India's Videocon says applies for telecom licences
India's diversified Videocon Group has applied for licences to
provide telecoms services in the world's fastest growing cellular
market, and aims to partner a U.S. firm, its chairman said on Thursday.
"By 2015, people say, India will have 800 million subscribers and
they will need all kinds of services," Venugopal Dhoot told Reuters.
He said the power to home appliances group, which controls Videocon
Industries Ltd , already make mobile phone sets and telecom services
would bring in synergies.
The group has applied licences for 22 of India's 23 telecoms zones or
circles, except the north-eastern region, he said.
Asked why the group was interested in a competitive and high capital
expenditure business, Dhoot said: "I think capex will be minimal as
towers are available on lease and rental basis. What we require is
marketing ability. I think Videocon has that."
Dhoot declined to identify the U.S. partner but the Economic Times
newspaper said on Thursday it may be Verizon Communications , which
already has a joint-venture for international long distance (ILD)
telecoms business with Videocon.
"I can't say who is the company, but it is an American company,"
Dhoot said. India has been adding about 8 million mobile users every
month, and analysts have forecast the total to reach 500 million
subscribers in five years from 200 million now. The huge growth
potential has lured foreign firms.
Vodafone Group Plc , the world's second-biggest mobile firm, earlier
this year paid $11.1 billion for a controlling stake in Hutchison Essar,
since renamed Vodafone Essar, from Hong Kong-based Hutchison Telecom
International .
On Wednesday, Russian services conglomerate Sistema.said it aimed to
raise its holding in tiny Indian telecoms operator Shyam Telelink Ltd to
51 percent after it bought a 10 percent stake for $11.4 million.
Reuters |