(Economic Times via NewsEdge) After AT&T, British Telecom and Verizon, UK-based Cable & Wireless (C&W) will also soon enter the long-distance telephony market in India.
The $6-billion C&W group will be acquiring 74% stake in Cable & Wireless Networks India, an entity which has been incorporated early this month.
This company currently has nominee shareholders. The remaining 26% will be picked up by an Indian joint venture partner.
As per the existing policy, foreign investments for undertaking long distance services in India have a cap of 74%.
The foreign firms, which have initiated moves in the national and international long distance areas, are also taking the JV route as required by government policies.
AT&T has joined hands with the Mahindras while BT has formed a JV with Bhartias of Jubilant for their foray into the long-distance telephony venture.
Sources said both C&W and Verizon are currently scouting for local partners for their respective ventures. It is expected that both of them would be tying up with an India partner for whom telecom is not a strategic business.
According to sources, C&W has not yet applied for long distance licenses but is going to approach the department of telecommunications shortly.
In addition to its global competitors C&W will also face stiff challenge from the four domestic players -- VSNL, Bharti, Reliance and BSNL.
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