Airtel in Talks with Tata Group for Potential DTH Merger

New Delhi: Telecom giant Bharti Airtel Ltd. confirmed on Wednesday that it is in discussions with the Tata Group regarding a potential merger between Tata Play’s Direct-to-Home (DTH) business and its subsidiary Bharti Telemedia. This move is seen as a strategic effort to consolidate DTH services in India.

Airtel and Tata Group’s Bilateral Discussions

In a statement to the stock exchanges, Airtel acknowledged that it is exploring the possibility of combining Tata Play’s DTH business with Bharti Telemedia Ltd. The companies are in the early stages of discussions to finalize a structure that is acceptable to both parties. However, Airtel clarified that the talks are still in the preliminary phase.

Merger Details and Expectations

Sources close to the negotiations have indicated that if the merger takes place, Bharti Airtel would likely hold a majority stake of 52-55% in the merged entity, while Tata Play shareholders, including Walt Disney, would retain the remaining portion. Tata Play, a joint venture between Tata Sons and Disney, and Bharti Airtel’s DTH business collectively had around 35 million paid subscribers as of September 2024. This combined subscriber base would represent a significant portion of India’s DTH market, with the industry-wide subscriber count at 60 million.

Valuation of DTH Businesses

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The two companies involved are valued at approximately Rs 6,000 crore to Rs 7,000 crore each, according to the media report. The merger is poised to create a stronger player in the DTH market, intensifying competition and enhancing service offerings for customers.

Airtel’s Collaboration with Ericsson for 5G Rollout

In a separate development, Bharti Airtel has partnered with Ericsson to implement 5G Standalone (SA) network technology. This collaboration aims to strengthen Airtel’s network capabilities and facilitate the smooth transition to a full-scale 5G SA network.

Ericsson will supply essential 5G equipment, allowing Airtel to develop a next-generation 5G network infrastructure. Randeep Sekhon, Chief Technology Officer at Airtel, highlighted that this partnership marks an exciting new phase, helping the company deliver innovative services to customers and significantly boosting its long-term 5G strategy.

5G Network Transition: SA vs. NSA Modes

Airtel’s 5G rollout will initially operate in the Standalone (SA) mode, where the network will solely rely on 5G technology. This contrasts with the Non-Standalone (NSA) mode, where 5G operates as an enhancement to existing 4G and 3G networks. Ericsson’s 5G solutions, including charging and policy capabilities, will play a key role in supporting Airtel’s 5G monetization efforts and future growth.

Strategic Growth in the Indian Telecom Market

Both the DTH merger discussions with Tata Group and the 5G collaboration with Ericsson reflect Airtel’s commitment to expanding its offerings and maintaining a competitive edge in India’s telecom sector. By enhancing its DTH presence and advancing its 5G capabilities, Airtel aims to position itself as a market leader in the evolving digital landscape.

Stay tuned for more updates as these developments unfold.