Bharti Airtel-Tata Tele Merger Will Increase Airtel’s Revenue Market Share by 3-5%: Fitch

Follow Us

Bharti Airtel and Tata Teleservices deal will be a win-win situation for both sides say industry analysts. The deal will improve the market share of Airtel with no financial burden and minus of any asset, said a report from rating agency Fitch.

"Bharti's credit profile will improve slightly as it's paying no consideration for the operations, which it would acquire free of debt...benefits from the additional spectrum, fibre assets and subscribers will more than offset the additional spectrum liabilities," said the report by Fitch.




Airtel Tata Deal

The rating agency also said that Airtel's market share revenue will increase by 4-5%, which takes the overall revenue market share to 37-38%. To be noted, the deal between Tata and Airtel is a 'no cash, no debt basis,' deal.

In addition, the Tata deal will give 42 million customers of Tata Teleservices to Bharti Airtel along with its spectrum license in 19 of the 22 circles virtually free. Fitch also said that the "deal will help arrest the decline in Bharti's pretax profit and bolster its 4G spectrum portfolio and network position."

The Fitch report also said that Airtel's earnings will be down by at least 5% in FY18, thanks to the intense price competition and lower mobile termination rates, but the earnings will improve in FY18 with a growth of 3-5%.

As said earlier, Tata's 42 million subscribers will be added to Bharti Airtel subscriber base, which takes the overall customer base of Airtel to more than 300 million. Also, Airtel will gain about 178.5 MHz of spectrum in the 850MHz, 1800MHz and 2100MHz bands in 17 the telecom coverage areas. That said, Airtel will only be able to take over a small part of Tata Tele's spectrum of worth USD 1.5 billion.

"Bharti will take over only a small part of Tata Tele's deferred spectrum liabilities of USD 1.5 billion. We do not expect the transaction to result in any other increase in debt at Bharti," the Fitch report said.

Reported By

Managing Editor

Chakri is a go-to guy for your next smartphone recommendation. Back in his engineering days, he used to play with smartphones by installing custom ROMs and that passion got him into the tech industry. He still goes nuts about a smartphone knocking his door for review. Currently managing everything at Telecom Talk, Chakri is trying to master PUBG Mobile in his free time.

Recent Comments

TheAndroidFreak :

Airtel doesn't have band 1 spectrum in Kolkata. 10Mhz was available. Band 3 spectrum is available in Kolkata still. Vi…

Airtel Strengthens Network in Jammu - Kashmir and Leh Ladakh…

TheAndroidFreak :

IQOO 12+Moto Edge 50 Ultra is better than One Plus 12 to be honest. Even Moto Edge 50 Pro takes…

OnePlus 13 and Xiaomi 15 to Feature Qualcomm Snapdragon 8…

Rohit79 :

Airtel giving these all big interviews that they are mending their networks and all toh sab hawabaazi? interesting, then I…

Airtel Strengthens Network in Jammu - Kashmir and Leh Ladakh…

Rohit79 :

These days people seldom click pictures but I had to say, even smartphones are stereotyped which blundered the market big…

OnePlus 13 and Xiaomi 15 to Feature Qualcomm Snapdragon 8…

amietmadan :

This will give first mover advantage to Airtel and Jio (Lala Companies). Indian companies are least bothered for customer service.…

DoT Allocates Satellite Spectrum to OneWeb, Jio Provisionally: Report

Load More
Subscribe
Notify of
72 Comments
newest
oldest most voted
Inline Feedbacks
View all comments