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Business News/ Industry / Telecom/  Airtel to launch 5G services in Aug, cover every town by 2024: MD and CEO Gopal Vittal

Airtel to launch 5G services in Aug, cover every town by 2024: MD and CEO Gopal Vittal

Bharti Airtel managing director and CEO Gopal Vittal said that the price of mobile services in the country is very low and needs to go up

A Bharti Airtel Ltd store in Mumbai. (Bloomberg)Premium
A Bharti Airtel Ltd store in Mumbai. (Bloomberg)

Bharti Airtel managing director and CEO Gopal Vittal on Tuesday said the telecom operator will start rolling out 5G services in August and cover all towns and key rural areas of India by March 2024.

“We intend to launch 5G starting August and extend to a Pan India roll out very soon. By March 2024 we believe we will be able to cover every town and key rural areas as well with 5G," Vittal said.

He also said that the price of mobile services in the country is very low and needs to go up.

During the company's earning call, Vittal said that a detailed network rollout plans for 5,000 towns in the country are completely in place. "This will be one of the biggest rollouts in our history," he added.

Airtel acquired 19,867.8 MHz in 5G spectrum auction 

In the recently-concluded 5G spectrum auction, Bharti Airtel has acquired 19,867.8 MHz frequencies by securing a pan-India footprint of 3.5 GHz and 26 GHz bands and select purchase of radiowaves in the low and mid-band spectrum for a total consideration of 43,040 crore.

Vittal said the telco's capital expenditure will remain around the existing levels and played down the need for buying premium spectrum in the 700 megahertz band, which requires less number of mobile towers for coverage compared to other bands that telecom operators currently have.

"Our competition does not have such a large mid-band spectrum. Do remember that if we did not have this large chunk of precious mid-band spectrum we would have had no choice but to buy expensive 700 Mhz spectrum.

"And once we had bought it we would have had to deploy large power guzzling radios on this band. Not only would the cost have been higher, but it would also have led to more carbon emissions," Vittal said.

He said that the network deployment in the 700 Mhz band gives no additional coverage compared to the 900 Mhz spectrum band that the company has.

Vittal said non-standalone (NSA) 5G networks have more benefits compared to standalone 5G networks because of wider coverage and more devices available to access the network.

He said that in the US and South Korea where both SA (standalone) and NSA have been launched the traffic on SA is less than 10 per cent of total 5G traffic.

"The third advantage of this mode is that it allows us to use existing 4G technology at no extra cost since we already have the radios and the spectrum that are live on our network. Finally, the last advantage of NSA is around experience – it will allow for a faster call connect time on Voice. In addition, it allows us to provide a faster uplink than anyone else given our massive spectrum holdings in the mid band," Vittal said.

The country's largest telecom player Jio claims to have completed 5G coverage planning in the top 1,000 cities and conducted field trials of its home-grown 5G telecom gears. It is the only player that has purchased premium 700 Mhz spectrum.

Vittal said that Airtel has recorded industry-leading average revenue per user of 183 and expects it to soon touch 200 and eventually 300 on account of the increase in tariffs.

Airtel's June qtr net profit soars fivefold to 1,607 cr

Bharti Airtel’s consolidated net profit surged 466% to 1,607 crore for the quarter ended June from 284 crore in the corresponding quarter of last fiscal. The revenues of the second-largest telecom company grew more than 22% to 32,805 crore on new additions to its 4G customer base.

Airtel, with 362 million customers, reported a 26% rise in earnings before interest, tax, depreciation, and amortization (Ebitda) from the year ago to 16,604 crore. Its margins expanded by 1.5 percentage points to 50.6% during the quarter.

The company made a capital expenditure of 5,288 crore in India and 1,088 crore in Africa.

With agency inputs

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Published: 09 Aug 2022, 08:24 PM IST
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