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June 29, 2001
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Money > Business Headlines > Report June 29, 2001 |
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Bharti, Hutchison will feel the heatBS Corporate Bureau The merged entity of BPL Communications and Birla-Tata-AT&T will offer tough competition to Bharti and Hutchison, as the former gears up to bid for metro circles like Delhi, Madras and Calcutta as a fourth operator. While Bharti is currently present in Delhi and Madras, the Calcutta metro circle is dominated by Hutchison. The other circles the merged entity could eye are Karnataka and some North Indian circles, top BPL sources said. On the other hand, the enhanced financial muscle in the merged entity will help it face challenges from both Bharti and Hutchison. Hutchison is expected to bid for all the major southern circles including Madras, Tamil Nadu, Andhra Pradesh and Karnataka, in addition to Maharashtra. Bharti's plans are not yet known. If the BPL-Birla-AT&T-Tata combine wins the bid in the Delhi metro circle, its nearest rival will be Bharti and Hutchison. In Madras too, Bharti is a dominant player, with the RPG group the nearest competitor. Bharti also entered Karnataka recently when the Mittals-promoted firm acquired JT Mobiles. Industry observers are also watching out on what strategy the BK Modi-promoted Spice Telecom, which has operations in Karnataka, Calcutta and Punjab, will adopt. Industry observers said, "Going by the present market scenario, Spice will be forced to go through a consolidation process." Over the past five years, the BPL group has maintained position in its circles. It is the top player in Bombay, Maharashtra, Kerala and Tamil Nadu, competing with Hutchison, Birla-AT&T, Escotel and Aircel, respectively. Birla-AT&T-Tata's position over the past few years has been challenged by regional as well as major players. It has competition from Hutchison in the Gujarat circle; Bharti is the leading player in the Andhra Pradesh circle, while Reliance is the rival in the Madhya Pradesh circle. In Maharashtra, both BPL Cellular and Birla-AT&T-Tata were operators. Industry sources point out that regional players like Himachal Futuristic Communication, Hexacom, Escotel may either get merged with the bigger players or will have to move out. The merger and acquisition activity will also be driven by technology alliances, and acquisition of other service providers for bundling of services. Powered by YOU MAY ALSO WANT TO READ:
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