tech2 News StaffFeb 23, 2017 11:11:38 IST
Bharti Airtel today signed an agreement with Norwegian multinational telecommunications company Telenor to acquire its Telenor (India) Communications Ltd. In short, Telenor India will soon merge with Airtel as per a joint statement.
The same statement also gives out the details of the acquisition. It states that the agreement is subject to requisite regulatory approvals and Airtel will merge with Telenor only after the necessary approvals are received.
Delving into the details, Airtel will take over the outstanding spectrum payments and operational contracts as a part of the agreement. Airtel will also acquire Telenor's operations in Andhra Pradesh, Bihar, Maharashtra, Gujarat, UP and Assam. These areas are important since they represent a high population concentration, one that could offer potential growth.
Airtel will ensure quality services to Telenor India’s customers, while offering them the added benefits of its innovative product portfolio, access to superior voice & data services, mobile banking, VAS and domestic/international roaming facilities. Telenor India’s operations and services will continue as normal until the completion of the transaction.
Gopal Vittal, Managing Director and CEO (India and South Asia), Bharti Airtel, said, “The agreement underlines our commitment to lead India’s digital revolution by offering world-class and affordable telecom services through a robust spectrum portfolio spread across multiple bands. On completion, the proposed acquisition will undergo seamless integration, both on the customer as well as the network side, and further strengthen our market position in several key circles. The customers of Telenor India will now be able to enjoy India’s widest and fastest voice & data network, and a range of Airtel’s world-class products and services.”
“The acquisition of additional spectrum through this transaction, which made an attractive business proposition, has further enhanced our already solid spectrum portfolio. The proposed transaction will also create substantial long term value for our shareholders given the significant synergies.” added Gopal.
Sigve Brekke, Chief Executive Officer of Telenor Group, said, “We believe today’s agreement is in the best interest of our customers, employees and Telenor Group. Finding a long term solution to our India business has been a priority for us, and we are pleased with our agreement with Airtel. The decision to exit India has not been taken lightly. After thorough consideration, it is our view that the significant investments needed to secure Telenor India’s future business on a standalone basis will not give an acceptable level of return.”
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