Essar Seeks Telecom Licence For BPL

Essar, a 33 percent partner in Vodafone-Essar, has apparently filed for a telecom licence under the name ShippingStop.com, a fully owned subsidiary of BPL Mobile, reports CNBC-TV18. Essar has direct investments of 9.9 percent in BPL, while funds allegedly close to Essar have stake in the co, and hence there appears to be a conflict of interest with Vodafone-Essar, and also something for the TRAI to look at, if Essar has holdings in both co’s, even though their holding in BPL is less than the limit of 10 percent. The ownership of BPL is also under arbitration. The Essar management, and Asim Ghosh – head of Vodafone Essar, has declined comment to CNBC-TV18, which has more on the issue. PTI adds that last year, Hutchison-Essar (now Vodafone-Essar) had acquired BPLs licenses for Maharashtra, Tamil Nadu and Kerala, but did not get Mumbai because both co’s were operating in that circle. Other companies like Parsavnath Developers, Swan Telecom, Datacom Solutions, S Tel, Idea Cellular, Cheetah Corporate Services, Bycell Telecom, Spice Communications, HFCL Infotel have all applied for Unified Access licences.

I’m just wondering – how much of this rush for licences is about providing services (which requires huge infrastructural investment), and how much of it is actually spectrum grab?

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