Tatas may hive off tele tower biz

The Tata group is planning to hive off its telecom tower business into a separate company to monetise assets valued at over Rs 1,000 crore. Tata Teleservices (TTSL) is in talks with private equity firms, tower companies as well as some operators to hive off its 5,600 towers across India, CEO Darryl Green told ET. TTSL is looking at setting up a tower venture where PE firms or tower companies could have a stake.

TTSL is also talking to other telecom companies keen to come together for hiving off their towers. “Given the right deal, we have no desire to own (telecom) infrastructure. We are in active discussion with various players. If we just had to monetise, it would be easy. But we are trying to find the best way to structure it,” he said.

He said the company’s towers were robust and could accommodate three to four operators. “They are highly desirable. We feel it is important to sell them to a consortium which abides by rules and plays fairly,” he said, adding that the company was keen to achieve what the DoT has been saying about sharing telecom resources.

Asked about the time frame, he said, “It’s a good possibility this year.” Already, Reliance Communications (RCL) has said it would transfer its telecom towers to a separate company, TowerCo. Some private equity firms, including Blackstone, are said to be in talks to pick up stake in this company.

Pressed with managing vast subscriber base and roll out of newer value-added services, operators are increasingly opting for an asset-light model, which reduces the strain on the balance sheet.