Why Airtel has launched an ambitious network transformation programme

Faced with the impending launch of Reliance Jio, Bharti Airtel today announced the launch of its  Project Leap programme . The new initiative will significantly improve its network, claims the company. The 10-point programme, spread over three years, will focus on increasing the number of base stations, expanding mobile broadband coverage, deploying a range of indoor coverage solutions, swapping legacy networks, deploying fiber network, among other thrust areas.

The programme will entail a cost of Rs 60,000 crore over three years. In terms of base stations,  Airtel will nearly double them in three years-- from over 1,60,000 now to over 3,20,000. More base stations will improve the quality of voice and data services of the telecom operators. One of the biggest grudge of telcos is that they are not allowed to put up more towers (or base stations)  which results in frequent call drops.

In a recent interview to Business Today, telecom minister Ravi Shankar Prasad had said that his ministry is taking the call drop issue seriously and the telcos have improved their network issues in the recent past. He, however, said that more needs to be done.

Airtel CEO and MD Gopal Vittal said that a large part of this new initiative is aimed at improving voice services.

In its 20 years of operations, Airtel has invested some Rs 1.6 lakh crore so far. Project Leap will be the biggest programme for Airtel in terms of both project cost and the amount of deployments it is going to make in areas like base stations, optic fiber, Wi-Fi hotspots, small cells solutions and others.

As part of the project, Airtel will modernize its 3 million strong home broadband network by upgrading its copper assets. It will enable the company to offer 50 Mbps speeds, a jump from its current 16 Mbps by 2016.

Without revealing much details about how the project will impact Airtel's financials, Vittal said that the current net debt-to-EBITDA ratio stands to 2.3, which is comparable with other telcos around the world.