British Telecom to quit Indian cellular operations

NEW DELHI: The British Telecom (BT) and Bharti Enterprises have agreed on

terms for the sale of BT's equity in Delhi's cellular service company, Bharti

Cellular Ltd.

This is consequent to BT's strategic decision to realize value from

operations outside Europe to reduce debt levels and hence exit from their Indian

domestic telecom services operations.

Pursuant of BT's strategic move, Bharti has bought back the 44 per cent stake

that BT held in Bharti Cellular Ltd. With this move, BT exits all domestic

telecom services operations in India.

BT first invested in Bharti Cellular in February 1997 and raised its stake

holding to 44 per cent in June 1998. With 3,50,000 customers, Bharti Cellular

has emerged as India's foremost cellular company. Bharti Cellular Ltd. is also

amongst India's profitable mobile services companies.

According to Pat Gallagher, Group Director - Corporate Strategy and Business

Development, BT Worldwide "We are pleased to have played a part in the

Bharti Cellular success story".

According to Sunil Bharti Mittal, chairman & group managing director,

Bharti Enterprises "BT came to Bharti at a significant juncture of Bharti's

growth lifecycle. We have enjoyed our relationship with BT and are pleased to

acknowledge BT's contributions to Bharti Cellular and the Indian telecom

sector."

This move also comes close in the heels of its exit from its Internet and

VSAT businesses. Among BT's remaining operations in India are the International

businesses that include Mahindra-BT software development business and the BT /

AT&T Concert joint venture.