Hindujas redial into telecom space

Hindujas redial into telecom space

BS Reporter | Business Standard | Mumbai, September 28, 2007

DoT gets a raft of applications as the October 1 deadline nears.
The scramble for telecom licences in the country is increasing, with the Hinduja Group readying an application for telecom licences.
This is a significant move as the group had earlier exited the telecom space by selling its 5.11 per cent stake in Hutchison Essar to Hutchison Telecom International (HTIL).
According to sources close to the development, the group is aiming at a pan-India Universal Access Service Licence (UASL) which would cost around Rs 1,600 crore.

It plans to apply for 2G licences, enabling it to offer GSM services in 22 circles in the country. However, a Hinduja group spokesperson declined to comment.

The group had earlier offloaded a 5.11 per cent stake in Hutchison-Essar (now Vodafone Essar) to Hutchison Telecom International for $450 million.

This had resulted in HTIL increasing its stake in the GSM services provider to 67 per cent, which was later sold to the UK telecom major Vodafone.

The Hinduja Group’s decision to join the ever-increasing rush for telecom licences comes as the October 1 deadline for 2G licences draws near. Moreover, it follows a similar move by consumer electronics company Videocon and realty players such as DLF and Unitech.

The Department of Telecommunications (DoT) has fixed October 1 as the deadline for new applications.

Shyam Telelink, a CDMA technology-based operator offering fixed line and mobile services in Rajasthan, has also applied for a licence.

Indiabulls, Unitech, Parsvnath Developers, ADAG-backed Swan and Cheetah Telecom, HFCL and the Ruia-backed BPL are among the others who have applied.

This takes the total number of companies that have applied for telecom licences to thirteen.

© 2007 Business Standard