Thursday , August 17 2017

Bharti Airtel to buy Telenor India

Bharti Airtel will take over Telenor India’s spectrum, operations, and license, employees and customer base of 44 million

India’s largest telecoms network operator Bharti Airtel said it would buy Telenor India Communications for an unrevealed sum in all seven circles where it holds a scale of a large range.

Airtel

Airtel today said it has “entered into a definitive contract with Telenor Telenor India Communications Private Limited.

Both the companies did not reveal the deal size,  but the internal sources from the companies said it ranges in between Rs. 6,500 crore and Rs. 7,000 crore.

The seven circles in which Airtel buys Telenor India are – Gujarat, Uttar Pradesh(west), Uttar Pradesh(East), Andhra Pradesh, Bihar, Maharashtra, and Assam, the company said in a statement

India’s largest wireless network operator Airtel with  269 million users and with revenue market share of over 33 percent. Now,  Airtel will take over Telenor India’s spectrum, operations and license including its employees and customer base of 44 million.

Telenor was launched in India in 2008. In 2016, Telenor India revenues was 6.0 billion Norwegian Krone and the cash flow was -0.4 billion Norwegian Krone

According to Telenor India, the business will not cause any impairment. Till the fourth quarter 2016, the remaining value of assets of  Telenor India amounted to 0.3 billion Norwegian Krone.

The contract between both the companies will include a transfer of all of Telenor India’s assets and customers, further enhancing Airtel’s overall customer base and network. It will also enable Airtel to further strengthen its strong spectrum footprint in these seven regions, with the addition of 43.4 MHz spectrum in the 1,800 MHz band, Airtel said.

Until the completion of the transaction of Telenor India to Airtel, it will run its services and operations as usually.

On completion, the proposed procurement will undergo seamless integration, both on the customer as well as the network side, and further strengthens the market position in several key circles.

The users of Telenor India will now be able to enjoy a range the world-class products and services of Airtel, Gopal Vittal, Managing Director and CEO (India and South Asia), Bharti Airtel, said.

Finding a long term solution to our India business has been significant for us, and we are happy with our agreement with Airtel and the decision to exit India was not taken lightly. After discussion, it is our view that the significant investments are needed to secure Telenor India’s  business Sigve Brekke, Chief Executive Officer of Telenor Group, said.

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