Bharti Airtel said the company is well positioned to invest aggressively in emerging growth prospects on the back of its 5G-ready network and strong book-keeping.
company restructuring plan back
Telecom service provider Bharti Airtel has withdrawn its company restructuring plan, Bharti Airtel said in a statement, adding that its board of directors has decided to withdraw the company restructuring plan. According to the company, the situation has changed with the announcement of recent reform measures regarding the telecom sector, after which this decision has been taken. However, the company announced that it would merge the wholly-owned entity Telesonic Networks and Natal Infrastructure Investments with itself.
Conditions changed due to Telecom Sector Reform
The company has recently withdrawn its plan due to the reform measures taken for the telecom sector. Because of these reforms, the company’s restructuring plan had no meaning. According to the company, the announcement of effective reform measures for the telecom sector has not only increased the confidence of investors in the sector. Along with this, the expectations ahead regarding the sector have also become better. While the license framework has also been simplified. For this reason, the company believes that the existing structure is perfect for new opportunities. The company informed that the board of directors believes that the current structure of the company is right to take advantage of new opportunities and grow digital business. Despite the cancellation of the restructuring plan, the company said that it will merge with Telesonic Networks itself, which will lead to fiber assets. I will get stronger. Apart from this, Natal Infrastructure Investments will also be merged with Bharti Airtel. Apart from this, Bharti Telemedia, the company operating its DTH business, will also be merged with Airtel. It said that India, digital, international business and infrastructure will be at its center. Bharti Airtel said the company is well positioned to invest aggressively in emerging growth prospects on the back of its 5G-ready network and strong book-keeping. Bharti Airtel had announced the company restructuring plan on April 14, 2021. Through this, there was a preparation to reorganize the company structure or structure in view of the changing business scenario.
What reforms did the government do?
In view of the deteriorating economic condition of the telecom sector, the government announced several major reforms last year, including relief like moratorium on arrears, decision on the definition of AGR, reducing the burden of bank guarantee, easing spectrum rules, spectrum sharing. There are many decisions involved like encouraging, enhancing ease of doing business. These steps are expected to improve the economic condition of the sector.
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