Tata Teleservices to sell its wireless mobile business to Bharti Airtel

Tata Teleservices To Sell Wireless Mobile Business To Bharti Airtel

Tata Sons Ltd will sell its consumer mobile business to one of India’s largest telecom operator, Bharti Airtel Ltd, as part of the group chairman’s strategy to exit businesses. A debt-free, cash free deal targeting the consolidation now visible in the telecom industry against the industry giants - the Idea-Vodafone combined network, Bharti Airtel and Reliance JIO.

The conglomerate has been venturing to get rid of the loss making venture strengthening the market share of the Sunil Mittal led company.

After the entry of Mukesh Ambani backed Reliance JIO, small operators such as TATA Telecom services LTD. have found the going hard and tough to survive in this market leading to Tata Teleservices To Sell Wireless Mobile Business To Bharti Airtel.

Bharti Airtel is said to assume Rs. 2000 crore of a 10000 crore that the TATA group companies owe DoT. Tata Teleservices have a subscriber base of over 44 million. With the merger, now Airtel`s total customer base will increase close to 350 million.

“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,” Sunil Bharti Mittal, chairman of Airtel, said in the statement. “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,” Mittal added. Tata`s wireless operations are going to continue as usual till the deal is completed, giving Bharti Airtel the right to use the existing fibre backbone network of Tata Teleservices.