Aircel to Explore Merger Talks With Airtel; May Launch 4G Services: Report

Debt-ridden GSM telco Aircel has initiated talks with lenders and shareholders to overcome the ongoing crisis with cash for operations that will run out by March. According to a Business Line report, Aircel is exploring a potential merger with Bharti Airtel along with an option to launch 4G services in India through spectrum-sharing partnerships.

• Make Telecom Talk My Trusted Source
• 
• 

Last week, Bharti Airtel chairman Sunil Mital told the Economic Times that his company was open to acquisition talks with Aircel.

The Maxis-owned telco may look to shut down operations only if all efforts to keep operations going fail. “A decision will have to be taken within a month or two. Until then, the operator will continue to run the network in all circles. There is no plan to shut down as of now,” one source was quoted as saying by the publication.

The source added that the company would have to take a decision in the next two months. “There is enough cash to run operations till March. After that it will be a challenge to sustain operations for its nearly 88 million subscribers and prevent job losses of its about 5,000 employees.”

Aircel, however, recently clarified that it was not shutting down operations in 14 circles as claimed by certain media reports. The telco further added that it was making efforts to build a profitable business in the country. In a statement, Aircel had said, “Media reports about Aircel as regard insolvency or shutting down operations in 14 circles is completely speculative & misleading.”