Tatas, Bharti on a call to explore joint front in telecom and DTH

[Sarkar]

Trai has already capped the chs price to Rs 19 of all broadcasters. There is no point in forming merger for better deal.

 

[Rushil]

ohh !!

that's big news :sp

but will it happen in reality ?

 

[iphifi]

From a business standpoint it may be good for both parties but for us it's bad news.
Airtel DTH is an economical and business minded brand while TS is the cutting edge high-end brand.
I think with the reduction in competition, in the long term, we will all be using low end pack with high-end tariff.

EDIT: It's possible that a merger can also be good for customers as cost of operation is reduced. In fact in Indian DTH industry such a merger was just waiting to happen.

 

[Sai Jai]

but for us it's bad news.
Airtel DTH is an economical and business minded brand while TS is the cutting edge high-end brand.

This is what Im telling from morning onwards

But some are blindly bashing Adtv

..

 

[iphifi]

This is what I told from morning onwards

But some are blindly bashing Adtv

..

Yes our current choice may not exists in new joint venture, but new things will happen. A bigger company has greater infrastructure and may have economic value to customer. This merger is more likely to hurt TATA sky users I feel. Even if there is a backlash new companies and existing companies will step in to fill any lack of satisfaction. Overall market will ensure customers get best product. Yes there is need for choice but choice will arise again in different form.

 

[Basil]

Economic Times Article has used both words Mega Aliiance & Merger

 

[Basil]

The three people (all spoke on condition of anonymity because the talks are still in their initial stages despite having been on for months, according to them) ruled out an alliance or a merger between Bharti and the Tata group citing liabilities on the books of Tata Teleservices Ltd and Tata Communications Ltd.

For Tata, it is all about exiting its telecom businesses, the three added. The inclusion of Tata Sky (Tata’s DTH business) is just to sweeten the deal for Airtel, which has its own DTH business.

“Talks (between Tata and Airtel) have been going on for six months,” said one of the three, a Mumbai-based investment banker.

“The Tatas wanted Bharti to take over the entire telecom business. The question is at what value? What are Tatas left with? Tatas would want to clear the debt but the telecom business is not sustainable for them. It does not make sense to put in more money in the business. So, Tata Sky is just a value-add to make the deal more lucrative,” the banker added.

The second person, an executive in the telecom industry who is familiar with the talks, said while the deal is primarily about telecom, the combination of Tata Sky’s DTH business with its own would make Airtel the market leader in the business.

But if there is a transaction, it would probably end up being an outright purchase, said a third person, who works for one of Bharti’s rivals.

As Tata group looks to exit telecom business, Airtel may just be interested in its assets

 

[Basil]

From the above article it seems It's going to be an outright purchase of Tata Sky & Tata Telecom Business by Airtel instead of a merger right :huh

 

[Digital Mastermind]

Nothing like this will happen @Basil bro. Some article must have misquoted the news.

Tata Sky is a JV between Tata and Sky, so there is very little possibility for the merger. Its going to be a Alliance.

Yes its true that Tata wants its telecom services to be merged, but Tata Sky is a profit making company and they wont give that up.

 

[Sai Jai]

From the above article it seems It's going to be an outright purchase of Tata Sky & Tata Telecom Business by Airtel instead of a merger right :huh

Right gud if it happens but I think doubt only

..