Bharti Airtel Capex (capital spending) in the September quarter of 2013 was the worst in the last five quarters.
India’s only telecom service provider to offer 2G, 3G and 4G services has spent $341 million as Capex in the second quarter of fiscal 2014 against $411 million in June quarter, $608 million (March 2013), $407 million (December 2012) and $684 million (September 2012).
The worst investment in the last 5 quarters has already impacted telecom vendors such as Ericsson. Other mobile equipment vendors such as NSN are yet to share India specific revenue for their latest quarter. Alcatel-Lucent also faced challenging quarter in Asia Pacific.
In Indian Rupee terms, Bharti Airtel Capex decreased 43 percent to Rs 21,391 million in September quarter 2013 from Rs 37,752 million in the same period last fiscal.
In India, Airtel Capex dipped 58 percent to Rs 10,429 million from Rs 24,905 million. In international markets – Africa, Bangladesh and Sri Lanka, Airtel Capex decreased to Rs 10,962 million from Rs 12,847 million.
Airtel India Capex
Bharti Airtel Capex in its Indian mobile services (2G, 3G, etc) decreased 57 percent to Rs 7228 millon from Rs 16,793 million.
Telemedia Capex increased 3 percent to Rs 810 million from Rs 788 million.
Airtel digital services Capex plummeted 36 percent to Rs 1,042 million from Rs 1,630 million.
Enterprise service of Airtel received Capex of Rs 142 million against Rs 458 million, decreasing 69 percent.
Tower business Capex declined 59 percent to Rs 1,193 million.
In India, Bharti Airtel’s one of the focus was on 3G expansion. Airtel 3G sites in India increased to 26,616 from 25,604. Its total sites increased to 135,412 from 134,736.
In Africa, Bharti Airtel’s 3G sites increased to 6,237 from 6,201, while total sites increased to 17,444 from 17,345.
In South Asia, 3G sites did not grow from 684, while total sites rose to 6,583 from 6,532.
Baburajan K
editor@telecomlead.com