News
Indian operator working on acquisition of 2.3-GHz frequencies in a bid to boost its 4G coverage area.
Bharti Airtel is close to finalising a deal to buy 2.3-GHz spectrum from rival Aircel, a move that would improve the latter’s chances of completing a merger with Reliance Communications.
India’s largest mobile operator is set to broker a 38 billion-rupee (€511 million) deal to acquire airwaves from Aircel by the end of March, the Economic Times reported on Thursday, citing two unnamed sources.
The 2.3-GHz spectrum in question covers 15 circles, with no overlap with Bharti’s holdings in the same bands, the paper said.
Should the deal go ahead, Bharti would increase its overall 4G service area to 18 circles from 15, it added. As it stands, the telco has 2.3-GHz spectrum in nine circles, but that would grow to 17 following the Aircel deal. The remainder is accounted for by 4G-ready frequencies in the 1800-MHz band.
That could be a vital tool as it gears up to compete with Reliance Jio Infocomm, which is the only player at present with a pan-Indian licence; Reliance Jio plans to launch its 4G service in April or May this year.
The Economic Times’ sources said both companies are interested in closing the deal as soon as possible.
While Bharti is doubtless keen to add spectrum assets as competition threatens to heat up in the Indian 4G market, Aircel has other thoughts in mind.
The Maxis-owned telco needs the funds from the deal to pay down debt, a requirement of its proposed merger deal with Reliance Communications (RCom), the paper said.
RCom announced late last year that it is holding exclusive talks with a view to merging with Aircel, a move that would see it overtake Vodafone as India’s second largest mobile operator by subscribers.
The pair have a 90-day exclusivity period and RCom insists there is no certainty a deal will result from the talks.
The company is clearly in expansion mode though. It agreed to buy Russian-owned Sistema Shyam Teleservices (SSTL) in November.
