Russian Government May Be Preparing to Take Stake in Indian Operator

Published on: 18th March 2009

The Russian government is reported to be preparing to take an indirect stake in an Indian mobile phone network, local media reports have suggested. According to a copy of the government budget, Russia has set aside 23.7 billion rubles "for acquiring shares in the joint venture Shyam Telelink," - a new Indian mobile phone network.

A source close to the deal told Kommersant the funds would go to buying a 20 per cent stake in Sistema Shyam TeleServices

The firm is controlled by Russia's Sistema, which has built up a 73 percent stake in the Indian operator. Sistema also controls the Russian and CIS operator, MTS.

The newspaper reported that the deal would enable Sistema to retain a majority stake in the Indian operator, and Russia would buy the shares as part of a plan to settle New Delhi's outstanding Soviet-era debt to Moscow.

Shyam Telelink aims to secure 35 million subscribers by 2012, which represents approximately 7% of the Indian market. Altogether Shyam Telelink now has spectrum in 22 Indian circles, covering 28 administrative states and 7 union territories with a population of approximately 1.1 billion people.

 

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