- Bharti Airtel plans to expand into financial services and data centre businesses soon
- Airtel Money in Africa has about 400 million customers and Payments Bank is profitable
- Airtel leads in connectivity but aims to grow its role in India's data centre market
Bharti Enterprises Chairman Sunil Bharti Mittal said this is the time for Airtel to make its next moves, with a strong balance sheet and cash flows, as the company looks at opportunities in financial services, data centres and other businesses.
In an exclusive conversation with NDTV on NDTV Walk The Talk, Mittal said every company goes through inflection points when it needs to pivot. He recalled how Airtel moved early from being a mobile operator to a fixed-line operator.
"Currently, where we are, things are pretty settled. Balance sheet is strong, cash flow is strong. This is the time for Airtel to make moves," he said.
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay
Airtel Looks Beyond Telecom
Mittal said he was excited about Airtel's financial services business and highlighted the company's large franchise in Africa.
READ | Bharti Airtel Q2 Results: Profit Grows At Over Twice The Pace Than Revenue, ARPU Hits Rs 271
Airtel Money in Africa has around 40 crore customers, he said. He also said Airtel Payments Bank has been doing well for several years and is profitable. The bank has revenue of around Rs 4,000 crore and deposits of Rs 4,000 crore, although it cannot lend.
Mittal also sees an opportunity for Airtel in India's data centre business, particularly in connectivity.
He said Airtel is not currently superior in the data centre business itself, but is "very strong on connectivity". The company also provides connectivity to several other data centres.
He expects two to four large Indian companies to emerge as frontrunners in the data centre business, with Airtel among the main players.
6G Could Be The Next Opportunity
On the telecom sector, Mittal said most countries are moving towards having two to three operators. He also stressed that companies should have the financial capacity to invest when 6G arrives.
He expects India to have 6G by 2030 and believes it will develop into a sensing network.
Mittal said India is ahead of the UK and the US in high-quality radio signals. He added that consumers are benefiting from digital connectivity, with call and data prices remaining relatively low.
He also said users should be willing to pay more as they seek greater digitisation.
Satellite Telephony Not A Concern
On satellite communications, Mittal said he was not perturbed about satellite telephony in India. He pointed out that OneWeb has limited capacity for the service and that it would generate only a small amount of revenue.
Responding to Elon Musk's impatience over Starlink approvals, Mittal said, "We have been waiting for nods longer than Musk."
He said nations take time to assess security risks and their requirements before allowing foreign players to control critical infrastructure.
"We can have foreign assets in India but the kill switch has to be in our hands," he said, stressing the need to retain control over assets for defence requirements.
Mittal added that two OneWeb centres have been fully security-cleared and approved, while the company is waiting for the government to take a call on satellite telephony.
READ | Nvidia Trades Cheaper Than TechM, LTIMindtree on P/E Ratio: Should You Buy It?
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
