Bharti Mobinet (Merged with Bharti Cellular Limited)

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Bharti Mobinet, formerly called Skycell Communications Ltd., has a 20-year cellular service license for the telecom circle of Chennai (formerly known as Madras) which was valid from November 30, 1994. The company was originally owned by Crompton Greaves (40.5%), Bell South International of the US (24.5%), Millicom International Cellular of Luxembourg (24.5%) and DSS Enterprises of Delhi (10.5%) in 1998. As of December 2001, the company was owned by Bharti Televentures (95.33%) and the remainder by DSS Enterprises of Delhi. In 2003, Bharti Mobinet Limited merged with Bharti Cellular Limited, subsidiary of Bharti Tele-Ventures Limited. The government of India divided the country into 24 telecom circles to award cellular licenses in two phases. Phase I entailed the issuance of two licenses in each circle for the cities of Mumbai (formerly Bombay), Delhi, Calcutta and Chennai (formerly Madras). Phase I tenders were issued in 1992. Phase II entailed the issuance of two licenses for each of the remaining 20 circles. Phase II tenders were issued in 1994. For each circle, the state-owned operator Bharat Sanchar Nigam Limited retained the right to enter as the third operator in all areas of India except Delhi and Mumbai. Tender evaluations were reviewed and companies were selected based on two criteria: technical and financial. Of the qualified bids, licenses were awarded to the highest bidders. The company committed to pay an annual fee of US$1.9 million for the first three years and $140 per subscriber per year thereafter. However, like many other companies, Skycell faced difficulties in paying its license fees. To reduce the financial burden placed on the telecom operators, a new revenue sharing license fee structure was introduced with the New Telecom Policy in July 1999. This payment structure enabled all telecom license operators in 1999 to switch to a new 15% revenue sharing policy, provided they complete their payment on accumulating dues by January 31, 2000 and that both operators in the circle agree to switch over to the new system. SkyCell Communications launched its services in September 1995. The company offered it post-paid and pre-paid cellular services under the AirTel and Magic brand names, respectively. 2004 - figures merged with Bharti Cellular Limited Sent fax Mr. P. H. Rao 91 44 2822 4503/04 on 7/18/03