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Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (9908)	12/4/1999 10:23:00 AM
From: Mohan Marette	Read Replies (2) \| Respond to of 12475

MTNL plans new businesses - To list on NYSE before the end of Jan 04-12-1999 13:32:24 Mahanagar Telephone Nigam Ltd (MTNL) is foraying into new businesses and has set aside Rs4-5bn for this purpose. Speaking to Reuters, Chairman and Managing Director of MTNL Srinivas Rajgopalan said, "We should have a surplus of over Rs10bn ($230 million) this year. After our own (capital) needs, we will be able to invest Rs4-5bn in new and existing ventures". MTNL is looking at investment opportunities in Internet ventures and fixed-line phone, cellular and domestic long distance telecom services. He said that tariffs of the company`s Internet services will be reduced by almost one-sixth.Rajagopalan. From December 13th) onwards there will be an across the board 15% reduction in Internet tariffs. New flexible packages, with unlimited usage are also likely to be introduced. According to Rajagopalan, MTNL board of directors have decided that MTNL would list its shares on the New York Stock Exchange (NYSE) before the end of January. Also, MTNL will continue with its GDR listing on the London Stock Exchange. MTNL`s net profit during the period July-September fell to Rs3.23bn from Rs3.75bn during the same period in 1998. Rajagopalan said MTNL`s proposal to take over the telecom networks of the Deparment of Telecommunications in Madras and Calcutta had not been approved by the government and a plan to offer phone services in Bangladesh was delayed. "The options are not many. There are two ways to go about new investments. One, we can invest in a project that has already been developed and there is an opportunity available," the MTNL chief said. "Alternatively, we could even look at new ventures. There are some Internet opportunities emerging in the south (India). For instance, Sun Television is starting an Internet service and we have told them we are interested in doing something with them."Sun TV, a Chennai-based television channel recently announced plans to invest in an Internet media business. (Probity)