Indian internet service provider, Tikona Digital networks has shut down operations in 13 out of a total of 38 cities in the country. The recent move has been taken in efforts to consolidate coverage.
Tikona in an email response said, “We have chosen to consolidate and expand our coverage and capacity in the top six metros and 19 Tier-1 cities, making us the leading broadband operator in the top 25 markets of the country in respect of coverage, capacity and share of new additions”. However, investment bankers have said that the recent move has been taken on due to the possibility of a stake sale in the Mumbai-based company.
However, Tikona Digital denied any plans to sell stake saying that there are no such plans for now. The company also said that Tikona has successfully closed another round of ‘equity raise’ from the current investors recently. Tikona, in 2010, had won the wireless broadband spectrum in five service areas in a government auction for Rs. 1,058 crores.
The company is expected to launch services in these areas towards the end of 2013. The wireless company also said that its Wi-Fi broadband network covers the top 25 cities of India, most of which are outside five 4G circles.