Tata, Bharti to merge; Latter to add 40 million customers

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

basis.

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

moved accordingly.

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

services.”

“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.”