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France Telecom finalises joint venture with Moser Baer

Thomas K. Thomas
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New Delhi, Feb 26

France Telecom-owned Orange Business Services has finalised a joint venture partnership with Indian storage devices manufacturer Moser Baer Ltd to foray into the long distance telephony segment. The company is awaiting clearance from the Department of Telecom for obtaining the licence.

Orange Business Services has been offering enterprise communication solutions to large multinationals in India. However, it has now applied for a licence after the Government made it mandatory for companies to obtain a national long distance licence for offering IP-based services such as virtual private network.

The company is not expected to foray into the retail long distance telephony segment. France Telecom is one of the largest telecom service providers in Europe. It had earlier exited from the Indian market after it sold out its stake in BPL Mobile.

However, recently, it had acquired GTL’s IT unit in a bid to enhance its offering in the country. Senior DoT officials said that the company’s application was being processed. When contacted Orange Business Services said, “India is a key market for Orange Business Services and we will take all essential steps that will help us serve better our multinational customers in this country. We are looking at expanding our licence portfolio in India and will make an announcement at an appropriate time.”

Indian enterprise communications segment has become highly competitive with the entry of global telecom companies including AT&T, BT and Cable & Wireless. While AT&T and BT have already launched their services, others including Verizon are in the process of obtaining Government clearances. Orange Business has already got the permission from the Foreign Investment Promotion Board.

There are also Internet service providers including Tulip IT and Sify fighting for the same pie. Indian telecom players Bharti Airtel, Reliance Communication and Tata Telservices are also in the fray as large multinational companies expand their business network into the country.

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