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Tag: Bharti

  • India Approves 5G Spectrum Auction, Includes Bandwidth for Private Networks

    India Approves 5G Spectrum Auction, Includes Bandwidth for Private Networks

    India will be holding a 5G spectrum auction by the end of July, with frequencies set aside for private mobile networks.

    This was announced by the Union Cabinet chaired by Prime Minister Narendra Modi. 72 GHz of spectrum will be auctioned for a 20-year tenure across frequency bands including 600 MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 3300 MHz, and 26 GHz. According to the Department of Telecommunications (DoT), 5G will be rolled out first in 13 major cities including Ahmedabad, Bengaluru, Chandigarh, Chennai, Delhi, Gandhinagar, Gurugram, Jamnagar, Hyderabad, Pune, Lucknow, Mumbai, and Kolkata.

    All three telecom operators, Reliance Jio, Vodafone Idea and Bharti Airtel are expected to participate in the upcoming auction. In addition, enterprises can acquire spectrum directly from the DoT to set up private networks to support applications in IoT and AI.

    Bandwidth reserved for private networks has been met with mixed sentiment. On one hand, the Cellular Operators Association of India (COAI) argues that this could diminish revenue. On the other hand, the Broadband India Forum (BFI) claims that this is a misconception.

  • Bharti Infratel-Indus Towers merger due to close in June

    Bharti Infratel-Indus Towers merger due to close in June

    The mega-merger between Indian operator Bharti Airtel’s infrastructure company Bharti Infratel and independent tower company Indus Towers is reportedly now expected to close in June.

    The planned merger, which has been in the making for around a year, is at an advanced stage of completion, according to the prospective parent companies of the merged company Bharti Airtel and Vodafone Group.

    In a stock exchange filing, the companies also announced that they have proposed to appoint current Indus Towers CEO Bimal Dayal and CFO Hemant Ruia to the posts of CEO and CFO respectively of the combined company.

    Merging Bharti Infratel with Indus Towers will create a pan-India tower company with over 163,000 towers in operation and a valuation of around $10 billion.

    The combined company will continue to serve Indian operators on a non-discriminatory basis and help support the expansion of 4G and 5G wireless broadband services across India.

    Indus Towers was established in 2007 as a joint venture between Bharti Airtel and what is now Vodafone Idea. Prior to the in-progress merger, the company was around 53% owned by Vodafone Idea, 42% owned by Bharti Infratel and 5% owned by Providence Equity Partners.

    “The Shareholder groups look forward to early completion of the merger and move towards successful integration,” the joint statement reads.

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  • Airtel granted partial stay on $1.2b spectrum charge demand

    Airtel granted partial stay on $1.2b spectrum charge demand

    India’s Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has granted Bharti Airtel and Tata Teleservices on the 83 billion rupees ($1.19 billion) demand from the Department of Telecom as a condition of approving the merger between the two companies.

    The tribunal has directed Indian authorities to clear the merger subject to a stay on around 70 billion rupees in one-time spectrum charges.

    But Bharti Airtel has been asked to submit 50% of around 12.87 billion rupees in one-time spectrum charges related to a license in Chennai.

    The tribunal case is still ongoing, with the next hearing scheduled for July.

    Bharti Airtel arranged to acquire Tata Teleservices’ consumer mobile business in 20 as part of the wave of consolidation that swept the sector after the entry into the market of Reliance Jio Infocomm with an aggressive price promotion.

    The Department of Telecom approved the merger last month, but only on the condition that Airtel submits a bank guarantee covering the department’s spectrum charge demands. Airtel subsequently appealed the demand for this guarantee with the tribunal.

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  • Airtel, Vodafone may sell stakes in merged tower company

    Airtel, Vodafone may sell stakes in merged tower company

    India’s Bharti Airtel and Vodafone Group are reportedly in talks to sell more than half of their respective stakes in the tower company that will be created through the merger of Bharti Infratel and Indus Towers.

    Bharti Infratel is Bharti Airtel’s tower division, while Indus Towers is an independently managed tower company jointly owned by the Bharti Group and Vodafone Idea.

    The combined entity is expected to have a market valuation of $12 billion to $13 billion and have a portfolio of over 160,000 towers.

    According to a report, which cites unnamed sources, Bharti Airtel and Vodafone Group are aiming to bring their stakes in the combined company down to around 13% each after the merger.

    The operators are looking to sell part of their stakes primarily to existing investor, global investment firm KKR, the sources said.

    KKR could eventually hold between 25% and 32% of the combined company, with minority stakes held by the Canada Pension Plan Investment Board (CPPIB) and some other investors.

    The stake sales could be worth around $3.2 billion for Bharti Airtel and $2.1 billion for Vodafone Group, the report states.

    It also asserts that the Vodafone Group may plan to eventually exit its investment in the company, and that the merger is likely to close in June.

  • Jio raising $3.89b for tower unit spinoff:

    Jio raising $3.89b for tower unit spinoff:

    The fiber network unit Reliance Jio Infocomm is reportedly planning to raise around 270 billion rupees ($3.89 billion) in syndicated loans to help expand the newly created infrastructure business.

    Jio Digital Fiber plans to use the proceeds to expand its business and allow it to serve external customers from the telecom, ISP, power and other sectors.

    Reliance Jio is spinning off its fiber business as well as its tower business into standalone subsidiaries in an attempt to monetize the assets. The tower business is being spun out into Reliance Jio Infratel.

    Reliance Jio received approval for the demerger plan from the National Company Law Tribunal last month.

    Meanwhile Reliance Jio has reportedly also crossed the 300 million subscriber mark after just two and a half years in operation, putting it close to second-placed rival Bharti Airtel, which has around 340.3 million customers.

    According to Indian media, it took Airtel 19 years to pass the 300 million subscriber mark. If Reliance Jio continues its trajectory, it will knock former market leader Airtel into third place. The 2018 merger between Vodafone India and Idea Cellular created the current market leader Vodafone Idea, which has over 400 million customers.

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  • Airtel, TTSL could be hit with $2.15b bill over merger

    Airtel, TTSL could be hit with $2.15b bill over merger

    India’s Bharti Airtel and Tata Teleservices may need to pay nearly 150 billion rupees ($2.15 billion) in spectrum charges to the government to clinch approval for their planned merger.

    The Department of Telecom is preparing to issue the demand as a condition for granting approval for the merger, unnamed DoT officials told.

    The expected bills will cover unpaid license fees, spectrum usage charges and a one-time spectrum reallocation charge. It will include a 120 billion rupee charge for Bharti Airtel and a 28 billion rupee charge for Tata Teleservices.

    DoT approval is the last remaining major hurdle that the companies will need to clear to approve of the merger, which was announced in 2017. The deal has already been signed off on by the National Company Law Tribunal.

    According to the report, license fees, which will be based on adjusted gross revenue, may further add to the cost.

    But the department is already expecting the operators to appeal the one time spectrum charges with the Telecom Disputes Settlements and Appellate Tribunal (TDSAT).

    The operators may also potentially seek to block DoT’s efforts to demand spectrum usage charges based on the legal uncertainty over the definition of an operator’s adjusted gross revenue, against which annual license fees are calculated.

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  • Singtel to invest a further $536m in Bharti Airtel

    Singtel to invest a further $536m in Bharti Airtel

    Singtel Group has revealed plans to subscribe to Bharti Airtel’s 250 billion rupee ($3.57 billion) right issue, taking up its full entitlement for its direct stake of 15%.

    Airtel will take up 170 million new shares at an issue price of 220 rupees per share for a total of 37.5 billion rupees ($535.7 million).

    Airtel major shareholder Bharti Group has also committed to taking its full entitlement under the issue, while fellow major shareholder Bharti Telecom has renounced part of its entitlement in favor of Singapore sovereign investment fund GIC Singapore, which will invest around 50 billion rupees.

    The major shareholders and GIC have together committed a total of 67% of the rights issue. The renunciation to GIC will take Singtel’s effective interest in Airtel to 35.2%, with the operator maintaining its position as Airtel’s largest shareholder.

    “Our participation in this rights offering with our partners and a leading investor such as GIC reflects our long-standing commitment to Airtel and the confidence in the future of the Indian market,” Singtel International CEO Arthur Lang said.

    “Airtel has performed well despite business headwinds and is consolidating its position in a more sustainable market. Our partnership with Airtel spans some two decades and we continue to take a long-term view of India, having recently invested in Bharti Telecom and Airtel Africa.”

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  • Bharti Airtel launches VDSL vectoring

    Bharti Airtel launches VDSL vectoring

    India’s Bharti Airtel has launched a new VDSL vectoring service the company has branded V-Fiber, capable of delivering speeds of up to 100Mbps.

    The company’s new service has been launched in Chennai, and is being rolled out across Airtel’s national broadband network – which spans 87 cities.

    Airtel will offer the service to its existing customers at no additional cost, except for the cost of an upgraded modem. For new subscribers, Airtel will offer an unlimited three month trial offer.

    The operator will now also offer all its fixed broadband subscribers unlimited voice calling at no extra cost, and is providing a rewards program to allow broadband customers to get 5GB of additional mobile data per month if they are also subscribed to Airtel’s mobile services.

    As part of Project Leap, Airtel’s nationwide network transformation initiative, the company is meanwhile augmenting its 550,000km of domestic and international fiber capacity to improve latency and customer service and meet growing demand for data services.

    “India is witnessing an explosive growth in data usage and a lot of in-home data consumption is happening over fixed broadband that offers consistent speeds. Airtel has always innovated ahead of the curve and offered its customers best-in-class broadband technology and experience,” Airtel director of operations Ajai Puri said.

    “With ‘V-Fiber’ and our national optic fiber backbone, we are all set to offer a future ready network for tomorrow’s digitally connected homes. This solution, besides reducing our carbon footprint, offers a very quick and convenient upgrade to the customer.”

    Airtel is bracing for the anticipated impact of the planned entry into the fixed broadband market of Reliance Jio Infocomm, the disruptive pan-Indian 4G service provider with an extensive existing fiber footprint.

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