The BPL group, which is currently reviewing its bid for Videsh Sanchar Nigam (VSNL), is scouting for strategic partners to enter the Rs 7,000-8,000 crore international long-distance (ILD) telephony market by April 2002.
This initiative will, however, be subject to two developments. According to a BPL Communications executive, "If the BPL-Sterling consortium misses the VSNL bid, or if BPL withdraws from the race at a later stage, the group will go on its own to enter the ILD business with strategic partners. We have already started scouting for partners."
"The Centre should go ahead with its ILD plans and open the sector to private players by April 2002. Our blueprint on the ILD segment will be ready by then," the executive added.
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However, the group is yet to finalise its strategies on VSNL bid. The company has also not yet taken any decision on whether to exit or continue with the consortium which submitted the bid for VSNL.
The development assumes significance since BPL has already announced that its bid for VSNL was under review. If BPL exits the race, the group needs to get into action in the next few months, analysts said.
The government is expected to finalise national long-distance telephony (NLD) policies by December-end. According to top officials with Telecom Commission, the Centre may invite bids for ILD before April 2002.
VSNL's monopoly over the international telecom business will end during the current fiscal.
According to analysts, at least 3-4 players were expected to be in the ILD business in the country given the size of the business.
The number of private ILD players will depend on the government policies on the ILD and voice-over-IP (VoIP). The Centre is expected to open up the VoIP market also by April 2002.
The BPL group is also keen to enter the national long distance (NLD) business and talks are on with the Tata group to forge an alliance. According to the executive, this will complete the group's initiatives in the telecommunications arena.
BPL has already made a presence in the cellular field, Internet, paging, etc.