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Written by Chandan Das   
Wednesday, 03 October 2007

Having quit the Indian telecom scene five years ago, US telecom giant and arguably the world’s largest group, AT&T is once again making an all-out bid to secure a foothold in the Indian market.  

Partnering Mahindra Telecommunications, AT&T has now sought a license to offer mobile phone services in 22 circles in the country. The company announced Monday that it was keen to re-enter the Indian market and offer local, national and long-distance mobile phone services in the country.

Incidentally Monday was the last day for receiving telecom applications by the Department of Telecommunications (DoT).

AT&T was operational in India till 2002 when it was called the Birla-AT&T-Tata that has now been re-christened to Idea Cellular. Presently, AT&T has entered 74:26 joint venture with Mahindra Telecommunications and is among the 200 bidders for the license.

Among the other names are HTMT, Tulip IT, Sterlite Group, Ispat Group, Omaxe, Ansals, Sify, Moser Baer, e-network Solutions and even the Dalmia group. Surprisingly, steel manufacturer Jindal Steel and real estate magnate DLF as well as Unitech; IT and media company Hinduja TMT; and electronics group Videocon also appear to be interested in offering services in the Indian telecom circuit.

Incidentally, overseas telecom companies have recently shown keen interest in the Indian sector and have been investing heavily in this country since the government elevated the limit of FDI in the Indian telecommunications sector from 49 per cent to 74 per cent. Vodafone’s move to take over of Hutchison Essar coughing up $10.9 billion in a keenly contested battle a year ago is ample evidence of this.

AT&T’s endeavor to enter the Indian telecom market is been watched with keen interest and is being described as a valiant one. So far, the telecom major has been concentrating on domestic US market and made a series of acquisitions, including the acquisition of Bell South early this year. The company has also sought license for mobile phone services in Qatar and is now waiting to begin its second innings in India.


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