New Delhi, October 12: Tata Group has entered into an agreement with Bharti Airtel to merge the consumer mobile businesses of Tata Teleservices Limited and Tata Teleservices Maharashtra Limited to India’s largest telecom player- Bharti Airtel. The Airtel- Tata merger is being done on a debt-free cash-free basis, except for Bharti Airtel assuming a small portion of the unpaid spectrum liability of Tata’s towards DoT, which is to be paid on deferred basis, the statement added. The latest announcement will see over 4 crore Tata customers join Bharti Airtel.
With the latest merger, customers of Tata will be able to enjoy India’s widest and fastest voice & data network, and bouquet of Airtel’s best-in-class products and services. Reports state that the acquisition is subject to requisite regulatory approvals, the statement said without revealing the acquisition amount.
Bharti Airtel Chairman Sunil Bharti Mittal was quoted by IANS saying, “This is a significant development towards further consolidation in the Indian mobile industry and reinforces our commitment to lead India’s digital revolution by offering world-class and affordable telecom services through a robust technology and solid spectrum portfolio”. He further said that 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.
Tata Teleservices is one of the most awarded that includes Tata Docomo and Tata Photon. Tata Teleservices Limited, along with Tata Teleservices (Maharashtra) Limited has a wide presence across key geographies, spanning over 19 telecom circles and operations in towns and villages across the country. The company offers integrated telecom solutions to its customers across wireline and wireless networks on GSM, CDMA & 3G platforms.
As part of the agreement, Bharti Airtel will absorb Consumer Mobile Businesses (CMB) of TTSL and TTML across the country in 19 circles (17 under TTSL and two under TTML). So, if you were a Tata Docomo and Tata Photon customer, with the new merger, you now become an Airtel customer. The agreement will further strengthen Airtel’s solid portfolio and create substantial long term value for our shareholders given the significant synergies.