Bezeq Sees Wrong No. In India

Bezeq Israel Telecom will freeze new activities of its international projects subsidiary, Bezeq Globe, while it determines whether to continue operating the unit, a company spokeswoman said on Sunday.

Bezeq Globe has cost its parent company millions of dollars in losses due to a large wireline phone service project in India that has run into difficulties, a company source said, confirming an article in the Yedioth Ahronoth daily on Sunday.

The project is a joint venture with Indias Himachal Futuristic Communications Ltd (HFCL).

I dont believe this management would make the same decision today to enter into the Indian market, the source said. The project has not moved at all.

 

Bezeqs board of directors has delayed approval for Bezeq Globes 1998 budget, the spokeswoman for the parent company said.

During the next month, Bezeqs management will evaluate whether the parent company should take over Bezeq Globes activities, the spokeswoman said. Management will then bring its decision to the board of directors.

Bezeq Globe, meanwhile, will continue to fulfil all of its overseas commitments, including those in India, the spokeswoman said.

However, the company will halt any new projects, such as plans to set up a consortium to take part in a bid for a stake in Ecuadors state communications company. In December, Bezeq Globe announced it would take part in the tender, which was scheduled for early this year.