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Tuesday, July 17, 2018

Bharti Airtel to acquire Tata’s mobile business for ‘free’

The deal will give Airtel a major subscriber base boost and stem the bleed for Tata from a loss-making venture

By: Reuters | Mumbai | Updated: October 12, 2017 11:34:59 pm
Airtel, Airtel Rs 495 plan, Airtel plan, Airtel Rs 495 recharge, Airtel 84GB data, Airtel Rs 495 vs Jio Rs 399, Airtel Unlimited Plan, Airtel Unlimited Plans, Airtel Prepaid Unlimited Plan, Airtel Unlimited Offers, Airtel Unlimited Calling Plan, Airtel Unlimited Data Plan, Airtel FUP, Airtel recharge, Airtel plans As part of the deal, Tata’s mobile customers in 19 service areas will move to Bharti Airtel. File Photo

Bharti Airtel Limited will acquire Tata’s consumer mobile business, the two companies said on Thursday. The deal will give India’s top wireless player a major subscriber base boost for virtually free, while stemming the bleed for Tata from a loss-making venture.

The transaction would be done on a “debt-free cash-free” basis, the companies said, although Bharti Airtel would take over a “small portion” of Tata’s unpaid spectrum liabilities.

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

The telecom sector is in the midst of a wave of consolidation after the entry of Reliance Jio. The Mukesh Ambani-led venture has sparked a price war and cut-throat competition in the telecom space, eroding profits for carriers at a time when they already have high debts after costly airwave purchases.

As part of the deal, Tata’s mobile customers in 19 service areas will move to Bharti Airtel along with airwaves that Tata had purchased. “Tata and Bharti Airtel will work together to further explore other mutual areas of cooperation,” the companies said. The statement also said Tata was in the initial stages of exploring a combination of its enterprise business with Tata Communications Ltd and its retail fixed-line and broadband business with satellite TV arm Tata Sky.

However, Tata will retain its stake in tower company Viom and will take care of the liabilities associated with it. Goldman Sachs advised Tata on the deal.

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