ATC acquiring Indian tower units from Vodafone and Idea for $1.2 billion

Telecom sector

Ltd for about $1.2 billion (Rs. 7,850 crore).

Vodafone said the number of its mobile customers went up by 3.3 percent to 207.4 million in the first fiscal half to end September, compared to 200.7 million the year before.

After Vodafone India and Idea complete their merger, 6,300 company-located tenancies of the two operators on the combined standalone tower businesses will collapse into single tenancies over a period of two years without the payment of exit penalties. The operator said its service revenues were down on the back of 'continued price competition'.

Vodafone India today released its half year FY18 results, in which it reported a decrease of 15.8% in service revenue compared to H1 FY17.

Vodafone India and Idea Cellular on Monday said they have agreed to sell the roughly 20,000 towers that they directly own to a local arm of American Tower Corp. for $1.2 billion (Rs 7,850 crore) cash, a move which will help the two merging telcos pare debt while boosting the tower portfolio of the USA company in a market seeing massive 4G rollouts.

Prisoner alleges Ram Rahim being given extra time to meet family
Ram Rahim has been handed two sentences of ten years each for the two counts of rape, and is locked up in Haryana's Sunaria Jail. Gurmeet Ram Rahim was sentenced to 20 years in prison on August 28 this year.

"Amidst continuing intense competition, we recorded a gain of 0.6ppt in RMS in Q1FY18 (YoY) and delivered a stable performance overall". We see signs of positive developments with consolidation of smaller operators.

Vodafone India and Idea Cellular Ltd, India's third-biggest wireless carrier, are to merge operations, potentially creating the country's biggest telecom player.

A report by COAI revealed that the company had 21.19 crore subscribers at the end of June. However, it said the company's service revenue Arpu (average revenue per user) took a beating due to stiff price competition and it now stands at Rs146 per user.

Furthermore, it said the data usage is exploding and usage per subscriber ( 1MB for Q2FY18) is 2.7GB per month. Growth was driven by higher smartphone penetration, now at over 38 percent of the total customer base.

The receipt of the proceeds from the sale of towers, prior to completion of the merger, was anticipated and provided for in the merger agreement, and hence, would not affect the agreed terms of the the Vodafone India and Idea merger, including the amount of debt which Vodafone will contribute to the combined company at completion.

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