RCom to join hands with China Mobile
By siliconindia   |   Monday, 22 June 2009, 22:38 IST
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RCom to join hands with China Mobile
New Delhi: Anil Ambani headed (RCom) and China's biggest mobile services, China Mobile have started primary talks of tie-up, for possible equity partnership of 5-6 percent and strategic alliances, reports the Business Standard. Wang Jianzhou, Chairman and CEO, China Mobile had informed that the company was keen to expand to India. It has over 450 million subscribers and RCom has over 70 million customers. China Mobile also has operations in Pakistan, it also acquired Paktel for $460 million in 2007, renaming the company CMPak. The New York Stock Exchange listed company also operates in Hong Kong and Taiwan RCom will require cash to bid for licenses for third-generation (3G) services, as the auctions are expected this year. The reserve price for the auction has been set at a steep Rs 4,040 crore. The company would issue equity shares to qualified institutional buyers to finance its 3G bid, expand its broadband business and support its financials. With a net worth of over Rs 63,000 crore, the company has cash flows of over Rs 12,000 crore. The Chinese companies have been subjected to security controversies, with the Pakistani operations. The government has cleared a Chinese company Huawei Technologies, which won a contract to supply GSM equipment to state-owned Bharat Sanchar Nigam Ltd in south India. Many Indian telecom companies have been expecting stakes and strategic international alliances. For instance, India�s largest private telecom service provider, Bharti Airtel recently signed an agreement with South Africa�s MTN to explore the global market. Japan�s NTT DoCoMo has purchased 26 percent stake in Tata Teleservices, which is playing a key role in its launch of GSM services. Last year, Swan Telecom sold 45 per cent to UAE-based Etisalat for close to $900 million and Unitech Wireless, with 22 circles, sold 60 per cent to Telenor for Rs 6,120 crore.

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