NEW DELHI, India-The Bharti-SingTel combination has pulled out of the bidding process to acquire a stake in India’s state-owned long distance company, VSNL. The group says it will focus on investments in expansion of cellular, basic and domestic long-distance services instead of buying the VSNL stake.
This leaves just three players-Reliance, Tatas and BPL-in the race for a 26-percent stake in VSNL.
In a statement, Bharti said it is pulling out because of strategic reasons. The company has emerged a successful bidder in five telecom circles in the recent bidding for the fourth cellular license.
“We feel that at this stage we would like to concentrate on building simultaneous networks in a short period of time and consolidate our leadership position in recently acquired Kolkata circle,” said the statement.
Meanwhile, results of the final round of financial bidding for the fourth cellular license in 17 telecom circles have been withheld, pending disposal of court cases against the bidding process. The Department of Telecoms (DoT) has appealed to the Supreme Court to vacate the stay granted by the Chennai High Court.
