The Shyam Group and Spanco Telesystems & Solutions, one of India’s leading telecom systes integration and IT services companies, have entered into a pact with Punj Lloyd to acquire the latter’s interests in Spectranet, its ISP division. A joint venture, called Citycom Networks, has been formed for this purpose.
The deal is expected to close over the next few months and is subject to statutory and regulatory clearances.
The new promoters of Spectranet intend to create a neutral telecom infrastructure for next generation wire line and wireless broadband that promises exciting possibilities for telecom operators and ISPs.
An investment of Rs 500 crore has been envisaged for the first phase of expansion of the Spectranet network from the existing 3 to 10 cities, adding Chennai, Jaipur, Chandigarh, Ahmedabad, Kolkata, Pune and Hyderabad to the network.
According to Kapil Puri, chairman, Spanco Telesystems, “This joint venture to acquire Spectranet aligns with the business model and expansion plans of our company. This will mark Spanco’s entry into telecom networks operations, thus presenting an opportunity to leverage the current mobile telecom and broadband boom.”
“We see next-generation wireline, broadband and wireless networks playing a key role in the changing socio-economic structure of the India. This acquisition is our endeavour to propel and lead this transformation in India,” said Udit Mehrotra, director Citycom Networks.
Source: Economic Times