In 2017, India’s telecom sector recorded $14.7 billion worth M&A deals — a more than 5-fold increase in value terms from the previous year. Wireless tariff wars, the entry of Reliance Jio, heavy investment in spectrum and network infrastructure, among others, acted as triggers for the M&A deals.
Main deals
Bharti Airtel bought Norway-based Telenor’s India unit in February to enhance its customer base and network.
U.K.-based Vodafone and India’s Idea Cellular signed a $11.6 billion merger agreement in March (excluding Vodafone’s 42 percent stake in Indus Towers) to become the largest telecom operator in India.
Bharti Airtel acquired Tikona Digital Networks’ 4G business, including its broadband wireless access spectrum and 350 cellular sites in five telecom circles, in a deal valued at $244.5 million.
Airtel also acquired Tata Teleservices and Tata Teleservices Maharashtra’s consumer mobile business.
Reliance Jio bought wireless spectrum, tower assets, optical fiber networks, and media convergence node assets of Reliance Communications.
Vodafone India and Idea Cellular sold their tower business to American Tower Corporation Telecom Infrastructure for $1.2 billion.
Analysts anticipate that India’s telecom market will shift from a fragmented mobile services industry with multiple operators to a more balanced market with three to four strong players. This year the industry is expected to undergo consolidation with the new 2018 National Telecom Policy acting as a catalyst.
