Indian mobile operator Idea Cellular is in fresh talks with Malaysian operator Axiata over the sale of its tower operations, according to the Economic Times citing people familiar with the situation.
Idea, which is 20%-owned by Axiata, is reportedly…
Indian mobile operator Idea Cellular is in fresh talks with Malaysian operator Axiata over the sale of its tower operations, according to the Economic Times citing people familiar with the situation.
Idea, which is 20%-owned by Axiata, is reportedly looking to sell its 9,400 towers in order to raise funding for capex, spectrum acquisition and licence renewals.
A team from the Malaysian company is expected to travel to India within the next few weeks to take the discussion further, a source was quoted as saying.
However, in the current market conditions, valuation issues might delay or derail a potential deal, the newspaper wrote citing industry experts.
Almost exactly a year ago, Axiata was rumoured to be eyeing the towers held by Idea in order to create a large tower company across seven countries.
The Malaysian telco is present in 10 countries: Malaysia, Indonesia, Sri Lanka, Bangladesh, Cambodia, India, Singapore, Iran, Pakistan, and Thailand. Among its subsidiaries at least two hold telecoms towers, including Indonesian mobile operator XL Axiata.
Since 2010 the Indian tower market, home to 300,000 privately-owned towercos, has been subdued because of regulatory uncertainties and the 2G scam.
But potential deals – including the reported imminent acquisition of TowerVision by American Tower and the all-round partnership signed between the Ambani brothers earlier this year (see feature in TelecomFinance 211/April 2013) – may mark the beginning of a consolidation wave in this crowded industry.
