DoT approves merging of top telecom networks

New Delhi, May 15: In a major development, The department of telecommunications (DoT) has approved the merger of Bharti Airtel and Telenor India here on Tuesday.

All customers of Telenor India would become part of Airtels. The latter will get 43.4 MHz of spectrum in the 1,800 MHz band from Telenor.

A DoT notification said with the approval of the merger, all assets and liabilities pertaining to Telenor India stand transferred to Bharti Airtel. "The present merger is taken on record without prejudice to the rights, contentions, remedies, and steps which may be taken by the department, in pursuance of any subsequent orders, judgments or decisions," it said.

Airtel will acquire Telenor India's operations in seven of the country's 22 telecom circles - Andhra Pradesh, Bihar, Maharashtra, Gujarat, UP (East), UP (West) and Assam. These represent high population concentration and, therefore, offer high potential for growth.

DoT approves merger of Airtel and Telenor; here is how the deal unfolded

After the deal's approval, Airtel will formally buy Telenor India in a no-cash deal and take over its spectrum payment dues of about Rs 16.5 billion. The deal will bolster its spectrum holding to 979.45 MHz (all bands) and narrow its revenue and subscriber market share gap with the coming Vodafone-Idea Cellular combine.

The Vodafone-Idea merger will be approved soon by DoT. It would create the country's largest mobile telecom operator, with a subscriber base of a little over 400 million. Followed by Airtel with 330 mn customers.