DoT Allow Merger of Tata Tele unit & Airtel
The Telecom Department has approved the merger of Tata Teleservices’ consumer mobility business with Bharti Airtel. The merger is approved on the condition that Sunil Mittal led telco furnishes bank guarantees of about INR 9,000 crore to cover spectrum charges.
The guarantees are related to one-time spectrum charges (OTSC) and some deferred airwave charges. The telecom minster, Manoj Sinha has approved the merger post a clear understanding on the facts that who will pay the pay the dues. The merger will be allowed only after Airtel will submit bank guarantee of for one-time spectrum charges and another for the spectrum that would be acquired from TTSL.
Post-acquisition, Airtel will take in the Tata Group-owned telco’s consumer mobile operations in 19 telecom circles, 17 under TTSL and two under TTML.