New Delhi: Telecom major Airtel is all set to buy out Augere Wireless 4G spectrum holder company in Madhya Pradesh circle for about Rs 150 crore.
"Airtel and Augere Wireless are in advance stage for the deal. Augere was looking for exit and Airtel wants to expand its holdings," an industry source privy to the deal said.
Airtel declined to comment on the deal, while Augere did not respond to the query sent.
Airtel is building capacity to be aggressive on 4G services. In March spectrum auction, Airtel build pan-India capability for 4G services.
This acquisition will give Airtel hold of additional 20 Mhz broadband wireless spectrum which Augere acquired for Rs 124.66 crore.
"Airtel is aggressively building its 4G capacity and this deal will show it. The company is paying about 20 percent higher price for BWA spectrum which has lost 5 years of its validity period and can be used for another 15 years," the source said.
Augere has till date done only testing of 4G service but is has not started commercial operations yet.
As per the licensing agreement, August 31, 2015 is the deadline for all companies which won BWA spectrum in 2010, including Augere, to roll out the services in at least 90 percent of the service areas, failing which the
Department of Telecom will have the right to withdraw the radiowaves.
