MUMBAI: US-based Hughes Network Systems, a parent of India's Hughes Tele.com,
and Tata Industries said on Tuesday they have called off talks to combine their
fixed-line telephone businesses in India.
The two firms said in a joint statement "they are disengaging from
discussions on the combination of the basic telephony services in the circles of
Maharashtra and Andhra Pradesh".
No reasons were given for the move. The two parties had announced in August
the signing of a memorandum of understanding to merge the services.
Hughes Tele.com, whose shareholders also include Alltel Corp and India's
Ispat Group, runs a fixed line service in the western Maharashtra telecoms
circle, including Mumbai city, while unlisted Tata Teleservices, part of the
Tata group, operates services in the southern state of Andhra Pradesh.