The giant tele-services provider company from UAE, named the Emirates Telecommunications Corp (Etisalat) has recently announced that it is planning to make a foray into the Indian mobile space, very soon. The company officials have informed that they have already started discussions with the Telekom Malaysia (TM) backed Spice Communications and some other new license holders for a the purpose. The sources informed that Etisalat is considered as the largest telecom operator in the UAE and it is currently providing its telecommunications services in a number of 14 countries across Africa and Asia, including Pakistan, Egypt and Saudi Arabia.
While talking about the companys plans and also explaining the reasons behind thinking of foraying into India, the Chairman of Etisalat, Mohammad Omran said, "India is a very attractive market for Etisalat and we are studying different market entry strategies to determine the most appropriate fit. We have also entered into direct meetings with various entities, amongst them Spice Communications". The industry sources have stated that the Telekom Malaysia is currently the largest shareholder in Spice Communications, with a 40 per cent stake holding and Dr B.K. Modi is the Indian partner of the company, with holding about 20 per cent equity share.
However, according to the sources from the Spice Communications, there was a little possibility for Dr. Modi to dilute his stake from the company. In the words of a source, "Etisalat may be talking to Telekom Malaysia for a possible dilution of its stake. The two companies have been working together in other markets such as Indonesia. If TM decides to sell its share to Etisalat then the Modis will have the first right of refusal". The industry sources added that the major international operators like AT&T, Verizon and Etisalat are seeking an entry into the Indian telecom market at the moment. They also said that the new license holders like Videocon and Unitech are also searching for international partners, that would provide a possible entry point for the international giants.
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| Posted : 4/4/2008 |
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