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.