Unitech to sign pact with Tata Tele's tower arm

Moving closer to its deal with its Norway partner Telenor, Unitech Wireless is all set to sign the infrastructure sharing agreement with Tata Teleservices' tower arm WTTIL.

An announcement to this effect would be made shortly, sources said.
     
Once Unitech Wireless, the telecom arm of the realty firm Unitech signs the agreement, it will meet one of the most key requirement in the goalpost of its 1.07-billion dollar deal with Telenor.
     
Officials of both the companies said the finer details of the agreement is being worked out.
     
Tata Teleservices recently merged its tower arm with Quippo Telecom, a pure play towers company, to create a Rs 13,000-crore entity with 18,000 towers — making it the second largest firm in terms of number of towers.
    
Quippo holds 49 per cent in the new entity, while Tata Teleservices's Wireless-TT Info-Services (WTTIL) has the remaining 51 per cent stake. Despite a low stake, Quippo would control the management.
    
Recently Telenor scrapped a plan to raise $1.8 billion (about Rs 8,800 crore) through a rights offer, deciding to fund the purchase instead with debt and cash reserves. Telenor recently said completion of the transaction is now expected to take place during the first quarter of 2009 subject to certain conditions being fulfilled.
     
"Telenor remains confident that all conditions will be met within the indicated timeframe, including agreements for infrastructure sharing that will allow a swift and cost- efficient rollout", it had said.