Telecom tribunal TDSAT has asked DoT to grant approval to Airtel-Telenor merger without any bank guarantee, according to a Bharti spokesperson.
The Department of Telecom on April 3 had asked Bharti Airtel to submit bank guarantee of around Rs 1,700 crore before approving its merger with Telenor India.
The guarantee included Rs 1,499 crore for one-time spectrum charge for the radiowaves allocated to Airtel without auction, and over Rs 200 crore for spectrum payment which Telenor has to make.
“Regarding the demand for bank guarantee, on Airtel’s petition, TDSAT has yesterday directed the DoT to take the merger on record without the need to furnish a bank guarantee. We hope to get the final approval from the DoT soon,” Bharti spokesperson said.
DoT has also sought undertaking from Airtel that the company will be liable to any pending dues with respect to merger of the two companies and all demands which may be raised by any wing of the department for Telenor India.
“A letter of compliance has already been submitted to the DoT on all the mentioned points,” Bharti spokesperson said.
The merger will bolster Airtel’s spectrum footprint in these seven circles, with the addition of 43.4 MHz spectrum in the 1800 MHz band. Telenor India runs operations in seven circles– Andhra Pradesh, Bihar, Maharashtra, Gujarat, UP (East), UP (West) and Assam.
DoT has asked Airtel to reduce it market share based on adjusted gross revenue (money earned from telecom services) in Bihar service area to the limit of 50 per cent, within one year from the date merger of two companies is approved.
The National Company Law Tribunal (NCLT) had approved the proposed merger of Telenor India with Bharti Airtel on March 8.
Source: Economic Times