The Hindu Business Line : Shyam-Spanco venture buys out Spectranet

New Delhi, June 18 Telecom firm Shyam Group and IT services company Spanco Telesystems and Solutions Ltd (Spanco) have entered into an agreement with Punj Lloyd Ltd to acquire its Internet services company Spectranet.

Shyam and Spanco have formed a 50:50 joint venture called Citycom Networks for this purpose. The joint venture company said that it has earmarked an investment of Rs 500 crore for the acquisition and for expanding Spectranet’s infrastructure.

Bharti Airtel had tried to acquire Spectranet in 2001 but the deal did not go through due to disagreement over valuations. The Internet services company has 1,500 corporate clients and 25,000 retail customers across Delhi, Bangalore and Mumbai.

The Shyam Group had earlier formed a joint venture with the Russian conglomerate Sistema for rolling out mobile services across the country.

The new venture will offer Internet services including virtual private network and compete with the likes of Tulip Telecom, BT, AT&T, Bharti Airtel and other integrated telecom players.

“We see next-generation wireline, broadband and wireless networks playing a key role in the changing socio-economic structure of India. This acquisition is our endeavour to propel and lead this transformation in India,” said Mr Udit Mehrotra, Director, Citycom Networks.

The deal is expected to close over the next few months.

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