Airtel Confirms Discussions with Tata Group Over DTH Business Merger

Bharti Airtel confirmed on Wednesday that it is engaged in discussions with Tata Group regarding a possible merger of Tata Play’s Direct-to-Home (DTH) operations with its subsidiary, Bharti Telemedia Ltd.

The proposed merger, as per industry reports, would involve a share swap agreement, creating one of the largest DTH service providers in India. In an official exchange filing, Airtel stated, "The above is at a discussion stage only."

Stakeholding and Valuation of the Merged Entity

• Airtel is likely to secure a 52-55% stake in the newly merged entity.

• Tata Play's stakeholders, including Tata Sons and Walt Disney, are expected to retain a 45-48% share.

• The combined operations are valued at approximately ₹7,000 crore, based on FY24 revenue figures.

• The newly formed DTH giant will cater to a subscriber base of 35 million homes across India.

Operational Control and Disney's Role

According to reports, Airtel's senior management will oversee the operations of the merged entity, while Tata Play will retain two board seats as part of a non-binding agreement. Additionally, Disney's shareholding in the new entity will remain intact, ensuring continuity of strategic interests.

Airtel’s Strategy: Strengthening Non-Mobile Revenue Streams

If finalized, this merger would be a significant milestone for Bharti Airtel in its quest to diversify revenue beyond mobile services. By integrating telecom, broadband, and DTH into a single subscription package, Airtel aims to enhance customer retention and expand its footprint in India's digital entertainment landscape.

Through this deal, Airtel will also gain access to Tata Play’s vast network, which covers 19 million homes and includes 500,000 broadband users, further solidifying its market position.

Valuation Estimates: A ₹7,000 Crore Deal in the Making

Industry analysts estimate the valuation of both Airtel Digital TV and Tata Play’s DTH businesses to be in the range of ₹6,000-7,000 crore each, making this one of the biggest consolidations in India’s DTH sector.

Tata Play’s Legacy and Evolution

Tata Play’s journey dates back to 2004, when it launched as Tata Sky, a joint venture between Tata Sons and 21st Century Fox. Following Disney’s acquisition of 21st Century Fox in March 2019, the company underwent a rebranding, emerging as Tata Play in 2022.

This rich legacy, coupled with Airtel’s expansive customer base, sets the stage for the creation of a dominant force in India’s DTH industry.

About Bharti Airtel

Bharti Airtel Limited, commonly known as Airtel, is one of the world’s leading telecommunications companies with operations in 18 countries across Asia and Africa. Headquartered in New Delhi, India, Airtel provides a wide range of services, including mobile voice & data, broadband, digital TV, enterprise solutions, and financial services.

Key Highlights of Bharti Airtel:

✅ Founded: 7 July 1995
✅ Founder: Sunil Bharti Mittal
✅ Headquarters: New Delhi, India
✅ CEO & MD: Gopal Vittal
✅ Parent Company: Bharti Enterprises
✅ Market Capitalization: Over ₹7.5 lakh crore ($90+ billion) as of 2024
✅ Global Presence: Operates in India, Sri Lanka, Bangladesh, and 14 African countries
✅ Subscriber Base: Over 500 million customers worldwide
✅ DTH Service: Operates Airtel Digital TV with more than 17 million subscribers
✅ Revenue (FY24): Over ₹1.4 lakh crore ($16.8 billion)

Airtel's Key Business Segments

1. Mobile Services – Airtel is India’s second-largest telecom operator, offering 4G, 5G, and VoLTE services.

2. Broadband & Fixed Line – Operates Airtel Xstream Fiber, one of India's leading broadband services.

3. DTH Services – Through Airtel Digital TV, it provides satellite television services across India.

4. Enterprise & Cloud Solutions – Offers data centers, cloud computing, and cybersecurity solutions.

5. Fintech Services – Operates Airtel Payments Bank, a digital banking platform.

Airtel’s Digital Expansion

Airtel has aggressively expanded its digital ecosystem, launching services like:

• Airtel Thanks App (a one-stop solution for all telecom and banking needs)

• Wynk Music (a leading music streaming platform)

• Airtel Xstream (OTT platform for movies and TV shows)

• Airtel Ads (digital advertising solutions for businesses)

Recent Developments

• 5G Expansion: Airtel launched 5G services in major Indian cities and aims for nationwide coverage by 2025.

• Partnership with Meta & Google: Airtel has collaborated with Google Cloud & Meta to enhance its cloud and AI capabilities.

• DTH Merger Talks: Engaged in discussions with Tata Group to merge Tata Play’s DTH business with Airtel Digital TV.

Conclusion: A Market-Altering Deal in the Making

The potential merger of Airtel’s Bharti Telemedia and Tata Play signals a major shift in India’s DTH landscape. If the deal materializes, it could reshape the industry, offering bundled digital services that combine TV, broadband, and telecom under one umbrella.

With Airtel's leadership in digital transformation and Tata Play’s established market presence, the merger could unlock new synergies, cost efficiencies, and improved consumer offerings. However, the success of this deal will depend on regulatory approvals and the final agreement terms.

As the Indian DTH sector undergoes rapid transformation, this potential consolidation could pave the way for the next era of digital entertainment services in India.