Bharti Hexacom Limited (BHARTIHEXA.NS) Earnings Call Transcript & Summary

[Audio Gap] The Bharti Airtel Limited and Bharti Hexacom Limited Second Quarter ended 30th September 2025 Earnings Webinar. Present with us today is the senior leadership team of Bharti Airtel and Bharti Hexacom Limited. I must remind you that the overview and discussions today may include certain forward-looking statements that must be viewed in conjunction with the risks that we face. Post the management opening remarks, we will open up for an interactive Q&A session. [Operator Instructions] With this, I would now like to hand over to Mr. Gopal Vittal for his opening remarks.

Thank you, Vaidehi. Good afternoon, and very warm welcome to all of you. With me on this call, I have Shashwat, Soumen, Harjeet, Naval and Akhil Garg. Today's call, we will focus on our second quarter performance, along with an update on our key priorities. And let me start with an update on the AGR issue. We've always maintained that the AGR judgment of 2019 was a body blow to the industry. The fact that even errors of calculation were not entertained was even more disappointing. We welcome the fact that the recent order of the Supreme Court permits the government to undertake a comprehensive assessment, reassessment and reconciliation of the AGR dues, including interest and penalties up to the financial year 2016, '17. The order has been made in the petition of Vodafone Idea. We are now planning to take up our matter with the government. Let me now turn to ESG. We're making significant progress on our ESG agenda by leveraging technology and digital innovation across our operations to drive sustainability, enhance efficiency and deliver long-term impact. During the quarter, we solarized over 2,900 sites, taking our total solar site count to over 35,000. Our AI-enabled RAN engine is optimizing energy usage by accurately predicting traffic patterns and dynamically determining ideal time windows for cell sleep. This adaptive approach enables greater energy savings compared to traditional fixed scheduling methods. At Nxtra, we aim to achieve 15% improvement in equipment performance, a 25% boost in the operational productivity and a 10% reduction in non-IT energy consumption, all with the help of AI. One of the key areas I want to call out today is the employment we offer. We directly employ over 20,000 people, which is what we report. In addition, we employ associates who work for us. This is another about 80,000. Over and above this, we offer employment indirectly of another 6,70,000 people. That means we provide 7,60,000 jobs, making us one of the largest employment generators in India. Let me turn to our financial performance. We delivered another quarter of consistent performance. Consolidated revenues came in at about INR 52,000 crores with an annualized run rate of over INR 200,000 crores. India revenues, excluding Indus, came in at INR 34,900 crores and the EBITDAaL margin, excluding the passive infra stride, came in at 51.5%. The operating free cash flow, which is the EBITDAaL less CapEx, was strong at about INR 10,750 crores. CapEx for the quarter was about INR 7,200 crores. Our balance sheet strength is predicated on disciplined CapEx and continued operational excellence. India net debt to EBITDAaL now stands at 1.32. Our strategy to premiumize the portfolio and drive execution rigor is delivering consistent performance. The mobile segment delivered another quarter of industry-leading revenue growth. Broadband is seeing sustained growth momentum and our IPTV offer is gaining strong traction, driving our convergence agenda. Our network expansion continues as planned with about 2,480 network sites and over 10,000 kilometers of fiber rollout during the quarter. Over the last few years, we have stepped up our fiber deployment. Our domestic fiber network now spans over 500,000 kilometers and is growing at a fast pace. We continue to expand fiber home passes for our broadband segment, along with FWA rollout to over 3,000 cities. Let me share a quick update on each of our segments. In the mobile business, we added 1.4 million revenue-earning customers to our customer base and 5.1 million smartphone data users. Postpaid net adds were about 1 million, accounting for 68% of total net adds. ARPU at 256 had the benefit of 1 extra day in the quarter and continued mix improvement. Our simplified international roaming plans and significant convenience to customers are yielding strong outcomes. As a result, in the last 2 years, we've seen over a 30% increase in international out-roamers on our network. I do want to underscore that feature phone to smartphone upgrades, prepaid to postpaid upgrades, data monetization and international roaming remain key drivers of our ARPU growth in the absence of any tariff repair. Our 5G expansion is going as planned. We ended the quarter with 167 million 5G users. 5G shipments continue to grow, while we believe that more affordable handset options at the entry level of the market will continue to accelerate our adoption. Our share in 5G shipments is seeing sustained improvement. 5G sites now handle over 40% of the total network traffic. In the broadband business, we delivered another solid quarter with net adds of 951,000. We're seeing strong traction in FWA with the customer base crossing 2.3 million. We see growth momentum as we accelerate our FTTH home pass deployment along with FWA expansion to newer pin codes. In the Digital TV business, we lost 340,000 customers during the quarter. The industry saw the impact of pronounced seasonality, which is reflected in our performance as well. I had mentioned earlier that we have made structural changes on the set-top box subsidy at the start of the year. This is already showing an improved cash flows despite CPE investments for IPTV expansion. At the same time, IPTV customer additions are tracking well and we're amplifying our efforts to accelerate adoption. On Airtel business, we reported revenues of about INR 5,275 crores, growing 4.3% sequentially. The domestic business remains steady. The global business is seeing signs of improvement with growth in order book as well as improved funnel. During the quarter, we signed multiple connectivity deals with marquee global customers. On adjacencies, we've secured deals in our cybersecurity and IoT business. We've recently secured a multiyear contract from the Indian Railway Security Operations Center to deliver a comprehensive suite of security services. On digital businesses, we are scaling our digital portfolio across high-growth verticals, including cloud, cybersecurity, financial services, IoT and CPaaS. Airtel Finance continues to deliver solid momentum with continued growth in loan disbursement and EMI card issuances. Digital revenues delivered a strong growth of about 24% over the last year. On the Payments Bank, our monthly transacting users crossed 100 million and now stands at over 104 million. The annualized run rate is over INR 3,200 crores, growing at 19% year-on-year. Deposits remained strong at about INR 4,000 crores, growing 35% year-on-year. A quick update on Africa. We delivered another quarter of solid performance with constant currency revenue growth of 7.1% sequentially. Favorable currency movement has led to a reported revenue growth of 10.7% sequentially. EBITDAaL was over INR 5,300 crores with a margin of 38.8%. Balance sheet remains solid with a net debt-to-EBITDAaL of 0.7. Let me now briefly comment on each of our areas of focus. We continue to build a diversified and resilient portfolio. The underlying performance across the portfolio has been strong. Africa accounts for 26% of revenues, India Mobile at 54% and India non-Mobile at 13%, while Indus is at 7%. Our investments are directed towards future-proofing Airtel by building digitally powered networks, reshaping our portfolio to drive growth across segments and building scalable digital services that accelerate the long-term growth trajectory. Second area of focus is winning quality customers. Let me start with broadband. We're seeing strong structural tailwinds in the home broadband segment, driven by rising smart TV adoption and evolving content consumption habits. As I mentioned, we see the industry growing to about 100 million over the medium term from currently over 50 million connected homes. We're investing at an accelerated pace to capitalize on this opportunity. The 3 areas of focus: a deeper network coverage and market expansion. Here, we've stepped up our home pass to reach 2.5 million homes per quarter run rate. In addition, we are complementing fiber with FWA, where we don't have fiber just yet. Second area of focus is to deliver enhanced value to our customers and drive convergence. Our convergence agenda is gaining traction with IPTV adoption and we see this accelerating in the coming quarters. The third area of focus is to cross-sell across our channels and sweat our assets optimally. With our channel infrastructure now fully integrated, we are leveraging data analytics and digital tools to accelerate acquisitions. A quick word on mobile. Our focus is to upgrade 90 million credit scored potential customers to our postpaid services. Use of data analytics and next best action from our data engine is driving data monetization and mix improvement. We continue to simplify our roaming plans and enhance value to our customers. Our rural expansion, our efforts are directed towards sweating our network deployments done over the last 3 years to drive competitive growth. Let me now move to B2B. We're seeing large opportunities across connectivity, data centers, digital and adjacencies. Two things to call out. First, we're building gold standard high capacity and low latency fiber network, submarine cables as well as OPGW infrastructure. This is a major area of focus and it will help in accelerating our core connectivity segment within our B2B business. Second is the data center infrastructure, which is another area of focus. You've already heard of our large-scale investments planned on the AI data hub with Google. This goes to show our strong belief in the long-term growth opportunity for Nxtra. Airtel and Google will jointly establish the purpose-built data center in Visakhapatnam. The partnership with Google, coupled with the ongoing expansion in Nxtra, gives us a clear visibility to get to over 1 gigawatt in the next few years. This is a fourfold increase from our operating capacity currently. Finally, we continue to scale our digital portfolio of IoT, cloud, security and SD-WAN. Our Airtel Cloud is getting encouraging response from our customers. We have over 70 ongoing conversations with large customers and already signed on deals across BFSI as well as manufacturing. We believe this can be a big growth driver for the company. There are 3 areas of focus here. One is to build out a suite of features that make us competitive with the best public cloud players. Second, to build out a world-class delivery and assurance model from Pune. And third is to raise the account management and product sales capability within the company. In addition, we've embellished cloud through partnership with various players, including IBM to address the unique needs of several industries that require migration from IBM power systems. The third pillar of our strategy is the obsession to deliver a brilliant customer experience. Delivering this remains at the heart of everything we do. Our digital experience layer is underpinned by a converged data engine. This is a full stack Software-as-a-Service-based platform that powers all our capabilities. This engine is the secret behind our consistent performance. We've already extended this to Airtel Africa and it's already live there where it talks with over 40 customers globally. In addition, we've converted this engine into a PaaS service, which is Platform-as-a-Service on Airtel Cloud to differentiate our cloud platform. And this is also getting traction from some of our domestic customers as we have conversations on the cloud. Our obsession to deliver the best experience remains and we are glad that this was validated yet again by OpenSignal. Airtel won all the 5 of the 5 awards in FWA and 4 of the 5 awards in FTTH. We're now in the process of transitioning our 5G networks towards 5G advanced by introducing dual NSA plus SA mode and migrating our FWA users on the same. Today, our FWA customers across 13 circles are already experiencing our dual-mode 5G network with SA. For the mobile network, pilots are underway for the 5G dual mode in a couple of circles and we plan to make it commercial in the coming months as the traffic on our 5G network grows. This is a point that I had made to you a few years ago and we're well aligned with making this happen. The fourth pillar of our strategy is to build and leverage our digital capabilities. Our AI-powered anti-spam solution continues to deliver significant relief to our customers. We've identified over 57 billion spam calls and 4.2 lakh fraudulent links. All of this has been enabled by AI. In fact, the power of our solution has been endorsed by the Home Ministry. The Indian Cyber Crime Coordination Center, where the Ministry of Home Affairs has now confirmed that there has been a staggering 69% decrease in the value of financial losses on the Airtel network. What we are now doing is putting AI at the very heart of our business and using it to strengthen our digital platforms, which are running at scale. We are in the process of testing these capabilities to help add competitiveness to our business. Our business objective for this is 1 of 3, drive share of wallet by improving persuasion using a very, very specific customer context; second, lower cost of doing business by improving productivity; and third, to differentiate Airtel by solving real customer problems. All of the new initiatives we've driven, whether it's cloud, it's digital platforms, Airtel Finance or anti-spam meet this differentiation objective. One other comment is to make is on the democratization of AI. For us, this has also been a mission. The remarkable partnership we struck with Perplexity to democratize AI to all Airtel customers is just one example here. The fifth and last pillar of our strategy is war on waste. We continue to identify areas to drive efficiencies in our cost structure powered by extensive use of technology. For example, we've deployed AI/ML-powered RAN energy saving tool that has enhanced our energy efficiency by optimizing the RAN operational costs. We believe there's still opportunity to strip out waste from our operations through a combination of using digital tools, extreme deleveraging and very tightly run operations. To sum up, overall, we've delivered yet another quarter of steady performance, reinforcing the strength of our diversified portfolio as well as disciplined execution. We are seeing strong growth opportunities in postpaid, in broadband, in convergence and B2B. We're investing across our businesses to future-proof Airtel and capitalize on the growth opportunities. All of this is done by keeping digital at the heart of everything we do. Our solid balance sheet is a function of our disciplined capital allocation, continued deleveraging and sustained operational excellence. This provides us with the capacity to invest in emerging growth opportunities. With this, let me hand back to Vaidehi.

We will now begin the Bharti Airtel Q&A interactive session for all the participants. [Operator Instructions] The first question comes from Mr. Piyush Choudhary.

This is Piyush from HSBC. Congrats on a great set of numbers. Two questions. Firstly, on your partnership with Google in Visakhapatnam, can you advise on the scale of investments which will be made by Airtel over the next 5 years? Is your role kind of limited to building cable landing station and provide intra-city fiber? Or does it also include build-out of the data center because you alluded your capacity will expand 4x. So that's the first question. Secondly, can you update us on the progress of Xtelify, Airtel Cloud and software solution? Has there been any key client wins or contracts signed during the quarter?

Yes, on -- with the partnership with Google, firstly, I think the point to make is on Nxtra, we've been investing about INR 1,500-odd crores a year. We see a lot of opportunity here on Nxtra to build out greater sort of capacities in the data center space. We will allocate more capital to buy more land in the right places. And in addition, of course, to continue to invest in the partnership with the Google facility in Visakhapatnam. To clarify your point -- to clarify the point that you've made, we are absolutely building data centers in Visakhapatnam for Google. So that's part of the deal. We've been providing the full terrestrial networks to Google across connecting Visakhapatnam to Delhi and Mumbai. And third, we will also build the cable landing station. So it's a full composite deal, which will have a combination of connectivity, cable landing stations and data center build-out. The data center build-out will happen through Nxtra because that is the business that Nxtra does. The connectivity and cable landing station will be run through Bharti Airtel, within Airtel business. So it's a composite deal, just to clarify. And the point I'd just like to make is that in the past, we've been -- we have moderated the investments we've made in Nxtra. We operate at a market share of about 10% to 12%. We are not satisfied with the level of market share for a player like us. We believe that we need to step up our market share given the fast-growing data center market that we see in India. And so we'll do whatever it takes to make that happen. On Xtelify, I think the cloud conversations are really going well. We've opened up conversations with 70-odd customers. This is a decision-making process that takes time. But I can tell you that every single one of those conversations is met with a lot of interest. We've already signed on about 6 deals across manufacturing and distribution as well as BFSI. And we're in the process of signing on several more. A lot of this will now depend on actually moving workloads to Airtel Cloud, building the confidence and then seeing how we can scale this because once you have an inroad into workloads for a customer, over time, more and more workloads move. So that's something that we will do. We're also in conversation with several public sector units to see what we can do to provide the cloud. I think one of the advantages that the Airtel Cloud offers is sovereignty in its true sense of the word, the control plane resides in India, the operational control resides in India and the jurisdiction that we are subjected to, which is the laws that Airtel Cloud is subject to are based on Indian laws. So, all of this actually adds to the benefit of what is really truly sovereign.

Just to clarify on Google deal. So is there a co-investment or this entire DC build-out of 1 gigawatt will be done through Nxtra?

I think that you would have seen the press release. I think there is -- we are doing a part of the build-out. There is also another partner who's doing another part of the build-out. So it's a combination of 2 partners because Google is actually using 2 partners in India to build out this facility.

Got it, Gopal. So any like color on the like overall investment over 5 years towards this?

Piyush, I think we're still trying to work this out. But I would say that we will step up from where we are today. And we will do whatever this business needs to make sure that it really builds competitiveness.

The next question comes from Mr. [ Kunal Vora ].

On the Supreme Court AGR judgment, how do you see the applicability for Airtel? It seems the order is applicable to Vodafone Idea. Do you need to approach the court or you can work directly with the government? And do you think the interest penalty, computation errors, all of that are up for review? Sorry, yes, that's the first question.

No, no, I think -- as I mentioned in my opener, I think the -- we are firstly like we've always been -- we've always said that the AGR judgment, which we sought reviews on around calculation errors was something that having lost was a disappointment for us. So in that sense, we are pleased that this has been allowed for a reconciliation by the court. We are now going to be taking it one step at a time. So first, we're going to reach out to the government and that is something that the company will do over the course of the coming days. Then we'll take it from there.

Okay. Okay. Second is on home broadband, you've seen like strong growth, but Jio has been better. I see that there's a big spike in CapEx in home broadband this quarter. Are you doing anything differently now? And how should we look at home broadband CapEx? Also, you mentioned 100 billion is a potential market. How do you look at your share in that market? So -- and also, you've seen 2.3 million customers in FWA. Are you facing any capacity issues? Are you looking at UBR? Yes, that's the second question.

I think on home broadband, I think we are clearly seeing a consistent step-up in our performance in home broadband. The fact is that even whether it's on mobile or home broadband, the definition of what constitutes a customer is a very stringent definition for us, which is based on a 30-days revenue earned. So while I'm not in a position to comment on the numbers reported by any competitor, what I will tell you is that the -- on home broadband, one of the metrics we look at is our share on some of the OTT platforms, the leading large OTT platforms and some of them have analytics that they provide to players around the world. And I would say that if I look at that, I think we're tracking very well and we're pleased with where we are. That doesn't mean that we need to -- we can't step up home broadband further because I think where we are is that we are feeling that actually there's further opportunity to improve our operational tightness in order to drive further growth of home broadband. At this point, we're not seeing any capacity issues on FWA. We are currently in the process of experimenting and doing the trials on UBR. But the challenge on UBR, as I mentioned in previous quarters, is the interference in dense locations because it uses the same Wi-Fi band that is used at homes. And you would see sometimes in your own home where you have browsing problems, it really comes due to interference issues in the 2. -- in the lower band of the Wi-Fi frequency. So this is an area of trials. But I do believe that UBI has a legitimate opportunity to expand into areas which are not so dense. So this could be remote locations, rural areas, small towns, et cetera, where the density of presence of fiber is low. So that's being assessed right now.

Understood. Just lastly...

And on the CapEx front, I think the home broadband has 2 components of CapEx. One is the home pass that we roll out and the second is the router, so the CPE. So both of those -- the second is linked directly to growth. And maybe, Soumen, you can just add some color on the CapEx.

Yes, Gopal, what you said is right. Basically, we are doing -- we have accelerated our home pass rollout as well as we are deploying on 5G. So both the 2 avenues of growth is being triggered at the same time. So you will see some amount of elevated CapEx in the near future because of both going parallelly.

Just lastly, a follow-up to what Piyush was asking. I mean, if I look at 1 gigawatt data center, the cost could be $25 billion, $30 billion, if I'm not mistaken. And like say, if there are 2 partners or 2 entities doing it, the amount for Airtel also could be fairly large. So can you give us some like comments on like what's the scale of investment we are looking at in data centers?

We haven't yet guided on this particular issue, but I would again come back to saying that whatever is required to be invested, we will make the investment. I think the numbers that you are talking about are obviously much, much higher than what we think it will be. But suffice it to say that we will do what it takes to step up the growth of Nxtra.

The next question comes from Mr. Sanjesh Jain.

A couple of questions from my side, Gopal. First on the -- you said there is a stand-alone and non-stand-alone doability that which we are doing on the network to ramp up the FWA. Can you provide more detail on that? How many circles? How does the technology work? Does it give us the capability to do spectrum splitting, the one which stand-alone enables? How should we see this transition? And does it integrate that we need to go to a stand-alone 5G before -- or are we postponing or preponing that transition now?

You had a second question, Sanjesh?

Yes. One on the capital allocation side. We have announced to raise the equity stake in Indus Towers by 5%. Just wanted to understand the rationale. We understood till 50%, we wanted to have a controlling stake. Just from a capital allocation perspective, just wanted to understand what's the rationale behind increasing the stake? And how does it change the position for Airtel in terms of Indus?

Yes. So Sanjesh, I think just to explain the stand-alone. See, over a period of time, if you take a longer period of time, let's say, over the next 5, 6 years, as all of the 4G traffic shifts to 5G and more and more devices come in, we will be refarming band-by-band spectrum to move it to SA. This is a point that I've made a few years ago. So now as you do this transition, you'll need to operate some spectrum in non-stand-alone mode and some spectrum in stand-alone mode because you're operating what's called a dual mode. This is a standard practice. It's standard in all markets. So for example, you can see in the U.S. market, this is exactly what they're doing. Even in China, this is exactly what they're doing. So -- because you can't refarm all of the spectrum immediately, right? So at this point in time, when we say it's a dual mode in 13 circles, we already have a live stand-alone network that is operating for fixed wireless access. One of the advantages that we are seeing on this is the fact that the time on technology that is spent is greater because they don't sort of toggle between 4G and 5G and that sort of frees up the networks. The second is there is a slight improvement in the uplink performance. So these are the 2 things that we've seen. And as a consequence, these 13 circles will extend across the country for fixed wireless access. This is one part of it. The second part of it is we also believe that we are now ready, given that 40% of the traffic that we carry on 5G networks to also start refarming some spectrum for stand-alone on mobile. And that gives all the capabilities of stand-alone, as you rightly mentioned. So this is a work in process. If we are sitting here, let's say, 3 to 4 years from now, you would see more and more frequency being refarmed to stand-alone. And at some point, non-stand-alone will just disappear. There will just be stand-alone technology at -- in the country on our networks. On the capital allocation point, I think for us, we see Indus as a very clearly undervalued asset. It's a strong dividend-paying company. It's a vital infrastructure for us. And therefore, given all of these reasons, we've taken up the stake there or we are proposing -- we've taken an enabling provision to take up the stake there. And at some point, based on how things play out, we will look to activate that provision.

Got it. Just 2 follow-up questions, Gopal. One on the fixed broadband CapEx. Again, I was just looking at that number. Now it works to around INR 20,000 CapEx per customer. I was just looking at it. It was INR 15,000 a couple of quarters back, that was around INR 15,000, INR 16,000 per customer addition. I thought fiber home pass has remained broadly same, 10,000 kilometer, 1.5 million, the one we have been adding. Any reason why there is a spike in the CapEx per customer, if I look at the home services as a whole? That's number one. Number two, any thought process where we want to ultimately take our stake in Indus? Is there any thought process there? We want to go it till 70, 65? Any number there if you can share?

Soumen, do you want to talk a little bit about the CapEx piece?

Yes. So Sanjesh, earlier, the home pass cost -- the home pass cost has remained largely same, cost per homes passed. But what has happened, as I explained, we -- because this is a land grab opportunity, we are rolling out more fibers and this will get extracted. In the parallel, we are also deploying FWA. Now the cost of a connected home between a fiber and FW is almost similar. But because the home pass rollout is also getting -- becoming aggressive and we are doing more in a quarter and we are acquiring more customers on FWA, you are seeing for some period because you are dividing it by the cost of -- by the number of customers and hence, you are seeing an elevated number. Other than that, there has been no change, no major change in the actual cost of every home pass, neither in the cost of the FWA unit.

So Sanjesh, just to give you a sense, we have been operating at between $28 to $32 cost per home pass. That doesn't change and that has not really changed. On Indus, I think we've always -- like I mentioned earlier that we've taken an enabling provision to climb by 5%. Beyond that, there is nothing further to add at this point.

The next question comes from Mr. Ankur Rudra.

This is Ankur from JPMorgan. The first question on CapEx. If I heard you correctly, there will be an increase in CapEx on 5G stand-alone CapEx on home passes as you're looking to accelerate that across CPEs and also an acceleration on the data center side. So how does all of this layer into the overall CapEx guide for it to moderate in the medium term? Do you think you may have to sort of update that short to medium-term CapEx expectation for us?

Ankur, on 5G stand-alone, there is really no meaningful CapEx because it's all software led, right? And all our networks are capable of moving to stand-alone at the click of a button. So it's a very, very tiny amount of money that we spend for software. On homes CapEx, it's all built-in into our overall guidance of moderating on CapEx. So that nothing changes there. So the only question is on data centers. I think there's an opportunity here to step up the growth of data centers in terms of investment. That part is the part that we will assess fully and then sort of come back on how that will impact. My own sense is it will not be a very meaningful change. There could be some bump up because of the investment in Nxtra. But there, again, I would say it's a bit premature to talk about it because we will do what it takes to make sure that we put in the requisite investments to build our position strongly there. It's a very good investment because you get firm contracts for 20, 25 years. And so to that extent, that works well.

And just to clarify, the Nxtra investment and the model with Google, it's a colocation model that you're doing. You're not going to look at doing the CapEx of servers yourself. Is there any clarity there [indiscernible]?

No, no, a data center buildout. It's only a data center build.

Got it. Got it. Super helpful. Just last question was on the -- you mentioned about convergence being an opportunity. Can you talk us through in terms of how you think -- look at this in the medium to long term for an overall ARPU premiumization? An update there would be helpful.

Yes. I think at this point in time, there's a land grab on homes, as you know, right? There is a massive growth and tailwind that you see in the home broadband segment. The convergence, which is broadband plus content is a very compelling proposition for customers because the bundled pricing that you -- that is offered today in the industry is far lower than what it would be if it were disaggregated and sold through the form of DTH and home broadband separately. So to that extent, it's a very compelling proposition. Plus there is abundance of content as well. So there's a lot more content. So this is really like going through in a very accelerated pace. I think we are adding for our broadband users almost 60% of converged sort of plans coming through. At some stage, once the land grab phase is over, will tariffs have some correction or see some repair in this segment given the value that we offer? The answer to that could be yes. But I think today, it's a bit early to comment on that.

And just to -- maybe a quick follow-up there. In terms of land grab phase, you spoke about the 100 million homes opportunity. How long -- I know at the moment, you're adding about 1 million homes per quarter. Your competitors are doing a bit more than that. How long do you think this opportunity lasts in terms of for us to get to around 100 million? Broadly, it could be 3, 4 years, longer than that?

Yes. My own sense is we are -- today, I think in the next 5 to 6 years, I think we should probably get to it as an industry.

The next question comes from Mr. Gaurav Malhotra.

Just a couple of questions or follow-ups. Just if I heard it correctly, you were mentioning that the home pass CapEx versus an FWA per subscriber. Is that in the similar ballpark?

What Soumen was referring to was the cost per connected home pass and the cost of FWA is more or less the same. So like I mentioned, if you take a $28 to $30 cost per home pass, typically, the utilization on fiber over a period of couple of years tends to be about 28% to 30%. This is what happens pretty much in most parts of the world, including India, which means that your cost per connected home pass ends up at about $100 and that is pretty much comparable with fixed wireless access. Because fixed wireless access, what you have is essentially a CPE, the mobile radio is already deployed for fixed wireless support for 5G. So it's only the cost of the CPE, which is about that much. And that's what you...