News: Bharti keen on ringing abroad
(DNA 18/08/2006) New delhi - The Bharti group is not keen on any domestic acquisitions in the telecom sector, instead it is looking at international opportunities.
Speaking to DNA Money, Bharti chairman and managing director Sunil Bharti Mittal said, “We have moved away from domestic acquisition.”
His reason: Not much is available in terms of benefits to Bharti from such acquisitions, as the company has licence, spectrum and customers across the country with a pan-India presence.
“The value that we can extract from a domestic acquisition will almost always be less than those who want to pick up a new territory or a new licence,” he said.
Even as there has been a buzz recently that Bharti may be keen on buying the BPL Mobile operation in Mumbai from Essar, Mittal denied it categorically.
“We have not even ventured into that thought. It holds no benefit for us,” he said. Hutch and Essar are entangled in a legal battle over the merger of BPL Mobile with Hutch-Essar.
When asked to react on the recent telecom sector clashes between the Tatas and the Aditya Birla group over Idea Cellular and then Hutch and Essar over BPL Mobile in Mumbai, Mittal argued that “these are not industry issues. These are partner issues.”
According to him, just the way the Idea issue got settled, even the Hutch and Essar clash would get sorted out. “You will see some settlement coming in the next one month or two (in the case of Hutch Essar clash),” he said.
Elaborating on the Bharti group’s thirst for international acquisitions, Mittal said, “We are ready for international acquisitions. As soon as we see the right opportunity, we will strike.”
But he pointed out that there wasn’t much opportunity available right now around the world.
“Most of what is available today is too far — like in Africa or South America. That is not of much interest to us,” he said.
But, closer home, the group is looking at Sri Lanka and even Bhutan for telecom acquisitions. In addition, the group is exploring international opportunities in the Chanel Island and Indian Ocean areas.
The Bharti group already has a successful mobile telephony business in Seychelles. It’s also about to roll out services in Chanel Islands.
Speaking to DNA Money, Bharti chairman and managing director Sunil Bharti Mittal said, “We have moved away from domestic acquisition.”
His reason: Not much is available in terms of benefits to Bharti from such acquisitions, as the company has licence, spectrum and customers across the country with a pan-India presence.
“The value that we can extract from a domestic acquisition will almost always be less than those who want to pick up a new territory or a new licence,” he said.
Even as there has been a buzz recently that Bharti may be keen on buying the BPL Mobile operation in Mumbai from Essar, Mittal denied it categorically.
“We have not even ventured into that thought. It holds no benefit for us,” he said. Hutch and Essar are entangled in a legal battle over the merger of BPL Mobile with Hutch-Essar.
When asked to react on the recent telecom sector clashes between the Tatas and the Aditya Birla group over Idea Cellular and then Hutch and Essar over BPL Mobile in Mumbai, Mittal argued that “these are not industry issues. These are partner issues.”
According to him, just the way the Idea issue got settled, even the Hutch and Essar clash would get sorted out. “You will see some settlement coming in the next one month or two (in the case of Hutch Essar clash),” he said.
Elaborating on the Bharti group’s thirst for international acquisitions, Mittal said, “We are ready for international acquisitions. As soon as we see the right opportunity, we will strike.”
But he pointed out that there wasn’t much opportunity available right now around the world.
“Most of what is available today is too far — like in Africa or South America. That is not of much interest to us,” he said.
But, closer home, the group is looking at Sri Lanka and even Bhutan for telecom acquisitions. In addition, the group is exploring international opportunities in the Chanel Island and Indian Ocean areas.
The Bharti group already has a successful mobile telephony business in Seychelles. It’s also about to roll out services in Chanel Islands.
posted by InCar Group Press Room at 22:37
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