wordpress blog stats
Connect with us

Hi, what are you looking for?

Telenor in talks with RCOM for a potential merger deal: report

Norway-based telco Telenor is looking to merge its India operations with Reliance Communications, reports ET, citing un-named sources. Telenor was in talks with RCOM for a possible merger of its customer base, spectrum holdings, and the entire business unit with Aircel-Rcom merged entity. According to the report, Telenor’s proposal included a 10% stake in the merged entity, with Aircel and RCOM owning 45% each in the joint venture.

A spokesperson from Telenor told MediaNama: “As a general principle Telenor does not comment on market rumors and speculations.” RCOM did not respond to our query yet. Note that Telenor was reportedly in talks with Airtel for a $350 million merger earlier this month. Airtel was looking to acquire half of Telenor India’s liabilities, while Telenor was looking to hold the remaining half. Both companies did not comment on the reports when MediaNama wrote to them.

However, the speculated Telenor-RCOM merger is of a different nature. The Aircel-RCom merger which is worth Rs 65,000 crore (~$9.7 billion) could be in jeopardy due to Aircel promoter Maxis Berhad’s role in the infamous 2G scam.  This month, the Supreme Court ordered Maxis, which owns 74% stake in the company to attend a lower court for proceedings; it added that Aircel’s 2G spectrum in 14 circles could be withdrawn if the promoters don’t show up.

It’s unlikely that Reliance might call off the Aircel-RCOM merger since Aircel’s 2G spectrum is at stake with the SC judgment, its 3G spectrum allocated to it via auctions will remain untouched. Telenor, on the other hand, has 4G spectrum (1800 MHz band) in 7 circles, and this could make up for Aircel’s spectrum loss.

Competition and consolidation in the telecom sector

After the launch if Reliance Jio which is currently offering free calls and data:

-Both Vodafone Group and Idea confirmed that they were in talks for a potential merger deal, although the financials of the deal were not disclosed. If the merger goes through, Vodafone would be in a better stance to compete with Airtel, which is currently the biggest operator in terms of subscribers.

-Smaller operator Videocon announced that it will shut down operations in Punjab by February. The company earlier announced it would not be exiting the telecom business fully and would apply for VNO license instead.

-Idea’s net profit took a beating, Vodafone lost some of its data customers, and, Airtel’s subscriber base, data consumption and ARPU declined by a significant margin.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

News

The Ministry of Information & Broadcasting’s upcoming National Broadcast Policy will try to make it easier for cable television (TV) operators to provide broadband...

News

BSNL and MTNL, the two state-owned telecom operators, turned EBITDA-positive and made some operating profit in the first half of the financial year ending...

News

Shortly after Bharti Airtel approached the Supreme Court to get the the Department of Telecommunications (DoT) to revise its Adjusted Gross Revenue (AGR) dues,...

News

The Indian government has issued spectrum auctions notification that it earlier announced would take place this year. The auction is scheduled to begin on...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2018 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to Daily Newsletter

    © 2008-2018 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ