| Hindujas to re-enter telecom, apply for licence |
| BS Reporter / Mumbai September 27, 2007 |
| The scramble for telecom licences in the country is increasing with business conglomerate Hinduja Group readying its application for telecom licences. This is a significant move as the group had earlier exited its telecom business by selling its 5.11% stake in Hutchison Essar to Hutchison Telecom International (HTIL) for $450 million. This had resulted in HTIL increasing its stake in the GSM operator (now Vodafone Essar) to 67%, which was later sold off to UK telecom major Vodafone. According to sources close to the development, the group is readying its application for a pan-India universal access service licence (UASL) that would cost around Rs 1,600 crore. The group is planning to apply for 2G licences, enabling it to offer GSM services in 22 circles in the country. However, when contacted, a Hinduja group spokesperson declined to comment. The Hinduja Group's decision to join the ever-increasing rush for telecom licences comes in wake of the October 1 deadline for 2G licences drawing near. Moreover, it also follows a similar move by consumer electronics major Videocon and realty majors like DLF and Unitech. The Department of Telecommunications (DoT), the licenser in the country, has fixed October 1, 2007, as the deadline for new applications. Shyam Telelink, a GSM service provider in Rajasthan has also applied for a licence jointly with Russian conglomerate JSFC Sistema, a company listed on the London Stock Exchange. Shyam |
