Over the next five years, Airtel plans to spend Rs 1.2 lakh crore on business with its own companies
- ByStartupStory | February 7, 2022
Bharti Airtel aims to invest roughly Rs 1. 2 lakh crore next five years through commercial transactions with companies like Indus Towers, Nxtra, and Bharti Hexacom as it prepares to expand 4G and fiber networks and enter high-speed 5G.
On February 26, the firm will convene an extraordinary general meeting (EGM) to seek permission for the related-party transactions, as well as to seek approval for issuing shares to Google in exchange for the American tech giant’s investment of roughly Rs 7,500 crore in Airtel to purchase a 1.3% stake.
As per the EGM notification, Bharti Airtel would spend Rs 88,000 crore on business with mobile tower operator Indus Towers, Rs 15,000 crore on data center services from Nxtra, and up to Rs 14,000 crore on telecommunications services, bandwidth, and VAS from Bharti Hexacom. Bharti Airtel stated in a regulatory filing that it will spend up to Rs 17,000 crore in transactions through Indus Towers over the next four financial years, and Rs 20,000 crore in 2025-26, as part of its growth ambitions through related or group firms.
In light of the network and telecom set-up development, Airtel CEO Gopal Vittal stated recently that aggressive capital spending plans will continue. After Covid, which saw a large spike in internet usage on phenomena such as work-, study-, and entertain-at-home, Airtel has indeed been shoring up their infrastructure as growth in data consumption and voice continues robust. Apart from the network, Vittal stated that investments will be made in commercial sectors such as residential broadband, data centers, and 5G.
Telcos have already been ramping up their network infrastructure to cope with the projected surge in demand as India prepares to auction the 5G spectrum later this year. 5G is projected to experience an increase in data usage due to its high speeds of up to 1,000MBPS.
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