Rank 44 - Escotel Mobile Communications

This
company’s strength lies in excellent funds management and streamlined
operations across its three circles. It is probably the only cellular company,
which has done well despite the fact that none of its two parent companies–Escotel
(Indian) and First Pacific (foreign)–are big telecom names.

 

It does not have a metro or a class "A" circle with
it; nor does it have a foreign partner, who is interested to invest in India for
strategic reasons. Like others, however, Escotel, wants to take the M&A
route to be a major player in Indian telecom.

After little progress in its "reported" merger
talks with Modicom, it now plans to go for acquisition of at least one
"A" category circle and a few "B" category circles. It has
already appointed ABN AMRO bank as an adviser. Operating in Haryana and UP
(West), the company is planning to consolidate in North India. It is likely to
add some more north Indian circles (Punjab and UP-East) to its 1.6 lakh
subscriber network. To part-finance the Rs 600 crore network expansion and
acquisition plan, it is considering going public next year.

With a strong subscriber growth–in 1999-00, the company almost doubled its
subscriber base from 69,000 to 1.35 lakh–and modest revenue growth of 43.4
percent, it is now in a strong position. It has also started experimenting with
GPRS. It is expected to be the third operator and the first circle operator to
launch GPRS-based data services.