Science

Bharti Airtel, Tata to merge consumer mobile businesses

Bharti Airtel, Tata to merge consumer mobile businesses”

Bharti Airtel will acquire Tata Group's loss-making mobile telephony business, nearly for free, boosting its spectrum holding and raising subscriber base while saving the Tatas from the prospect of having to shut down the struggling unit.

The transaction will be done on a "debt-free cash-free" basis, the companies said in their joint statement, although Bharti Airtel will take over a "small portion" of Tata's unpaid spectrum liabilities.

The Boards of Bharti Airtel, Tata Sons, TTSL and TTML have approved the transaction.

Under the agreement, Bharti Airtel will acquire Tata Teleservices's consumer mobile business operations across India in 19 circles, boosting its spectrum foot print with the addition of 178.5 MHz spectrum in the 850, 1800 & 2100 MHz bands, said the statement filed with the BSE.

"This is a significant development towards further consolidation in the Indian mobile industry. The customers of Tata will be able to enjoy India's widest and fastest voice & data network, and bouquet of Airtel's best-in-class products and services".

The merger will also provide Bharti Airtel the right to use Tata's existing fiber network.

He said Tatas will retain stake in the tower company, Viom, and explore transferring the enterprise business to Tata Communications and retail fixed-line and broadband business to satellite TV arm Tata Sky. "We have evaluated multiple options and are pleased to have this agreement with Bharti". This comes after 4 months of continuous talks between the two companies and finally, N Chandrasekaran, the head at Tata Sons can look to focus on other verticals of Tata Sons as the telecom business was one of the loss-making verticals of the Tata Sons.

"The acquisition of additional spectrum made an attractive business proposition". The agreement will further strengthen Airtel's solid portfolio and create substantial long term value for our shareholders given the significant synergies.

Tata Teleservices and its unit Tata Teleservices (Maharashtra) Ltd have more than 40 million subscribers and rank ninth in India's telecoms market, which had a total of 1.2 billion mobile subscriptions at the end of July.



Like this

Latest


12 October 2017
Denver Investment Advisors LLC Sells 2483 Shares of Dow Chemical Co (DOW)
It improved, as 12 investors sold CU Bancorp shares while 19 reduced holdings. 63 funds opened positions while 168 raised stakes. The firm owned 54,533 shares of the basic materials company's stock after selling 2,483 shares during the period.

12 October 2017
Cognizant Technology Solutions Corporation (CTSH) Rating Reiterated by Jefferies Group LLC
Sumitomo Mitsui Asset Management Ltd has invested 0.05% of its portfolio in Cognizant Technology Solutions Corp (NASDAQ: CTSH ). Americafirst Capital Management Llc increased Express Scripts Holding Co (ESRX) stake by 208.39% reported in 2017Q2 SEC filing.

12 October 2017
Fairfield-Suisun closes all schools for rest of week due to fires
Officials said the area is expected to enter a "critical" weather event beginning at 11 a.m. with "volatile and gusty" winds. The Atlas Fire continued to burn in Solano County Wednesday morning, moving closer to Solano County communities.

12 October 2017
Retail inflation at 3.28 pc in September
Compared to September 2016, food prices grew by 2.74% in September this year whereas non-food prices went up by 1.8%. The consumer price index (CPI) based inflation stood at 4.39 percent during the same month previous year .

12 October 2017
Robben retires after Netherlands' World Cup exit
Robben scored both goals in a 2-0 win over Sweden - but they were not enough for the Dutch to reach the play-offs. He participated in three European Championships (2004, 2008, 2012) and three World Cups (2006, 2010, 2014).

12 October 2017
WH Smith travel store sales overshadow high street as retailer hikes dividend
Commenting on the results, Stephen Clarke, Group Chief Executive, said: "We have delivered a good performance across the Group". Shares fell 2% despite WH Smith announcing a 10% rise in its final shareholder dividend payout to 48.2p.

12 October 2017
SC adjourns hearing of disqualification case against Jehangir Tareen till Tuesday next
Tareen's lawyer maintained that his client can not be disqualified in this situation as he had not lied anywhere. On the contrary, Hanif Abbasi's lawyer argued, "Jahangir Tareen's dishonesty is obvious from day one".

12 October 2017
Pakistan Rescues Western Couple Held by Afghan Taliban
He also told his father that they've had a third baby in custody, a little girl who was born two months ago. They last were seen in a hostage video taken in December 2016 begging their governments to save them.

12 October 2017
Aarushi murder case: Allahabad High Court to deliver verdict today
He said the High Court verdict "does not say that the Talwars didn't do it" but that there was not enough evidence against them. Reacting to the verdict , the CBI said it would study the high court order and decide the future course of action.

12 October 2017
Future Apple iPhone Could Feature A Foldable Display
Twenty-one percent of US survey respondents and 29% of USA iPhone owners plan to purchase an Apple Watch in the next year . Currently, Samsung is exclusively supplying panels for the latest iPhone X , the first OLED iPhone.



Recommended