Bharti Airtel's new corporate structure gets analysts, industry insiders talking
The structure will allow Airtel to cut statutory payouts and monetise digital assets in future.
Synopsis
Analysts said that moving all digital assets under the listed Bharti Airtel parent entity mirrors what Reliance Industries (RIL) did when it incorporated Jio Platforms (JPL) to house its digital assets, while moving the licenced connectivity business to Jio Infocomm as a step-down subsidiary.
Bharti Airtel’s new corporate structure allows it to split its revenues from the connectivity and digital services businesses, and in turn, cut its statutory payouts towards licence fees and spectrum usage charges (SUC), said analysts. This, they said, could potentially boost the company’s operating income from the India wireless business in the current fiscal.
Analysts added that moving all digital assets under the listed Bharti Airtel parent
