The CCI, vide order dated 22 October 2024, approved the proposed increase in Bharti Airtel Limited's shareholding from 48.95% to 50.005% (i.e., an increase of 1.05%) in Indus Towers Limited resulting from a buyback of shares by Indus. As a result of the buy back, while Bharti Airtel's absolute shareholding remained unchanged, its percentage shareholding increased due to the reduced total share capital.
The CCI noted that Bharti Airtel's provision of wireless mobile telephony services creates a vertical relationship with Indus Towers' passive telecom infrastructure services. In this regard, CCI noted that owing to regulatory guidelines issued by the Department of Telecommunications, which mandates that all telecom infrastructure service providers are required to provide their services in a non-discriminatory manner and any exclusive arrangement between the parties will only deter infrastructure service providers to foreclose potential revenue opportunity. Further, since Bharti Airtel was already the single largest shareholder in Indus Towers, the meagre increase of 1.055% in the shareholding would not change the market dynamics in India.
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