Airtel will spend 1.17 lakh crore on various businesses along with subsidiaries in the coming 5 years. Prior to this, Google has made a big investment in Airtel in the past.
Telecom company Bharti Airtel plans to spend around Rs 1.17 lakh crore for business with companies like Indus Towers, Nextra, and Bharti Hexacom. The company will hold a meeting of members of the company on February 26 to issue shares to Google for an investment of around Rs 7,500 crore in the company to buy a 1.28 percent stake.
Airtel Will invest here in next 5 years
As per the EGM notice, Bharti Airtel will spend Rs 88,000 crore in business with mobile tower company Indus Towers, Rs 15,000 crore for availing services of datacenter firm Nextra, and up to Rs 14,000 crore in transactions with Bharti Hexacom. Bharti Airtel will invest Rs 17,000 crore on the transaction with Indus Towers over the next four financial years and Rs 20,000 crore in 2025-26. This was stated in the filing on Saturday.
The focus will be on 5G towers
The notice states that considering the development of 5G globally, it is likely that 5G will soon start becoming a reality in India as well. Slowly going across the length and breadth of our present network in major cities and then in the rest of India. Therefore, considering the increasing requirements of passive infrastructure during the mass 5G rollout, the company proposes a higher amount of transactions up to Rs 20,000 crore per annum with Indus Towers for FY 2025-26.
Bharti Airtel will spend Rs 88,000 crore in business with mobile tower company Indus Towers, Rs 15,000 crore for availing services of datacentre firm Nxtra, and transactions of up to Rs 14,000 crore with Bharti Hexacom, as per the extra-ordinary General Meeting (EGM) notice.
“Given the 5G developments globally, it is likely that 5G will soon start to become a reality in India also, slowly in the key cities and then going into the rest of India across the length and breadth of our current network. Therefore, considering the increased requirements of passive infrastructure during massive 5G rollouts, the Company proposes the higher amount of transactions of up to Rs 20,000 crores per annum with Indus Towers for FY 2025-26,” the notice said.
Google has invested in Airtel
Having said this, recently there has been a big deal between Google and Airtel. Google has made a big investment in Airtel for the expansion of 5G. Google will invest $ 100 million (Rs 7510 crore) in Indian telecom company Bharti Airtel. Google and Bharti Airtel have joined hands to provide affordable smartphones and 5G. In this, Google will buy a stake in Bharti Airtel for $ 700 million (Rs 5257 crore) and together will develop cheap phones and research 5G.