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Bharti, SingTel in long-distance JV

Indian telecommunications group, Bharti Enterprises and Singapore Telecommunications Ltd (SingTel) will form a joint venture company to offer domestic long-distance telephony in India, a senior Bharti official said on Thursday.

Akhil Gupta, joint managing director of Bharti Enterprises said that the Bharti group and SingTel jointly planned to invest a total of Rs 18 billion in the long-distance project, involving equity of between Rs 6-7 billion at a debt equity ratio of 1.5:1.

"It (equity) is going to be 90 per cent Bharti Televentures Ltd (owned) and 10 per cent SingTel," Gupta said.

The new firm will be called Bharti Telesonic Ltd.

The Indian government opened up the state-controlled domestic long-distance telephony business to the private sector in August.

Foreign firms can hold up to 49 per cent in firms offering such services.

"It will take a little time (for the details to be finalised) but we are going full steam ahead," Gupta said.

Bharti and SingTel announced last month they would invest $650 million in a 50:50 joint venture to set up an undersea cable linking India with Singapore.

The Bharti group has interests in mobile services, fixed-line telephony, Internet and equipment making.

In August, SingTel bought 20 per cent and 15 per cent stakes, respectively, in Bharti Telecom and Bharti Televentures, two companies controlled by the group's holding company, Bharti Enterprises for $400 million.

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