The Hindu Business Line : BPL Mobile scouts for biz partner

Mr Rajeev Chandrasekhar (left), Chairman and Managing Director, BPL Mobile Cellular Ltd, with Mr Dayanidhi Maran, Union Minister for Communications & IT, in Coimbatore on Saturday. — Siva Saravanan

Coimbatore , May 28

THE Chairman and Managing Director of BPL Mobile Cellular Ltd, Mr Rajeev Chandrasekhar, has confirmed that the company is looking for a business partner who "will stay and make necessary investments in future."

Stating that BPL Mobile is one of the few companies without a foreign partner, Mr Chandrasekhar hinted at the possibility of aligning with one in 2006-07, when the company will start looking at other business and newer markets.

"We are talking, evaluating and meeting people, and there are those who have come unsolicited and asked us to sell. But we are not interested," Mr Chandrasekhar said.

"Strategic alliance is the bread and butter in our business," he said and pointed out that every large telecom operator in the world has started to eye India for possible investment.

Mr Chandrasekhar was here in connection with the completion of BPL Mobile's eight years of operations in Tamil Nadu.

The company has in the last eight years invested Rs 4,300 crore.

It has built 14 mobile switching centres, 2,000 base stations and over 5,000 km of backbone network.

BPL Mobile has approved an investment plan of Rs 700 crore for this year.

Of this, Rs 200 crore will be for Tamil Nadu alone (excluding Chennai).

The focus is on improving coverage in existing towns and expanding into100 new semi-urban and rural towns this fiscal.

Recalling the company's struggle to become the second largest operator in Tamil Nadu, Mr Chandrasekhar said the complicated regulations and policies not only stalled foreign investments in this sector, but also made it difficult for existing operators to survive and remain in business. Emphasising the need to iron out the discrepancies that have crept in, particularly if the country and all telecom stakeholders are to benefit, he said the Government had a "fair degree of bias" towards this sector.

He conceded that this regulatory mandated disadvantage struck the company's operations.

Mr Chandrasekhar said the company registered a bottom-line growth of 60 per cent during the previous year. It has been the best year for the company.

BPL Mobile is expecting to grow 50 per cent during the current year. "Growth story is strong in the South," he said.

Replying to a query, Mr Chandrasekhar said the measure of growth is not in terms of size, but in providing quality service to its customers.

"We are focused on profitability and revenue growth. Our business strategy is in looking at fixed wireless substitution."

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Low-cost handset to spur new wave of mobile telephony: Maran

BPL Mobile scouts for biz partner

Underwriters exercise allotment option of Infosys ADS offering