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ModiCorp eyes pacts with large telecom firms

ModiCorp Ltd, which earlier on Monday sold one of its mobile phone units, said it was exploring a "realignment" for its remaining cellular businesses.

"The group is exploring opportunities for growth through realignment with emerging national telecom players," ModiCorp, a company founded by the Modi family, said in a statement.

ModiCorp operates mobile networks in Karnataka and Punjab through another mobile company Spice Communications.

Earlier, it sold its 51 per cent stake and joint venture partner Hong Kong's Distacom sold its 49 per cent in Spice Cell, a mobile service operator in Calcutta to New Delhi-based unlisted telecoms group Bharti Enterprises.

The all-cash deal whose value was not disclosed was the latest in a wave of consolidation witnessed in the mobile business over the past four years which has seen smaller cash-strapped companies selling out to larger groups planning pan-India operations.

"We believe that by realigning our successful operations, would not only bring to the customer affordable cellular services but also thwart backdoor entry of basic (fixed-line) service operators into the mobile business," ModiCorp's chairman B K Modi said in the statement.

India's mobile industry is upset at a government decision to allow fixed-line firms to offer a cheaper limited radius mobile service to customers on grounds it would hurt their revenues.

The statement said ModiCorp, in which Singapore Technologies Telemedia holds a 20 per cent stake, will continue to invest in the sector and related businesses in information technology-enabled services.

"This would span cellular operations and expansion into areas like NLDO (national long-distance operations), ILDO (international long-distance operations) and telecom-centred IT enabled services like call centres," the statement said.

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