Tata Tele to merge with Bharti Airtel on debt-free cash-free basis

Bharti Airtel will absorb the operations of Tata's mobile business in 19 circles across the country

LATEST NEWS : Tata Teleservices Limited (TTSL) and Tata Teleservices Maharashtra Limited (TTML) will combine their Consumer Mobile Businesses (Tata CMB) with Bharti Airtel Limited, Tata Tele announced on Thursday.

With this merger, 40 million Tata Tele customers would be added to Bharti Airtel's user base.

As part of the agreement, Bharti Airtel would absorb Tata Tele’s operations across the country in 19 circles (17 under TTSL and two under TTML), Bharti Airtel said in a release.

Since the proposed merger would include the transfer of all customers and assets to Bharti Airtel, it would not only augment Bharti Airtel’s overall customer base but also strengthen its network. It will also enable Bharti Airtel to further bolster its spectrum footprint, with the addition of 178.5 MHz spectrum (of which 71.3 MHz is liberalised) in the 850, 1800 & 2100-MHz bands. Bharti Airtel said it would ensure quality services to Tata 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. Tata's operations and services would continue as normal until the completion of the transaction.

The transaction will also provide Bharti Airtel an indefeasible right to use (IRU) for part of the existing fibre network of Tata. The merger is being done on a debt-free cash-free basis, except that Bharti Airtel would assuming a small portion of the unpaid spectrum liability of Tata towards DoT, which is to be paid on a deferred basis.

ALSO READ THIS : Aamby Valley to be handed over to receiver within 48 hours, orders SC