Airtel's Subscriber Loss Turns to Growth, Profits Jump 167% Amid 5G and Rural Expansion Push

Bharti Airtel recently shared an update on its growth and expansion following the latest tariff hike in July, which had initially caused a 2.9 million drop in subscribers. However, Airtel's Managing Director Gopal Vittal said this subscriber drop was milder than previous tariff hikes, and Airtel is now seeing customer additions bounce back. In the July-September quarter alone, Airtel added 4.2 million smartphone users and 0.8 million postpaid users. Vittal expects the full effect of the tariff increase to show up in the coming months.

Airtel's Q2 profit for FY25 soared by 167% to ₹3,593 crore, driven by strong growth in its Indian and African markets. Although this profit figure was slightly below the expected ₹4,398 crore, Airtel’s revenue increased by 12% year-on-year to ₹41,473 crore. The telco is optimistic about its 5G-based Fixed Wireless Access (FWA) broadband services and aims to expand its reach in home broadband. Vittal stated, "We're rapidly growing our FWA and FTTH (fiber to the home) coverage and now operate in more than 2,000 cities."

Airtel is also focused on expanding its broadband services to new areas, especially in rural regions and places with less fiber coverage. It’s using FTTH and FWA to improve internet access and plans to gradually switch from FWA to fiber wherever possible. Vittal emphasized that fiber will always offer a more stable experience, and Airtel’s future expansion will be fiber-focused.

Currently, Airtel has over 33.5 million home subscribers, adding over 1.5 million each quarter. Its rural expansion is ongoing, with 39,000 new sites added this year in five key regions. Vittal said the rollout would be mostly complete by the end of this year.

Capex Plans and Future Investments

Airtel has decreased its capital expenditure (capex) for this year since last year’s peak investments in its 5G network. Future capex will focus on data centers, broadband, and network modernization, especially in core and transport networks. Airtel is no longer investing in 4G expansion and is focusing on 5G in high-demand areas for mobile and FWA users.

The company is also investing in the cloud sector, which it views as a high-growth opportunity in the B2B market. Vittal noted, "Cloud services are growing fast, and we see a major growth opportunity in this area.”

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