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August 19, 1997

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Bharti to begin MP operation by November

India's first private-sector land-line basic telecommunications service will become operational in the state of Madhya Pradesh by November.

Bharti Telenet, an Indo-Italian joint-venture company which has been awarded the work, announced this in New Delhi recently.

Awarding the Rs 6.3 billion worth of contracts for equipment supply to world majors in the telephony sector, Bharti Telenet said it would invest Rs 40 billion spread over 15 years to build a communications network throughout Madhya Pradesh.

Bharti Enterprises Chairman and Managing Director Sunil Bharti Mittal told reporters that the Rs 7 billion funds needed for the first phase are available through equity and loans. Bharti Enterprises is the parent company of Bharti Telenet.

Indore "would have the first private telephone service", Mittal said. "Bhopal, Gwalior and Jabalpur would be networked within the next 12 months," he claimed.

In the first phase, spread over three years, Bharti Telenet has targeted to connect 225,000 customers, covering 30 towns and cities in the state, he said. Eleven per cent of the lines being installed in this phase would be in rural areas.

Bharti's basic telephony would be backed by 'code division multiple access' or CDMA base 'wireless in local loop network' to be set up by Motorola at a cost of Rs 1.7 billion.

- Compiled from the Indian media

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