Bharti Airtel, Malaysian Axiata Group may merge Sri Lankan units

By February 12th, 2016 AT 8:06 AM

Bharti Airtel and Malaysia’s Axiata Group are mulling over a merger of their operations in Sri Lanka, in a share-swap deal, to create a company serving half the country’s 25 million mobile connections, according to an ET report.

Axiata Group’s Sri Lankan unit Dialog Axiata is the market leader with 10.5 million connections and 41% share, whereas Airtel Lanka has a 9% share with 2.3 million mobile customers. Mobitel, which is run by state-owned Sri Lanka Telecom, has a 22% in the country, followed by Etisalat.

The development follows the recent merger of Airtel and Axiata’s telecom units in Bangladesh, wherein Axiata will be the dominant shareholder and Airtel a strategic minority holder in the combined entity. This merger will allow Airtel Bangladesh and Robi Axiata to leverage their operational synergies.

Dialog Axiata reportedly approached Sri Lankan authorities last week about a possible takeover of Airtel Lanka, the report said, adding the Competition Commission of Sri Lanka may have some issues with a potential merger since Dialog Axiata already controls over half the country’s mobile market.

Airtel Lanka hasn’t been able to effectively compete with Dialog and boost market share in Sri Lanka due to minimum mobile tariff set by the government, ET report said, citing multiple sources.

Besides India, Airtel has operations in 19 countries across Asia and Africa, with a total of 350 million users as on December 31, 2015.

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SaketAbhijanSutripta RoyAbhijan Palarun Recent comment authors
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SANJIB BANERJEE
SANJIB BANERJEE

Wow…. next will be India… Here fraudtel will merge with axiata’s Indian partner !dea…

fraudtel , please merge with your partner axiata as early as possible… very pathetic service… poor voice clarity continue from past 7-8 months across India… Good service only in few area/town.

arun
arun

They are market leaders. Just for few fools like you who hate it for patchy services in ur down market area doesn’t mean they should slow down and merge.

Sutripta Roy
Sutripta Roy

@arun According to your statement, A good connection means which has coverage only in up market area???

Abhijan Pal
Abhijan Pal

Why don’t you port-in to tata docomo. days back I have port-in to tata docomo from Vodafone. tariff, voice clarity and network is excellent.

Abhijan Pal
Abhijan Pal

Why don’t you port-in to tata docomo. 2 days back I have port-in to tata docomo from Vodafone. tariff, voice clarity and network is excellent.

Sutripta Roy
Sutripta Roy

@sanjib… Abhijan is right… Tata Docomo Kolkata is now very good… voice clarity,tariff… coverage is better than Aircel… only internet speed is patchy. nothing else.

Abhijan
Abhijan

Yes Internet speed is not good. But it’s better than airtel, Vodafone and aircel 2G.

Saket
Saket

Why can’t this happen Airtel will buy idea cellular So transfer all network, and towers and spectrum. Then idea can continue as MVNO? SAME can be also done with tata+telenor. Rjio+rcom+mts+aircel. We want more players, or operator for better brands and segments customer but don’t want network congestion. MVNO is very successful in many countries. Instead of finding and stuggleing and dragging only tower space DEALs. Why TRAI is creating artificial spectrum scarcity radio network. Also placing floor price if spectrum at unaffordable level, which operator if brought will. Pass on to customers hence 3G rates not came down and… Read more »

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