State-run BSNL, the country?s second largest telecom operator, is eying acquisitions in Africa. The telecom company has cash reserves of over Rs 30,000 crore, chairman & managing director Kuldeep Goyal said on Tuesday.
The announcement marks the trend of a growing number of Indian telecom operators evincing interest in the African telecom market. Tata Communications acquired a 30% stake in Noetel, the second telecom network provider in South Africa. India’s largest telecom operator, Bharti Airtel, is once again in negotiations with South African telecom operator MTN for a cash-cum-swap deal to the tune of $23 billion that will see Bharti picking up a 49% stkae in the company, while MTN will have a 36% stake in Bharti Airtel.
?We are looking at various options, whether it is new licences being issued or partnering with existing players in the overseas markets,? the CMD said.
The PSU is eyeing Africa as an area of focus as it is an emerging region which suits Indian firms culturally and financially.
BSNL had dropped its plans to bid for telecom licences in Tunisia as the PSU found that returns were not enough to enter that market through bidding of licence.
The PSU has already shortlisted eight consultants, including Ernst & Young, McKinsey, KPMG and PwC, for its plans of mergers & acquisitions, strategic partnerships and overseas forays. It is also believed to have empanelled British Tele Consults, Value Partners, PRPM Consults and Diamond Management and Technology Consultants for its global forays.
Commenting on the company’s 93 million GSM lines tender, Goyal said Ericsson had technically qualified for supplying equipment in the northern and the eastern regions while Huawei has technical efficiency for 25 million lines in the southern region. However, nothing was yet decided regarding the western region. The telco will now negotiate prices with the two, implying that Nokia Siemens Network, the bidder which was rejected on technical grounds, was out of the race.