Bharti Enterprises Opts Out of Mega-Buyout Talks With Tata Group

By August 4th, 2017 AT 8:51 PM

Sunil Mittal-led Bharti Enterprises has reportedly opted out of mega-alliance talks with the Tata Group for their telecom, overseas cable and enterprise services, and DTH business. Notably, the alliance talks gathered momentum after N Chandrasekaran took charge as Chairman of Tata Sons in February.

jio-india-tower

According to an ET report, Bharti Enterprises will now focus on strengthening its books via a strategic stake sale in its tower company Bharti Infratel and Airtel’s complete acquisitions of Telenor India and Tikona’s 4G business. The company had a debt of Rs 87,840 crores at the end of June.

The report said that SingTel or Singapore Telecommunications Ltd owns over a third of Bharti Airtel, wanted to just buy the enterprise business of Tata Teleservices and Tata Communications. However, it later realised that such as move would take away Airtel’s core focus, given that the Telco has its own business enterprise.

Further, Bharti Airtel also has a strong DTH business, which competes with Tata Sky. A merger would have dominated the space, pipping Dish TV-Videocon, which is set to become the market leader after their merger takes effect.

SingTel didn’t want the complexities of the proposed buyout of Tata Teleservices, which has over the $4.5-billion debt on its books. Besides, Bharti Airtel would have had to pay close to $1.7 billion to acquire Tata Teleservices spectrum and use them for 4G services.

“The Tatas are desperately seeking an out-of-the-box solution for their larger telecom and media piece. After Bharti, it has to seek out others with similar aspirations like Reliance Jio,” a person was quoted as saying.

The report stated that Airtel was looking to close the gap with the proposed Vodafone-Idea Cellular combine, which will become the largest telco by subscribers and revenue upon merger completion.

17
Leave a Reply

avatar
7 Comment threads
10 Thread replies
0 Followers
 
Most reacted comment
Hottest comment thread
10 Comment authors
TroylalitSiddSandyKaushik Recent comment authors
newest oldest most voted
lalit
lalit

Vodafone, Airtel opted out of the TTSL . Considering the huge debt of TTSL, they are now a attractive player in the market. Even with Jio the deal is not so attractive. So what is the future of TTSL, that’s my questions to you Guru’s.

Troy
Troy

Airtel can use those 900 mhz spectrum for VoLTE.
Check out the pic.

Kaushik
Kaushik

Nothing doing, 900MHz will stay for 2G which is the bread and butter for Airtel.

Sandy
Sandy

They need 5mhz chunk of 900mhz spectrum which is not the case in most of the states. So it will be a bit complicated. Jio on the other hand got 850mhz chunk easily since most of the cdma network was either unsold or was with reliance.

Troy
Troy

Okay, then it is really complicated.
Anyway thanks for the info.

Recent Posts

5G Spectrum Auction Should Not Be Held in India Before 2020: Vodafone Idea

India’s largest telecom operator Vodafone Idea Limited said Wednesday that the auction of 5G spectrum should not be held before...

Xiaomi Mi 9, Mi 9 SE and Mi 9 Transparent Edition Launched: Price, Specifications and More Details

The Mi series has been stellar offering by Xiaomi. The Chinese smartphone company has packed only the best when it...

Airtel Digital TV Exempts Select Channels from NCF, Offers Discount to Subscribers

As of late, the TV industry is going through a massive change with the implementation of the new Trai mandate....