Devesh
Core Member
Bharti Airtel will emerge stronger in the enterprise and undersea cable business and narrow the gap with the Vodafone-Idea combine in mobile service revenue market share (RMS) if the Sunil Mittal-led Bharti Enterprises and the Tatas form an alliance, analysts said.
However, Airtel will face some challenges from a merger: over Rs 30,000 crore in debt and a modest 48 million subscribers of Tata’s mobile service business, breach of market share cap in eight circles, and the need to spend $1.7 billion (over Rs 11,000 crore) to pay market rates for airwaves in the 1800 MHz band held by Tata Teleservices to use them for 4G, they said.
Bharti Enterprises and the Tata Group held exploratory talks to evaluate a mega alliance involving their telecom, enterprise services, overseas cable and direct-to-home TV businesses, ET reported last week. Both entities have not commented on the matter.
Bharti Airtel: Merger with Tata to help Bharti Airtel close gap with Vodafone-Idea, Telecom News, ET Telecom
However, Airtel will face some challenges from a merger: over Rs 30,000 crore in debt and a modest 48 million subscribers of Tata’s mobile service business, breach of market share cap in eight circles, and the need to spend $1.7 billion (over Rs 11,000 crore) to pay market rates for airwaves in the 1800 MHz band held by Tata Teleservices to use them for 4G, they said.
Bharti Enterprises and the Tata Group held exploratory talks to evaluate a mega alliance involving their telecom, enterprise services, overseas cable and direct-to-home TV businesses, ET reported last week. Both entities have not commented on the matter.
Bharti Airtel: Merger with Tata to help Bharti Airtel close gap with Vodafone-Idea, Telecom News, ET Telecom
