30 May 2018
| James Pearce
Tata Teleservices is set to pay $900 million to American Tower Corp as compensation for winding up around 30,000 tenancies, according to reports in India.
Reports from The Economic Times
claimed potential payment, which would come after Tata
Teleservices agreed to sell its mobility arm to Bharti Airtel,
would help push through
According to an ET source, the overall compensation will
include Tata Teleservices’ 26% stake in Viom
Networks, which is controlled by ATC.
In October 2017, Bharti Airtel announced plans to buy
TTSL’s consumer mobile business in a debt-free
cash-free deal, with Bharti paying for TTSL’s
unpaid spectrum liability. The deal received approval from the
Competition Commission of India in November, with the
liabilities to ATC one of the outstanding issues that needs to
The ET story claims that ATC was originally looking for
around $1 billion in overall compensation due to the nature of
the tenancy agreements, which were based on long-term deals
valid until 2025. These also included 5-7 year lock-ins, the
The potential agreement marks the latest in a series of
moves in the Indian towerco market. American Tower recently
struck a deal to buy
Vodafone’s Indian tower unit in a deal worth
€478 million, adding 10,200 towers to its portfolio.
In a separate deal, it agreed to buy
Idea Cellular’s 8,886-strong tower business
ahead of the latter’s
merger with Vodafone India.
Bharti’s tower unit,
Bharti Infratel, is also set for a mega merger with Indus
Towers that would create the second largest tower company
in the world, with over 163,000 towers operating across all 22
Indian telecoms circles.