Bharti Airtel is likely to sell its operations in Sri Lanka to United Arab Emirates-based telecom company Etisalat. The two companies have been negotiating for over five months and have agreed on the broad contours of the deal.
Both the companies are likely to close the deal in January 2014. Bharti Airtel had launched telecom services in Sri Lanka in 2009 but the company has not been able to make inroads in the country?s telecom industry. Currently, it has a subscriber base of under two million. So far, Bharti Airtel has invested over $300 million to roll out services in Sri Lanka but continues to post losses.
Further, citing excessive regulatory interference, Bharti Airtel did not even participate in the 4G spectrum auction held by the Sri Lankan government in 2013. Etisalat, on the other hand is the country?s third largest telecom player with five million subscribers. The operator is expecting to consolidate its position in the market by acquiring Bharti Airtel?s operations.
