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What you need to know: This weblog captures key data points about the global telecoms industry. I use it as an electronic notebook to support my work for Pringle Media.

Wednesday, May 2, 2012

Bharti Hit by Diminishing Returns

Bharti Airtel, India's leading mobile operator, said its revenues rose 15% year-on-year in the quarter ending  March 31 to 3.72 billion US dollars. Revenues in India and South Asia were up 10.5%, while revenues in Africa climbed 15.9%.

In a statement, Sunil Bharti Mittal, chairman and managing director of Bharti, said: “I am pleased that the [financial] year has ended with the company’s customer base crossing 250 million across twenty countries, the twentieth country being Rwanda. Our launch of 4G LTE, the first in India, is testimony to our commitment to the broadband agenda. The recent regulatory developments in India will have significant implications on the future of telephony and broadband, as well as India’s global competitiveness. The entire industry looks to the government for a fair, transparent and sustainable telecom regime.”

Bharti reported that its return on capital employed fell to 7.2% in the year ending March 31 compared with 10.8% the previous year and 20.7% the year before that.

Bharti said it recently launched 4G services in Kolkata, based on TD-LTE technology. It also provides 3G services "in key cities of the country offering a host of innovative services to our customers like Mobile TV, video calls, live streaming of videos, gaming, along with access to high speed internet." In the quarter ending March 21, Bharti also launched Airtel Money, a person to person (P2P) money transfer service, across India.

But Bharti said that its capex in the quarter was just 473 million US dollars, compared with 1 billion dollars in the same quarter of the year before. It now has more than 141,000 base stations across 20 countries compared with 131,000 a year earlier. source: Bharti statements

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