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| Goyal: Kuwait call |
New Delhi, Sept. 24: State-run Bharat Sanchar Nigam Ltd (BSNL) is still keen on bidding for Kuwait’s Zain Telecom along with sister PSU Mahanagar Telephone Nigam Ltd (MTNL).
“We are not averse to picking up a stake in Zain Telecom. There was a proposal (to buy stake in Zain) on which we have not taken a decision,” said Kuldeep Goyal, chairman and managing director of BSNL, on the sidelines of a CII event here.
According to a BSNL executive, the company is open to all options, including mergers, acquisitions, strategic partnerships and buying licences to start operations overseas. However, BSNL would only partner MTNL and not a private player.
With average revenue per user falling in India — the market is saturated and the competition is intense — telecom players are keen on expanding abroad where the earning per user is higher.
BSNL is eyeing the African and West Asian markets. The PSU has shortlisted eight consultants, including Ernst & Young, McKinsey, KPMG and PricewaterhouseCoopers.
The company’s recent bid for Millicom’s Sri Lankan operations was rejected as its quote fell short.
S. Behura, secretary at the department of telecom, had earlier said the telecom PSUs had been approached for Zain, and the duo were yet to take a decision.
India’s Vavasi Group and Malaysian billionaire Syed Mokhtar al-Bukhary have joined hands to buy a controlling stake in Zain for around $13.7 billion. BSNL and MTNL had been approached to join the consortium, which is led by Vavasi.
Zain is the No. 1 player in Kuwait; National Telecom and Kuwait Telecom are the other operators.
Zain has operations in 24 countries with almost 70 million subscribers in West Asia and Africa. The firm’s average revenue per user ranges from $3 in Ghana to $54 in Kuwait compared with less than $7 for Indian companies.
India’s leading operator Bharti Airtel is negotiating with South Africa’s MTN for a possible merger. The Essar group has bought licences in Kenya and has ambitions to expand in Africa. Reliance Communications also has plans to acquire telecom companies overseas.
