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TTSL and Telenor are reportedly in talks to merge their businesses in India.
Telenor, which operates under the Uninor brand in India, is reportedly in talks to buy a stake in Tata Teleservices and consequently merge itself with the Tata group company. While there is no formal announcement regarding this, Reuters has reported of such a discussion based on information from sources. If the merger happens, which is dependent on the regulator's new guidelines, it will create India's fourth largest mobile operator and is expected to benefit both the companies as well as their consumers.
Here are some of the benefits that the subscribers of these two operators can expect.
What happens to Telenor customers?
Telenor, whose licenses were cancelled earlier this year by the Supreme Court of India, has only managed to win back spectrum in six circles, which leaves out another three circles in which the company has a strong user base. If this merger takes place, Uninor subscribers in those three circles won't need to shift their operators. Apart from that all the consumers of Telenor will get national roaming on their home network, which, apart from reducing the cost of roaming for Telenor, will also reduce costs for subscribers.
What happens to Tata Teleservices subscribers?
Tata Teleservices, on the other hand, will get spectrum on which it can offer 3G services in at least three additional circles of Bihar, Andhra Pradesh and Uttar Pradesh East, as the spectrum in the recent auction was not linked to any particular technology. Tata Teleservices currently has 3G spectrum in only nine circles and with this merger this number will reach to 12. In the circles where Tata Teleservices already has 3G spectrum and Telenor too has won spectrum - that includes Gujarat, Maharashtra and Uttar Pradesh West - it will be economical for Tata Teleservices to offer 3G services on the 1800 MHz band of Telenor rather than on its own 2.1 MHz band. By migrating to the 1800 MHz band, Tata Teleservices will have to deploy fewer towers to provide 3G services, hence the reduction in cost.
Operator Watch: Will the Tata Telenor merger benefit consumers
Telenor, which operates under the Uninor brand in India, is reportedly in talks to buy a stake in Tata Teleservices and consequently merge itself with the Tata group company. While there is no formal announcement regarding this, Reuters has reported of such a discussion based on information from sources. If the merger happens, which is dependent on the regulator's new guidelines, it will create India's fourth largest mobile operator and is expected to benefit both the companies as well as their consumers.
Here are some of the benefits that the subscribers of these two operators can expect.
What happens to Telenor customers?
Telenor, whose licenses were cancelled earlier this year by the Supreme Court of India, has only managed to win back spectrum in six circles, which leaves out another three circles in which the company has a strong user base. If this merger takes place, Uninor subscribers in those three circles won't need to shift their operators. Apart from that all the consumers of Telenor will get national roaming on their home network, which, apart from reducing the cost of roaming for Telenor, will also reduce costs for subscribers.
What happens to Tata Teleservices subscribers?
Tata Teleservices, on the other hand, will get spectrum on which it can offer 3G services in at least three additional circles of Bihar, Andhra Pradesh and Uttar Pradesh East, as the spectrum in the recent auction was not linked to any particular technology. Tata Teleservices currently has 3G spectrum in only nine circles and with this merger this number will reach to 12. In the circles where Tata Teleservices already has 3G spectrum and Telenor too has won spectrum - that includes Gujarat, Maharashtra and Uttar Pradesh West - it will be economical for Tata Teleservices to offer 3G services on the 1800 MHz band of Telenor rather than on its own 2.1 MHz band. By migrating to the 1800 MHz band, Tata Teleservices will have to deploy fewer towers to provide 3G services, hence the reduction in cost.
Operator Watch: Will the Tata Telenor merger benefit consumers
