Bharti Airtel to acquire Tikona Networks’ 4G Business
23 Mar 2017
Bharti Airtel, India's number one telecom operator by subscribers, has signed a definitive agreement with Tikona Digital Networks to acquire its 4G business that includes broadband wireless access spectrum and 350 sites across in five telecom circles. The financial terms of the deal were not disclosed.
The acquisition is subject to requisite regulatory approvals.
Tikona currently has 20 MHz spectrum in the 2300 MHz band in Gujarat, UP (East), UP (West), Rajasthan and Himachal Pradesh circles. Airtel plans to roll-out high speed 4G services on the newly-acquired spectrum in the five circles immediately after the closure of the transaction.
Post this acquisition, Airtel to have spectrum in 2300 MHz band across all circles, which will further bolster Airtel's already pan-India 4G spectrum footprint. Airtel to roll out high speed 4G services on the new spectrum in the five circles immediately after the closure of the transaction.
''Airtel's continued focus on strengthening its 4G capabilities across multiple spectrum bands will be complemented with the BWA spectrum acquisition from Tikona. We believe that combining our capacities in TD-LTE and FD-LTE will further bolster our network, and help us provide unmatched high-speed wireless broadband experience to our customers. We remain committed to our vision of leading India's digital revolution by offering world-class and affordable telecom services through a robust spectrum portfolio spread across multiple bands,'' Gopal Vittal, MD & CEO (India & South Asia), Bharti Airtel, said.
As per the agreement, the acquisition of the 4G business in Gujarat, UP (East), UP (West) and Himachal Pradesh will be undertaken by Airtel, while in the Rajasthan circle, it will be accomplished through Airtel's subsidiary Bharti Hexacom. Post-acquisition, the combined spectrum holding of Airtel in these five circles will be within the spectrum caps prescribed by the Government.
The proposed acquisition will enable Airtel to fill BWA spectrum gaps in the 2300 MHz band in Rajasthan, UP (East) and UP (West), thereby securing a pan India footprint in the band.
The deal will significantly bolster Airtel's spectrum position in Gujarat and Himachal Pradesh, taking its overall BWA spectrum holding to 30 MHz each in these circles. Post completion of the deal, Airtel will have 30 MHz in the 2300 MHz band in 13 circles giving it tremendous advantage to handle the surging data demand.