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DoT may ask Bharti Airtel to pay Rs 4.36 billion for merger with Airtel Broadband Services

September 18, 2014

The Department of Telecommunications (DoT) may reportedly ask Bharti Airtel to pay Rs 4.36 billion for merging Airtel Broadband Services Private Limited (ABSPL) with itself, in order to account for differential spectrum cost and migration fee.

The telecom department is of the view that the merger will lead to migration of a licence meant for only internet services to another type of permit that allows use of spectrum for all kinds of telecom services, and not just internet.

Airtel had acquired ABSPL, formerly Wireless Business Services Private Limited, from US-based chip marker Qualcomm in 2013. ABSPL holds broadband wireless access spectrum in four service areas - Delhi, Mumbai, Kerala and Haryana.

Airtel is now migrating from unified access service licence regime to unified licence regime, and will be permitted to all kind of telecom services, having no objection from security agencies. 

The access division of DoT has calculated the Rs 4.36 billion amount as the difference between entry fee and market price, which is based on the prime lending rate offered by the State Bank of India.

 
 

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