Telenor telephone company will soon be acquired by Bharti Airtel Limited in its 100 per cent operations. On February 23, two telephonic giants had an agreement under which Telenor will soon be an entity of the Bharti Airtel. The new acquisition will include all the company’s employees and its 44 million customers. Telenor will work under its operations as usual. Sigve Brekke, the chief executive officer of Telenor Group mentioned, ” The decision to exit India has not been taken lightly”.
He further said, “After thorough consideration, it is our view that the significant investments needed to secure Telenor India’s future business on a standalone basis would not have given an acceptable level of return”.
They are considering it as a long term solution to the Telenor’s future in India.
Gopal Vittal is the managing director and CEO of Bharti Airtel and mentioned that, “On completion, the proposed acquisition will undergo seamless integration, both on the customer as well as the network side, and further strengthen our market position considerably in several key circles”.
he then added the benefits for the Airtel customers who would be able to enjoy the Telenor services.
The agreement states some important points by which Airtel will take over the outstanding payments of Telenor spectrum and their contracts with operations. Regulatory authorities will approve this acquisition. These regulatory authorities will include Department of Telecommunications in India and Competition Commission of India.
The complete acquisition period will complete in 12 months of period. During the first quarter of the year, Telenor will appear as a sellable asset.
Airtel holds India’s widest wireless operator holding more than 269 million subscribers and a good revenue space of 33 per cent.
Until the complete procedure touches the end shores, the company will run on its normal operations. We hope to see better services with this collaboration.
