The Hindu Business Line : Etisalat plans entry into Indian market

New Delhi, April 2 UAE’s telecom giant Emirates Telecommunications Corp (Etisalat) is in talks with Telekom Malaysia (TM) backed Spice Communications and other new licence holders for a possible foray into the Indian mobile space. Etisalat is the largest telecom operator in the UAE and provides telecommunications services in 14 countries in Africa, Asia and Africa including Pakistan, Egypt and Saudi Arabia.

“India is a very attractive market for Etisalat and we are studying different market entry strategies to determine the most appropriate fit. We have also entered into direct meetings with various entities, amongst them Spice Communications,” the Etisalat Chairman, Mr Mohammad Omran, said in a statement. Telekom Malaysia is the largest shareholder in Spice with a 40 per cent stake. Dr B.K. Modi is the Indian partner with nearly 20 per cent equity share. The balance is held by a clutch of financial investors and the public through shares listed on the BSE.

Sources in Spice, however, said that it was unlikely that Dr Modi would dilute his stake. “Etisalat may be talking to Telekom Malaysia for a possible dilution of its stake. The two companies have been working together in other markets such as Indonesia. If TM decides to sell its share to Etisalat then the Modis will have the first right of refusal,” said a source close to Spice. International operators such as AT&T, Verizon and Etisalat are eyeing an entry into the Indian telecom market. New licence holders such as Videocon and Unitech are also scouting for international partners, which makes them a possible entry point for the international giants.

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