Airtel granted partial stay on $1.2b spectrum charge demand
In this article (5)
India’s Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has granted Bharti Airtel and Tata Teleservices on the 83 billion rupees ($1.19 billion) demand from the Department of Telecom as a condition of approving the merger between the two companies.
The tribunal has directed Indian authorities to clear the merger subject to a stay on around 70 billion rupees in one-time spectrum charges.
But Bharti Airtel has been asked to submit 50% of around 12.87 billion rupees in one-time spectrum charges related to a license in Chennai.
The tribunal case is still ongoing, with the next hearing scheduled for July.
Bharti Airtel arranged to acquire Tata Teleservices’ consumer mobile business in 20 as part of the wave of consolidation that swept the sector after the entry into the market of Reliance Jio Infocomm with an aggressive price promotion.
The Department of Telecom approved the merger last month, but only on the condition that Airtel submits a bank guarantee covering the department’s spectrum charge demands. Airtel subsequently appealed the demand for this guarantee with the tribunal.
Questions & Answers
Q.What was the total amount initially demanded by the Department of Telecom from Airtel and Tata Teleservices?
What was the total amount initially demanded by the Department of Telecom from Airtel and Tata Teleservices?
The Department of Telecom initially demanded 83 billion rupees, which is approximately $1.19 billion, as a condition for approving the merger between Bharti Airtel and Tata Teleservices.
Q.Which specific part of the spectrum charge demand did the tribunal decide Airtel must pay immediately?
Which specific part of the spectrum charge demand did the tribunal decide Airtel must pay immediately?
Airtel has been instructed to submit 50% of approximately 12.87 billion rupees. This payment relates to one-time spectrum charges for a license specifically in Chennai.
Q.Why did Bharti Airtel originally appeal the Department of Telecom's demand?
Why did Bharti Airtel originally appeal the Department of Telecom's demand?
Airtel appealed the demand for a bank guarantee that the Department of Telecom had set as a condition. The Department required this guarantee to cover its spectrum charge demands before approving the merger.
Q.When did Bharti Airtel arrange to acquire Tata Teleservices' consumer mobile business?
When did Bharti Airtel arrange to acquire Tata Teleservices' consumer mobile business?
Bharti Airtel arranged to acquire Tata Teleservices' consumer mobile business in 20. This acquisition was part of a larger consolidation wave within the sector.
Reader pulse
What does this partial stay mean for Airtel?
17,613 votes so far