The merged firm will have a subscriber base of over one million, equivalent to a quarter of the domestic mobile market.
Birla-AT&T-Tata is a joint venture of AT&T and two of the largest firms in India.
The new company will be 49.32% owned by Bangalore-based BPL Communications, with AT&T and the Birla and Tata groups each holding 16.9% stakes, and will be aimed at reducing costs, although no figures were announced.
BPL Communications chairman Rajeev Chandrasekhar spelt out the merger at a news conference, stating that under the terms of Indian telecom law Maharashtra would not form part of the new company and its stake in the operation would be sold off, as a single company is not allowed two hold licenses in one state.
Hong Kong’s Hutchison Telecom and New Delhi-based telecom group Bharti Enterprises are the favorites to take over Maharashtra.
We are in talks with France Telecom, which has been supportive, and they are keen to continue to invest in India, said Mr Chandrasekhar.
We broadly recognize that one of the great requirements of this business is scale and size, added Ratan Tata, chairman of the Tata group.
