Jio 4G Effect Airtel acquires Norway Telecom Company – Telenor :- On Thursday, Bharti Airtel, India’s largest telecom operator, informed the exchange that it will acquire Norway telecom company – Telenor India assets. This move comes at a time when Reliance Jio company has acquired 100 million users in just four months.
Till now, Bharti Airtel did not disclose the financials of the Telenor India acquisition in its filing with BSE(Bombay Stock Exchange). The acquisition process is also subject to regulatory approvals.
In a statement, MN and CEO of Bharti Airtel – Gopal Mittal said that by doing this agreement, our commitment leads the digital revolution of India by offering world class and affordable telecom services through a robust spectrum portfolio spread across multiple bands. The acquisition, on completion, will undergo seamless integration both on the customer as well as the network side and further strengthen our market position in several key circles.
The Norway Telecom Company – Telenor acquisition will give Bharti Airtel additional spectrum in 1,800 MHz band besides a foothold in seven circles — Andhra Pradesh, Assam, Bihar, Gujarat, Uttar Pradesh (East and West) and Maharashtra. In these circle, Telenor operates in. The buyout gives Airtel additional access to 43.4 Mhz spectrum in the 1800 MHz band.
In the filling, Vittal said that the proposed transaction will also create substantial long-term value for our shareholders given the significant synergies.
In terms of subscribers, Airtel gets 52.5 million users from Telenor kitty. Right now, Airtel has 269.40 million subscribers across India.
The CEO of Telenor Group – Sigve Brekke said that we believe today’s agreement is in the best interests of our customers, employees and Telenor Group. Our prioity is to finding a long-term solution to our India business and we are pleased with our agreement with Airtel.
He further said that the decision to exit India has not been taken lightly. After thorough consideration, it is our view that significant investments needed to secure Telenor India’s future business on a standalone basis will not give an acceptable level of return.