Essar seeks pan-India telecom licence via BPL

The Ruias-owned Essar Group is planning to offer mobile telephony services from 21 circles, and has applied for licence under BPL Mobile.
The group has applied for Universal Access Service Licence (UASL) that would enable it to provide 2G services in the country.

The group has applied for the licence through shippingstop.com, a wholly-owned subsidiary of BPL Mobile. BPL Mobile now provides GSM services in Mumbai, and has over 1.1 million subscribers. 

S Subramaniam, director and chief operating officer, BPL Mobile Communications, said an application has been filed with the Department of Telecommunications (DoT).  "We have a sizable presence in Mumbai, but need to have a strategic roadmap for growth. A larger footprint will help us derive economies of scale and cost synergies in this highly competitive market. Expansion into new circles would meet both these objectives," he said. 

The move, however, is not likely to go well with UK-based telecom major Vodafone, Essar's joint venture partner in the Indian GSM operator Vodafone-Essar. Essar holds 33% stake in Vodafone-Essar, while Vodafone holds the remaining 67%. Vodafone executives were not available for comments. 

Vodafone, the world's second largest cellular company based on subscribers, had acquired the 67% Hutchison Telecommunications International (HTIL) stake in Hutch-Essar for around $13.5 billion.

Essar Group had committed to be a joint venture partner with the company even though it was pursuing its telecom ventures through BPL Mobile and Essar Telecom Retail. 

The Essar group was also engaged in a bitter battle with HTIL on the ownership of BPL Mobile, which was acquired from entrepreneur Rajeev Chandrasekhar. BPL was acquired by HTIL through Essar under the condition that it would be transferred to the former on completion of the formalities. Essar later terminated the deal citing regulatory issues.