Foreign money floods big telecom operators

Doha-based Qatar Foundation Endowment has bought five per cent stake for $1.18 billion in Bharti Airtel.

Top telecom players had a good run with foreign investment this year. More than Rs 17,000 crore of foreign money came into the sector.

The top telecom company, Bharti Airtel, sold five per cent stake in its company to Doha-based Qatar Foundation Endowment for $1.18 billion (Rs 7,080 crore). British telecom major Vodafone, the parent company of Vodafone India, invested Rs 10,141 crore by buying out its Indian partners.

This came after foreign direct investment (FDI) limit rules for telecom were eased. Idea, too, had conducted roadshows for its qualified institutional placement this year, to raise as much as Rs 3,750 crore. Its existing partner, Malaysian telecom company, Axiata has already said that it will invest in the company to keep up its stake.

Industry expects this will spur investments from large players. While the top three players have to invest in the upcoming spectrum auction early next year, they will also spruce up their networks to make themselves ready for the next wave of telecom growth.

"The time is right for telecom companies to make investments if they have to stay ahead. Telecom companies have to be prepared because the No 1 and 2 places are severely contested by other challengers," said Alok Shende, principal analyst and co-founder of Ascentius Consulting. Airtel, which already launched its 4G services in four circles, is also spending on enhancing its network.

Source: http://cablequest.org/news/telecom-news/item/3901-foreign-money-floods-big-telecom-operators.htmlSource: http://cablequest.org/news/telecom-news/item/3901-foreign-money-floods-big-telecom-operators.html