Telecom company Tata Teleservices will merge into Bharti Airtel. This deal is believed to be one of the world’s largest telecommunications markets and another strong signal of integration into India. Under the proposed agreement, more than four crore subscribers of Tata Teleservices (TTSL) and Tata Teleservices Maharashtra (TTML) will go to Bharti Airtel. Regulatory approval for the deal has to be taken. It is notable that Tata Group’s company Tata Teleservices is trying to cross over its financial problems while coming out of the mobile telephone business.
Both companies have said in a joint statement that the deal is done on ‘No Loan – No Cash’ basis. That is, Airtel will not share any of the debt of Rs 40,000 crore of Tata Teleservices, and neither will pay cash. Even for the spectrum bought by TTSL, the payment of 70-80 percent of the delayed amount of 9,000-10,000 crore rupees will also be paid by Tata.
Bharti Airtel chairman Sunil Mittal has termed this deal as a significant development in the direction of strengthening the Indian mobile industry. He said that other spectrum acquisition would create attractive business establishments. Tata Sons Chairman N Chandrasekaran has said that this agreement is the best and best solution for the Tata group and its partners. He has announced that after considering the various options, this agreement has been signed with Airtel.
It is notable that the Indian telecom industry is on the path of integration through mergers and acquisitions, and analysts believe that this deal will further strengthen this process. In March this year, Vodafone India and Idea Cellular had announced the alliance. Bharti Airtel will merge the operations of Tata CBM in 19 telecom circles in this deal. This merger will increase Bharti Airtel’s spectrum pool of 178.5 MHz in 1800, 2100 and 850 Mhz bands. Bharti Airtel, Tata Sons, TTSL and TTML boards have approved this deal. According to this, Tata and Bharti would also consider other shared areas of Airtel cooperation.