In order to strengthen its position in the market, Airtel is now gearing up to acquire Tikona 4G’s business along with the Broadband Wireless Access (BWA) spectrum and 350 sites in 5 telecom circles. The particular acquisition will help Airtel in expanding its 4G reach in India after it is facing fierce competition from Reliance Jio, and the alliance Idea-Vodafone. But, the particular acquisition might not take place as one of the co-founders of Tikona, Rajesh Tiwari has sent a legal notice against Airtel and Tikona for not sharing the share of shareholders and how the proceedings will take place.
Rajesh Tiwari is also a minority shareholder in Tikona, with approximately more than 1% share. He commented that the two companies should not proceed with the deal until there is a ‘clarity on entitlements’. Rajesh Tiwari is also associated with Tikona’s Digital Networks Pvt. Ltd since 2008. However, on the whole issue, Bharti Airtel has not commented anything yet.
The decision of taking over Tikona came just after the confirmation of Vodafone-Idea merger, indicating that how things are moving in the telecom sector to maintain their respective market share. The merger of Idea-Vodafone will create a bigger entity than Airtel, which currently possess 364 million customers till December 2016.
If we consider the customer base of Vodafone-Idea, it clocks at 394 million combined. In addition to this, Reliance Jio is also in the race, which has changed everything in the telecom sector with its lucrative offers. As the demand of 4G is gaining pace, most of the telecom service providers are battling to acquire the biggest share in the market. Airtel’s acquisition of Tikona will help the company in expanding its roots in the 4G segment in an effective manner.
Currently, Airtel has just 4 out of 22 circles, which it acquired in 2010 auctions. So, in order to improve its reach, strategic acquisitions and collaborations might help the company in compensating the flaws. Airtel has acquired spectrum from Qualcomm, Augere Wireless, Videocon Telecom, Aircel, and Telenor. Now, let’s see if the company can gain benefits from Tikona or not.