Tata tele mulls merger with Rcom, Aircel, MTS

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With an aim to give tough competition to Reliance Jio, Tata Teleservices is mulling to join the proposed merger of Reliance Communications, Aircel and MTS, reports the ET.

Tata tele mulls merger with Rcom, Aircel, MTS

There is no doubt that Jio launch has further intensified the competition, and to fight this, telcos like Vodafone and Idea are already in talks for the possible merger.

Anil Ambani, chairman of the Reliance Group, is believed to have approached N Chandrasekaran, the newly anointed Tata Sons chairman to discuss the matter, said people close to the development.

SEE ALSO: Six held for selling Reliance Jio SIM

"Nothing has been finalised yet," one of them said, noting that there are some obstacles such as Tata Tele's debt of about Rs 30,000 crore. The legal issue regarding NTT Docomo's exit from Tata Tele also needs to be resolved, the person said.

However, Tata Group executives said that the company already has a resolution for a sale of the business or a gradual shutdown of operations. In the event of a merger, the Tata Group is unlikely to take any equity, they added.

Meanwhile, the company is also planning to infuse capital of nearly Rs 10,000 crore, ET reported last week.

Out of the 12 telecom players in the country, Tata Tele comes at ninth with a subscriber base of roughly 53 million. If the merger with RCom-Aircel goes through, then the combined entity will have around 260 million subscribers and a revenue market share of over 18 percent.

Read More About rcom | aircel | mts | reliance | jio | telecom | news

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