India’s largest telecom operator Bharti Airtel Ltd. will take over the struggling mobile services business of salt-to-software Tata Group as low tariffs and rising debt continue to drive consolidation.
Bharti Airtel will get 4 crore customers and assets of Tata Group’s mobile services business, the companies said in a joint statement.
The “debt-free cash-free” merger will see Sunil Mittal-led company take control of operations and a small portion of Tata Teleservices Ltd.’s unpaid spectrum liabilities. It excludes the Tata Group’s stake in tower firm Viom Networks Ltd.
“We believe today’s agreement is the best and most optimal solution for the Tata Group and its stakeholders,” Tata Sons Ltd.’s chairman N Chandrasekaran said in the statement.