Bharti Airtel dips 1% after announcement of collaboration with Meta to extend 2Africa Pearls subsea cable system: Check details
Airtel Share Price: The stock opened at Rs 844.90 apiece and quoted Rs 835.40 apiece, which was down 1.03 per cent on NSE. On BSE Airtel stock traded at Rs 835.75 apiece.
Airtel Share Price: Indian multinational telecommunications services company, Bharti Airtel Limited (NSE: BHARTIARTL) fell more than half per cent after the company announced a collaboration with American Conglomerate Meta, to extend 2Africa Pearls which is world’s longest subsea cable system to India.
The stock opened at Rs 844.90 apiece and quoted Rs 835.40 apiece, which was down 1.03 per cent on NSE. On BSE Airtel stock traded at Rs 835.75 apiece.
Year to date, the Bharti Airtel stock has gained more than 21 per cent and in the past six months the stock has climbed more than 22 per cent.
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Bharti Airtel-Meta: Collaboration details
Bharti Airtel in an exchange filing announced that it will be collaborating with Meta to accelerate India’s digital ecosystem.
“We are enclosing herewith a press release dated December 05, 2022 titled ‘Airtel and Meta collaborate to accelerate India’s digital ecosystem’ issued by the Company,” the filing read.
Airtel and Meta will jointly invest in global connectivity infrastructure and CPaaS based new-age digital solutions to support the emerging requirements of customers and enterprises in India.
Airtel will partner with Meta and STC to extend 2Africa Pearls to India which is expected to provide faster internet connectivity to almost three billion people globally.
The partnership will lead to the extension of the cable to Airtel’s landing station in Mumbai and also pick up dedicated capacity to further strengthen its submarine network portfolio. The 2Africa cable will significantly boost India’s cable capacity and empower global hyper-scalers and businesses to build new integrated solutions and provide a high-quality seamless experience to customers.
Zee Business Analysis
According to Zee Business Analyst, Nupur Jainkunia, the Africa business does not have any risk involved.
Nupur further said that the Average Revenue Per User (ARPU) will reach Rs 200 in the coming near term, it was Rs 190 in Sep 2022 quarter and there will be no impact on ARPU due to inflationary macro-environment.
ARPU in the medium to long-term is expected to reach Rs 300 and there won’t be much impact on the 5G prices.
Bharti Airtel Q2 results
The telecom company posted an 89 per cent year-on-year rise in consolidated net profit to Rs 2,145 crore amid higher revenue per user and more data consumption.
The total revenue rose nearly 22 per cent year-on-year to Rs 34,527 crore during the just-ended quarter. The company attributed this to 'strong and consistent performance delivery across the portfolio and crossing 500 million customers globally'.
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