Vodafone, Idea to sell standalone tower assets to ATC for $1.2 billion

Idea Cellular, Vodafone to sell tower businesses to ATC Telecom for ...

Idea Cellular, Vodafone to sell tower businesses to ATC Telecom for ...

Under the merger, the implied enterprise value for Vodafone India would be Rs. 82,800-crore while for Idea, it would be Rs. 72,200-crore.

It merged its loss-making Indian mobile business with Idea, India's third-largest wireless operator, at the start of the year. Reliance Communications, struggling under a $7 billion in debt, has also revived efforts to sell a stake in its tower unit Reliance Infratel, after a prospective deal with Brookfield Asset Management fell apart last month.

As part of the transactions, Vodafone and Idea Cellular would get the service level and process efficiency benefits from American Tower, means these two telecom operators would continue to get usual service from these tower sites.

Both Vodafone India and Idea as customers and ATC TIPL as a mobile network infrastructure provider have agreed to treat each other as long-term preferred partners, subject to existing arrangements.

No more Marvel TV shows for Netflix
It will be "substantially below" what Netflix costs, Iger said, in part because it will have a more limited library. All are set for the streaming service, which is due to debut online in 2019.

The Board of Idea Cellular at its meeting held on 13 November 2017 has approved the sale of the Company's standalone tower business held by its wholly owned subsidiary, Idea Cellular Infrastructure Services (ICISL) to ATC Telecom Infrastructure. Its offers of free voice calls and data plans, which continued for months, eroded the revenue and profits of competitors such as Idea and Bharti.

Idea and Vodafone India have a total of about 20,000 towers, with 1.65 tenants each on average, as of 30 June 2017. The merger, expected to be completed in 2018, is awaiting various approvals.

Shares of Idea Cellular today fell almost 4 per cent after the company posted a loss of Rs 1,106.80 crore for the second quarter this fiscal.

The merged entity will avoid payment of exit penalties as the combined standalone tower businesses will collapse into single tenancies over a two-year period.

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