India, July 25 -- Airtel's AI Punt With Perplexity

Airtel and Perplexity have banded together to conquer India's AI frontier. Earlier this week, the AI search platform inked a partnership to offer free one-year Perplexity Pro subscriptions, priced at $200, to the telecom giant's 360 Mn users. So, why does the deal make sense?

Win-Win For Airtel: For the telecom giant, the service will act as a powerful retention and differentiation tool as tariff hikes become increasingly difficult. In addition, providing high-value AI services could offer a compelling reason for customers to stay, which will likely improve ARPU and reduce churn with minimal cash burn.

Perplexity's Proven Gamble: Having already replicated the same strategy with T-Mobil...