Bharti Airtel submits Rs 644 crore bank guarantee in TDSAT for Tata Tele merger

Telecom operator Bharti Airtel is learnt to have submitted a bank guarantee of Rs 644 crore in telecom tribunal TDSAT to complete the merger of Tata Teleservices' consumer business with the company

Press Trust of India May 27, 2019 16:55:04 IST
Bharti Airtel submits Rs 644 crore bank guarantee in TDSAT for Tata Tele merger
  • The TDSAT on 2 May granted a partial stay on a Rs 8,300-crore demand raised by the telecom department from Bharti Airtel for approving its merger with the consumer business of Tata Teleservices Ltd (TTSL)

  • The tribunal also asked Airtel to submit 50 percent payment of Rs 1,287.97 crore demand raised by the Department of Telecom (DoT)

  • The department had earlier asked Airtel to submit a bank guarantee of around Rs 7,000 crore and immediate payment of Rs 1,287.97 crore before it takes merger of Airtel and Tata's consumer mobile business (CMB) on record

New Delhi: Telecom operator Bharti Airtel is learnt to have submitted a bank guarantee of Rs 644 crore in telecom tribunal TDSAT to complete the merger of Tata Teleservices' consumer business with the company.

The TDSAT on 2 May granted a partial stay on a Rs 8,300-crore demand raised by the telecom department from Bharti Airtel for approving its merger with the consumer business of Tata Teleservices Ltd (TTSL).

"Bharti Airtel has submitted a bank guarantee of around Rs 644 crore in TDSAT to complete merger of Tata Teleservices' (consumer business) with the company as was directed by the tribunal," a source told PTI.

Bharti Airtel submits Rs 644 crore bank guarantee in TDSAT for Tata Tele merger

A Bharti Airtel office building in Gurugram. Image: Reuters

An e-mail query sent to Bharti Airtel elicited no reply.

The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) directed "the concerned authorities of the Union of India to take the merger of two companies and licence on record", subject to stay on one-time spectrum charges (OTSC) demand of around Rs 7,000 crore.

The tribunal also asked Airtel to submit 50 percent payment of Rs 1,287.97 crore demand raised by the Department of Telecom (DoT) as OTSC for Chennai circle licence extension from 30 November, 2014, to 27 September, 2021.

It directed Airtel on 2 May to submit around Rs 640 crore for Chennai licence within four weeks.

The department had earlier asked Airtel to submit a bank guarantee of around Rs 7,000 crore and immediate payment of Rs 1,287.97 crore before it takes merger of Airtel and Tata's consumer mobile business (CMB) on record.

As part of the proposed agreement, Airtel will absorb Tata CMB operations in 19 telecom circles (17 under TTSL and 2 under Tata Teleservices (Maharashtra) Ltd). It also agreed to take over a small portion of the unpaid spectrum liability of Tata Teleservices.

The merger will bolster Airtel's spectrum pool with significant additional 178.5 MHz spectrum in 1800, 2100 and 850 MHz bands, widely used for 4G.

The proposed merger will include the transfer of all the customers and assets of Tata CMB to Airtel.

Updated Date:

also read

Bharti Airtel gets Tata Teleservices' mobile unit for nothing: All you need to know about the deal
Business

Bharti Airtel gets Tata Teleservices' mobile unit for nothing: All you need to know about the deal

With the merger, there are now three big telecom players in India -- Airtel-TTSL, Vodafone-Idea and Reliance Jio

Govt asks Bharti Airtel, Vodafone Idea, other telcos to pay balance AGR dues without delay: Report
Business

Govt asks Bharti Airtel, Vodafone Idea, other telcos to pay balance AGR dues without delay: Report

The government has so far received about Rs 26,000 crore from AGR payments, including adhoc/ buffer amounts given by telcos to meet any reconciliation differences with the telecom department

DoT directs telecom circle heads to deal Airtel, Tata Tele as separate companies; telcos merger likely to be challenged in SC
Business

DoT directs telecom circle heads to deal Airtel, Tata Tele as separate companies; telcos merger likely to be challenged in SC

Bharti Airtel on 1 July announced that the consumer mobile business of Tata Teleservices Ltd has now become its part.