According to media reports, the company is planning to beef up its tower assets before selling a controlling stake in the business to a consortium led by private equity firm KKR & Co.
American Tower Corp has agreed to buy about 20,000 mobile phone masts for 78.5 billion rupees ($1.2 billion) from Idea Cellular and Vodafone India, who are seeking to merge. "The parties will work together to further the expansion of high speed mobile networks in India".
Ever since it entered the market in September past year, Reliance Jio has been pursuing a strategy of slashing prices to attract subscribers.
During this low demand period, the sequential quarterly voice minutes grew by 1.7% to 255 billion minutes and mobile data volume (2G+3G+4G) witnessed strong sequential growth of 73.5%.
As part of the transactions, Vodafone and Idea Cellular would get the service level and process efficiency benefits from American Tower, means these two telecom operators would continue to get usual service from these tower sites.
It merged its loss-making Indian mobile business with Idea, India's third-largest wireless operator, at the start of the year.
The standalone tower business of both companies comprises a combined portfolio of about 20,000 towers with a tenancy ratio of 1.65 as on June 30, 2017. Shares of Idea traded at Rs 94.90 a piece, down by 2.22% on the BSE in the early trading hours Monday which then went down by 5.62 per cent down at Rs 91.60 on BSE.
Vodafone will net $592m from the deal with Indian partner Idea Cellular receiving $615m.
Indus-the biggest tower company-is a three-way joint venture among Idea, Vodafone and Bharti Airtel, which also controls Bharti Infratel.
The sale transfer of independent tower assets is expected to be completed by the first half of calendar 2018 and is subject to necessary regulatory approvals, Idea Cellular said.