wordpress blog stats
Connect with us

Hi, what are you looking for?

SC orders DoT to approve Airtel-Telenor merger without bank guarantee

The Supreme Court has dismissed a petition by the Department of Telecommunication (DoT) to secure bank guarantees from Airtel as a pre-condition to approve the telco’s buyout of Telenor India. With this order, the deal is set to get the only remaining approval it needed (of the DoT), and will reportedly be cleared in a week.

“The Special Leave Petition is dismissed. Pending application(s), if any, stands disposed of accordingly,” Justices SK Sikri and Ashok Bhushan said in their order on Wednesday.

The DoT had asked for a bank guarantee of Rs 1,499 crore for one-time charges for spectrum (OTSC) allocated to the carrier without auctions, and over Rs 200 crore for deferred payment for airwaves owed by Telenor to give a green signal to the deal. This was earlier challenged in the Telecom Disputes Settlement & Appellate Tribunal (TDSAT). The tribunal had also ordered the DoT to approve the merger without guarantees, and the DoT then moved the Supreme Court on the matter on May 3.

Earlier, the DoT had also asked Bharti Airtel to submit an undertaking saying that it will be liable to pay pending dues with respect to merger of the two companies and all demands which may be raised by for Telenor India. The Bharti Airtel spokesperson added that a letter of compliance on this has been submitted.

The merger of Telenor with Airtel has been approved by the National Company Law Tribunal (NCLT) on March 8. The deal already has approvals from the Competition Commission of India (CCI), the market regulator Sebi and stock exchanges BSE and NSE.

Advertisement. Scroll to continue reading.

Airtel’s acquisition of the India operation of Norway-based Telenor was announced in February 2017. The deal entailed transfer of all of Telenor India’s assets, licenses, and customer base of 44 million into Airtel including Telenor’s active operations in 7 circles—Andhra Pradesh, Bihar, Maharashtra, Gujarat, UP (East), UP (West) and Assam. This was to add Airtel close to 43.4 MHz of additional spectrum in the 1800 MHz band to Airtel’s kitty. In the no-cash deal, the Indian telco will take over all outstanding spectrum payments and other operational contracts, including tower lease contracts as due on Telenor.

Written By

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

Due to the scale of regulatory and technical challenges, transparency reporting under the IT Rules has gotten off to a rocky start.

News

Here are possible reasons why Indians are not generating significant IAP revenues despite our download share crossing 30%.

News

This article addresses the legal and practical ambiguities in understanding the complex crypto ecosystem in India.

News

It is widely argued that the PDP Bill report seeks to discard the intermediary status of social media platforms but that may not be...

News

Looking at the definition of health data, it is difficult to verify whether health IDs are covered by the Bill.

You May Also Like

News

Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

Advert

135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...

News

Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...

News

By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

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

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ