Consumer durables major Videocon’s Leo Communications is forming a JV with $88 bn US telecom giant Verizon to offer international long distance (ILD) services in India. The initial investment in the venture is estimated to be over $30 mn. Verizon will hold 74% in the JV, while the rest will be held by Videocon. Videocon is likely to be more of a financial partner in the JV and would eventually sell out in the long run.
India is a lucrative market for telecom companies and tele-density is just around 16%. The wireless business is growing very fast and the number of people calling overseas from India is rising fast every year. The annual ILD outgoing minutes from India were 2500 mn in 2005-06 and are expected to rise to 3500 mn by March 2007.
Read more on this in The Economic Times.
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