Bharti Airtel expects to complete the 5G rollout in urban areas and some key rural pockets this year and expects the investment in networks to hover around Rs. 28,500 crore, a senior official of the company said on Wednesday.
Bharti Airtel Managing Director Gopal Vittal during the company’s earning call said that the company’s decision to not bid for premium 700 megahertz band spectrum and go for non-standalone 5G network is leading to better coverage at lower cost.
Gopal Vittal Said :
He said that the company has stop making capacity expansion in 4G network as the company is seeing traffic offload of up to 30 per cent in areas where 5G has been launch.
Gopal Vittal Said :
Airtel Surpasses 2 Million 5G Customers in Tamil Nadu; 5G Services Available in Over 500 Towns in State
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The company’s capital expenditure in India more than double to Rs 8,989.4 crore in the March 2023 quarter from Rs. 4,276.7 crore a year ago.
The majority of the capex of Rs. 6,647.1 crore was deploy in the mobile business as the company continues to build up a pan-India 5G network.
The company exit the fourth quarter and the fiscal year 2023 with the highest industry ARPU of Rs 193.
Gopal Vittal Said :
He said that the return on capital employed is still very low at 8.5% and hope some sense will prevail in the industry to move up tariffs sooner than later.
The company has start relocating 66,500 high-cost sites for specific actions around energy rental, as well as reengineering the site.
Gopal Vittal Said :
He said that the company has now started going deeper into top 200 cities.
When an analyst ask about Bharti Airtel 5G network roll out compare to that of Jio, Gopal Vittal said.
Gopal Vittal said :
Reliance Jio is rolling out a standalone 5G network which means that it will provide only 5G services but in NSA architecture telecom operators can provide a mix of 5G, 4G and other networks.
Bharti Airtel post a 49.2% jump in its consolidated net profit to Rs. 3,005.6 crore for the January-March quarter of 2022-23 on the back of new 4G customers and strong growth in average revenue per user (ARPU).
Bharti Airtel’s consolidated revenue from operations grew by 14.31% to Rs. 36,009 crore during the reported quarter from Rs. 31,500.3 crore in the March 2022 quarter.
The annual revenue of the mobile services business in India grew by 21% to Rs. 75,924.6 crore in FY2023 from Rs. 62,915.1 crore in FY’22.
For the year ended on 31st March, 2023, Bharti Airtel’s net profit almost double to Rs. 8,346 crore from Rs. 4,255 crore a year ago.
The consolidate revenue from operations of Bharti Airtel for 2022-23 increase by 19.3% to Rs. 1,39,144.8 crore from Rs. 1,16,546.9 crore at the end of 2021-22.