New Delhi: After Mahanagar Telephone Nigam Ltd’s (MTNL) entry into Nepal and Mauritius, state-owned Bharat Sanchar Nigam Ltd (BSNL) is eying acquisitions of telecom companies abroad to gain a foothold in the global market.
“We are looking at expanding our business overseas through acquisitions of telecom companies abroad,” company’s chairman and managing director (CMD) Kuldeep Goyal said.
The criteria of acquiring a company would depend not only on the due diligence undertaken by it but also its strategy on both organic and inorganic growth driving revenues.
Global ambition: BSNL’s CMD Kuldeep Goyal says the firm, along with TCIL, may bid for a telecom licence in Tunisia. Harikrishna Katragadda / Mint
Goyal said BSNL’s articles of association empower it to bid for telecom licences abroad and acquire companies provided they fit into its growth parameters and are of the right valuations. BSNL along with Telecommunications Consultants India Ltd (TCIL) may bid for a telecom licence in Tunisia, he added.
Analysts said high competition, a fall in earnings and expectations of a growing global telecom market are sending companies to other geographies.
As for BSNL, it is the capacity utilization that lies unused, along with the pressure to gain first-mover advantage in newer geographies, they said.
MTNL already operates in Mauritius and Nepal. Though it lost in several bidding processes in countries such as Saudi Arabia and Kenya recently, it is still keen on African and the West Asian markets. A BSNL official said these two regions are target for them also.