The Telecom Takeover! Airtel acquires Videocon's spectrum
A big news is coming from the Indian telecom market - Airtel, which is India's largest operator in the terms of subscribers, has acquired another player in the same market, Videocon Telecom. The amount paid to take over the company, as told by Airtel authorities, was 4,428 crore. This inclusion will bring great value to the telecom giant of India as it will get the rights to use the 2X5 MHz of spectrum in the 1800 band allocated to Videocon by the government on April 5, 2013.
This acquisition is also seen in the terms of expansion of Aitel's 4G network coverage. Currently operating its 4G services in 15 circles, it is likely to reach 4 new, taking the coverage area to 19 cirlces in the coming days. The official announcement made by Bharati Airtel conveys:
“Bharti Airtel has on March 16, 2016 entered into a definitive agreement with Videocon Telecommunications (VTL) to acquire, at an aggregate consideration of Rs 4,428 crore, rights to use 2 x 5 MHz spectrum in the 1800 MHz Band allotted to VTL by the government,” Bharti Airtel said in a statement.
This deal will have an apparent impact on the competition of Indian telecom market. Airtel, by and large, was always the top telecom player in India. This merger, rather a takeover, will take its flag to a new height leaving others far behind in the competition. The spectrum that Airtel has gained from Videocon is valid up to December 2032. So, we will have to wait and watch the other movements in telecom market that take place after this big news coming from the Indian market. Already on the top, Bharati Airtel has made a big move to secure its enhancing consumer base.