• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest
• The New Manager

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

Mumbai, Sept. 10 The board of Idea Cellular on Monday decided to demerge the passive infrastructure of the company into a wholly owned subsidiary.

In July, the board had approved the formation of a separate wholly owned arm for a possible transfer of its GSM infrastructure business.

The AV Birla group company is following the trend among wireless telephony operators in the country to separate their infrastructure operations, thereby allowing for infrastructure sharing among themselves, which in turn leads to reduction in capital costs.

Reliance Communications and Airtel have already demerged their infrastructure operations.

‘Infrastructure’ would consist of tower, generator and other non-core telecom network related assets of a wireless operator.

Such a demerger also helps companies to monetise their assets.

RCom recently placed a 5 per cent equity stake in its infrastructure business with private equity investors for Rs 1,400 crore.

The demerged companies can also now compete with pure-play infrastructure companies such as Essar Telecom Tower & Infrastructure and GTL Ltd.

More Stories on : Restructuring | Telecommunications

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
e-governance scheme to help spread of BPOs in rural areas

Copyright © 2007, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line