MONTREAL, Quebec-A consortium formed by Bell Canada International and the Tata Group of India has been offered a license by the government of India to provide cellular telephony services using Global System for Mobile communications technology in the state of Andhra Pradesh, Bell Canada announced.
The Indian government opened nationwide licensee bidding in August and began granting licenses last month after drafting rules, BCI said. Andhra Pradesh, with a population of 70 million, was one of the Category A license opportunities in the auction.
“Obtaining a cellular franchise in India was BCI’s top priority in the recent wireline and cellular licensee bidding process,” said Derek Burney, chairman, president and chief executive officer of BCI.
Per Indian ownership rules, Tata Group will hold 51 percent of the equity in the cellular company. BCI said it will own an initial stake of 39 percent, representing a commitment of about $35 million, and American International Group will own 10 percent. BCI will provide managerial and technical support for the project, including the first chief executive officer of the new company.
“The securing of a cellular franchise in India completes a 1995 hat trick for BCI in the three great emerging markets of India, China and Brazil,” Burney said. “With cellular licenses in India and China, cable licenses in Brazil and strong local partners in all three markets, BCI is now positioned to create significant value for our shareholders in the years ahead.”
