Looks like Bharti Mittal’s prediction of consolidation being inevitable in the telecom space has come true. Close on the heels of the Spice - Idea merger, ET reports AT&T is close to buying out Malaysian operator Maxis Communications’ 74% stake in Aircel, valued between $5-6 billion. The lure of new game has caused AT&T, eager to re-enter the Indian space, to halt negotiations with Videocon’s Datacom and Unitech.

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Maxis holds 74% equity in Aircel, of which 65% is held directly and 35% held in a joint venture firm with the Apollo Group’s Reddy family. Ironically, AT&T exited India by divesting its 33% stake in recent acquisition story, Idea, for which it received $250 million, now valued at close to $3 billion. Considering a 3G auction is expected by year-end and Aircel being a pan-India license owner it does look like an appetizing buy for a five month (since February AT&T has been scouting for an acquisition) hungry deep pocketed giant like AT&T (NYSE: T). We had previously covered AT&T acquiring national and international long distance licenses here.