Telenor, Tikona in Indian merger talks, sources say

22 Sep 2016

The wave of consolidation currently setting the agenda in the Indian telecoms sector looks set to continue, the Economic Times reports, with a deal between Norwegian-owned Telenor India and Mumbai-based Tikona Digital Network (TDN) now said to be in the offing. The newspaper quotes a source familiar with the negotiations as saying: ‘Both parties are in active discussions for a potential merger of parts of their broadband spectrum business to address a larger market together. The focus is likely to be on the data business and the voice segment may be kept separate.’

Telenor provides mobile services in six of India’s 22 circles, namely: AP, UP East, UP West, Bihar, Gujarat and Maharashtra, while TDN holds 4G spectrum in the 2300MHZ band covering five circles: Gujarat, Himachal Pradesh, UP East, UP West and Rajasthan. Tikona switched on its TD-LTE network in October 2015, initially covering Gujarat. Key shareholders include funds managed by the Goldman Sachs Investment Partners team, Indivision India Partners, Oak India Investments and L&T Infrastructure Finance Co.

India, Telenor India, Tikona Infinet