Shyam Telecom to pick up TCIL stake in Hexacom

Shyam Telecom is planning to pick up the 30 per cent stake held by Telecommunications Consultant of India Ltd (TCIL) in Hexacom.

Shyam has already bought out 27.5 per cent held by the Canada-based Telesystem International Wireless Inc (TIW) for about Rs 102 crore.

According to company executives, Shyam has paid the money to TIW after it exercised its first right of refusal to a proposal from Sunil Mittal promoted Bharti Tele-Ventures for picking up TIW's stake in the mobile services company. They, however, refused to divulge the source of the funding.

If Shyam Telecom acquires the TCIL shares, it will have a controlling share of over 80 per cent of the Rajasthan-based cellular company.

Acquiring TCIL's equity will take time for Shyam since the proposal will have to get the nod of the disinvestment ministry.

TCIL, a public sector undertaking, has already sent a proposal to the communications ministry expressing its desire to exit Hexacom.

Hexacom operates a GSM network in Rajasthan under the brand name Oasis and has a 48 per cent market share with over 200,000 subscribers.

Interestingly, Shyam Telecom also has the licence to operate fixed line services in Rajasthan, which it has already converted into a unified licence for about Rs 3 crore.

This means that Shyam will have parallel operations in the same circle - one based on GSM and the other with CDMA technology.