Mumbai : There might yet be roadblocks to BPL Communications' plans to mergeits broadband and Internet arms, namely, BPL Broadband and BPL Internet.According to sources in the company, the main hitch is primarily due to ahuman resource management issue: neither CEO may be willing to occupy the No2 position in the post-merger scenario.Attempts are on the create a suitable hierarchy to accommodate both theheads, according to sources. "It is a people-problem and we might reconsiderthe merger idea," sources in the group told The Financial Express. BPLCommunications is understood to be contemplating combining the twobusinesses of Broadband and Internet. One of the names that is beingconsidered for the new entity is Broadband Technologies, sources said.
As things stand, BPL Communications today has four business entities,namely, BPL Cellular, BPL Mobile, BPL Broadband and BPL Internet. Each ofthese has a chief executive officer. The merger would mean that the numberof entities would come down to three from four, so would the number of CEOs.
One of the two CEOs, who is likely to lose the race for the third CEO slotreportedly threatened to quit. Mr Rajiv Chandrasekhar, the chairman BPLCommunications has categorically said recently that the group had nointentions of continuing with its broadband network plan (laying of opticfibre network).
Analysts feel that the clubbing of the two businesses of broadband andInternet makes tremendous sense for the group."Neither broadband nor ISP isviable today on a stand alone basis. It would be sensible for the group toturn itself into a total solutions provider where it has not only thebroadband, but also the last mile connectivity over which it can carrycontent," said a Mumbai-based analyst. There is another pressing reason."The whole idea is to be able to raise money. With an IPO almost a certaintyfor BPL, as with many of the telcos, the merger will definitely improve itsmarket perception and valuations," analysts said.
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.