New Delhi, Feb 23: India’s leading telco Bharti Airtel said that it has
entered into a definitive agreement with Telenor South Asia Investments
to acquire the latter’s India operations, Telenor Communications
Private Limited or Telenor India. The move will allow Airtel to further
bolster its strong spectrum footprint in these seven circles, with the
addition of 43.4 MHz spectrum in the 1800 MHz band. Also, Airtel will
also be able to expand its user base following the acquisition, which is
subject to requisite regulatory approvals.
As part of the
agreement, Airtel will acquire Telenor India’s running operations in
seven circles – Andhra Pradesh, Bihar, Maharashtra, Gujarat, UP (East),
UP (West) and Assam.
Airtel said that these circles represent a high population concentration and therefore offer a high potential for growth.
The move comes at a time when the industry is going through an intense
consolidation phase with Vodafone and Idea involved in merger talks and
Reliance Communications finalising its acquisition of MTS India and a
merger with Maxis-owned Aircel. Analysts say that Reliance Jio’s entry
with disruptive voice and data offers is driving consolidation in India.
The proposed acquisition will include the transfer of all of Telenor
India’s assets and customers, further augmenting Airtel’s overall
customer base and network.
Airtel said that it would ensure
quality services to Telenor India’s customers, while offering them the
added benefits of its innovative product portfolio, access to superior
voice & data services, mobile banking, VAS and domestic/
international roaming facilities. Telenor India’s operations and
services will continue as normal until the completion of the
transaction.
“The agreement underlines our commitment to lead
India’s digital revolution by offering world-class and affordable
telecom services through a robust spectrum portfolio spread across
multiple bands. On completion, the proposed acquisition will undergo
seamless integration, both on the customer as well as the network side,
and further strengthen our market position in several key circles. The
customers of Telenor India will now be able to enjoy India’s widest and
fastest voice & data network, and a range of Airtel’s world-class
products and services,” Gopal Vittal, Managing Director and CEO (India
and South Asia), Bharti Airtel, said in a joint statement.
“The acquisition of additional spectrum through this transaction, which
made an attractive business proposition, has further enhanced our
already robust spectrum portfolio. The proposed transaction will also
create substantial long-term value for our shareholders given the
significant synergies,” added Vittal.
Sigve Brekke, Chief
Executive Officer of Telenor Group, said the today’s agreement is in the
best interest of our customers, employees and Telenor Group. Finding a
long term solution to our India business has been a priority for us, and
we are pleased with our agreement with Airtel.
“The decision to
exit India has not been taken lightly. After thorough consideration, it
is our view that the significant investments needed to secure Telenor
India’s future business on a standalone basis will not give an
acceptable level of return,” he added.
~ Telecomtalk.info
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