Idea Cellular reports Q2 net loss of Rs 1106.8 crore

Gladys Abbott
November 14, 2017

Idea Cellular Infrastructure Services Ltd, a unit of Idea Cellular, had around 9,900 towers with a tenancy ratio of 1.80 as of 30 September 2017.

A man speaks on his mobile phone as he sits in front of a shop displaying the Idea Cellular Ltd's logo on its shutter in Mumbai, India, April 28, 2014.

Vodafone (LON:VOD) has inked a deal to sell its standalone tower business in India, the blue-chip telco has said.

The transactions are expected to generate approximately Rs 21 billion (approximately $320 million) in property revenue and approximately Rs 8 billion (approximately $120 million) in gross margin during their first full year in American Tower's portfolio, at current exchange rates.

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. Together, Idea Cellular and Vodafone India have a debt of Rs1.08 trillion.

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Idea and Vodafone Group's India unit are on track to merge operations in a deal valued at $23 billion, possibly creating the country's biggest telecom player.

The Board has approved the execution of a share purchase agreement amongst ATC Telecom Infrastructure, the Company and ICISL.

Brookfield had agreed to buy Reliance Infratel, the tower arm of Reliance Communications Ltd, but the deal hit a snag earlier this month. Mint had reported that Idea was also in talks to sell its entire stake in Indus to another buyer with the consent of Bharti Airtel.

Telecom tower operator Bharti Infratel Ltd said on Monday it has made a decision to.

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.

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