Shyam Telecom Seeks Partner For 4th Cell Licences

The Shyam Telecom group is scouting for a consortium partner to bid for the fourth cellular licences. The company has initiated talks with 3-4 companies as part of its strategy to enhance its cellular presence in the country.

The proposed consortium will be working exclusively for bagging the fourth cellular licences mainly in the south. At present, the group offers mobile services in Rajasthan via its subsidiary Hexacom India and is a licensee in north east circles.

If the talks materialise, the group could form a special purpose vehicle in association with the partner. The partner could either be a financial investor or a telecom firm, said sources close to Shyam Telecom. However, sources added that the group has not yet finalised any deal.

The company has been, reportedly, evaluating all possibilities for entering circles such as Kerala, Tamil Nadu, Andhra Pradesh and Karnataka. The group chose the southern region to expand its operations, because the real growth in terms of subscriber-base is happening in south India, thereby making it lucrative.

Over the past few months, the group has been looking for a strategic partner for its cellular and basic service businesses. The group's initiatives to bring in a foreign strategic partner for its cellular and basic services have not yet materialised.

The main aim to rope in a partner was to bring additional expertise in basic and cellular projects, in addition to funds. Shyam Telecom had also been looking at expanding its business in basic, and cellular services through fourth mobile licences with additional funds.

Shyam Telelink, which is wholly owned by the group, plans to cover 15 cities and 500 villages in Rajasthan in the next few months and the entire state including all the villages by 2003 with its basic services.

Hexacom India is a three-way joint venture between Shyam Telecom (40 per cent stake), the state-owned Telecommunications Consultants of India (20 per cent) and TIW of Canada.