Bharti Airtel is reportedly in advanced discussions with the Tata Group to acquire Tata Play, the largest direct-to-home (DTH) provider in India. This strategic move aims to bolster Airtel’s position in the digital television sector, which has been facing significant growth challenges. By integrating Tata Play into its offerings, Airtel hopes to enhance its bundled services and increase non-mobile revenues through convergence.
This potential acquisition marks the second major collaboration between Bharti Airtel and Tata Group, following Bharti’s acquisition of Tata’s consumer mobility business in 2017. The acquisition of Tata Play would solidify Airtel’s footprint in the Indian market and align with its broader strategic goals.
The DTH industry has been grappling with declining popularity due to the rise of over-the-top (OTT) platforms and free-to-air alternatives. This shift has prompted Tata to reassess its commitment to the DTH segment. Despite being the market leader, Tata Play has struggled with profitability and maintaining its competitive edge.
For Airtel, acquiring Tata Play would bring several advantages, including an expanded customer base and access to premium subscribers. It would also enhance Airtel’s competitiveness against rivals like Jio, which has been aggressively expanding its offerings. The acquisition would enable Airtel to provide bundled services, combining broadband and DTH, which could be appealing to consumers seeking comprehensive entertainment solutions.
While the specific terms of the deal are still being finalized, Airtel is expected to acquire Tata Play at a valuation akin to a recent deal involving Temasek. Furthermore, this acquisition could facilitate Airtel’s expansion into broadband services through Tata Play Fibre.
The potential acquisition of Tata Play by Bharti Airtel could have far-reaching implications for the Indian DTH landscape. It may lead to further consolidation within the sector and heightened competition in both the digital TV and broadband markets.
