NEW DELHI: As it gears up for expansion of 4G and fibre networks and entry into high-speed 5G, Bharti Airtel plans to spend about Rs 1. 2 lakh crore over five years through business transactions with its subsidiaries like Indus Towers, Nxtra and Bharti Hexacom.
The company will hold an extraordinary general meeting (EGM) on February 26 to seek an approval for the related-party transactions, apart from seeking clearance for issuing shares to Google for the American tech giant’s investments of around Rs 7,500 crore into Airtel to buy 1. 3% stake.
According to the EGM notice, Bharti Airtel will spend Rs 88,000 crore in business with mobile tower company Indus Towers, Rs 15,000 crore for availing services of data centre firm Nxtra and transaction of up to Rs 14,000 crore with Bharti Hexacom for availing telecom services, bandwidth, and VAS. Bharti Airtel will invest up to Rs 17,000 crore on transactions with Indus Towers over next four financial years and Rs 20,000 crore in 2025-26, it said in a regulatory filing while giving out details about expansion plans through related or group companies.
“Given the 5G developments globally, it is likely that 5G will soon start to become a reality in India also, slowly in the key cities and then going into the rest of India across the length and breadth of our current network. Therefore, considering the increased requirements of passive infrastructure during massive 5G rollouts, the company is proposing the higher amount of transactions of up to Rs 20,000 crore per annum with Indus Towers for FY 2025-26,” it said in the notice.
Airtel CEO Gopal Vittal recently said that aggressive capital expenditure plans will continue in view of the expansion in network and telecom set-up. Airtel has been beefing up its infrastructure as growth in data consumption and voice remains strong post Covid, which has seen a massive surge in internet usage on phenomena such as work-, studyand entertain-at-home. Vittal said that apart from network, the investments will be directed in business areas such as home broadband, data centres and 5G. “We are investing around $2. 5 billion annually, and these will continue. ”
As India races towards auctioning 5G spectrum later this year, telcos have been beefing up their network infrastructure to cater to the expected increase in demand. With speed as high as 1,000MBPS, 5G is expected to see a surge in data consumption.
The company will hold an extraordinary general meeting (EGM) on February 26 to seek an approval for the related-party transactions, apart from seeking clearance for issuing shares to Google for the American tech giant’s investments of around Rs 7,500 crore into Airtel to buy 1. 3% stake.
According to the EGM notice, Bharti Airtel will spend Rs 88,000 crore in business with mobile tower company Indus Towers, Rs 15,000 crore for availing services of data centre firm Nxtra and transaction of up to Rs 14,000 crore with Bharti Hexacom for availing telecom services, bandwidth, and VAS. Bharti Airtel will invest up to Rs 17,000 crore on transactions with Indus Towers over next four financial years and Rs 20,000 crore in 2025-26, it said in a regulatory filing while giving out details about expansion plans through related or group companies.
“Given the 5G developments globally, it is likely that 5G will soon start to become a reality in India also, slowly in the key cities and then going into the rest of India across the length and breadth of our current network. Therefore, considering the increased requirements of passive infrastructure during massive 5G rollouts, the company is proposing the higher amount of transactions of up to Rs 20,000 crore per annum with Indus Towers for FY 2025-26,” it said in the notice.
Airtel CEO Gopal Vittal recently said that aggressive capital expenditure plans will continue in view of the expansion in network and telecom set-up. Airtel has been beefing up its infrastructure as growth in data consumption and voice remains strong post Covid, which has seen a massive surge in internet usage on phenomena such as work-, studyand entertain-at-home. Vittal said that apart from network, the investments will be directed in business areas such as home broadband, data centres and 5G. “We are investing around $2. 5 billion annually, and these will continue. ”
As India races towards auctioning 5G spectrum later this year, telcos have been beefing up their network infrastructure to cater to the expected increase in demand. With speed as high as 1,000MBPS, 5G is expected to see a surge in data consumption.
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