AGR reform: Bharti Airtel rolls back corp restructuring plan

The company said that since the recent reforms by the government for the telecom sector has boosted investor confidence and simplified licence framework, it would continue with the existing structure.

bharti airtel
Airtel said that the seminal telecom sector reforms package announced by the government has significantly boosted the outlook and investor confidence for the industry while simplifying the licence framework.


Bharti Airtel on Tuesday said that its board has decided not to go ahead with the restructuring of its corporate structure as announced in April last year, wherein Airtel Digital was to fold into the listed entity and was to sit on top of the telecom business.

The company said that since the recent reforms by the government for the telecom sector has boosted investor confidence and simplified licence framework, it would continue with the existing structure. The restructuring was being done with the aim of keeping the digital revenues out of the ambit of the adjusted gross revenue on which licence fee is paid to the government. However, the government in September last year modified the AGR computation norms under which non-telecom revenues would not be considered for payment of licence fees.

The company said that its businesses would continue to be categorised under four key verticals – India, Digital, International and Infrastructure. Airtel said that the seminal telecom sector reforms package announced by the government has significantly boosted the outlook and investor confidence for the industry while simplifying the licence framework. It further said with a strong balance sheet and 5G ready network, Airtel is well positioned to invest aggressively in the emerging growth opportunities offered by India’s digital economy.

“The board of directors of Airtel is of the view that the existing corporate structure of the company is, therefore, optimal for leveraging these emerging opportunities and unlocking value while continuing to scale up Airtel’s digital businesses. Therefore, the scheme of arrangement for the new corporate structure announced on April 14, 2021 stands withdrawn,” the company said in a statement.

Under a modified scheme, the company, as previously approved by the board, will merge its wholly owned subsidiary Telesonic Networks, resulting in consolidation of its fibre assets into Airtel. In addition, Nettle Infrastructure Investments will also be merged with Airtel. As announced earlier, the company will pursue its plan to eventually fold the DTH business (Bharti Telemedia) into Airtel to move towards the NDCP vision of converged services to customers.

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