Hexacom India Limited (Merged with Bharti Airtel Limited)

active

Hexacom India Ltd. Telecom was awarded a 10 year cellular service license by the Department of Telecommunication, on behalf of government of India, for the telecom circle of Northeast and one for Rajasthan. Hexacom India was originally owned by Shyam Telecom (21%), the state owned Telecommunications Consultants India Ltd (TCIL) (30%), Mobile Telecommunications of Kuwait (24.5%), and Telesystem Mauritius (24.5%). TCIL took the stake previously owned by the Department of Telecommunications, Government of India. The company had since undergone several ownership changes. In 2004, Hexacom operations were consolidated into Bharti Tele-Ventures Limited(BTVL) after BTVL acquired 67.5 percent stake in Hexacom from Shyam Group for Rs 430 crore (US$ 98 million). BTVL in turn was jointly owned by Bharti Group (45.9 percent) and Singapore Telecommunications Limited (SingTel) (30.84 percent). In March 2006, BTVL was renamed Bharti Airtel Limited (BAL). The company originally committed to pay US$558.7 million in license fees over a ten year period. The company paid US$10.2 million for the first installment of the license fee plus almost $700,000 in penalty payments for delay in 1996. Hexacom, like many other companies, 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. Hexacom was obliged to pay US$23.2 million prior to switching. The company launched its cellular services under the name Oasis Cellular in Rajasthan in June 1997. In September 2004, Bharti Hexacom launched Airtel mobile service in Rajasthan. 2004 and 2005 - investment and connection figures consolidated in Bharti Airtel Limited See http://www.magindia.com/manarch/news/man9845.html, "Hexacom To Invest Rs 50 Cr In Rajasthan Cellular Market ( October '1,2002, FE) In October 2002, the company announced plans to invest $10.4m (Rs 50 crore) to enhance the company’s existing switch capacity as well as put up new ones in the state.