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Tata and Bharti to merge consumer telecom business

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on a debt-free cash-free basis

and Tata announced that they have entered into an understanding (Agreement) to merge Consumer Mobile Businesses (CMB) of Tata Teleservices (TTSL) and (TTML) into The acquisition is subject to requisite regulatory approvals.

As part of the Agreement, will absorb Tata CMB's operations across the country in nineteen circles (17 under TTSL and 2 under TTML). These circles represent bulk of India's population and customer base.

The proposed will include transfer of all the customers and assets of Tata CMB to Bharti Airtel, further augmenting Bharti Airtel's overall customer base and network. It will also enable to further bolster its strong spectrum foot-print with the addition of 178.5 MHz spectrum (of which 71.3 MHz is liberalised) in the 850, 1800 & 2100 MHz bands. will ensure quality services to Tata CMB's customers, while offering them the added benefits of its innovative product portfolio, access to superior voice & data services, mobile banking, VAS and domestic/ international roaming facilities. Tata CMB's operations and services will continue as normal until the completion of the transaction.

The transaction will also provide with an indefeasible right to use (IRU) for part of the existing fibre network of Tata.

The is being done on a debt-free cash-free basis, except for assuming a small portion of the unpaid spectrum liability of Tata's towards the DoT, which is to be paid on deferred basis.

The employees of Tata will be demerged on the lines of the two businesses i.e. CMB and EFL (Enterprise and Fixed Line and Broadband), and post an optimal manpower planning will be moved accordingly.

Tata is also in initial stages of exploring combination of its Enterprise Business with and its Retail Fixed Line and Broadband business with Tata Sky. Any such transaction will be subject to respective boards and other requisite approvals.

Tata will retain its stake in Viom, and will take care of the liabilities associated with it.

Bharti Board which met on 12 October 2017 has approved this transaction.

The Boards of Tata Sons, TTSL and TTML have approved this transaction.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, October 12 2017. 18:40 IST
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