Bharti Airtel, the subsidiary of Singapore Telecommunications (Singtel), has announced its new corporate structure on April 14.
The new structure will focus on four distinct verticals – Digital, India, International and Infrastructure – in a bid to sharpen the company’s focus in unlocking value amid the rapidly unfolding digital opportunity in India.
The new structure will also see Airtel Digital folding into the listed entity, Bharti Airtel. It will now house all the digital assets including Wynk Music, Airtel X stream, Airtel Thanks, Mitra Payments platform, Airtel Ads as well as other existing and future digital products and services.
All of Bharti Airtel’s telecommunications business will go under a newly created entity, Airtel Limited, which will become a wholly-owned subsidiary of the former.
SEE: Bharti Airtel board approves 20% acquisition in Bharti Telemedia
Bharti Telemedia, the 100% arm operating direct-to-home (DTH) services will sit alongside Airtel Limited for the time being.
Bharti Telemedia will eventually fold the DTH business into Airtel Limited to move towards the NDCP vision of converged services to customers.
Bharti Airtel has also sought clarity from the government on licensing policies given that carriage (i.e. telecom and DTH) is currently being regulated and managed under two separate ministries of Communications and I&B respectively.
Airtel Payments Bank will remain a separate entity under Bharti Airtel. It will continue to work closely with its growing customer base and realise the digital opportunity arising from payments and financial services.
All of the company’s infrastructure businesses such as Nxtra and Indus Towers will continue to remain in separate entities. Bharti Airtel’s International subsidiaries and affiliates will remain status quo as well.
Shares in Singtel closed 1 cent higher or 0.4% up at $2.42 on April 14.
