TATA Airtel Merger
Keeping an end to the Speculations on the future of Tata Tele Services,Indian Telecom Giant Bharti Airtel has announced today that it will
merge its mobile business operations with that of Tata Teleservices.
TATA TELE MERGER WITH AIRTEL pic.twitter.com/QrGXQpyEye
— Sumit Rastogi (@sumit07_sumit) October 12, 2017
A Press Release by Bharti Airtel has said that it will absorb the 19 Circles Mobile Business of Tata,Airtel has also said that the merger is being done on a debt-free, cash-free basis.
A Story on Moneycontrol.com has stated that Tata Tele is going to pay 80% of it’s Rs 10,000-crore liability towards spectrum payment to the DoT
Airtel will, therefore, assume a small portion, estimated around Rs 1,500-2,000 crore, of the unpaid spectrum liability of Tata Teleservices.
This deal will be an added advantage to Airtel’s spectrum pool with additional spectrum in the 1,800, 2,100 and 850 MHz bands, all widely used for 4G.The transaction will also provide Bharti Airtel the right to use Tata’s existing fibre network.
The Announced merger will add 40 million Tata Tele customers to Airtel’s Network.Tata Sons will take care of the total debt on books of Tata Tele.
A story on Outlook has quoted that As part of the deal, the employees of Tata will be demerged on the lines of the two businesses i.e. CMB (Consumer Mobile Business) and EFL (Enterprise and Fixed Line and Broadband), and post an optimal manpower planning will be moved accordingly.
Airtel’s net liability will also be 6,000 odd employees that will be transferred to the company.