SingTel scouting for JV partner

NEW DELHI: SingTel is scouting for a JV partner in India to provide telecom services to corporate customers. Surprisingly, it is not partnering the Mittals of the Bharti group with whom it has several JVs in the telecom space. SingTel’s investments in the subsidiary would be routed through SingTel Australia Holdings, where the telecom major would hold a 74 % stake. The balance 26 % would be offered to its Indian partners.

The JV proposes to provide internet and telecom services such as IPLC (International Private Leased Circuits), voice and data services, ILD and NLD. However, these would only be for corporate customers. The JV will also set up internet exchange services in India, international ethernet services, virtual private networks, international long distance and domestic long-distance voice and data services.

According to sources, the Indian partner has not yet been finalised. However, they say that it has already filed an application with the Foreign Investment Promotion Board (FIPB) in this regard. Significantly, the JV has informed FIPB that it will not ‘engage’ in providing retail customers with intenet, broadband or mobile/fixed telephony services. The Bharti group, meanwhile, has already given a no-objection certificate for the proposal.

The $8.4-billion SingTel, which currently holds 15.6% in Bharti Airtel, may end up as a competitor to Bharti in various enterprise communication services. The new venture may also give competition to other players like Reliance ADAG, VSNL, Tata Teleservices and Tulip IT, which also provide managed telecom services for enterprises.

Apart from Bharti Airtel, the Singapore-headquartered company also holds 32.81% in Bharti Telecom, which acts as a VSAT and internet service provider. Besides, SingTel also operates through Bharti Aquanet, a JV registered in Mauritius. Bharti Aquanet manages Network i2i, a 50:50 JV set to run an under sea fibre optic cable system. The submarine cable sysem may be used to route the voice and data traffic by the new SingTel venture.

SingTel currently has six offices in major Indian cities including Delhi, Mumbai, Hyderabad, Kolkata and Chennai. The company operates across USA, Europe and Asia Pacific and employs about 20,000 people with a net profit of $2.42 billion. It first started operations here as a liaison office in December 1996. In January, 2001, Singapore Telecom India was established as a fully-owned subsidiary of SingTel.