MTN and a host of international telecoms companies are likely to have welcomed a decision by\u00a0India’s Telecom Commission to back proposals which would enable foreign operators to take full ownership of local mobile carriers.<\/p>\n
Last week, the Indian commissions approved the proposal to raise the cap on foreign direct investment (FDI) in the telecom sector to 100% from a current high of 74%.<\/p>\n
International operators had been limited to a 49% holding \u2013 rising to a maximum 74% with special regulatory approval from the Foreign Investment Promotion Board (FIPB).<\/p>\n
A senior government official told Reuters last week that India’s TC, the highest regulatory body,\u00a0will send its recommendations to the Department of Industrial Policy and Promotion (DIPP).<\/p>\n
The DIPP after consulting other ministries will send a final proposal to be approved by the federal cabinet, the official added.<\/p>\n
Africa’s largest\u00a0telecoms\u00a0operator MTN Group<\/a>\u00a0is believed to be in detailed discussions for a potential acquisition in India with\u00a0Reliance Communications<\/a>, the\u00a0company\u00a0it tried unsuccessfully to merge with in 2008, according to Bloomberg.<\/p>\n Reliance Communications, which is owned by billionaire\u00a0Anil Ambani<\/a>,\u00a0boasts a customer base of over 130 million, including\u00a07.2 million 3G customers and 29.4 million data customers.<\/p>\n MTN has also previously held talks with Bharti Airtel for a potential R24 billion merger deal in 2009, which was called off.<\/p>\n The SA operator has declined to comment on the matter.<\/p>\n Media reports noted that\u00a0a senior team from MTN visited India, with subsequent meetings taking place in Dubai. The discussion framework included MTN taking control of Reliance, with Ambani keeping a minority stake in MTN.<\/p>\n Last month (June),\u00a0MTN<\/a>\u00a0missed out on one of the two lucrative telecommunications licences up for grabs in Myanmar.<\/p>\n In April, MTN CEO Sifiso Dabengwa said the group\u00a0could spend up to $8 billion on an acquisition.<\/p>\n \u201cGrowth through M&A is still an important part of our strategy,\u201d he said.\u00a0\u201cAnything between $4 and $8 billion is something that we could look at.\u201d<\/p>\n Shares in MTN declined R6.13, or 3.34% to R177.51 at close of play on the JSE on Friday (5 July), having reached an all time best figure of R187.79 at the start of July.<\/p>\n Shares in MTN are up R32.91 or 22.76% over the past year, giving the group a market cap exceeding R334 billion.<\/p>\n MTN misses out on Myanmar licence<\/strong><\/a><\/p>\n MTN shares test record highs<\/strong><\/a><\/p>\n Fitch warns MTN on SA market<\/strong><\/a><\/p>\n MTN courting India acquisition: report<\/strong><\/a><\/p>\n MTN boosts revenue, subscribers<\/a><\/strong><\/p>\n Phuthuma Nhleko rejoins MTN<\/strong><\/a><\/p>\nMore on MTN<\/h3>\n