Vodafone- Idea Cellular merger will rationalisation in tenancies : Bharti Infratel

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Telecom Tower firm, Bharti Infratel has recently said that consolidation in the sector, especially Vodafone- Idea Cellular merger which may still be some time away if it fructifies will inevitably lead to short term & one-time rationalization in tenancies.

Vodafone- Idea Cellular merger will rationalisation in tenancies

However, we believe that the consolidation leading to few but strong and willing participants are good for the tower industry in medium to long term, the vis-à-vis large number of small or unwilling operators with no financial muscle or passion for investing in data network rollouts. In any event, we believe any reduction in revenue on account of the overlaps will be more than offset by the exit charges, as well as the incremental revenue on account of rapid rollouts by all operators," Bharti Infratel Chairman Akhil Gupta said in the company's annual report for 2016-17.

The report said that, as anticipated, the year 2016-17 witnessed strong network rollouts as evidenced by co-location additions of over 24,000 between Infratel and
Indus and of 15,571 on a proportionate basis, which was the highest in the last five years. Total consolidated colocations as on March 31, 2017, were at 210,606, a co-location factor of 2.32 at closing. With broadband penetration still at 20 percent and Government's push for a digital economy, the prospects of mobile broadband in the country remain strong.

He said that we sustained our efforts to improve green footprint during the year and move towards more diesel free sites in the long-run," Gupta said.

On a consolidated basis, over 38,900 towers or 43 percent of Bharti Infratel's portfolio are green as of March 31, 2017.

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