Bharti Airtel has received US$2.5 billion worth of financing commitments from two Chinese banks that will help to fund the Indian operator’s network deployments.
The China Development Bank has agreed to provide up to $2 billion, the single largest bilateral commitment it has made to any telco. Meanwhile, the Industrial and Commercial Bank of China has agreed to provide $500 million, the single largest bilateral commitment it has made to an Indian telco.
The agreements are "an endorsement of the long term potential of the Indian telecom sector," said Rajan Bharti Mittal, vice chairman of Bharti Enterprises, in a statement on Saturday.
Bharti Airtel said the funds will allow it to diversify its global fin ancing pool and give it access to money that can fund the growth of its data networks across its global footprint.
The average lifespan of the funding commitments is approximately nine years, and Bharti Airtel can draw down on them over a period of three years depending on how much it requires.
Meanwhile, in a separate statement last week, Bharti Airtel revealed it has launched a 4G trial in Chennai that allows customers the opportunity to try out the service for the same price as 3G.
"As more and more Indians show a preference for consuming data and content over their mobile devices, we at Airtel are excited to bring the power of 4G for our customers in Chennai," said George Mathen, CEO, Kerala & Tamil Nadu, at Bharti Airtel India, in a statement last week. "Over the last few months, we at Airtel have made significant investments in building a robust 4G network here," Mathen.
Bharti will use the trial to gather feedback about quality of service, which will inform the operator’s network deployment in Chennai.
The Indian operator offers commercial 4G services in 19 cities and is trialling it in a further four. As well as Chennai, 4G trials have also launched in Hyderabad, Mumbai and Visakhapatnam. Bharti plans to launch further 4G trials in Coimbatore and Vellore.
In addition, Bharti Airtel and Samsung have agreed to promote one another’s 4G products and services at their respective retail outlets in a bid to drive uptake.
Samsung will offer to swap a customer’s SIM card for an Airtel 4G SIM when they buy a 4G device. In the weeks to come, Samsung stores will also bundle Airtel 4G SIMs with 4G handsets. In return Bharti Airtel stores will offer double the normal 4G data allowance when customers buy one of a select few Samsung devices, including its flagship Galaxy S6 and S6 Edge.
