Summa Tele lines up $1 billion for India

Months after it burst into the Russian broadband telecom services market, St Petersburg-based Summa Telecom is now eyeing India.

The company plans to invest between $500 million and $1 billion in the country to set up wireless networks offering GSM mobile services, third generation networks, and Wi-Max technology based wireless broadband services.

Koshkin Sergey, a director on the company's board, told Business Standard that Russian President Vladimir Putin was slated to meet Communications Minister Dayanidhi Maran "to lobby for Summa Telecom's entry into India."

"India is the fastest growing telecom market in the world. It has been on our radar for sometime now. We want to offer GSM, 3G, Wi-Max and broadband services and we are ready to invest $500 million to $1 billion in India over the next one or two years in the creation of wireless networks," Sergey said.

Summa Telecom is part of Russia's Summa Holdings and a new entrant in its home market. It was founded in June 2005 in Moscow.

According to published material on the Internet, the holding company's principal activity is "systemic integration," starting with the oil and gas industry.

Summa Telecom was granted a Wi-Max licence in September 2006, the only company to have a national licence for this service in Russia, and aims to provide communication services in all regions of the federation.

Summa Telecom is preparing the ground for its entry by registering in India.

The company can have a maximum of 74 per cent stake of the paid-up equity capital in an Indian operation, with the remaining 24 per cent being held by an Indian company.

Sergey said Summa was in talks with some Indian telecom players.

"We want to convince the government that we want a serious Indian partner to offer 3G and Wi-Max services. Summa Telecom is in talks with many Indian firms. We want to choose the best partner," he added.