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Airtel, Vodafone-Idea fibre JV a business opportunity for PE funds

The firms would want to demerge their fibre assets and give it to a third company, making their balance sheets lighter and providing an annuity stream for investors

telecom, tower
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Though Jio does not divulge details, those in the know say its target is to grab 40 per cent of the revenue market share

Megha Manchanda New Delhi
Bharti Airtel’s decision to partner Vodafone Idea has come as a business opportunity for private equity funds keen on investing in the optical fibre space for leasing assets to earn rentals in return.

The optical fibre synergies will be on the lines of the tower business where the two companies will hive off the fibre assets to a third company, which will in turn lease them out.

Analysts believe that it is a balance sheet light approach for the companies which are under financial stress at the moment. In the current environment, the companies would want to demerge their fibre

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First Published: Feb 27 2019 | 4:55 PM IST

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