Telecom tribunal grants partial stay on Rs 8,300 cr DoT demand from Bharti Airtel for Tata Teleservices merger
The telecom tribunal has directed 'the concerned authorities of the Union of India to take the merger of two companies and licence on record'
The TDSAT has directed
The tribunal asked Airtel to submit 50 percent payment of Rs 1,287.97 crore demand raised by DoT
It has directed Airtel to submit around Rs 640 crore for Chennai licence within four weeks
New Delhi: Telecom tribunal TDSAT on Thursday granted partial stay on Rs 8,300 crore demand raised by the telecom department from Bharti Airtel for approving its merger with Tata Teleservices.
The TDSAT has 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 asked Airtel to submit 50 percent payment of Rs 1,287.97 crore demand raised by DoT as OTSC for Chennai circle licence extension from 30 November 2014 to 27 September 2021.
It has directed Airtel 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 consumer mobile business (CMB) on record.
As part of the proposed agreement, Airtel will absorb Tata consumer mobile business (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 transfer of all the customers and assets of Tata CMB to Airtel.
The matter will come up for the next hearing on July 18, 2019.
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Also, Bharti Airtel has furnished the details for December 2018 onwards, while TRAI has sought details of such concessions over a longer period, the official noted.
Shares of Bharti Airtel and Vodafone Idea on Friday surged up to 10 percent a day after the telecom tribunal TDSAT struck down TRAI's new rules on predatory pricing saying they lacked required transparency.