Vodafone India Completes the Sale of its Standalone Tower Business to ATC

Vodafone India besides going through a merger with Idea Cellular has also made a deal with ATC‘s (American Tower Corporation) Indian subsidiary under which ATC will acquire Vodafone’s tower business which boasts of owning 10,200 communication sites. This deal between both the parties has been finalised for Rs 3800 crores. ATC’s idea of merger sprouted in the news when the American company announced its plan of buying out the towers of now merged entities, Idea Cellular and Vodafone, in November last year.

vodafone-idea-merger

This new step was beneficial for all the sides as the selling telcos would receive major help in filling their debts and on the other hand ATC will get to own a substantial number of towers in a country which happens to be in the middle of a splurging growth in the telecom sector.

Amit Sharma, American Tower’s EVP and President, Asia said about the successful buyout “We are pleased to acquire this portfolio, which will complement our existing footprint and help us serve our tenants in India as they expand 4G services in the coming years.”

Idea Cellular is expected to receive a sum of approximately Rs 4,000 crores from the selling of its tower in this deal. This amount is expected to strengthen Idea Cellular financially.

Vodafone also made a statement about this buyout saying “In the Vodafone India / Idea merger announcement of 20 March 2017, both parties announced their intention to sell their individual standalone tower businesses to strengthen the combined financial position of the merged entity. The merger is expected to complete in the first half of the current calendar year.”

Once the merger finishes, Vodafone and Idea will form India’s leading telecom operator with over 400 million subscribers and the merged entity will be the leader in the revenue market share as well.

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19 Comments on "Vodafone India Completes the Sale of its Standalone Tower Business to ATC"

 

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Prithvi
April 4, 2018 1:37 am 1:37 AM

Good thing for Vodafone.

Airtel User
April 4, 2018 3:50 pm 3:50 PM

P for pugs.

Apurva Gupta
April 3, 2018 8:52 pm 8:52 PM

I think all these fancy statements are advertised just for shareholders. They always tell you that merger will complete in this time frame and merged co. will be largest in industry.

Kunal
April 3, 2018 6:31 pm 6:31 PM

Jio will own the largest portfolio of telecom towers after rcom towers buy out.

Jio has also erected many of its own structural as well as monopole towers across India.

Jio should share their tower nos.

dragonmonk
April 3, 2018 7:58 pm 7:58 PM

Without even knowing their tower numbers, how are you claiming that Jio owns the largest number of telecom towers ?

Kunal
April 3, 2018 9:36 pm 9:36 PM
Jio in last 15 months that is from 1/1/17 to 31/3/18 have bought around 35000 mahindra powerol gensets for its own towers power back up . Mahindra is the main supplier for jio ‘s genset requirement. These gensets are installed on full fledge ground base structural towers located on highways & deep rural areas . Jio uses gensets for all its owned sites outside city & rural areas With in cities & towns , jio installs (pipe shape) monopole towers , which do not have genset backing because power outage is less. Monopole towers have battery back up . Jio… Read more »
Airtel User
April 4, 2018 3:52 pm 3:52 PM

+1 kunal
Though it may be technical bhakts of avoid.

IND
April 4, 2018 11:05 am 11:05 AM

but still congestion in my area i complained 4 months ago still nothing improved in my area, as already waited for 90 days complaint.

Kunal
April 4, 2018 3:04 pm 3:04 PM
Major congestion issues are kept pending at the moment . My friend working in jio network team confirmed me that priority is to roll out network in uncovered areas. They are given high targets . The project will complete by november 2018. For cities- At the most small cells will be rolled out.. They are waiting for spectrum from rcom & fiberisation of sites. Data is also being collected for most problem areas with in towns & cities. Simultaneous process of new site acquisition is also on. But major roll out of new sites will be only after completion of… Read more »
Kaushik IMA
April 3, 2018 11:54 pm 11:54 PM

Dear kunal

Wasn’t rcom selling its towers to Brookfield?

Kunal
April 4, 2018 7:16 am 7:16 AM
Rcom – Brookfield deal got cancelled due to valuation difference as it was depending on rcom-aircel deal. Rcom had promised certain no of tenancies & fixed revenues for a period , post deal with Brookfield. Rcom , could not fulfill the same. Later on Brookfield submitted a revised price (discounted) for reduced tenancies , for which rcom was not happy . Hence deal got cancelled. In December , Rcom put all its assets like part of free spectrum (bought under auction) along with towers , fiber , nodes for sale to pay the lenders. All major players participated for selective… Read more »
JIO HATER
April 3, 2018 11:48 pm 11:48 PM

pr range hi nhi aati….sb china ka maal scrap me buy kia he ambaniyone

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