Bharti Airtel to hive off tower business

Bharti Airtel today announced that it would hive off its mobile tower and infrastructure business into a 100 per cent subsidiary. The move is aimed at unlocking shareholder value. It also hints at a later possibility of roping in a strategic partner.

Currently, the company owns over 35,000 towers, which are expected to hit 40,000 by this financial year. Reliance Communications too had recently announced to hive off its tower business. Reliance has 12,000 towers under its fold and expects a valuation of over $4 billion. Bharti, however, said it has not valued its business.

The Bharti board also decided to buy out the 50 per cent equity stake of SingTel in i2i -- a joint venture under-sea submarine cable company that links India to Singapore -- for $110 million.

Bharti already has 50 per cent stake in i2i. The company also announced that it will commence direct-to-home services through a wholly owned subsidiary Bharti Telemedia.

The new company will compete with a bevy of DTH operators which include Tata Sky, Zee's Dish TV, Doordarshan and the upcoming Sun TV and Reliance Communications platforms which are also expected to kick off this year.