Bharti Airtel on Wednesday announced a new corporate structure to sharpen the company’s focus on rapidly unfolding digital opportunities.
The move comes at a time players are positioning themselves beyond the core telephony offerings as they enhance digital engagement, build future streams of revenue and create brand differentiation, besides redefining themselves as a larger platform of digital services, say market watchers.
Bharti Airtel said the restructuring exercise would focus on four distinct verticals — digital, India, international and infrastructure.
The new structure involves Airtel Digital Limited folding into the listed entity Bharti Airtel. Moreover, the telecom business will be housed in a newly created entity — Airtel Limited, a wholly-owned subsidiary of Bharti Airtel.
Bharti Airtel will now house all of the digital assets spanning Wynk Music, Airtel Xstream, Airtel Thanks, Mitra Payments platform, Airtel Ads, Airtel IQ, Airtel Secure, Airtel Cloud and all future digital products and services.
Bharti Telemedia, the 100 per cent arm operating DTH services, will exist alongside Airtel Limited for now.
“It is intended to eventually fold the DTH business into Airtel Limited to move towards converged services to customers,” it added.
The company has approached the government to seek clarity on the licensing policy as telecom and DTH is currently regulated by the two separate ministries of communications, and information and broadcasting, respectively.
Airtel Payments Bank will remain a separate entity under Bharti Airtel.
All infrastructure businesses such as Nxtra and Indus Towers will remain separate entities. International subsidiaries and affiliates will also remain separate entities.
“The board has approved the scheme enabling the company to file for all statutory approvals to give effect to the proposed rearrangement,” a statement said.
Bharti Airtel chairman Sunil Mittal said, “The new structure sets the exciting future course for Bharti Airtel and provides focus on the four distinct businesses digital, India, international and infrastructure, each, in a razor-sharp way.”
