Unitech has raised INR12 billion (USD267 million) for its telecom venture from a syndicate of public sector banks led by Punjab National Bank and Canara Bank, Indian news source The Economic Times is reporting. Unitech Wireless, the group’s telecoms arm, plans to use the funds to buy telecom equipment for the first phase of its rollout; the company has already initiated the process to procure equipment from vendors including ZTE, Huawei, Alcatel-Lucent, Nokia and Ericsson. Unitech has been allocated spectrum to operate in six circles as part of its pan-India GSM licence, and has announced that it expects to invest INR200 billion in its telecom business over the next three years. The company has confirmed it also considering sharing infrastructure with existing telecom players in the country.

Additionally, Norwegian telco Telenor is understood to be ahead in the race to acquire a stake in the venture after Unitech shortlisted three players in July 2008; a decision is expected in the next two weeks. Unitech plans to raise a major chunk of initial funds through the stake sale and has also stated that it plans to sell no more than 26% of the venture, but it is understood that potential foreign partners have asked for a majority stake.

Source:telegeography