Bahrain's Batelco to launch India services by year-end

Bahrain-based telecom services provider Batelco expects its Indian mobile phone affiliate S Tel to start operations in the fourth quarter of this year, a senior company official has said.     

"We have been working very closely with our partners and we are looking forward to the launch of full services from S Tel during the fourth quarter of this year," company’s Chief Executive Peter Kaliaropoulos was quoted by Bahrain’s Gulf Daily News as saying.     

The company added in April that this year's net profit would depend on whether it starts operations in the fourth quarter or the first quarter of next year.    

 

S Tel has licences to operate in Bihar, Orissa, Jammu and Kashmir, Himachal Pradesh, Assam and north-eastern states. Kaliaropoulos said in April he expected full-year net profit to be above 90 million Bahraini dinars ($238.7 million) if its Indian affiliate started operations in the fourth quarter and booked start-up costs of about 9 million Bahraini dinars ($23.9 million).

He expected a net profit of above 100 million Bahraini dinars ($265.9 million) if the operations in India, Batelco's first outside the Gulf region, begins next year.     

"We are working tirelessly to meet our commitments to ensure the success of this venture, the first for Batelco outside the GCC and Middle East region," he said.    

S Tel was established to gain entry into the rapidly growing mobile markets of North East and North West India.

Kaliaropoulos added the investment in S Tel will provide significant growth opportunities for Batelco in the expanding Indian market, the third largest and fastest growing mobile market in the world, where mobile penetration is growing at more than 11 million subscribers a month.     

"With Batelco's backing and experience in many telecommunications environments and Sterling Group's (Batelco's joint venture partner in S Tel) experience of running successful telecom operations in the Indian market, S Tel is all set to contribute in a big way to enhancing India's teledensity in the near term," said S Tel Chief Executive Officer Shamik Das.     

"S Tel has already benefited operationally by leveraging Batelco and the Sterling Group's know-how. Together we will play a significant role in shaping the future Indian telecommunication landscape especially in rural areas."    

With the addition of the India shareholding, Batelco now has operations in seven markets across the Middle East, North Africa and Asia.