IDEA acquiring Aircel?

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http://www.moneycontrol.com/news/cnbc-tv18-comments/maxistalksidea-for-aircel-stake-sale-sources_1051098.html

Malaysia’s Maxis Communications has revived talks to sell its majority stake in Chennai-based telecom company Aircel. Sources told CNBC-TV18 that Maxis is in prelimnary talks with Idea Cellular for the stake sale. Executives from both Idea and Maxis have met to discuss the deal. Sources say talks are going on to acquire user base, assets and employees of Maxis. Currently, Aircel is present in 22 circles with a customer base of 61 million of January 2014. The company had curtailed GSM operations in five circles unprofitable due to high operating costs. The circles were Gujarat, Madhya Pradesh, Haryana, Uttar Pradesh (W) and Kerala. Aircel has a debt of about Rs 23,000 crore. Sources say the debt burden and the ongoing CBI probe against the company may be roadblocks to the deal.
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So consolidation of mobile operators have begun. Not sure if this is good news for the mobile user in this country. Less players means less competition which means more scope to hike tariffs and so on.
 
Like Aviation, consolidation was going to happen in Telecom (and Media) industry. Many smaller players would move out or merge. After Loop Mobile exit, Aircel could be next, though Aircel is big operator, but they have lots of troubles over ownership. I wonder how come Uninor is holding its ground so long.
 
DoCoMo wants to exit considering its making losses. Voda will take over majority stake. Tata may remain minority stake holder.
 

I was thinking couple of time since yesterday that idea would be definite bidder for aircel and look the news is public now. The thought was evident that vodafone is buying stake of docomo and there is no big player available in india except idea to execute this deal. Rcom, uninor and mts will not make any further airwaves purchase and will not burn their hands in buying compititon as they are just trying to safegaurd their existing infra and operations.

Lastly, big 3 require lot of spectrum in different bands to usher in 3g and 4g space and acquireing these bleeding operators make sense as these players hold adequate amount of spectrum which is not properly used.
Buying new spectrum in next auction will be expensive again. So smart move......
 
Tata docomo and aircel(except chennai) both launched services in 2010 and bleeding to death in 3 yrs
 
I don't think the deal will go through, why would anyone buy AIRCEL who is cash strapped with huge debt.
Anyways Idea (If the deal is done), will benefit from this. Aircel is a specialist in wasting spectrum EG: Closed operations in Kerala where it still have 3G license. However expect tariff to go up if this AVOID gang takes over
 
Jignesh said:
I don't think the deal will go through, why would anyone buy AIRCEL who is cash strapped with huge debt.

Anyways Idea (If the deal is done), will benefit from this. Aircel is a specialist in wasting spectrum EG: Closed operations in Kerala where it still have 3G license. However expect tariff to go up if this AVOID gang takes over
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Deal will go through as aircel is more desperate to be sold off. Negotiation will benefit idea. Also debts are restructured and will not reflect in idea books

AVOID revenue will definatly improve many folds but profitibilty is still a concern as revenue per user is still very low . Postpaid user are still not able to consume free min and average data consumption is still low as 100 mb.

Earlier these so called cheap tariff providers were neither breathing themself and not allowing AVOID to breathe. Result was both team were giving pathetic service in tussle of tariff compition.
 

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