Processing .....please wait.. 
The article has been forwarded.... 
AT&T may buy 74 percent in Aircel
By siliconindia
|
Friday, 25 April 2008, 01:44 IST
Mumbai: Seeking a re-entry into India's booming cellular market U.S. telecom company AT&T may buy out Malaysia's Maxis Communications' 74 percent stake in Aircel, reported The Economic Times.
"AT&T has approached Maxis with an offer to buy its 74 percent holding in Aircel. The talks are at a preliminary stage right now," sources said.
Sources also said that AT&T had also approached new entrants such as Videocon-promoted Datacom, Unitech, BPL Mobile's subsidiary Loop Telecom and others, who have now received spectrum. While a final decision may be a few months away, the company's level of interest in Aircel is the highest, they added.
AT&T Asia-Pacific spokesman Greg Brutus said in an Email message: "We do not comment on rumor or speculation." At the same time a Maxis spokesperson said, "Maxis remains committed to the accelerated growth and development of Aircel, to be a successful pan-Indian operator."
AT&T has already received National and International Long-Distance (NLD and ILD) licenses in India. It needs an Indian partner to make a foray into the mobile services space as FDI guidelines restrict foreign ownership in Indian telecom operators to 74 percent.
Aircel currently offers services in nine circles and has also received start-up spectrum in the rest of the 14 circles. It will be a pan-India player by the end of this year, joining the likes of Bharti Airtel and Reliance Communications. Aircel is also the market leader in Chennai, Tamil Nadu, Assam and North-East circles.
"Obviously, Aircel is one of the most promising players in the telecom space. It has spectrum across India, has a brand name and is readying to launch services in new circles. It is in an advantageous position vis-à¶is other new players as they are yet to get off the mark," said an analyst.
AT&T's India move is in line with its global strategy of focusing and expanding the wireless business while shrinking the traditional landline business.