"We are evaluating options. We may bid for the licence in Maharashtra ourselves or get into an alliance with a licencee," Mr Arun Kumar, vice-president, IndusInd Telecom Networks Limited told The Financial Express. He also said that the company would prefer the alliance option rather than getting into the business by itself. "The roll-out obligations are very stringent and may just be a deterrent for us," Mr Kumar said. Under the roll-out obligation, a basic operator has to give 90 per cent coverage in the state within three years of operations which may entail huge investments. However, Prateek Agrawal, telecom analyst with the Mumbai-based SBI Capital Markets Limited adds that need not be a constraint: ``You can use satellite telephones to give as much coverage as you want.''

However, as of now, IMCL seems to be more in favour of the alliance strategy which is more cost-effective as it involves no rolling out on its own. The partner (the licencee) can utilise IMCL's network for rollout under a revenue-sharing arrangement. "All we need to work out is a revenue sharing mechanism," IMCL sources said. Though IMCL has a presence in just three of the Western India cities, namely, Mumbai, Belgaum and Nasik, it is contemplating roping in operators in other cities to increase coverage in the state and help the licencee meet the rollout obligations fast and cost-effectively. "We are speaking to other operators in the state for alliances," IMCL sources said.

In Mumbai, however, the company intends to become what Mr Kumar called "an originating carrier". IndusInd Media and Communications Ltd. is a Hinduja group company in which Hinduja Finance hold 62 per cent stake. Should IMCL's basic telephony intentions materialise, it will become the second media and communications company after Siti Cable to foray into telecommunications. Siti Cable has already announced that it will bid for the basic licence.