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India,Nepal : SBI CAPITAL to guide MTNL on its new investment into its JV Firm in NEPAL

July 17, 2014

The State-owned telecom services provider Mahanagar Telephone Nigam Limited (MTNL) has assigned SBI Capital Markets, a wholly-owned arm of the Indian banking giant State Bank of India, to make assessment on the viability of investments into United Telecom Limited (UTL), the arm of MTNL in Nepal.

As per the direction of the SBI Capital, MTNL will take decision on its further investments into UTL, the Indian telecom firm s joint venture business with Telecommunications Consultants India Limited (TCIL), Tata Communications and Nepal Ventures Private Limited (NVPL).

MTNL owns a stake of 26.68% in UTL, becoming a majority shareholder of the JV company. A stake of 53.32% is equally shared between TCIL and Tata Communications, while the rest stake of 20% is owned by NVPL.

UTL, which was incorporated in 2001, has also strategy to obtain a GSM licence to deliver mobile services in Nepal. Accordingly, MTNL together with SBI Capital will make assessment on the feasibility of piercing into the mobile telephony market, control of which is now with the state-owned telecom company Nepal Doorsanchar Company Limited (NDCL) and NCell.

MTNL s Nepalese operation has already expanded to 44 districts out of almost 75 districts in the country. Currently, UTL has a market share of just 2% in voice telephony business segment and has a subscriber base of around 500,000.

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Source: TendersInfo (India)

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