Now an Arab telecom company enters Indian market
June 28, 2007 3:06am CST
Saudi Telecom, the largest phone company in Saudi Arabia, has acquired 25% stakes in Malaysia’s Maxis Communications for $3 billion to access the emerging markets of India, Malaysia and Indonesia. Maxis has a 74% stake in India’s mobile operator Aircel which has its services in 8 circles in Tamil Nadu and North-East. Saudi Telecom’s acquisition would give it an indirect stake of 18.5% in Aircel. Two years back, Orascom, an Egyptian telecom company acquired 19% in Hutch Tele giving it a 10% stake in Indian Hutch Essar. The deal was at that under government scanner owing to security concerns and the latest deal could also face similar screening. Saudi Telecom was looking at markets in Middle East and Asia as their domestic market was maturing. For Maxis also it will give the much needed funds for overseas expansion.