NEW DELHI: Tata Teleservices and Tata Teleservices Maharashtra Limited is all set to combine their Consumer Mobile Businesses with country’s top telco Bharti Airtel.
With the move, over 40 million customers will join Bharti Airtel and benefit from state of the art 4G Mobile
network with fall back on its 3G & 2G ecosystem.
“As part of the agreement, Bharti Airtel will absorb Tata CMB’s operations across the country in
nineteen circles (17 under TTSL and 2 under TTML). These circles represent bulk of India’s
population and customer base,” a statement said.
The proposed merger will include transfer of all the customers and assets of Tata CMB to Bharti
Airtel, further augmenting Bharti Airtel’s overall customer base and network. It will also enable
Bharti Airtel to further bolster its strong spectrum foot-print with the addition of 178.5 MHz
spectrum (of which 71.3 MHz is liberalised) in the 850, 1800 & 2100 MHz bands.
The transaction will also provide Bharti Airtel with 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 for Bharti Airtel assuming a small
portion of the unpaid spectrum liability of Tata’s towards the DoT, which is to be paid on deferred
The employees of Tata will be demerged on the lines of the two businesses i.e. CMB and EFL
(Enterprise and Fixed Line and Broadband), and post an optimal manpower planning will be
Tata is also in initial stages of exploring combination of its Enterprise Business with Tata
Communications and its Retail Fixed Line and Broadband business with Tata Sky. Any such
transaction will be subject to respective boards and other requisite approvals.
Tata will retain its stake in Viom, and will take care of the liabilities associated with it.
Sunil Bharti Mittal, Chairman, Bharti Airtel, said, “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. 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 Tata will be able to enjoy India’s
widest and fastest voice & data network, and bouquet of Airtel’s best-in-class products and
“The acquisition of additional spectrum made an attractive business proposition. It will further
strengthen our already solid portfolio and create substantial long term value for our shareholders
given the significant synergies.”
N Chandrasekaran, Chairman, Tata Sons, said, “We believe today’s agreement is the best and
most optimal solution for the Tata Group and its stakeholders. Finding the right home for our
longstanding customers and our employees has been the priority for us. We have evaluated
multiple options and are pleased to have this agreement with Bharti.”