Indian telecom operator Bharti Airtel will invest $2 billion towards Capex (capital spending) in fiscal 2014-15.
The main focus of Airtel Capex would be on data networks and 3G.
This information was shared during an analyst call recently. The $2 billion Capex does not include its investment for Indus, a telecom tower joint venture.
The $2 billion Capex does not reflect the company’s recent spectrum acquisitions in the 1800 MHz band during the spectrum auctions in February. Later, Airtel said it would invest in FD-LTE roll outs, without sharing Capex plan and time frame.
Vodafone India leads in 3G site addition
Airtel says its main focus will be on 3G and data networks. But its rival Vodafone India has added more than 2,000 3G sites in the third quarter of fiscal 2014 and is leading in 3G site deployments, ahead of Idea Cellular and Bharti Airtel. Vodafone India has 33,000 sites connected with backhaul that enabled to offer better customer services.
Airtel India added 1,563 3G sites in the third quarter to 28,179 from 26,616. The total number of sites in India rose to 137,069 in the third quarter from 135,412 in the second quarter of fiscal 2014.
Idea Cellular has rolled out 5,630 2G cell sites and 1,873 3G cell sites in the third quarter of FY 2014. During the third quarter, the total number of 2G sites has reached 101,600 and 3G sites 19,904.
Also read: Vodafone India adds 2,000 3G sites against Idea’s 1,873 and Airtel’s 1,563
Airtel India Capex
Airtel has around 137,000 base stations of 2G across the country and covers 85 percent of rural India and almost every single town. The focus of Bharti Airtel’s 2G investments will be focused on capacity requirements.
“We will be very cautious about going into new towns. We will actually spend a lot more on 3G and fiber and getting ready on data network for the future. That is really how we are going to approach it. That is what we have done this year. I see no reason why fundamentally that strategy should change going into the next year,” said Gopal Vittal, joint managing director and chief executive officer – India – Bharti Airtel.
Also read: Airtel Capex dips 13 percent to $2,323 million in 9 months
Bharti Airtel on 29 January said its Capex increased to $455 million in the third quarter of fiscal 2014 from $407 million.
Airtel Africa Capex
Airtel Africa is focusing much more on utilization of the Capex which has already been installed and commissioned in the last 12 to 18 months.
“We believe that utilization’s can go up and we have enough headroom for growth in the coming three to six months. Of course, as we move more into data world our Capex towards 3G may pick up in the next year or so but otherwise we are not constraining our Capex at all and it will not have any impact on RMS,” said Manoj Kohli, managing director & CEO (International), Bharti Airtel.
picture source: livemint
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