Right. Optimizing other videos at their end would require infra and that would involve $$$. I don't see airtel doing it until some worthy competitor starts the same.
plus of course, you would be tampering with the data that is delivered to your customer. never a good thing to boast about. it is pretty much another man in the middle attack. no one wants that. sowwy. just do your job and deliver the bits and bytes i ordered in the format it is to be delivered assholes.
I dont normal people even understands how this is man-in-middle and violation of privacy.
2nd as @chromaniac said it is more or less a lie. Maximum they can do is have a local youtube server and serve that. But video optimization on the fly is impossible especially when youtube has already optimized it!
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