The governments of both Vietnam and India are reportedly to list their state-owned telcos and will initiate IPOs - despite the weak global economic outlook.
Last week, India’s Telecommunications Minister, A. Raja, said the government will pursue a share offering of state-owned Bharat Sanchar Nigam Ltd (BSNL) despite the poor global economic outlook and ongoing opposition from the operator’s workers’ union.
BSNL’s listing, valued at US$10 billion, is expected to be India’s bigest-ever share offering and is part of the government’s ongoing ‘disinvestment’ programme to privatise state-owned assets.
BSNL is one of two incumbent local telcos, and operates the fixed infrastructure outside of New Delhi and Mumbai. The second incumbent, MTNL, operates networks in the country's two biggest cities.
The Indian government is under pressure to raise money to fill a growing deficit that has been caused by the payment of subsidies to insulate consumers from escalating global oil prices. The BSNL IPO will cover a major part of that shortfall.
However, despite the company's offer to sell shares to BSNL staff at heavily discounted rates, trades unions at the carrier are strongly opposed to a public auction.
» This story continues on page 2. Please click here to read
please sign in to rate this article
43668