Telenor to merge with Tata Tele : Another Media Speculation ?

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In an interesting development Telenor is reported to be in talks with Tata Teleservices to merge their operations in India. Though the media reports suggest that it may happend only after country's telecom regulator comes out with an abstract M&A rule. Both Telenor and Tata Telesevices are silent on this market speculation.

Considering earlier market report of CDMA operator Sistema Shyam Teleservices (operates under MTS India ) buying GSM/3G/BWA service provider Aircel turns to be just another speculation it could be false.

Currently Tata Teleservices is offering CDMA, GSM and data services under Tata Docomo brand. 26% of this entity is owned by Japan's telcos NTT Docomo.

While NTT Docomo entered in this partnership, they were allowed to sell their stakes depending up on some points say growth and revenue. As LiveMint reports NTT Docomo spokesperson the company will maintain its stakes in TTSL for time being; it could be like this that Telenor may buy out NTT Docomo's shares in future when M&A rules set in. The merged entity could be fourth largest mobile operator in India.

Telenor entered in India as Unitech sold shares of Unitech Wireless after getting license and spectrum in 2008. The entity rolled out services under Uninor brand. In February 2012 Supreme Court cancelled Uninor's licenses of 22 circles.

Later Unitech moved out from the venture and Telenor partners Lakshdeep Investments and Finance Pvt.Ltd with 26% offload (headed by Sudhir Valia, executive director at Sun Pharma). Telenor's new Indian venture is now named as Telewings Communications Services Pvt Ltd.

In last 2G spectrum auction Telewings bagged spectrum in 6 circles - Maharashtra, Gujarat, Andhra Pradesh, Uttar Pradesh West, Uttar Pradesh East and Bihar for Rs 4,020 crore.

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