Bpl-Motorola Wrangle May See Amicable End

The BPL group is likely to reach an amicable agreement with telecom equipment major Motorola regarding outstanding dues worth $23 million.

The issue is critical as it could have posed a minor hurdle to the merger between BPL Communications and the Birla-Tata-AT&T combine to form the largest cellular company in the country with a subscriber base of over 10 lakh.

According to the memorandum of understanding between the two cellular companies, each partner should resolve their pending legal disputes before the final inking of the deal, senior BPL officials said.

"We have initiated talks with top Motorola officials and it is open on settling the issue amicably. For Motorola, this ($23 million) is a small amount, and we do not think they will take any legal action," the BPL officials said.

A Motorola spokesperson said both the companies were currently talking "to avoid any further confusion".

BPL Cellular, the mobile services provider in Maharashtra, Tamil Nadu and Kerala, owes this amount to Motorola for cellular equipment supplied for the GSM network in Maharashtra and Kerala circles.

"We have built the network with a total project cost of around Rs 3,600 crore and the amount under dispute is not significant," the BPL officials said.

"There are always disputes between buyers and suppliers. The dues being claimed were a part of normal trade and there was nothing unusual about it. As we are expanding our business, we will be strengthening our relations over a period of time," the officials added.

Motorola is reported to have threatened to take up some legal action against BPL Cellular and was planning to approach the merged entity of BPL and Birla-Tata-AT&T.