Airtel Joins Hands With Tata To Survive The Jio Storm
The introduction of the Reliance Group’s Jio network has brought substantial changes in the Indian telecom industry. It is a common occurrence in businesses to have acquisitions and mergers taking place for mutual benefit between two or more parties. The added edge of two companies working together helps provide an advantage to both parties and increases economical prospects, such as the Airtel and Tata merger.
According to a new report, Tata Teleservices’ Consumer Mobile services have now officially been integrated into Bharti Airtel. The news of the completion of the merger arrived after a joint statement issued by both the companies.
The aforementioned companies have seen their fair share of business troubles ever since the debut of the highly competitive Jio network. Reliance Group’s critically acclaimed network had brought data packages and call rates to an all-time low. Noteworthy, India currently holds the title of consuming the highest amount of mobile data per head, which is somewhat due to the Jio revolution. This seemingly undercut every one of the prevailing competitors such as Airtel, Vodafone and Idea. Furthermore, the move caused massive losses to other telecom service providers and forced many to slash rates or start a joint venture, such as the Idea India and Vodafone merger.
As of July 1st 2019, the arrangement regarding the merger of the Consumer Mobile Businesses of Tata Teleservices and Tata Teleservices (Maharashtra) into Bharti Airtel and Bharti Hexacom are now in effect. In accordance with the merger, Airtel will absorb the Tata Telecom services operations in 19 telecom circles. It has also agreed to take all the customers, assets, spectrum, and agreed liabilities of the Consumer Mobile Business from Tata.
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The merger will boost Airtel’s spectrum pool with a significant addition of 178.5MHz spectrum in 1800, 2100 and 850 MHz bands. These are used in 4G and translate to better overall connectivity, spread and penetration of the network. This is a welcomed move as existing Airtel and even Tata customers will largely benefit from the business merger. It is yet to see how performance is affected in real-world practice but positive results are expected all across the board.
