Bharti gains control of JT Mobiles

NOVEMBER 30: The Bharti Enterprises, with the popular Airtel brandname for its cellular services in Delhi, today announced gaining strate...

NOVEMBER 30: The Bharti Enterprises, with the popular Airtel brandname for its cellular services in Delhi, today announced gaining strategic control over JT Mobiles Ltd. With this the Airtel brand will now have a presence in Karnataka and Andhra Pradesh apart from their presence already in Delhi and Himachal cellular services. Bharti also has basic services in the Madhya Pradesh circle.

Bharti, through issue of fresh equity, has taken over S C Cellular Ltd, a Sanmar Group Company which holds a direct stake of 18 per cent in JT Mobiles Ltd. In addition, Bharti has committed fresh funds over Rs 400 crore into JT Mobiles to take a leadership position in the company.

As a result, JT Mobile today cleared off its entire liability towards its past licence fees dues by paying off or securitising a total amount of Rs 250 crore towards Department of Telecommunications (DoT).

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According to a release issued by Bharti Enterprises, the company will now spearhead the expansion of the networks and build an extensive world class high capacity backbone network in the two states.

mobile operator in Andhra Pradesh and Karnataka.

With this investment, the Delhi-based company has become the largest private telecom services group across the country.

While Bharati Enterprise has committed fresh funds of Rs 400 crore into J T Mobile, its statement did not indicate the consideration for the equity stake in J T Mobile through the buyout of S C Cellular Limited. While Telia will continue to retain 26 per cent stake in J T Mobile, the other partners will rebalance their equity stake consequent upon Bharati joining the consortium.

J T Mobile has got this stake when it desparately needed funds for its growth plans. The original partners in this company had already invested Rs 600 crore for both the cellular networks in these two states.

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