Mumbai, May 15: State-owned telecom company Mahanagar Telephone Nigam Ltd (MTNL) has readied a war chest of Rs 300 crore to finance its overseas growth ambitions for the current fiscal.
The company is keen to extend its geographical reach through potential acquisitions and by bidding for new licences in developing countries, Ms Anita Soni, Director of Finance, told Business Line on the sidelines of a news conference here on Friday.
However, she declined to talk about specific countries that MTNL is targeting. Company officials have indicated that the telco is exploring opportunities in geographies such as Tunisia.
“Though Tunisia is an interesting market, it is highly saturated. Moreover, some of the terms in the licence are detrimental to our commercial interests,” the official said, adding that the matter would now be placed before the board of directors for further consideration.
MTNL has a history of bidding for licences abroad, although its record on this front is mixed. In the past few years, the company lost out on its bid in Saudi Arabia and Kenya. Currently, MTNL provides telephony services in Nepal and Mauritius.
Capex spend
For this fiscal, the company will spend Rs 1,725 crore as capex, 32.2 per cent higher than the amount it spent last year. This includes investments earmarked for the 3G spectrum auction, said Ms Soni. Though MTNL has been allotted a block of 3G spectrum in Delhi and Mumbai, it is not required to participate whenever the bidding process for private mobile operators starts.
However, it will have to pay for the spectrum at a price equivalent to the highest bid received in the respective service areas during the bidding process.
Mr R.S.P. Sinha, Chairman and Managing Director, also hinted that the company could look at de-merging its tower business. “If it is beneficial to us, why not! We may hive off the tower business, but we will require board approval for that. We have not taken it up with them yet but will soon ask them to consider the matter,” he said.
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