The Indian telecom sector is ringing in a slew of merger and acquisition deals, thanks to the entry of Reliance Jio, intensifying competition in the space. The aggressive competition in the industry has led to battling for spectrum in all bands of frequencies. At present, the spotlight is on the 2,300 MHz band, to grow the 4G and Long Term Evolution (LTE) network.

Following the mega merger between Idea and Vodafone, Bharti Airtel is gearing up to acquire Tikona Digital Networks Private Limited, a broadband and internet service providing company with presence in the 2,300 MHz spectrum band. During the year 2010, in the spectrum auction conducted by the Department of Telecommunication, the players that had acquired this particular frequency band for 4G roll-out were Reliance’s Jio, Aircel, Augere, Qualcomm, Tikona and Airtel. Of these six players, four, including Tikona, have been acquired by Airtel to expand its network pan-India.

The acquisition of Tikona will enable Airtel to fill the Broadband Wireless Access (BWA) gaps, particularly in Rajasthan and Uttar Pradesh (East and West), and also handle the surging demand for data in the telecom market.

The company intends to roll out its 4G services in the five circles it acquires. Post completion of the deal, Airtel will have 30 MHz in the 2,300 MHz band in 13 circles at its disposal. The other players in the market, such as Reliance’s Jio and Idea Cellular, hold 30 MHz and 160 MHz respectively, (as of 2016 auction), in the 2,300 MHz spectrum band.

The deal is expected to be completed within sixty days. It is valued at approximately ₹1,600 crore, with Bharti Airtel acquiring 100 per cent shareholding in Tikona. Bharti Airtel purchased 173.8 MHz spectrum across all spectrum bands in the auction conducted in October 2016 for ₹14,244 crore and fortified its spectrum portfolio for the next 20 years.

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