USD 100.5 billion by 2030, according to a MarketDigits report.
According to Gartner, over 80% of enterprises will have used generative AI APIs or deployed generative AI-enabled applications by 2026. This data underscores the urgency for enterprises to embrace GenAI quickly—and emphasises why telecom-led bundling models, like Airtel–Perplexity, could meet rising demand efficiently.
However, the generative AI (GenAI) market in India generated a revenue of USD 1,022.7 million in 2024 and is expected to reach USD 8,335.4 million by 2030, according to Grand View Research’s new India GenAI market report. The India GenAI market is expected to grow at a CAGR of 34.4% from 2025 to 2030.
Competitive pressure and new players
India’s telecom market is highly concentrated but intensely competitive. Airtel’s first-mover advantage may not go unchallenged. In February 2025, Reliance Jio announced a partnership with California-based Confluent to develop its own GenAI infrastructure.
Jio plans to launch direct-to-consumer services using its cloud ecosystem. Vodafone Idea and BSNL are also reportedly exploring GenAI integrations to enhance user experiences and network efficiency.
“Telecom services are increasingly commoditised. GenAI is emerging as a key differentiator to reduce churn, retain customers, and create premium offerings,” says Pradeepthi. She adds that such partnerships could become central to monetisation efforts in a telecom industry that is actively searching for new growth drivers.
Big tech’s strategic pricing
While telcos are bundling AI tools, tech majors are adapting their pricing to maintain competitiveness. In January this year, Google made its Gemini AI tools free for all Workspace Business and Enterprise customers, removing the ₹1,500 per month fee. However, the overall subscription cost increased by ₹125 per user.
This is part of a wider trend of price shifts in response to competition. Microsoft’s Copilot Pro, Apple’s on-device Apple Intelligence, and OpenAI’s GPT and Google’s Gemini platforms all reflect varied approaches to pricing and distribution, from bundled enterprise offerings to integrated device-level AI with no separate cost.
Such pricing strategies intensify the race for user attention and underline how monetisation and distribution models are still evolving across the GenAI landscape.
Fragmentation with consumer benefit
With tech companies and telcos taking different approaches, the market is becoming increasingly fragmented. But this fragmentation also brings choice.
For instance, Microsoft targets enterprise users with Copilot inside Microsoft 365, while Apple has built privacy-first AI directly into Apple devices. Likewise, Google integrated Gemini across its cloud and consumer services and now Indian telco Airtel offers Perplexity Pro as a bundle service to subscribers via its Airtel Thanks app.
“This diversity is already intensifying pricing pressure. Consumers benefit through broader accessibility, lower costs, flexible pricing and a wider choice of AI services,” Pradeepthi says.
“Airtel’s move to bundle Perplexity Pro reflects a strategic shift and a clear signal that telecom providers are looking to reposition themselves as enablers of AI-powered digital experiences,” says IDC’s Research Manager Avinash Naga, who is a Airtel subscriber.
This shift from entertainment bundling to offering utility-driven services, especially as GenAI tools, according to Naga will enhance customer value proposition.
“While tech companies will continue to lead the GenAI infrastructure, telcos have a unique opportunity to on the distribution and monetisation layer, especially in markets like India where they have strong customer relationships and billing access,” concludes Naga.