Jio proposes to transfer fibre & tower assets to two separate undertakings is intended at monetising these assets and will likely follow an InvIT structure.
While too many details were not disclosed (likely to be completed in c3-6 mths), some key highlights: 1) It will lead to associated debt on Jio’s books being transferred to these entities, 2) It will help attract a new pool of capital into these passive infra assets (some investors have already evinced interest), 3) It will help Jio become a predominantly asset-light digital services company, 4) Jio will be the anchor customer for both tower & fibre assets (on a leasing model), with all future related capex to be borne by these entities, 5) The assets will be open to sharing with other telecom operators on mkt-based pricing, which could be a concern for BHIN (mgmt. clarified that sharing is possible on most of its towers, and does not view the sharing of its extensive fibre assets as a loss of competitive advantage).
