Key highlights of Tata Tele-Airtel merger deal

Tata on Thursday entered into a deal to merge consumer mobile businesses of Tata Teleservices and Tata Teleservices Maharashtra Limited with Bharti Airtel. The proposed merger will include the transfer of all the customers and assets of Tata Consumer Mobile Businesses (CMB) to Bharti Airtel.

“This is a significant development towards further consolidation in the Indian mobile industry and reinforces our commitment to lead India’s digital revolution by offering world-class and affordable telecom services through a robust technology and solid spectrum portfolio," Bharti Airtel chairman Sunil Bharti Mittal said. 

Here are the 10 key highlights of the deal: 

1. Over 40 million Tata customers to join Bharti Airtel and benefit from 4G mobile network with fall back on its 3G and 2G ecosystem
2. Merger on a debt-free cash-free basis
3. Bharti Airtel will absorb Tata CMB’s operations across the country in nineteen circles (17 under TTSL and 2 under TTML)
4. All past liabilities and dues to be settled by Tata
5. Bharti Airtel will assume a small portion of the unpaid spectrum liability of Tata
6. Merger to bolster Bharti Airtel’s pre-eminent spectrum pool with significant additional spectrum in 1800, 2100 & 850 MHz bands, all widely used for 4G
7. Transaction will also provide Bharti Airtel right to use Tata’s existing fibre network
8. Merger of TTL’s customers and revenue base will further strengthen Bharti Airtel’s Revenue Market Share (RMS)
9. Tata to retain its stake in Viom and take care of associated liabilities
10. Tata in initial talks to explore combination of enterprise business with Tata Communications, retail fixed line, broadband business with Tata Sky