BT parts ways with Bharti

By Our Special Correspondent

NEW DELHI, JUNE 18. British Telecom (BT) today became the latest in the long list of foreign telecom companies to quit India.

Its forerunners include Telstra of Australia, NTT of Japan, Swiss PTT and Bell Canada. Some other companies such as France Telecom and U.S. West have equity stake in a couple of cellular operations but have decided against increasing their investments or taking an active part in the Indian telecom sector.With this announcement, the only overseas company of note to still repose faith in India's telecom reforms is the American multinational AT & T. Another well regarded telco, Singapore Telecom had recently entered India and promised massive investments. But its claim should be taken with a pinch of salt because this is the third entry in the Indian market for Singapore Telecom. Moreover, the company appeared to be content in taking an equity position.

Incidentally, the company had decided to partner Bharti in a couple of ventures including the one from which BT is being made to exit. Analysts thought it curious why the amount for which the 44 per cent stake was sold to Bharti was not disclosed.

According to a company release, BT had reached an agreement with Bharti Enterprises to sell its equity in Bharti Cellular, thus severing its last surviving link in Indian telecom operations where it was present in a number of areas including V-SAT and Internet. BT had first invested in Bharti Cellular in 1997 and subsequently stepped up its investment to increase its stake to 44 per cent.

BT's only association now is in a software joint venture with the Mahindra group. The company also has a nominal presence through Concert, a joint venture with AT & T. At one time, BT even had plans of entering long distance operations but it had probably played its hand a little too early in attempting to tie-up with VSNL.

The official reason for BT's exit was that the company had taken a policy decision to sell off its assets outside western Europe. ``We are pleased to have played a part in the Bharti Cellular success story,'' commented its senior official, Mr. Pat Gallagher. ``BT came to India at a significant juncture of Bharti's growth life cycle. We have enjoyed our relationship with BT and are pleased to acknowledge its contributions to Bharti cellular and the Indian telecom sector.

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