Singapore-based telecom group, SingTel has initiated talks to purchase the Bharti Group?s stake in its international long-distance telephony business.
Bharti Airtel holds 9.9 per cent stake in the venture, which offers communication services to multinational companies in India. SingTel?s move has come over the government?s recent decision to allow 100 per cent foreign direct investment in the telecom sector.
The international long-distance telephony business was established in 2007 with the Department of Telecommunications making it mandatory for companies to have a separate licence for offering services such as virtual private network and leased lines.
SingTel Australia Holding owns a majority stake in the company. Bharti was roped into the venture as SingTel?s Australian subsidiary wanted to offer international connectivity to its corporate clients in India. The move enabled SingTel to compete with players such as AT&T, BT and Orange Business Solutions.
The talks are in advance stage and SingTel is expected to approach the Foreign Investment Promotion Board for approval
