JT Mobiles (JTM) has been given provisional clearance by the department of telecommunications (DoT) to launch commercial services in Mysore and Visakapatnam. The clearance follows clarifications by the cellular operator to DoTs queries pertaining to the hike in United Telecom Ltds (UTL) equity to 31 per cent.
United Telecom Ltd, one of the five partners of the JTM consortium, had picked up an extra 20 per cent equity after another firm R K Associates had shed its stake in UTLs favour.
The move had raised eyebrows in the DoT which was initially opposed to any change in JTMs equity structure.
JTM, which had already commercially launched its cellular services in Mysore and Visakap -atnam according to its original plans, will soon commence operations in Chandigarh and four other cities in Punjab where it has the licence for the Punjab circle.
JTM is expected to increase its equity base of Rs 300 crore, at present, to Rs 550 crore over the next four years.
The consortium will also tie-up suppliers credit in foreign currency worth $150 million for equipment financing.
The company has also been sanctioned a loan of Rs 350 crore from the IDBI.
The company also plans to launch the All India Card which will allow the fully automatic roaming facility. JTMs global connect partners include BPL, Essar, FACL and Sky Cell.
JTM is, at present, engaged in strengthening its backbone network at a cost of Rs 350 crore. A similar microwave and fibre optic network is being built in Punjab.
