Robi-Airtel merger gets High Court clearance

The High Court has greenlighted the merger between mobile-phone operators Robi and Airtel.

After the marriage, the new entity will become the second largest operator in Bangladesh and operate as Robi.

Robi will have 25 percent stakes in the new company, in line with BTRC recommendations as the operator's 3G licence has a 2018 deadline.

Justice Syed Refaat Ahmed's bench approved the merger on Wednesday, clearing the path for the telecoms regulator to give the final clearance if there is no objection from any party.

Barrister Tanjib Ul Alam represented the operators, while Barrister Khandker Reza-e Rakib stood for the BTRC at the hearings.

Tanjib later told reporters, "Airtel owes money to different banks. The High Court has approved the merger provided that the dues are paid."

According to the government's condition, employees of both companies will have to be appointed in the new entity. If anyone does not want to join the new company, he or she will have to be allowed to leave under the 'Voluntary Requirement Scheme'.

The process will have to be wrapped up within a month from receiving the copy of the court order.

After the deal, Robi and Aritel's combined customer strengths will increase to around 40 million, which is a fourth of Bangladesh’s total mobile subscribers.

Grameenphone, with 50 million subscribers, is currently Bangladesh’s largest operator.

An agreement between Robi and Aritel for the proposed merger was signed on Jan 28.

The BTRC was then intimated and the telecoms regulators sent the estimate to the Posts and Telecommunications Division recommending the merger.

It recommended that Airtel cannot sell its 25 percent ownership in the new company until 2018, when the operator's 3G licence deadline will end.

Then on Jul 13, a meeting at the finance ministry had fixed Tk 1 billion as the fee for the merger.

State Minister for Posts and Telecommunications Tarana Halim on Aug 1 said the Prime Minister's Office had also endorsed the merger.

The BTRC and telecoms ministry officials, however, had projected earlier that the spectrum unification fee could go up to Tk 5 billion. But that would be finalised after the operators decide how much 2G spectrum they would unite.

No fee would be payable for 3G spectrum allocation of up to 5Mhz.

Robi currently holds 19.80 Mhz and Airtel 20 Mhz spectrum. A united spectrum would be of 39.80 Mhz after the amalgamation.

Airtel's 2G licence expires in December 2020.

Grameenphone holds 32 Mhz, the largest spectrum share owned by any company.

Malaysia-based Axiata Group Berhad owns Robi and Airtel is the subsidiary of Bharti Airtel Limited of India.