A view of the British Telecom (BT) headquarters in central London on March 10, 2017. - British telecoms giant BT Group has agreed to legally separate its broadband unit Openreach to remedy concerns over competition in the sector, the company announced today. Created by BT in 2005, Openreach maintains tens of millions of copper and fibre lines connecting telephone exchanges to homes and businesses across the UK. CHRIS J RATCLIFFE/AFP via Getty Images
Indian telecom and tech giant Bharti, the parent company of Airtel, has announced an acquisition in the global telecommunications sector.
As reported by Techcrunch, Bharti will purchase a 24.5% stake in British Telecom (BT) from Altice, a deal valued at approximately $4 billion. This acquisition will make Bharti the largest shareholder in BT, the U.K.'s former incumbent telecoms carrier.
The acquisition will occur in two phases, with Bharti initially acquiring 9.99% of the stake immediately. The remainder of the purchase will follow pending regulatory clearance.
Now, this move comes at a time when Altice faces pressure to streamline its operations due to debt-related challenges and corporate scandals. Altice initially acquired its stake in BT in several tranches, beginning in 2021 and most recently in May 2023. However, BT's share price has declined since then, partially due to a broader downturn in technology and communications stocks.
Bharti's investment is seen as a strategic play to gain a stronger footing in the global telecom market, particularly in the areas of 5G and artificial intelligence (AI). Earlier this year, VCPost learned that BT itself has voiced out its similar ambitions to lead UK telecom with its own 5G network.
At the same time, this also reflects Bharti's strategy to diversify its operations beyond the Indian market, where it faces fierce competition from Reliance's Jio in what is widely regarded as a duopoly. By investing in BT, Bharti aims to expand its influence and create new synergies between India and the U.K. in emerging technologies.
Sunil Bharti Mittal, the founder and chairman of Bharti, emphasized the historical ties between Bharti and BT. Mittal noted that BT once held a 21% stake in Bharti Airtel from 1997 to 2001.
BT's response to the investment has been positive, with Chief Technology Officer Allison Kirkby welcoming Bharti as a major investor.
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