Bharti Airtel may call rivals to form JV entity to manage landline and cable biz

Bharti Airtel may call rivals to form JV entity
India's largest telecom firm Bharti Airtel has introduced a new business model for managing fixed line and DSL broadband networks where it will initially end the joint venture with Alcatel-Lucent and then it plans to invite rivals to create a consolidated entity for the same, on the lines of Indus Towers, the world's largest tower company.

Reports said that Bharti Airtel may call Vodafone and Idea Cellular to form the consolidated entity for managing cable and landline business.

Indus Towers, a three-way joint venture, was formed in 2008 with Bharti Airtel, Vodafone India, and Idea Cellular combining their towers and physical infrastructure in 16 regions.

Bharti will initially acquire the entire equity stake of Alcatel Lucent India in Alcatel Lucent Managed Network Service India—a joint venture between Bharti Airtel and Alcatel Lucent. Then, it will operate independent of Bharti and going forward, will invite other operators to join in with equity participation and bring the management of their broadband and fixed line networks under its fold, said Bharti Airtel in a filing to the BSE on February 5, 2013.

The two partners had set up 26:74 joint venture in 2009, and Bharti had said it would pay this entity about USD 500 million over a five-year period for managing its landline and broadband business in about 100 cities.

Read more about: bharti airtel
Story first published: Wednesday, February 6, 2013, 11:30 [IST]
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