Airtel Enters Into Definitive Agreement To Acquire Tikona Digital Networks’ 4G Business

Bharti Airtel said that it has entered into a definitive agreement to acquire Tikona Digital Networks’ 4G business for Rs 1,600 crores, including spectrum and 350 sites in five telecom circles.

Tikona has 20-MHz spectrum in the 2300-MHz band in Gujarat, U.P. (East), U.P. (West), Rajasthan, and Himachal Pradesh circles.

With this acquisition, Airtel will have spectrum in 2300-MHz band across all circles. Airtel plans to roll out high-speed 4G services on the newly acquired spectrum in the five circles immediately after the closure of the transaction.

In this regard, Airtel’s MD & CEO (India & South Asia) Gopal Vittal said, “Airtel’s continued focus on strengthening its 4G capabilities across multiple spectrum bands will be complemented with the BWA spectrum acquisition from Tikona.”

As per the agreement, the acquisition of the 4G business in Gujarat, U.P. (East), U.P. (West), and Himachal Pradesh will be undertaken by Airtel, while in the Rajasthan circle, it will be accomplished through Airtel’s subsidiary Bharti Hexacom Limited.

According to Airtel, “The proposed acquisition will enable Airtel to fill BWA [broadband wireless access] spectrum gaps in the 2300-MHz band in Rajasthan, UP (East), and UP (West), thereby securing a pan India footprint in the band. The deal will significantly bolster Airtel’s spectrum position in Gujarat and Himachal Pradesh, taking its overall BWA spectrum holding to 30 MHz each in these circles.”

Post completion of the deal, Airtel will have 30 MHz in the 2300-MHz band in 13 circles, giving it an advantage in handling the surging data demand.