Tikona Digital, which last week inked an agreement to sell 4G spectrum and business to Bharti Airtel, is now hopeful of doubling its fixed broadband services business in 18 to 24 months by expanding its reach in the market.
The company’s chief executive officer Prakash Bajpai told ET that the deal with Airtel will help Tikona to become a debt free company, thereby helping it to double its business by increasing focus on the fixed broadband services segment.
Tikona was founded in 2008 by Rajesh Tiwari and Prakash Bajpai, both served Reliance Communications. Notably, who left Tikona in 2009, slapped a legal notice against both the companies for not providing details of how the proceeds will be split among shareholders.
Tiwari owns just over 1 percent in Tikona. It is backed by global investors namely, Goldman Sachs, Oak Investment Partners, Everstone Capital, L&T Infrastructure Finance, International Finance Corporation (IFC) and others.
The Mumbai-based Internet service provider recently inked a definitive agreement with Bharti Airtel to sell its wireless broadband business in five circles for Rs 1,600 crore. As part of the deal, Bharti Airtel will take over Tikona’s debt.
According to the report, Tikona Digital’s current business and assets sans the 4G business and the spectrum will be moved to Tikona Infinet Limited (TIL).
Tikona Infinet will become an integrated data services operator to the home, enterprise and public WiFi markets or customer segments in India, the report said, adding that it will continue to provide wireless broadband services in India’s top 25 cities and grow them further.