Bharti to merge cell, fixed-line divisions

Move aimed at taking advantage of Govt's policy to unify all telecom service licences.

Bharti Tele-Ventures has decided to merge its cellular business with its fixed-line, long-distance and data business in one company. The move is aimed at taking advantage of the government's policy to unify all telecom service licences.

Akhil Gupta, joint managing director, Bharti Tele-Ventures said: "With unification of licences it does not make sense to have separate divisions for cellular and other telecom businesses. This consolidation is aimed at simplifying the company structure in accordance with the licensing regime."

At present, Bharti has structured its businesses into two divisions with all non-mobile segments under Bharti Infotel and 16 mobile circles under Bharti Cellular.

Today's decision means that Bharti's national mobile service, five fixed-line licences, national and international long-distance services, V-SAT service and the ISP business will come under Bharti Tele-Ventures.

The Bharti move is in line with the strategy adopted by other large telecom companies like BSNL and Reliance Infocomm, which operate all types of telecom services through a single company.

Bharti also said it was all set for listing its shares in foreign markets as soon as the foreign direct investment cap for the telecom sector was eased by the government.

Presenting the annual results of the company, Sunil Bharti Mittal said, "We are awaiting the green signal from the government side in terms of increasing the FDI cap in telecom sector from 49 per cent. We are all set for a listing in either the US or Europe."

Foreign investors already hold 47 per cent of Bharti's equity and the company can go for a listing abroad only if the FDI cap is eased to 74 per cent.

Mittal said that the company was in talks with other operators for sharing infrastructure. Already 25 per cent of the company's network runs on shared infrastructure. "Our doors are open to any one who wants to share the infrastructure with us, be it in the long distance segment or in the mobile market," Mittal said. Bharti is in talks with Bharat Sanchar Nigam Ltd for sharing long distance infrastructure.

On the issue of acquisitions, Mittal said that though there was no strategic need for any more acquisitions, financial considerations may result in a couple of more acquisitions this year.. "We are now present in almost all the states in the country. So there is no strategic need in terms geography to acquire companies. However, if we feel that acquisition will put us in a better position in terms of finance, than rolling out a new network then we will look at it," Mittal said.

On the acquisition of Hexacom in Rajasthan, Mittal said Bharti would pitch in for taking 100 per cent control by buying out the remaining 33 per cent stake held by TCIL.

Mittal said that BSNL's nationwide network should be treated as a national resource and other operators should be allowed to use it on commercial terms. "We completely support unbundling of the last mile. Utilities like telecom has been set up by the government using public money and therefore it should be thrown open for others to use it commercially. This can create a lot of good for the consumer as costs come down for the operators," Mittal said.