Tata to buy stake in SA telecom firm

India’s Tata group is picking up a 26% stake in InfraCo, a new South African telecommunication company, a news report said on Tuesday.

InfraCo will offer long-distance telephone services and will build and operate marine telecom infrastructure.

InfraCo will require an investment of about $350-million to launch its operations, of which the Indian business conglomerate will invest $60-million through its international calls provider Videsh Sanchar Nigam Limited (VSNL), the Economic Times reported quoting sources.

The South African government has decided to provide $225-million while the remainder will be funded through debt

The deal is the Tata group’s second telecom venture in South Africa.

Last year, VSNL picked up a 26% stake in a secondary network operator telecom which has a licence to provide all telecom services except mobile telephony.

Source- http://www.mg.co.za

Technorati : Mobile, South Africa, Tata, VSNL
Ice Rocket : Mobile, South Africa, Tata, VSNL