TTSL to surrender 800 MHz spectrum before merger with Airtel

Tata Teleservices (TTSL) has offered to surrender the spectrum in 800 MHz band allocated to the telecom operator without auction in around 15 circles.
Tata Docomo post-paid scheme
Bharti Airtel, which is buying the mobile assets of TTSL, is not willing to pay the market rate for the spectrum.

Bharti Airtel has a debt of Rs 106,367 crore in the third quarter of fical 2018-19 as against Rs 91,714 crore in the third quarter of the previous fiscal.

Bharti Airtel reported a consolidated net profit of Rs 86 crore on revenue of Rs 20,519 crore during the October-December quarter.

Airtel can use the spectrum in the 800 MHz band for offering both 4G and 2G services across 15-16 telecom circles if it can pay the market price. TTSL also cannot transfer the spectrum to Bharti Airtel without paying the market price, according to rules set by the Department of Telecom.

As per the DoT guideline, Tata Teleservices is required to pay the present market rate to make the airwaves allocated without auction usable for 4G services or for transferring them to Airtel.

Airtel and Tata Teleservices in a meeting with DoT offered to surrender 2.5 MHz of spectrum assigned to Tata Tele administratively in 800 Mhz band in all circles, PTI reported on Sunday. The total holding of TTSL in the 800 Mhz band could not be ascertained.

TTSL has 178 MHz spectrum across 800 MHz, 1800 MHz and 2100 MHz bands across 19 circles. TTSL can transfer 71.3 MHz of spectrum to Airtel without paying market rate which is calculated based on the last auction price.

Airtel announced its decision to buy TTSL in October 2017. Airtel will not be paying any funds to TTSL for transferring its subscribers and some spectrum. Airtel is also not taking over any of the about Rs 40,000 crore debt of Tata Teleservices.

The National Company Law Tribunal (NCLT) has approved the merger of Tata Teleservices with Airtel. DoT is in the process of considering its final approval for the merger.