Business

Bharti to buy out Alcatel from JV

  • HT Correspondent, Hindustan Times, New Delhi
  • |
  • Updated: Feb 05, 2013 10:20 IST

Bharti Airtel will buy out entire stake of Alcatel-Lucent, a leading equipment supplier headquartered in Paris that manages its fixed-line and broadband network. Financial details were not disclosed.

The two companies had formed a joint venture called Alcatel Lucent Managed Network Service India Ltd in 2009, in which Bharti owned 26% stake.

Bharti had given a $500 million contract to the company to manage its fixed-line and broadband networks. The contract was to end in April 2014.

The company announced that Shishir Kumar, who is currently chief executive for northen region, will be the new chief executive of the company.

Once Bharti controls the company, it plans to invite other telecom operators for equity participation.

“It will operate independently of Bharti and going forward, will invite other operators to join in with equity participation and bring the management of their broadband and fixed line networks under its fold,” a statement issued by the company said.

There are few companies in the field of fixedline broadband.

 

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