Telecom giant Bharti Airtel is likely to shut down its 3G services in next three to four years, a top official of the company said on Wednesday. Airtel will be refarming the spectrum linked with 3G to its 4G services.
An Airtel representative on the call said that revenues will be further hit to the tune of 4 per cent of its consolidated EBIDTA or around Rs 300 crore in the ongoing quarter due to reduction in mobile call connection charges to 6 paise applicable from October 1.
Mobile companies charged 14 paise a minute for allowing a domestic call from a rival operator to terminate on their network before October 1. The Telecom Regulatory Authority of India, the body which determiines it, has made it 6 paise per minute from October 1, 2017.
The consolidated revenues for the just-ended quarter, at Rs 21,777 crore, represented a year on year drop of 10.4 per cent (reported drop of 11.7 per cent) on an underlying basis when adjusted for Africa and Bangladesh divested operating units and tower asset sale.
In a separate development, Airtel announced transfer of its optical fibre business to its wholly-owned subsidiary Telesonic Networks for a valuation of up to Rs 5,650 crore.