ATC acquiring Indian tower units from Vodafone and Idea for $1.2 billion

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The number of 3G and 4G users jumped nearly 29 percent, to 46.0 million from 35.9 million. Vodafone registered a total 67.7 million data users, and of which, 44.6 million customers use data more than 1MB. Average data usage quadrupled in the half, compared to the year before, with average use at 2.7 GB. Total customer base at the end of H1 was 207 million. The figures are down from 69.6 million and 47.5 million, respectively.

Apart from intensified price competition and seasonal weakness as a result of the monsoon, the impact of the new GST increased the tax burden on the gross revenues to 18% (previously 15%), Vodafone said.


By the end of the period, Vodafone India's operating cash flow was at Rs 1543 crore and the company's capex investment stood at Rs 2915 crore.

"Amidst continuing intense competition, we recorded a gain of 0.6ppt in RMS in Q1FY18 (YoY) and delivered a stable performance overall". So was churn, which rose to 5.2 percent from 4.7 percent, including contract going to 2.1 percent from 1.7 percent and prepaid lifting to 5.4 percent from 5.0 percent.


The statement said that after Vodafone India and Idea have completed their merger, around 6,300 co-located tenancies of the two operators on the combined standalone tower businesses will coalesce into single tenancies over a period of two years without the payment of exit penalties. Results from India have therefore been excluded from group results.

Completion of the transaction is subject to customary closing conditions and receipt of necessary regulatory approvals, and is expected to take place during the first half of the calendar year 2018.


American Tower CEO Jim Taiclet said: "We expect the addition of these two high quality portfolios to be highly complementary to our existing assets and to contribute to long-term leasing growth as India's leading mobile operators accelerate their 4G network deployments".

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