ITV

Category: Telecom

  • Bharti Telecom needs Airtel’s cash flow boost to tame its debt monster

    Bharti Telecom needs Airtel’s cash flow boost to tame its debt monster

    MUMBAI: Bharti Telecom Ltd (BTL), the controlling entity of Bharti Airtel, is staring at a financial puzzle that needs urgent solving. With its debt ballooning to nearly Rs 38,000 crore, analysts say BTL needs a much bigger dividend payout from Airtel to keep its loan sharks at bay, according to a report in The Economic Times.

    BTL’s estimated annual finance cost stands at a staggering Rs 3,183.2 crore—far outpacing the modest dividend cheques of Rs 600.6 crore in FY23 and Rs 876.9 crore in FY24 from Airtel. The gap is wide, and unless Airtel loosens its purse strings, BTL might have to consider alternative moves, including a possible stake sale.

    BTL’s financial burden isn’t just a case of unfortunate circumstances—it’s self-inflicted. Over the years, the entity has been on a stock-buying spree, scooping up Airtel shares from its key stakeholders, Singapore Telecommunications (Singtel) and the Mittal family.

    As a result, BTL’s net debt has skyrocketed from Rs 15,900 crore in December 2022 to a massive Rs 37,800 crore in December 2024. In total, BTL has invested Rs 38,100 crore in securing a larger stake in India’s second-largest telco, including an initial Rs 1,900 crore commitment to Airtel’s October 2021 rights issue.

    Motilal Oswal, in a recent report, seen by ET, suggested that Airtel’s dividend per share would have to rise to at least Rs 14 in FY25—up from Rs 8 in FY24—just to cover BTL’s interest obligations. That’s a significant bump, and whether Airtel can afford such a steep increase remains a key question.

    Singtel currently owns a 49.44 per cent stake in BTL, while Bharti Enterprises, backed by the Mittal family, holds a 50.56 per cent share. Both have gradually shifted their direct Airtel stakes into BTL, which has been funding these acquisitions through debt.

    ET also cited Ambit Capital’s warning that BTL has become dangerously dependent on Airtel’s dividends. If the telco doesn’t ramp up its payouts, BTL might be forced into a corner.

    “We expect the dues to be refinanced as BTL owns a 40.47 per cent stake in Airtel. But given (BTL’s) rising debt-to-equity ratio, dividends from Airtel would have to be ramped up significantly over the next few years or there could be some risk of a stake sale by BTL,” noted Motilal Oswal, later in the ET report.

    The numbers are daunting. BTL’s debt-to-equity ratio has surged to 5.4x in December 2024, a far cry from the more manageable 0.24x in June 2022. Additionally, BTL faces Rs 21,500 crore in upcoming debt repayments between September 2025 and February 2026.

    BTL isn’t out of the woods yet. It still needs to cough up another Rs 5,800 crore for Airtel’s pending October 2021 rights issue calls, which means the dividend pressure isn’t going away anytime soon. Airtel, for its part, raised Rs 5,247 crore in the first tranche of its Rs 21,000 crore rights issue but postponed further calls, citing sufficient cash reserves.

    Currently, Singtel and the Mittal family collectively own 29.49 per cent and 22.93 per cent of Airtel, respectively, through both direct and indirect holdings, much of which is routed via BTL. However, it remains unclear how much of their stake they plan to keep under the BTL umbrella.

    For now, Bharti Telecom’s financial health hangs on a delicate balance—can Airtel come to the rescue, or will the mounting debt force a radical shift in ownership structure? The telecom industry is watching.

  • Vodafone Idea misses Rs 6,090 crore spectrum payment—Now what?

    Vodafone Idea misses Rs 6,090 crore spectrum payment—Now what?

    MUMBAI: Another day, another Vodafone Idea financial hurdle. Akshay Moondra led telco, already walking a tightrope, has failed to submit a hefty Rs 6,090.7 crore bank guarantee or make a cash payment of Rs 5,493.2 crore to the department of telecommunications (DoT) for the 2015 spectrum auction shortfall, according to a report in The Economic Times.

    The deadline? 10 March.

    The result? No payment.

    And now, the government isn’t exactly thrilled, “We will see what action can be taken in the coming couple of days,” an official privy to the matter told ET. In other words—brace for impact. The DoT has not granted any extension so far, keeping Vodafone Idea on tenterhooks.

    The government had earlier attempted to throw the financially embattled telco a lifeline by waiving off bank guarantees (BGs) worth Rs 33,000 crore for past spectrum auctions across the private telecom giants—Reliance Jio, Bharti Airtel, and Vodafone Idea (Vi). Out of this, Vi had been the biggest beneficiary, with Rs 24,800 crore in waivers. However, the fine print required Vi to still cough up cash or submit a BG for the 2015 auction, where it had a one-time partial shortfall.

    Meanwhile, competitors Bharti Airtel and Reliance Jio had no such obligations, as their payments had already exceeded the pro-rata value of their spectrum use. Vi, however, was left holding the bag.

    Now, what happens? The ball is in the government’s court.

    With no payment in sight and no extension announced, DoT may be forced to take action. Will it demand strict penalties? Will it extend the deadline in an act of mercy? No one knows just yet. But for Vi, already struggling with debt and subscriber losses, another financial setback is the last thing it needs.

    ET in their report mentioned that queries sent to Vodafone Idea remained unanswered at the time of going to press. Given the company’s track record, it’s anyone’s guess whether the telco will come up with the funds or find itself in even deeper trouble.

  • Airtel and Apple join hands to offer exclusive TV+ and Music perks

    Airtel and Apple join hands to offer exclusive TV+ and Music perks

    MUMBAI: Bharti Airtel has locked in an exclusive partnership with Apple, making Apple TV+ and Apple Music available for its home wifi and postpaid customers. The deal unlocks premium entertainment benefits for Airtel users, giving them access to Apple’s acclaimed content across multiple platforms.

    Airtel’s new offer ensures that home wifi users on plans starting at Rs 999 can enjoy Apple TV+, streaming on multiple devices without restrictions. Meanwhile, postpaid customers on plans above Rs 999 gain access to Apple TV+ and six months of free Apple Music—a major win for music and entertainment lovers.

    Bharti Airtel CMO & CEO – connected homes Siddharth Sharma highlighted the significance of this collaboration, “We are excited to join hands with Apple and bring their premium video and music content exclusively to Airtel users. This partnership is a game-changer, offering millions of our home wifi and Postpaid customers access to Apple’s world-class entertainment catalogue. We believe this will redefine how our customers consume content.”

    Apple India director – content and services Shalini Poddar echoed this enthusiasm, “Partnering with Airtel allows us to expand access to Apple TV+ and Apple Music to millions of users. Our goal is to make award-winning stories, music, and entertainment accessible to all, and this collaboration takes us one step closer to that vision.”

    Airtel subscribers can now binge on Apple TV+ originals, including hits like Ted Lasso, Severance, The Morning Show, Slow Horses, Silo, Shrinking, and Disclaimer. Upcoming releases such as Wolfs and The Gorge will also be available. Meanwhile, Apple Music users will experience an ad-free music catalogue, featuring expertly curated playlists, live artist interviews, and exclusive features like spatial audio and Apple Music sing.

    Airtel’s home wifi plans (Rs 999, Rs 1,099, Rs 1,599, and Rs 3,999) offer not just Apple TV+, but also streaming perks across platforms like Amazon Prime, Netflix, Zee5, and JioHotstar. The blazing-fast speeds of up to 1 gbps ensure an uninterrupted viewing and listening experience.

    Postpaid users on Rs 999, Rs 1,199, Rs 1,399, and Rs 1,749 plans can enjoy increasing data limits, multiple SIM add-ons, and access to a bundle of 20+ OTT services along with Apple TV+ and Apple Music.

    With Apple TV+ and Apple Music now exclusively bundled with Airtel, the telecom giant has upped the ante in India’s digital entertainment space. As content consumption continues to surge, Airtel is ensuring its users are at the forefront of the streaming revolution.

  • India-UK strengthen ties in telecom, AI, and emerging technologies

    India-UK strengthen ties in telecom, AI, and emerging technologies

    MUMBAI: India’s push for technological leadership just got a major boost. Strengthening its global partnerships, India has expanded its collaboration with the United Kingdom in key areas, including telecommunications, artificial intelligence (AI), and emerging technologies. This move underscores India’s determination to shape the future of digital infrastructure and network security.

    During his visit to the UK, Telecom secretary of India Neeraj Mittal engaged with the department of science, innovation and technology (DSIT), discussing next-gen advancements in 5G, 6G, and digital security. He met with national scientific adviser Chris Johnson and national technology adviser Dave Smith to explore policy and technical frameworks aimed at fostering deeper cooperation.

    Mittal also met Govt of Scotland digital directorate director Geoff Huggins to discuss Scotland-India collaboration in digital transformation, telecom security, and emerging communication technologies. A field visit to one of the Federated Telecom Hubs (FTH) in the UK offered insights into cutting-edge research in 6G distributed cloud, AI for 6G, and green 6G solutions.

    In a significant step forward, Sonic Labs and India’s centre for development of telematics (CDOT) signed an MoU on Open RAN policy and technical cooperation, covering 5G Open RAN and AI-driven advancements in 4G/5G networks. This partnership signals an ambitious plan to push Open RAN innovation, bringing flexibility and efficiency to telecom infrastructures.

    India’s telecom delegation also met Alan Turing Institute CEO Jean Innes to explore collaboration in digital twins, AI-driven telecom security, and ethical AI. The discussions focused on fostering an AI-powered startup ecosystem, aiming to build robust, trustworthy, and scalable digital solutions.

    The visit also saw engagement with Scotland’s 5G centre at the University of Strathclyde and the 6G research centre at the University of Glasgow. These meetings opened doors for joint research, student exchange programmes, and collaborative work on 6G innovation and future sensing technologies.

    Building on the UK-India technology security initiative (TSI), a telecom roundtable brought together DSIT officials, business leaders from BT and Ericsson, and innovation hubs including UK Telecom Labs, Sonic Labs, and Titan. The High Commission of India (HCI) partnered with UKTIN (UK Technology Innovation Network) to organise the event, reinforcing India’s leadership in next-generation telecom development.

    During the discussions, key areas of Indo-UK collaboration were identified:

    1    Joint centres of excellence focused on telecom cybersecurity, AI in telecom, and digital twins.

    2    Partnerships with British telcos to leverage mobile data for urban infrastructure planning.

    3    Joint contributions to ITU’s 6G standards (IMT 2030).

    4    Mutual recognition of telecom testing labs and the creation of new facilities.

    5    Advancing quantum communication and submarine sea cable security.

    6    Promoting India’s indigenous 4G/5G telecom stack, developed by CDOT.

    7    Collaboration on space technology communication (TN-NTN) between Bharat 6G Alliance and UK entities.

    This visit cemented India’s role as a key global player in telecom innovation, reinforcing the country’s commitment to AI-driven connectivity and digital inclusion. By fostering strategic alliances with the UK, India is positioning itself at the forefront of 6G research, telecom security, and space communications.

    Mittal summed it up, “India’s telecom sector is at the cutting edge of global advancements. Strengthening our collaboration with the UK will further accelerate innovation in 6G, AI-driven security, and digital infrastructure, ensuring a resilient and connected future.”

    With this partnership, India and the UK have laid the groundwork for a digitally secure, AI-enhanced, and globally competitive telecom landscape. The future of connectivity just got brighter.

  • BSNL rings in a revival with Rs 4,969 crore revenue

    BSNL rings in a revival with Rs 4,969 crore revenue

    MUMBAI: BSNL has dialled up a major financial comeback, posting a profit before tax of Rs 262 crore in Q3 FY25, a staggering reversal from a Rs 1,569 crore loss in the same quarter last year. With revenue growth, strategic cost reductions, and a push for 4G and fibre-optic expansion, the state-run telecom operator is charting a path to profitability while reinforcing its position in India’s evolving telecom landscape.

    BSNL’s revenue from operations climbed to Rs 4,969 crore in Q3 FY25, up from Rs 4,546 crore in Q3 FY24, reflecting a steady rise in demand for its mobility, fibre-to-the-home (FTTH), and leased line services. These key growth segments saw year-on-year increases of 15 per cent, 18 per cent, and 14 per cent, respectively.

    “This milestone reflects the company’s focus on innovation, aggressive network expansion, cost optimisation, and customer-centric service improvements,” the BSNL said in an official statement.

    With improved revenue and reduced costs, BSNL’s EBITDA surged to Rs 1,466 crore in Q3 FY25, up from just Rs 316 crore in the same quarter last year, marking a 364 per cent increase. For the nine-month period, EBITDA stood at Rs 2,369 crore, nearly tripling from Rs 893 crore in the previous year. 
    Total expenditure for Q3 FY25 (excluding depreciation and finance costs) was Rs 4,210 crore, significantly lower than Rs 4,741 crore in Q3 FY24, demonstrating effective cost control measures.

    For the nine-month period ending December 2024, revenue grew to Rs 14,197 crore, up from Rs 12,905 crore in the same period last year, demonstrating consistent business expansion. Other income for Q3 stood at Rs 706 crore, a significant 38 per cent increase from Rs 511 crore in the same quarter last year. However, for the nine-month period, other income was Rs 1,406 crore, slightly lower than Rs 1,528 crore in FY24. BSNL’s loss before tax for the nine-month period ending December 2024 was Rs 2,527 crore, a sharp improvement from the Rs 4,522 crore loss recorded last year. Significantly, 20 BSNL circles reported EBITDA-positive performance in Q3 FY25, compared to just 12 in Q3 FY24.

    Announcing the quarterly financial results, BSNL chairman & managing director Robert J. Ravi stated, “We are pleased with our financial performance this quarter, which reflects our focus on innovation, customer satisfaction, and aggressive network expansion.”

    “With these efforts, we expect revenue growth to improve further, exceeding 20 per cent by the end of the financial year. BSNL has successfully reduced its finance cost and overall expenditure, leading to a decline in losses by over Rs 1,800 crore compared to last year. To enhance our customer experience, we have introduced new innovations such as national wifi roaming, BiTV – free entertainment for all mobile customers, and IFTV for all FTTH customers. Our continuous focus on quality of service and service assurance has further strengthened customer trust and reinforced BSNL’s position as a leading telecom service provider in India.” Ravi added.

    Today is a significant day in the history of the Indian telecom industry, according to minister Jyotiraditya Scindia. He added, “the prime minister intends for the telecom industry to lead India’s digital future, and all the nation’s telecom service providers are honestly working towards this goal.”

    With total quarterly income touching Rs 5,675 crore, up from Rs 5,057 crore in Q3 FY24, BSNL is firmly on a growth trajectory as it expands its digital footprint. One of the biggest reductions came in network operating expenses, which dropped to Rs 1,336 crore, down from Rs 1,397 crore in Q3 FY24. This streamlined network management approach is helping BSNL maximise efficiency while maintaining service quality.

    Employee benefits expenses also saw a notable decline, falling to Rs 1,735 crore from Rs 2,011 crore in the same quarter last year. The reduction in workforce-related costs has played a crucial role in improving BSNL’s financial health while ensuring operational effectiveness.

    A significant shift in BSNL’s financial strategy is reflected in its depreciation and amortisation costs (DAC), which nearly halved to Rs 814 crore from Rs 1,443 crore. This sharp reduction underscores the company’s commitment to next-gen infrastructure and digital transformation, as BSNL accelerates investments in modern telecom technology while efficiently managing legacy assets.

    Meanwhile, finance costs saw a 12 per cent decline, falling to Rs 389 crore from Rs 442 crore, further easing financial pressure and contributing to stronger bottom-line performance.

    Ever since it last posted a quarterly net profit in 2007, the state-owned telecom services company turned a profit for the first time in the last quarter. In a remarkable turnaround, BSNL’s subscriber base has risen to about nine crore in December from 8.4 crore in June. During the same quarter, leased line services revenue increased by 14 per cent, mobility services revenue by 15 per cent, and fibre-to-the-home (FTTH) revenue by 18 per cent. A key priority is fast-tracking 4G and 5G rollouts, aimed at enhancing network coverage and service quality while keeping pace with industry advancements. 

  • Airtel lands major subsea data connectvity cable in Chennai

    Airtel lands major subsea data connectvity cable in Chennai

    MUMBAI: Bharti Airtel has completed the landing of the SEA-ME-WE-6 submarine cable in Chennai, following its earlier landing in Mumbai last December. The 21,700-kilometre system connects India with Singapore and Marseille, France, traversing Egypt via terrestrial routes.

    The telecommunications provider worked with SubCom, the system’s primary contractor, to complete both landings. The new cable will deliver 220 terabits per second of global capacity to India.

    Sharat Sinha

    “This investment strengthens our secure, diverse and scalable global network,” said Airtel Business director and chief executive Sharat Sinha. “Landing one of the largest cable systems into our facilities complements our existing network of 400,000 route-kilometres across 50 countries.”

    The cable will integrate with Nxtra by Airtel’s data centres in Mumbai and Chennai, enabling global hyperscalers and businesses to access international connectivity and data centre services seamlessly.

    As a consortium member, Airtel has invested in the main cable system and co-built a private network of four fibre pairs connecting Singapore, Chennai and Mumbai. 

    The company’s global network now includes investments in 34 submarine cables, with recent additions such as 2Africa, SJC2 and Equiano, linking India to key regions across Asia-Pacific, Europe, the Middle East and the United States. Its subsea network also includes i2i Cable Network, Europe India Gateway (EIG), IMEWE, SEA-ME-WE-4, AAG, Unity, EASSy, Gulf Bridge International (GBI), and the MENA Cable.

  • Vodafone Idea posts Rs 111.2 billion revenue but struggles under debt burden

    Vodafone Idea posts Rs 111.2 billion revenue but struggles under debt burden

    MUMBAI: Vodafone Idea (Vi) is ringing in revenue growth, but the static of debt remains loud. The telecom giant reported Rs 111.2 billion in revenue for Q3FY25, marking a 1.7 per cent sequential increase, and clocked its highest quarterly cash EBITDA of Rs 24.5 billion since the Vodafone-Idea merger. However, despite operational improvements, Vi remains in the red, posting a net loss of Rs 66.1 billion.

    The company’s average revenue per user (ARPU) rose to Rs 173, reflecting a 4.7 per cent QoQ jump, largely driven by tariff hikes and customer upgrades. But its financial burden remains steep. Bank debt stands at Rs 23.3 billion, while spectrum and AGR dues total a staggering Rs 2.27 trillion, payable over two decades.

    Vi is pushing forward with a massive capex plan, spending Rs 53.3 billion in the first nine months of FY25, with a full-year target of Rs 100 billion. The company added 4,000 broadband towers, its highest in a single quarter since the merger, and expanded 4G coverage to 41 million more users, reaching 1.07 billion people.

    A phased 5G rollout is now officially in motion, with Mumbai set to go live by March 2025, followed by Delhi, Bengaluru, Chandigarh, and Patna in April. The telco is banking on this expansion to sharpen its competitive edge.

    To keep its balance sheet in check, Vi has secured Rs 19.1 billion in fresh equity capital from its promoter group, pushing its total equity infusion to Rs 260 billion in the last 10 months. The company also received a bank guarantee waiver on spectrum payments, offering temporary relief.

    Vodafone Idea is also in the middle of another fresh financial hurdle as the Department of Telecommunications (DoT) has demanded a Rs 6,090 crore bank guarantee by March 10 to cover spectrum obligations since 2015, offering an alternative cash payment of Rs 5,493 crore. The telco must choose one of these options and comply with the telecom department’s requirements, adding to its existing financial woes amid intense industry competition. This development comes as a major setback for Vi, which is already grappling with Rs 2.27 trillion in spectrum and AGR dues. However, some relief arrived in January when the Supreme Court upheld the Bombay High Court’s November 2023 decision granting Vi a Rs 1,600 crore tax refund, providing a temporary financial cushion as the telco continues its struggle to stabilise operations.  

    While Vi is making strides in revenue and expansion, the question remains, can it dial up a full-fledged recovery, or will the weight of its debt drop the call?

  • VI’s people-first initiative helps reunite families at Kumbh Mela

    VI’s people-first initiative helps reunite families at Kumbh Mela

    MUMBAI: At every Kumbh Mela, thousands of people become separated from their families in the vast crowds. In 2013, around 70,000 individuals were reported lost at Prayagraj Kumbh. This year presents similar challenges, with over 250 people reportedly lost within the first few hours of the event’s opening day.

    To address this issue, India’s leading telecom operator, VI, has introduced the ‘VI Number Rakshak’ initiative, ensuring that no one feels lost or disconnected. Recognising that many, especially the elderly and children, may not own mobile phones or struggle to recall contact numbers, VI has set up a dedicated booth near Swami Ramanand Acharya Shibir akhada.

    At this booth, pilgrims can receive complimentary Rudraksh and Tulsi bracelets engraved with emergency contact numbers of family members or companions. This simple yet effective solution provides a reliable means of reconnecting without the need for mobile phones or internet access.

    Speaking on the initiative, VI chief marketing officer Avneesh Khosla highlighted the company’s commitment to people-first solutions. “VI Number Rakshak showcases how the simplest ideas can make a significant impact. We are not just a telecom provider, but a people-first partner, ensuring connectivity when it matters most,” he said.

    VI Number Rakshak aligns with VI’s broader philosophy of ‘Be Someone’s We’, which promotes fostering connections and collective care—previously highlighted in campaigns addressing urban loneliness among youth and senior citizens.

    In addition, VI has significantly bolstered its network infrastructure at the Maha Kumbh, installing 30 new sites at Triveni Sangam, along with 40 high-powered small-cell and macro sites across key locations. The company has also deployed 32 km of fibre to enhance backhaul connectivity, ensuring seamless voice calls, uninterrupted video streaming, and high-speed data access for VI users in the densely crowded areas.
     

  • Reliance Communications comprehensive loses amount to Rs 2,068 crore in Q3

    Reliance Communications comprehensive loses amount to Rs 2,068 crore in Q3

    MUMBAI: Reliance Communications Ltd (RCom.), once a dominant force in the Indian telecom sector, continues its painful spiral into financial oblivion. The latest Q3 FY25 results make for grim reading, with deepening losses, shrinking revenues, and an insolvency process that looks more like a never-ending courtroom drama. The company, under corporate insolvency resolution since 2019, posted a staggering net loss of Rs 2,068 crore for the quarter ending 31 December 2024, further extending its financial nightmare.

    But is there a miracle in sight? Or is RCom. doomed to be a cautionary tale in corporate history?

    Standalone Results

    RCom.’s revenue from operations in Q3 FY25 stood at Rs 65 crore, marginally slipping from Rs 66 crore in the previous quarter. Compared to Rs 71 crore in the same period last year, the company seems to be on a never-ending treadmill-moving, but going nowhere. The nine-month revenue isn’t offering much comfort either, standing at Rs 206 crore, a dip from Rs 220 crore in FY24. With operations at a standstill and no meaningful revenue streams, RCom.’s survival depends on asset monetisation. However, that process has been moving at the pace of a turtle on vacation.

    Consolidated Results

    RCom.’s financials for Q3 reveal a disaster unfolding in slow motion. If numbers could scream, these would be deafening.

    RCom.’s profit after tax (PAT) might as well be renamed loss after tax, as it posted a net loss of Rs 2323 crore for Q3 and a whopping Rs 6779 crore for the nine-month period. The losses are on autopilot, and there’s no emergency landing in sight. The EBITDA situation? Let’s just say it stands for “Empty Bucket DA”. There’s no sign of improvement, and the company continues to hemorrhage cash.

    Revenue from operations came in at Rs 87 crore for Q3, which, in telecom terms, is barely enough to keep the call centers running. The nine-month revenue stands at Rs 272 crore, proving that RCom.’s once-mighty earnings have taken a permanent vacation.

    If you’re an RCom. shareholder, consider looking away. The earnings per share (EPS) before exceptional items was (Rs 8.67) per share for Q3 and (Rs 25.10) per share for the nine-month period. After exceptional items? Let’s not even go there.

    To top it all off, the comprehensive loss for Q3 stood at Rs 2,373 crore, ballooning to Rs 6,878 crore for the nine-month period-because apparently, one kind of loss just wasn’t enough.

    The financial report reads less like a balance sheet and more like a horror novel. With no operational revenue and a debt mountain that refuses to shrink, the road ahead is looking rockier than ever.

    Discontinued Operations

    RCom.’s discontinued operations, including its wireless spectrum, towers, fibre, and media convergence nodes, continue to be the financial equivalent of quicksand. Despite being classified as “held for sale” since 2018, these assets remain unsold, haunting the company’s balance sheet like a ghost that refuses to be exorcised.

    The real horror story lies in the discontinued operations segment, where the company booked a massive provision of Rs 1,840 crore towards license and spectrum fees, sending the total net loss soaring to Rs 2,068 crore. For the nine-month period, RCom.’s total losses ballooned to Rs 6,012 crore, with discontinued operations contributing Rs 5,874 crore in losses. If you’re looking for signs of improvement, well, there aren’t any-the loss for the same period last year was Rs 6,232 crore.

    The segment’s revenue was a pathetic Rs 3 crore, against expenses of Rs 160 crore, leading to a Rs 156 crore loss. Making matters worse, the company has not accounted for interest on loans amounting to Rs 1,327 crore for Q3, further distorting its actual financial position.

    Debt and Insolvency

    RCom.’s financial position is about as stable as a house of cards in a hurricane. The company has defaulted on both interest and principal payments for years. Its total debts now exceed total assets, with a debt-to-assets ratio of 1.02. Net worth? Completely wiped out, standing at a shocking negative Rs 68,490 crore as of December 31, 2024.

    The insolvency resolution process remains stuck in legal limbo, with creditors desperately waiting for some sort of recovery. But with Supreme Court and NCLT hearings stretching on indefinitely, they might be waiting for a long, long time.

    Segment-wise performance

    . Telecom services: With just Rs 65 crore in revenue, the core business has all but collapsed. The segment continues to operate at a loss, and there’s no revival plan in sight.

    . Infrastructure and enterprise solutions: This segment is in hibernation mode, waiting for the insolvency proceedings to play out.

    .  Discontinued operations: The spectrum, towers, and fibre assets remain stranded, with no buyers in sight, making them a financial black hole.

    With no revenue growth, no operational revival, and mounting liabilities, RCom.’s future looks about as promising as a sinking ship without a lifeboat. The resolution process remains entangled in legal battles, and the much-needed asset sales haven’t made any progress. Creditors are frustrated, and shareholders have zero hope of recovery.

    Unless a miraculous acquisition or restructuring deal materialises, RCom. is likely to become a footnote in India’s corporate history-a grim reminder of how unchecked expansion, debt mismanagement, and regulatory battles can sink even the biggest players.

  • India, Africa growth propels Bharti Airtel to strong Q3 FY25

    India, Africa growth propels Bharti Airtel to strong Q3 FY25

    MUMBAI:  It is one of the two telco bellwethers in India, the other being Jio. And it appears to be doing very well, thank you going by Bharti Airtel Ltd’s  consolidated results for the third quarter ended 31 December 2024. It reported significant growth driven by momentum in India and stable performance in Africa.

    Financial Highlights:

    * Consolidated revenue rose 19.1 per cent  year-on-year (YoY) to Rs 45,129 crore, up 8.8 per cent  sequentially.
    * Consolidated EBITDA stood at Rs 24,880 crore, marking a 24.1 per cent  YoY increase, with a margin of 55.1 per cent.
    * EBITDA after lease expenses (EBITDAaL) increased by 26.1 per cent  YoY to Rs 21,474 crore, reflecting a margin of 47.6 per cent .
    * EBIT grew 33.3 per cent  YoY to Rs 13,126 crore, with a margin of 29.1 per cent .
    * Net income (before exceptional items) reached Rs 5,514 crore, up 121.3 per cent  YoY.
    * Capex for the quarter totalled Rs 9,161 crore.

    India Business Performance:
    * Revenue from India operations rose 24.6 per cent  YoY to Rs 34,654 crore.
    * Mobile services revenue increased by 21.4 per cent  YoY, driven by tariff adjustments, higher smartphone adoption, and portfolio premiumisation.
    * Mobile average revenue per user (ARPU) improved to Rs 245, up from Rs 208 in Q3 FY24.
    * Mobile data consumption surged by 23.2 per cent  YoY, with average consumption per customer at 24.5 GB per month.
    * EBITDA rose 32.3 per cent  YoY to Rs 19,850 crore, with an EBITDA margin of 57.3 per cent .
    * EBITDAaL stood at Rs 17,641 crore, with a margin of 50.9 per cent .
    * Capex for India operations was Rs 7,980 crore.
     

    Segment Highlights:

    * Homes Business: Revenue grew by 18.7 per cent  YoY, with 674,000 net customer additions driven by fibre-to-the-home (FTTH) and fixed wireless access (FWA). The customer base reached 9.2 million.
    * Airtel Business: Revenue increased by 8.7 per cent  YoY despite global pressures. Emerging digital services, including cloud and security, showed strong growth.
    * Digital TV: Revenue declined by 2.9 per cent  YoY to Rs 761 crore. The customer base stood at 15.8 million.
    * Passive Infrastructure Services: Contributed 5.7 per cent  YoY and 5 per cent  quarter-on-quarter (QoQ) to India revenue growth.

    Africa Operations:
    * Revenue in constant currency rose by 21.3 per cent  YoY.
    * EBITDA margin stood at 47.1 per cent , while EBIT margin was 29.4 per cent .
    * Customer base reached 163.1 million.
    * Capex for Africa operations totalled Rs 1,181 crore.

    Operational Achievements:
    * Bharti Airtel rolled out approximately 5,200 towers and 16,300 mobile broadband stations during the quarter.
    * The company expanded its fibre network by 47,100 km YoY.
    * The anti-spam tool notified 252 million customers and identified over 1 million spammers.
    * Airtel’s AI-driven network detected over 7 million spam SMS daily.
    * Zee5 was added to the Airtel Xstream Play platform, enhancing content offerings.

    Debt Management:
    * Net debt to EBITDAaL ratio (excluding lease obligations) stood at 1.56 times.
    * The company prepaid Rs 3,626 crore towards deferred spectrum liabilities.

    Vice-chairman &  managing director Gopal Vittal commented: “We delivered a strong quarter with consolidated revenue of Rs 45,129 crore. Our India mobile business showed robust performance, driven by tariff adjustments and premiumisation. We continued to lead the industry with ARPU growth and added 6.5 million smartphone users. Homes business saw accelerated customer additions, while Airtel Business navigated global headwinds with stability.

    “Our strong cash generation and prudent capital allocation allowed us to continue deleveraging and prepay high-cost spectrum dues. Further tariff corrections are necessary to sustain investments and create long-term value for the industry,” he added.