"As of now the equity holding profile in Sterling Cellular is a splintered one... we will buy out Swisscom's 32 per cent as well as C Sivasankaran's 16 per cent to increase our holding", Essar Telecom Ltd's chief executive officer Hemant Luthra said. Luthra, however, said equity holding changes, if any, can only be affected after November 2000 as laid down under the new telecom policy.

It might be recalled that the Ruias and Mumbai-based cellular service operator, Hutchison Whampoa (the Hongkong-based concern is the majority stake holder in the venture), were in talks for enabling the latter to pick up a strategic equity stake in the Sterling Cellular. Informed sources spoke of a "re-think on the part of Hutchison Whampoa", who apparently are scouting for alliances with other cellular and basic service providers.

Current moves on the part of the Ruias to increase their stake in Sterling Cellular is seen as a precursor to an eventual equity stake offering to a new partner. However, telecom industry sources were catergorical that this did not amount to a desire on the part of the Essar group to "cash out" out of its telecom business.