In a bid to strengthen its current presence in the telecom domain, the Indian Telecom Giant, Bharti Airtel is prepared to acquire the 4G airwave spectrum from Tikona Digital Networks. About Rs 800-1000 crore would be exchanging hands in this deal. After having been through the initial negotiation over this deal, both the companies are now the last leg of the acquisition.
Tikona Digital Networks had bought 20 MHz 4G airwaves in the 2300 MHz band auctions that took place back in the year 2010 for telecom circles that includes Western UP, eastern UP, Himachal Pradesh, Rajasthan and Gujarat. The company had paid about Rs 1058 crore for the bandwidth. Later, the company wasn’t able to cash on its initial investment and has been into debt for some time. As the buyout is just around the corner, Bharti Airtel is believed to buy the airwaves from the company with the entire value of the deal going to the tune of 1500 crore INR taking into account the debts of the seller as well.
As per the latest statements from both the parties, Tikona would continue to provide its Internet services in a few selected cities of India such as Varanasi, etc. post-buyout as a separate entity. The new bandwidth that will be made available to Bharti Airtel would enable the company to fill out some of the gaps it suffers from at certain location in India and hence achieve a better, gap-free pan India network.
After having been dubbed as the fastest 4G network in operation in the country, Bharti Airtel has put forward a slew of changes to operational as well as retail aspects of its more than a decade-old telecom business. This buy-out seems to be a well-planned step by the company so as to strengthen its presence across the entire country with better connectivity and data services.