AT&T and Telstra look to re-enter Indian market
By siliconindia   |   Thursday, 08 October 2009, 19:58 IST   |    1 Comments
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AT&T and Telstra look to re-enter Indian market
New Delhi: One of the world's largest communications firm AT&T, a $124 billion company, is set to re-enter the expanding Indian telecom market after exiting five years ago. It had a three way venture with Tata and AV Birla groups, called Idea Cellular, which has become the fifth largest mobile operator of the country, reports The Financial Express. Two more global majors are expected to enter the Indian market through the 3G broadband wireless access route. Australian Telstra had exited from its 49 percent stake in Modi Telstra in 2000 and the South Korean SK Telecom, a $12 billion company. Officials at the Department of Telecommunications (DoT) informed that AT&T has shown a firm interest in bidding in the 3G spectrum auctions and has been in touch with the department after the announcement of the reserve price. The U.S. based company declined to comment on the issue. Also, spokespersons from Telstra and SK Telecom denied responding to the queries. When AT&T left India, it sold its 33 percent stake in Idea Cellular for $250 million. The same share would have been valued at $3 billion. A pan-India license would cost AT&T 1,651 crore. Also, additional reserve price for all-India auctions at 3,500 crore which could go up to around 8,000 crore if it goes successful. The company already has a domestic and long distance license in India. However, the sources from Telstra have informed that the company would bid only for the Broadband Wireless Access (BWA) spectrum for broadband services. The 3G and BWA auctions are open to both existing licensees and foreign operators who have experience in running 3G networks.

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