Search the Internet          Tips  Sites: Finance, Investment

VSNL likely to bid for 2-3 mobile circles

Videsh Sanchar Nigam (VSNL) is likely to bid for only 2-3 mobile circles as a fourth cellular operator, against the initial plan of bidding for six circles.

A senior management team is evaluating all the possibilities for the foray as recommended by Salomon Smith Barney (SSB), in its report to the telecom giant.

According to senior VSNL officials, its board will soon meet to take a final call on the proposed entry into cellular services.

"We are studying the SSB report that has recommended some viable circles in India and a final decision will be taken soon,'' top VSNL officials said.

SSB, in its report, has reportedly advised that several metro circles including Delhi and Bombay are not viable as these locations have already been flooded with the entry of the third mobile operator, Mahanagar Telephone Nigam (MTNL).

These two locations have also witnessed a severe cut in cellular tariffs due to the entry of MTNL. Gujarat, Maharashtra and Bangalore, hence, could be more viable circles, telecom analysts suggest.

Earlier, VSNL was planning to bid for at least six cellular circles including all metros in the country. But it decided to take a wait-and-watch policy after the government's decision to allow fixed services providers to offer limited mobility to customers.

The country's largest internet service provider has applied for basic service licences in six telecom circles of Delhi, Maharashtra, Gujarat, Andhra Pradesh, Tamil Nadu and Karnataka though the centre has asked for minor clarifications for issuing letter of intent.

In fact, VSNL has been weighing all options to enter the cellular arena -- either as a pure cellular services provider or through grabbing licences for basic operations.'' though we have received the SSB report, we are yet to finalise our basic services strategy,'' VSNL officials said.

UNI

Money

Business News

Tell us what you think of this report