"The talks with Motorola are at very initial stage," group CMD Venugopal Dhoot said at an Assocham seminar here, while declined to give a deadline for the deal.

With Motorola planning to separate its mobile business from other operations, consumer electronics major Videocon had said that it had bid to acquire Motorola's mobile handset business.

According to analysts, Motorola's handset business is worth about $3.8 billion and its handsets account for 15 per cent market share globally.

Videocon is in the race for Motorola's handsets as the company feels the company will have synergy with its upcoming telecom services operations with such a business under its fold.

The company has got licences for 22 circles and will be launching the services in the circles soon, through its subsidiary Datacom.

Videocon recently said it would start rolling out telecom network from mid-August and is eyeing to garner about 10 per cent market share in the Indian telecom market in five years.

Videocon, which has got licence for pan-India operations, has got spectrum in three circles and is awaiting for the rest.

The company is also ambitious about 3G services. "With our technical tie-up with various companies it would be very easy for us to roll out 3G also as soon as the government announces," he added.