Bharti Airtel, India’s largest mobile operator, is reportedly nearing a deal to buy 4G airwaves from smaller rival Aircel for about Rs38bn (US$557.1m) as spectrum-rich Reliance Jio gets set to launch. The purchase will extend Airtel’s 4G footprint from 15 to 18 circles, closing the gap with Jio, the sole Indian operator to hold spectrum in all circles.
Bharti Airtel (NSE:BHARTIARTL), India’s largest mobile operator, is reportedly nearing a deal to buy 4G airwaves from smaller rival Aircel for about Rs38bn (US$557.1m) as spectrum-rich Reliance Jio gets set to launch.
The deal to buy the 2300 MHz airwaves in eight of India’s 22 service areas (circles) in expected to be finalised by the end of March, the Economic Times cited people familiar saying.
The purchase will extend Airtel’s 4G footprint from 15 to 18 circles, closing the gap with Jio, the only Indian operator to hold spectrum in all circles.
An Airtel spokesperson neither confirmed nor denied the news, but said it reviews proposals “from various quarters” “from time to time”, adding that it makes appropriate disclosures if and when proposals are finalised.
Aircel, which is in talks with fourth-largest cellco Reliance Communications (NSE:RCOM) about a three-way merger also involving Russian conglomerate Sistema’s Sistema Shyam Teleservices (SSTL), was not immediately available for comment.
Reliance Communications, the country’s fourth-largest operator, inked agreements in mid-January to sell and share 800 MHz spectrum with Jio, which is expected to hold its commercial launch this spring.
As part of its objective to remain a strong number four player, RCom announced in late December that it had entered talks to buy Aircel from shareholders Maxis Communications (MYX:6012) and Sindya Securities and Investments. Announcing a 90-day exclusivity period, it said they would “consider the potential merger to mutually derive the expected substantial benefits of in-country consolidation, including opex and capex synergies and revenue enhancement.”