Bharti Airtel is in advanced talks to acquire defunct mobile broadband provider Augere Wireless for 1.5 billion rupees (€21.2 million) in a bid to bolster its 4G footprint ahead of Reliance Jio Infocomm’s impending launch.
Augere Wireless won WiMAX spectrum in the Madhya Pradesh and Chattisgarh telecom circle in 2010 and aimed to roll out services in 2011. However, the company, backed by former Orange and LightSquared CEO Sanjiv Ahuja, put the launch on hold, citing regulatory uncertainty. In 2012, it emerged that Augere was looking to sell its spectrum and exit India altogether.
According to a source cited by the Economic Times this week, Airtel wants Augere for its spectrum.
"The deal is almost sealed. Some issues, including regulatory, need to be sorted out though," the source said in the report on Tuesday.
Bharti Airtel is making headway with its 4G roll out; it now offers commercial services in 19 cities and is trialling it in a further four. Acquiring Augere Wireless would give a timely boost to the 4G footprint of India’s bigg est mobile operator.
Indeed, Reliance Jio Infocomm, which holds a pan-India 4G licence, and snapped up frequencies in the 800 MHz and 1800 MHz bands in the recently concluded spectrum auction, reportedly plans to roll out 4G services in June.
Reliance Jio is up against it when it comes to launching services: it acquired spectrum in the same auction as Augere Wireless in 2010, and is required under the terms of its licence to meet certain rollout criteria within five years.
