Indian conglomerate Videocon is reportedly in talks with four major local operators about selling spectrum for some Rs120bn (US$1.85bn).
Indian conglomerate Videocon (NSE:VIDEOIND) is reportedly in talks with four major local operators about selling spectrum for some Rs120bn (US$1.85bn).
Bharti Airtel, Vodafone, Idea Cellular and Telenor are looking at buying the spectrum in six service areas (circles), local media reported.
Industry sources were cited saying the Rs120bn valuation is on the high side, potentially making an eventual deal difficult.
Shortly following the Indian government’s approval of spectrum trading in September, Videocon’s telecoms unit, Videocon Telecom, announced that it was exploring such possibilities, saying it expected to reach agreements “soon”.
In late September, Telenor India’s outgoing CEO Vivek Sood said the company was in spectrum trading talks in an effort to boost growth plans.
Selling spectrum would help Videocon to reduce a debt pile which, as of last month stood at about Rs225bn (US$3.47bn).
Videocon was not immediately available for comment.
Meanwhile, according to local media, leading cellco Bharti is considering buying 2,300 MHz of spectrum from Aircel to expand its 4G footprint. Bharti has denied such talks are taking place, while Aircel has declined comment.