<p>Bharti Airtel is acquiring the Tata conglomerate's consumer mobile business, the two companies said on Thursday, in a deal that gives India's top wireless player a major subscriber base boost for virtually free, while stemming the bleed for Tata from a loss making venture.<br /><br />The transaction will be done on a "debt-free cash-free" basis, the companies said in their joint statement, although Bharti Airtel will take over a "small portion" of Tata's unpaid spectrum liabilities.<br /><br />Tata Teleservices and its unit Tata Teleservices (Maharashtra) have more than 40 million subscribers and rank ninth in India's telecoms market, which had a total of 1.2 billion mobile subscriptions at the end of July.<br /><br />The Indian telecom sector is in the midst of a wave of consolidation after the entry of Reliance Industries', Reliance Jio Infocomm venture.<br /><br />Reliance Jio, backed by India's richest man Mukesh Ambani, has sparked a price war and cut-throat competition in the space, eroding profits for carriers at a time when they already have high debt levels after costly airwave purchases.<br /><br />As part of the deal, Tata's mobile customers in 19 service areas will move to Bharti Airtel along with airwaves that Tata had purchased.<br /><br />"Tata and Bharti Airtel will work together to further explore other mutual areas of cooperation," the companies said.<br /><br />The statement also said Tata is in the initial stages of exploring a combination of its enterprise business with Tata Communications Ltd and its retail fixed-line and broadband business with satellite TV arm Tata Sky.<br /><br />Tata will retain its stake in tower company Viom, and will take care of the liabilities associated with it, according to the statement.<br /><br />Goldman Sachs advised Tata on the deal.</p>
<p>Bharti Airtel is acquiring the Tata conglomerate's consumer mobile business, the two companies said on Thursday, in a deal that gives India's top wireless player a major subscriber base boost for virtually free, while stemming the bleed for Tata from a loss making venture.<br /><br />The transaction will be done on a "debt-free cash-free" basis, the companies said in their joint statement, although Bharti Airtel will take over a "small portion" of Tata's unpaid spectrum liabilities.<br /><br />Tata Teleservices and its unit Tata Teleservices (Maharashtra) have more than 40 million subscribers and rank ninth in India's telecoms market, which had a total of 1.2 billion mobile subscriptions at the end of July.<br /><br />The Indian telecom sector is in the midst of a wave of consolidation after the entry of Reliance Industries', Reliance Jio Infocomm venture.<br /><br />Reliance Jio, backed by India's richest man Mukesh Ambani, has sparked a price war and cut-throat competition in the space, eroding profits for carriers at a time when they already have high debt levels after costly airwave purchases.<br /><br />As part of the deal, Tata's mobile customers in 19 service areas will move to Bharti Airtel along with airwaves that Tata had purchased.<br /><br />"Tata and Bharti Airtel will work together to further explore other mutual areas of cooperation," the companies said.<br /><br />The statement also said Tata is in the initial stages of exploring a combination of its enterprise business with Tata Communications Ltd and its retail fixed-line and broadband business with satellite TV arm Tata Sky.<br /><br />Tata will retain its stake in tower company Viom, and will take care of the liabilities associated with it, according to the statement.<br /><br />Goldman Sachs advised Tata on the deal.</p>