Telecom major Bharti Airtel has said that the scheme of arrangement for the merger between the company and Tata Teleservices (TTSL) has become effective from Monday. Hence, all of TTSL’s assets — including its customers — come under the Delhi-based telecom services provider.
As part of the merger, Airtel will absorb TTSL’s consumer mobile businesses operations in 19 telecom circles — 17 under TTSL and two under Tata Teleservices (Maharashtra) (TTML).
Airtel has also agreed to take over a small portion of the unpaid spectrum liability of Tata Teleservices.
The merger will bolster Airtel’s spectrum pool with additional 178.5 MHz spectrum in the 1800, 2100 and 850 MHz bands, widely used for 4G.
The announcement follows the Telecom Disputes Settlement and Appellate Tribunal’s (TDSAT) order directing the Department of Telecom (DoT) to take the merger on record and approval of the schemes of arrangement by the National Company Law Tribunal (NCLT) Delhi and -Mumbai.
“We are pleased to announce that the schemes of arrangement have become effective today (July 1). Consequently, all customers, assets, spectrum and agreed liabilities of the consumer mobile businesses of TTSL and TTML now stand merged with Airtel,” Airtel said in a statement.
The TDSAT on May 2 had granted partial stay on a ₹8,300-crore demand raised by the DoT from Airtel for approving its merger with the consumer business of TTSL. As per sources, Airtel had submitted a bank guarantee of around ₹644 crore to TDSAT to complete the merger of TTSL’s consumer business with the company, as directed by the tribunal.