Published: Mon, November 13, 2017
IT | By Lester Massey

American Tower Buys Vodafone And Idea's Telecom Towers For $1.2 Bn

American Tower Buys Vodafone And Idea's Telecom Towers For $1.2 Bn

Idea Cellular Ltd is now trading at Rs 94.2, down by Rs 2.85 or 2.94% from its previous close of Rs 97.05 on the BSE after the company has reported net loss of Rs 1,108 crore against net profit of Rs 91.5 crore.

The company shares were trading down by 2.83 per cent at Rs 94.30 on the BSE.

As part of the transactions, Vodafone and Idea Cellular would get the service level and process efficiency benefits from American Tower, means these two telecom operators would continue to get usual service from these tower sites.

Idea and Vodafone India have recently entered into active infrastructure sharing arrangement, to avoid duplication of spends and make best use of capex (capital expenditure), the statement added. During this low demand period, Idea's sequential quarterly voice minutes grew by 1.7% to 255 billion minutes and mobile data volume (2G+3G+4G) witnessed strong sequential growth of 73.5% (on back of 99.1% growth in the first quarter) as Idea's pan India data network carried 438.7 billion MB.

The standalone tower businesses of Vodafone and Idea comprise a combined portfolio of almost 20,000 towers. ATC will remain a long-term supplier to the merged mobile operator.

According to the merger proposal, Vodafone India will own 45.1 percent of the merged entity after it transfers about 4.9 percent to promoters of Idea Celluar and/or their affiliates for Rs 3,874 crore.

India, the world's No.2 mobile phone market, has been rattled by the aggressive pricing of Jio, the telecoms arm of billionaire Mukesh Ambani-controlled Reliance Industries. The merger is expected to be completed in 2018.

Idea on Monday reported a consolidated net loss of Rs 1,106.8 crore for the second quarter of the current fiscal.

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