Bharti pulls out of VSNL disinvestment

By Our Special Correspondent

NEW DELHI, JULY 23. The Bharti-Singapore Telecom consortium today announced its decision to pull out from bidding for Videsh Sanchar Nigam Limited (VSNL), the country's sole provider of international communications.

The combine clarified that the decision had nothing to do with guidelines for acquiring a strategic stake in VSNL and said it shall pursue the international voice telecom business when it is opened up to private sector participation next year. The pull-out still leaves several corporate heavyweights such as the Tatas, Reliance and Sterlite in the fray.

``Respecting the sanctity of the disinvestment process, especially as we could be competing with VSNL in the medium term, we have taken this strategic decision to withdraw ... (and) maintain the highest ethics of business and competition,'' said a Bharti news release.

The company is in the process of building a nation-wide long distance network and has commenced its activities in four circles to provide basic licenses. It is already a major provider of cellular services and is poised to expand its area of operations further.

``We have decided not to bid for VSNL for strategic reasons. We have taken this decision in the wake of the emerging prospect of winning six to seven mobile licences as a fourth cellular licensee.

We feel that at this stage we would like to concentrate on building simultaneous networks in a short period of time and consolidating our leadership in the recently acquired Kolkata circle,'' it explained.

Send this article to Friends by E-Mail

Section  : Business
Previous : Stock brokers seek audience with FM, SEBI
Next     : BPL denies role in 'cellular' PILs