Airtel to spend Rs 1,17,000 crore on business with subsidiaries

Bharti Airtel, one of the country’s largest telcos, plans to spend around Rs 1,17,000 crore on business with its subsidiaries such as Indus Towers, Bharti Hexacom and Nxtra. The company will also seek approval for an investment of about Rs 7,500 crore to buy Google’s 1.28 per cent stake in Bharti Airtel by holding an Extraordinary General Meeting (EGM) of its members on February 26.

As per the EGM notice, Bharti Airtel The mobile tower company will spend around Rs 88,000 crore on business with Indus Towers, about Rs 14,000 crore on transaction with Bharti Hexacom and Rs 15,000 crore for services from datacenter firm Nxtra. Bharti Airtel has said in a regulatory filing, “Developments are happening around the world regarding 5G and 5G will be launched in India soon. It will start from the big cities and then it will reach the rest of the country. For this There will be a need to increase the infrastructure.”

Due to the tough competition in the telecom market, Bharti Airtel will need to launch 5G network soon. in this market Reliance Jio Competition has tightened since its arrival. Due to keeping Jio’s tariff low, other telecom companies also had to cut their tariffs. Because of this, some telecom companies got merged or had to be out of the market. The reduction in tariff also had a major impact on the revenue and profits of telecom companies.

Bharti Airtel’s telecom business is also spread in Africa. The company’s African business has improved in recent years. However, challenges remain regarding its business in the country. Bharti Airtel recently also made a big investment deal with Google. This will help the company to raise funds for 5G related infrastructure. The pressure on the financial position of telcos is expected to ease with the central government’s permission to extend the period for repayment of dues related to Adjusted Gross Revenue.

(This news has not been edited by NDTV team. It has been published directly from Syndicate feed.)<!–