India’s Mahanagar Telephone Nigam Limited is quietly looking for a controlling stake in the state-owned TelOne which could in turn give it a breakthrough into the lucrative mobile telephone market through TelOne’s NetOne.
According to the Financial Times MTNL, as the company is known, is looking for a 51 percent stake in TelOne. Under the government’s indigenisation plan it can only acquire 49 percent leaving the 51 percent to locals but the rule has been broken on a number of occasions.
MTNL already has operations in Mauritius but failed to get a mobile licence in Kenya. The acquisition of the Zimbabwean operator would give it the breakthrough in Africa that it is has been hunting for.
“It fits well with our plans to enter the African cellular turf in the near future,” a senior MTNL executive was quoted as saying.
South Africa’s MTN, one of the largest mobile phone operators in Africa, was said to be one of the major contenders for the NetOne stake. MTN already operates in 21 countries in Africa and the Middle East
MTNL which was founded in 1911 has ambitions plans and aims to become a Fortune 500 company.
Another Indian company, Essar just won a controlling stake in the Zimbabwe Iron and Steel Company (ZISCO). It bought 54 percent of Zisco.
(14 VIEWS)
