How Airtel utilized Rs 5,034 crore investment in Sept quarter

Airtel 4G LTE network
Telecom network operator Bharti Airtel has utilized Rs 5,034 crore investment in the September quarter of 2015.

The Capex (capital spending) of Bharti Airtel, the leading telecom operator promoted by Sunil Mittal, rose 35 percent in Q2 and 17 percent in the first half of fiscal 2016.

Airtel India investments

Airtel has made an investment of Rs 3,967 crore in India and South Asia, and Rs 1066 crore in Africa.

The telecom operator’s Capex for India surged 86 percent to Rs 3,836 crore.

Airtel India has made an investment Rs 3,101 crore (+108 percent) in mobile services, Airtel Money and network groups providing fiber connectivity.

The company invested on upgradation and expansion of network sites. During the quarter, Airtel India rolled out 3G on 900 MHz as well as 2100 MHz spectrum that the company purchased in the auctions.

The number of cell sites increased to 149,518 sites from 141,290 sites in the corresponding quarter last year. Out of the total number, 41.8 percent are 3G sites.

The number of 3G network sites increased to 62,447 in September quarter of 2015 from 52,886 at the end of the previous quarter and 38,055 in the same quarter last year.

Airtel India has invested Rs 139 crore (+35 percent) in telemedia services.

The investment of Airtel in Digital TV services was Rs 250 crore (+11 percent).

The Indian telecom operator invested Rs 73 crore (+123 percent) in its enterprise business in the second quarter of fiscal 2015-16 — primarily spent in enhancing data capabilities.

As a result of the substantial Capex, Airtel India said revenues increased 10.3 percent supported by 12.3 percent increase in mobile revenues 19 percent growth in enterprise business and 22.6 percent surge in Digital TV in Q2 FY 2015-16.

Thanks to its investment in 3G and 2G mobile Internet, mobile data revenue of Airtel India shot up 60.3 percent to Rs 2,893 crore. Airtel India posted 27.2 percent increase in data customer base, while data traffic rose 69.9 percent.

Airtel India’s Data ARPU has increased by Rs 42 to Rs 193 in Q2 FY 2016, while the growth in data usage per customer was 35.9 percent.

Mobile data revenues contribute to 21.5 percent of mobile India revenues against 14.5 percent in the corresponding quarter last year.

Gopal Vittal, MD and CEO, India & South Asia, said: “Mobile data revenue has grown by 60 percent. With the launch of 4G services across 334 towns and 3G services in our gap circles, we are now best positioned in the industry to leverage the fast growing data market.”

Airtel Africa investment

Airtel Africa has invested $162 million (-39 percent).

Christian de Faria, MD and CEO, Africa, said: “Data revenue has grown by 40.6 percent. Strong demand is being witnessed both in voice and data with our consumption increasing by 19.5 percent and 104.5 percent respectively. Customer base reached more than 80 million with growth of 13.3 percent.

In first half of the year, Airtel Africa divested tower assets of $1.7 billion.

Airtel Africa’s Q2 revenues grew 4 percent.

Data revenues of Airtel Africa increased 40.6 percent to $138 million, while data customer base rose 29.4 percent and traffic grew 104.5 percent.

Data ARPU of Airtel Africa increased to $3.4 from $3.1.

Data revenues of Airtel Africa contribute to 13.5 percent of Africa revenues against 10.1 percent in the corresponding quarter last year.

Airtel Money customer base grew 59.3 percent to 8.4 million.

Baburajan K
[email protected]