Merger, de-merger of licences to help telecom consolidation

Thursday, 27 March 2003, 20:30 IST
Printer Print Email Email
Minister of IT and Communications Arun Shourie Wednesday said that the cabinet's decision to allow merger and de-merger of licences would help telecom companies to consolidate their businesses in the country.

NEW DELHI: The decision would help sector telecom services providers to consolidate their basic, cellular and other services, he told reporters on sidelines of a function to celebrate the shipping of the 20 millionth phone by Bharti Teletech, the manufacturing arm of Bharti Enterprises. The Indian cabinet Tuesday paved the way for consolidation of the telecom industry by allowing companies to merge, de-merge and acquire more firms. "The revenue for the government is not the objective for this decision. This has been allowed with certain conditions," Shourie said, adding merger and de-merger is a normal activity but in case of telecom it was not allowed. Earlier, Sunil Bharti Mittal, group managing director of Bharti Enterprises, said that Bharti Teletech it has shipped out 20 million phones, making it the largest manufacturer of telephone equipments outside China. The company currently exports telephones to over 25 countries covering five continents, including the U.S., East Europe, the Middle East and South Asia.
Source: IANS

siliconindia