Indian telecom operator Bharti Airtel today announced the deal to buy 4G business from Tikona Networks, a regional broadband operator.
Sunil Mittal-promtoed Bharti Airtel earlier acquired 4G spectrum from Videocon Telecom and Aircel, two regional telecom operators. Earlier, Airtel acquired BWA license from chipset major Qualcomm. Airtel also announced the acquisition of Telenor India that has nearly 50 million mobile subscribers — mainly in rural India.
The acquisition of 4G business from Tikona Networks will enable Airtel to add 2300 MHz spectrum in five telecom circles.
Post this acquisition, Airtel will have spectrum in 2300 MHz band across all circles. Airtel said 13 circles will have 30 MHz spectrum in 2300 MHz band.
4G deal details
Airtel will launch 4G services on the new spectrum in the five circles immediately after the closure of the transaction. Airtel did not reveal the financial details.
Tikona’s 4G Business includes the Broadband Wireless Access (BWA) spectrum and 350 sites, in five telecom circles.
Tikona currently has 20 MHz spectrum in the 2300 MHz band in Gujarat, UP (East), UP (West), Rajasthan and Himachal Pradesh circles.
The combined spectrum holding of Airtel in these five circles will be within the spectrum caps prescribed by the Government.
The proposed acquisition will enable Airtel to fill BWA spectrum gaps in the 2300 MHz band in Rajasthan, UP (East) and UP (West).
The deal will bolster Airtel’s spectrum position in Gujarat and Himachal Pradesh, taking its overall BWA spectrum holding to 30 MHz each in these circles.
Airtel India CEO Gopal Vittal said Airtel’s focus on strengthening its 4G capabilities across multiple spectrum bands will be complemented with the BWA spectrum acquisition from Tikona.
Why Airtel is buying Tikona 4G biz
Airtel’s Rs 1,600 crore acquisition of Tikona’s 4G spectrum fills the gap that it had in the TDD-LTE band mainly in UP East, UP West and Rajasthan circles. With this acquisition Bharti Airtel will have nationwide TDD-LTE spectrum.
“Combined with FDD-LTE this additional spectrum holding will help Airtel to be future ready for the surging data demands on 4G. In addition, this will also help Airtel to improve the quality of service with additional spectrum,” said Rishi Tejpal, principal research analyst at Gartner.
After the Vodafone-Idea Cellular deal, this is another step towards consolidation in the Indian telecom sector. Rishi Tejpal said the latest developments are heading in the right direction for a healthy competition.
The Indian telecom sector is under pressure and the future expansion and growth will depend on the quantum of spectrum held and the quality of services offered.
