BT & AT&T gears up for Indian telecoms market

Stuart Corner
Monday, 13 November 2006 17:15

IT Industry - Strategy

Global telecommunications rivals, BT & AT&T are both ramping up take advantage of the Indian Government's recent relaxation of prohibitions on foreign-owned companies operating as telecommunications carriers.

AT&T recently became the first foreign telco to secure a telco licence under the Indian government's revised policy on foreign direct investment (FDI) allowing up to 74 percent foreign ownership, enacted in November 2005. It has now announced the formation of a new joint venture AT&T Global Network Services India (AT&T India) with Mahindra Telecommunications Investment.

According to John Finnegan, senior vice president AT&T Global Sales "While AT&T has already been operating a successful India business for more than six years in partnership with VSNL, this new telecom licence will enable us to further strengthen our commitment to our global customers wishing to operate here. We look forward to introducing an even broader range of advanced networking services and solutions more rapidly, and to fully integrating India into AT&T's global network that now serves 97 percent of the world's economy."

Virgil Palmer, chairman of the AT&T Asia Pacific Regional Advisory Council and head of Global IT Sourcing Management Office for international industrial gas giant Air Products and Chemicals, said: "We are extremely pleased that we can now work directly with AT&T. We are confident that it will lead to significant improvements in quality and reliability, as well as simplifying key areas such as negotiating, contracting and billing arrangements. India is a high-priority market for just about every global MNC. And I believe that this will be a major factor in helping to attract further foreign investment and expansion into India."

Now, BT has announced the formation of a joint venture in India with oil and gas, food and services business conglomerate Jubilant Enpro. BT will hold a 74 percent interest (paid for with $US1.6 million in cash, while Jubilant Enpro holds 26 percent in the new company, BT Telecom India Pvt Ltd.