Bharti Airtel may soon acquire Tata Play's DTH business, dominance in digital TV market will increase

Bharti Airtel, which already has a strong presence in the Indian telecom and DTH market, is now set to buy the DTH business of Tata Play. Talks are going on between the two companies regarding this acquisition. If this deal is finalized, Airtel's presence in the digital TV segment will become even stronger.

Current status of Tata Play DTH business

Tata Play, formerly known as Tata Sky, is the leader in the DTH market with 33% share.
However, challenges are increasing in the DTH business, especially due to the growing influence of OTT platforms.
After the Corona epidemic, the valuation of the company has fallen to about $ 1 billion, whereas earlier it was $ 3 billion.

Tata Sons has a major stake in Tata Play and Walt Disney also has a 30% stake. Apart from this, Temasek Holdings had invested $100 million till April this year.

Airtel's objective and strategy

Expansion in DTH market: Acquisition of Tata Play will strengthen Airtel's DTH service against DishTV and other companies. This acquisition will help in increasing Airtel's non-mobile revenue.

Spectrum Dues Payment:

Airtel recently made a partial payment of Rs 8,465 crore, which was due from the 2016 spectrum auction. This has reduced the company's debt and given it a better financial position for the new deal.
Challenges of Digital TV Segment:

Demand for DTH services has declined due to OTT platforms, but Airtel plans to increase its customer base and improve tariff plans through this acquisition. Bharti Earlier deals between Airtel and Tata Group This is not the first time that a big acquisition has taken place between Airtel and Tata Group. In 2017, Airtel had purchased the consumer mobility business of Tata Group, which further strengthened Airtel's position in the telecom market.

What will be the impact of this acquisition?

• If this deal is finalized at a valuation of around $1 billion, it will make Airtel even stronger in the DTH segment.
• Tata Play's large customer base and Airtel's ecosystem of digital services can come together to create an attractive option for customers.
  Airtel may also focus on integration of OTT and DTH, so that it can counter the growing influence of OTT platforms.

Bharti Airtel's acquisition of Tata Play's DTH business can prove to be a big change for the Indian digital TV and telecom industry. This deal will strengthen Airtel's position against DishTV and other DTH companies and will give the company an opportunity to increase non-mobile revenue. If the acquisition is successful, Airtel aims to go long in the digital market with a diversified portfolio.