Norway’s Telenor is reportedly seeking to get in on the proposed merger between Aircel and Reliance Communications.
Telenor is proposing to combine its Indian business, customer base and spectrum with the merged Aircel-RCom entity. Under the proposed terms, Telenor would own 10% of the combined company, while Aircel parent Maxis and RCom would each own 45%.
The report cites a telecoms industry executive as stating that negotiations between the three commenced around Christmas, but have been in limbo after the Supreme Court threatened to revoke Aircel’s license if promoted Ananda Krishnan didn’t appear for a corruption case. As part of the decision the court also issued an interim ban on the sale of Aircel’s 2G spectrum.
Telenor is also reportedly in parallel discussions with Bharti Airtel, even though Airtel has only offered cash value for Telenor’s spectrum rather than a proposed merger. The sources stated that Telenor is eager to exit India as soon as possible and will take the Airtel deal if it will close faster.
RCom last year agreed to merge with Sistema Shyam Teleservices as part of the wave of telecoms industry consolidation.
A combined RCom, Telenor, Aircel and SSTL would have a total subscriber base of around 236 million, making it India’s second largest operator behind Bharti Airtel, which has nearly 260 million customers.