Hughes, Tata Tele sign MoU for basic services

Our eFE Bureau in Mumbai

HUGHES Networks Systems and Tata Industries, the sponsors of Hughes Tele.com and Tata Teleservices, have signed a memorandum of understanding for a combination of the basic telephony services in relation to the existing licences of HTIL in Maharashtra and of TTL in Andhra Pradesh.

The MoU is subject to approval of the respective board of directors, shareholders, relevant corporate bodies and necessary statutory and regulatory approvals including the one from department of telecommunications, a Tata Group press release said on Wednesday.
“The announcement (of signing of the MoU) should not be construed to imply that any definitive agreement has or will be reached between the parties,” the release added. Clarifying what the MoU was all about, a senior Tata Group official said: “The MoU is just an agreement between the two parties whereby they have laid down their intent. A lot of approvals and clearances need to be had which will take time.”

The final agreement may still be some 3-4 months off, company sources said. The two companies are expected to start their due diligence immediately.

DSP Merrill Lynch and ICICI Securities are the sole financial advisors for the Tata Group and Hughes respectively.