India’s largest mobile operator Bharti Airtel (NSE:BHARTIARTL) has agreed to acquire Augere Wireless Broadband India to help boost its 4G capabilities.
Upon closing, Augere will become a wholly-owned subsidiary of Airtel, the New Delhi-based operator said in a stock exchange filing.
The deal value was not disclosed, but local media have put it at Rs1.5bn (US$22.8m). The Indian press had reported in May that Airtel was in advanced talks to acquire Augere.
The target is part of Netherlands-based Augere Holdings, for which former Orange and LightSquared CEO Sanjiv Ahuja acts as a representative and corporate director.
It won 20 MHz of BWA spectrum in the Madhya Pradesh and Chhattisgarh (MPCG) service area in 2010 and announced plans to roll out 4G service in 2011, before cancelling them citing regulatory concerns. Augere Holdings, which launched services in Bangladesh and Pakistan in 2009, has reportedly been seeking to sell its Indian licence ever since.
Airtel agreed to pay Rs293bn (US$4.6bn) for spectrum in the latest spectrum auction, and is currently rolling out 4G services in major cities. It is expected to come under increased competitive pressure when billionaire Mukesh Ambani’s Reliance Jio launches 4G services, set to take place later this year.