Indian telecom service provider Aircel has received DoT permission to mobilize more than Rs 21,000 crore through domestic and overseas loans via a consortium led by State Bank of India (STB).
The Department of Telecommunications (DoT) has approved the proposal of the Maxis-promoted Aircel that earned gross revenue of Rs 1551 crore in the September quarter.
Telecom operator revenue data for 2013 September quarter in India
Aircel, the seventh largest telecom operator in India based on gross revenue, has a negative net worth of Rs 4,198.25 crore, according to DoT data.
Aircel, which is going slow on 4G LTE launches despite bagging spectrum in 2010, will utilize the proceedings to refinance existing debt. The loss making company has more than Rs 24,000 crore primarily due to its license fee of nearly Rs 10,000 crore for buying 3G and broadband wireless access (BWA) spectrum during the 2010 auctions, and for expanding operations in 2G and 3G over the years.
The telecoms will mortgage its spectrum to mobilize the funds. Aircel has been looking for a joint venture partner in India to expand its business, Economic Times reported.
DoT agreed to sign a tripartite agreement with SBI, a government-owned bank, and Aircel to raise Rs 14,500 crore as domestic lending and Rs 7,080 crore as overseas borrowings against licenses / spectrum in 15 service areas.
Aircel has permits to operate 2G services in 22 telecom circles in the country, 3G in 13 service areas and broadband wireless services, or 4G, in eight circles.
Aircel is looking at pledging 15 circles including Tamil Nadu, Karnataka, Maharashtra, Delhi, Mumbai, West Bengal, Assam, Bihar, Himachal Pradesh, Jammu & Kashmir, Kerala, North-East, Orissa, UP (West) and UP (East).
Aircel is yet to start its 4G operations. Bharti Airtel is the only operator to kick off 4G in a small way. Reliance Jio Infocomm is still evaluating its operational strategy.