Telco Vodafone Essar has applied to FIPB to hive of its telecom infrastructure business into a new entity called Ortus Infratel and Holdings Pvt Ltd. The entity will hold Vodafone Essar’s 42% stake in Indus Towers, a joint venture between Bharti Airtel, Vodafone Essar and Idea Cellular, reports Economic Times. Apart from this, it will also hold the infrastructure owned by Vodafone Essar.
Indus Towers operates 90,000 towers in around 16 circles. Besides this, Vodafone Essar separately operates 6,000 towers in six circles where Indus is not present. Essar also operates its own independent mobile tower firm, Essar Telecom Infrastructure, which will not be included with Ortus. Essar Telecom Infra has around 4,500 towers and is currently in talks with Tata-Quippo combine.
Essar Group’s Ruias own 33% stake in Vodafone Essar, and shareholding of Ortus will also be along similar lines. Ortus also plans to invest Rs 500 crore, it said in its FIPB application.
The telecom infrastructure sector, in which private equity funds have invested billions of dollars is going through a process of consolidation. This seems to be aided by the falling valuation oftelecom towers. Towers were valued at Rs 78 lakh in Tata-Quippo merger, while in the more recent American Tower's acquisition of Xcel Telecom valued them at Rs 47 lakh.
Showing posts with label Vodafone. Show all posts
Showing posts with label Vodafone. Show all posts
Saturday, March 21, 2009
Thursday, July 12, 2007
M&A marketshare limit be 40%: BSNL
State-owned BSNL has suggested lowering of the market share limit to 40 per cent from the current 67 per cent following the merger and acquisitions of two entities in the telecom sector to avoid monopolistic situation.
cellular company Vodafone Essar, which has recently acquired number two slot in terms of subscriber base, said "We are of the opinion that the 67 per cent limit is appropriate when applied to a narrow mobile market definition.
CDMA player Tata Teleservices wants this cap to be at 45 per cent. "We recommend a maximum market share of 45 per cent for the merged entity," the company said.
The PSU also wants fixing a maximum spectrum limit that would be held by a merged entity be. It also does not want any merger to be allowed between a CDMA and a GSM company. Vodafone Essar said the merged entity should have a spectrum limit.
(Source: Economic Times)
cellular company Vodafone Essar, which has recently acquired number two slot in terms of subscriber base, said "We are of the opinion that the 67 per cent limit is appropriate when applied to a narrow mobile market definition.
CDMA player Tata Teleservices wants this cap to be at 45 per cent. "We recommend a maximum market share of 45 per cent for the merged entity," the company said.
The PSU also wants fixing a maximum spectrum limit that would be held by a merged entity be. It also does not want any merger to be allowed between a CDMA and a GSM company. Vodafone Essar said the merged entity should have a spectrum limit.
(Source: Economic Times)
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