It seems that Tikona co-founder Prakash Bajpai has finally managed to find a buyer for its 4G spectrum. Bharti Airtel is in final stages of negotiations to buy Tikona’s 4G spectrum.
In last five years, Tikona has been trying to sell its 4G spectrum that it acquired in 2010 through auction. However, it couldn’t launch its services as it couldn’t generate enough funds to launch services. It bought spectrum in Gujarat, Himachal Pradesh, Uttar Pradesh (East), Uttar Pradesh (West) and Rajasthan for Rs1,058 crore.
In fact, there was no business case for stand-alone data service providers. The market was already flooded with a number of mobile service providers.
Tikona bought 20 megahertz (MHz) of 4G airwaves in the 2,300 MHz band. Details of the deal are not clear. Out of 20 years of Spectrum lease, seven years have already lapsed. It is highly unlikely that Tikona will get any premium over the value of remaining 13 years of Spectrum.
Tikona will hive off its wireless broadband business, Tikona WiBro and will continue running it.
If Airtel acquires Tikona’s spectrum, it will not breach 50% ceiling norm for Spectrum.