Bharti Tele mulls 50% price cut in ILD

Pune, January 30: | Updated: Jan 31 2002, 05:30am hrs
Bharti Tele-Ventures Ltd is all set to bring some action into the international long distance (ILD) market, after its succesful coup in the national long distance (NLD) market, with an aggressive 50 per cent cut in prices. We will give customers a good price as we strongly believe in providing the right value and prices will definitely come down in the international long distance market, Badri Agarwal, president, Bharti Tele-Ventures said.

Bharati has completed 80 per cent of the work on the submarine cable landing station at Chennai, Mr Agarwal said. The landing station will connect Bhartis telecommunications networks in India to the submarine cable systems in Singapore and would provide international access when the Indian market opens up on April 1, 2002. ILD services is part of Bhartis expansion plans, which include nine new cellular circles, four fixed circles and NLD services.

Mr Agarwal was in Pune for the Bharti Teles IPO roadshow. He said that the first days performance was encouraging with almost 85 per cent of the share being picked up. Mr Agarwal was hopeful of the value moving up from the Rs 45 to Rs 47-band that it achieved on the first day. Investors are keenly watching the markets response and that explains the cautious response on the first day

Cellular services will provide 80 per cent of the companys revenues. All the seven cellular circles, where the company operates, are making a cash profit while the new nine circles are expected to show cash profits in the second full year of operations. The Punjab and MP circles are ready for a take off in March 2002, while Maharashtra and Goa will see a launch in the irst quarter of 2002. The company has decided to invest Rs 350 crore in the Maharashtra and Goa circle.