Spice eyes GSM operator in Bangladesh

Initiates move with partner Telekom Malaysia.

Spice Communications, a cellular service provider for Punjab and Karnataka circles, is on the prowl to acquire a GSM service provider in Bangladesh and has initiated the process along with its partner Telekom Malaysia.

The company is also believed to have appointed an advisor to shortlist a possible target in that country.

The company is believed to have initiated talks with a couple of players in Bangladesh, even though it has not shortlisted any service provider for a possible acquisition.

The names of the companies that were in talks with Spice Communications could not be immediately confirmed.

"We are looking at expanding our presence in Bangladesh as we feel that there is lot of potential for telephony growth in that

country. The country is emerging as a major player in mobile communications and we are looking at setting up brownfield operations in that country," Spice Communications Chairman B K Modi said.

He, however, declined to divulge further details, citing "competitive issues". Modi also did not divulge the name of the advisor.

GrameenPhone, a brand owned by Norwary's Telenor, is the major GSM operator in the country. Aktel-TM International, Sheba Telecom, Pacific Bangladesh Telecom and Warid Telecom are the other GSM operators in the country.

Spice Communications' Bangladesh foray would be jointly undertaken with its partner Telekom Malaysia, which holds a 49 per cent stake in the company. The Modi group owns the remaining 51 per cent stake.

The company is also not looking at setting up greenfield facilities either in India or Bangladesh. For India, the reason would be lack of licences and radio frequencies, while that for its neighbouring country would be the time a greenfield facility takes to incubate.