According to sources the Tata Group exited the telecom business it was running around 2 years back and has now completed settling the debts the company had accumulated. Reportedly the total payout is estimated at Rs 50,000 crore of which the payment to the Department of Telecommunications (DoT) alone was Rs 10,000 crore. Hence this was done to help complete the sale of its mobile-phone services business to Bharti Airtel, as per report.
Furthermore Tatas decided to get out of the business once Reliance Jio launched its low-priced services in the market, which included calls within the country absolutely free and internet at highly competitive rates. Moreover there were two companies in the vertical, Tata Tele services Ltd and Tata Tele services (Maharashtra) and both these entities got merged with Bharti Airtel.
Apparently the holding company of the group, Tata Sons Pvt. Ltd has taken it upon itself to settle all dues. Moreover the telecommunications industry in the country is going through a churn following the entry of Reliance Jio. While Bharti Airtel has had to bear with huge reduction in profits, two other players, Vodafone and Idea Cellular decided to merge together to become Vodafone Idea Ltd to take on Jio.
WhatsApp us