New Delhi, Jun 18 (UNI) Leading communication solution provider Shyam Group and IT services firm Spanco Telesystems&Solutions have formed a joint venture (JV) to acquire Punj Lloyd's internet service provider unit Spectranet.
The JV named Citycom Networks will invest Rs 500 crore in the first phase of expansion of the Spectranet network from the existing 3 to 10 cities, adding Chennai, Jaipur, Chandigarh, Ahmedabad, Kolkata, Pune and Hyderabad to the network.
''This joint venture to acquire Spectranet aligns with the business model and expansion plans of our company. This will mark Spanco's entry into telecom networks operations, thus presenting an opportunity to leverage the current mobile telecom and broadband boom,'' Spanco Telesystems Chairman Kapil Puri said.
The deal is expected to close over the next few months and is subject to statutory and regulatory clearances, a statement said without disclosing the acquisition amount.
The new promoters of Spectranet intend to create a neutral telecom infrastructure for next generation wire line and wireless broadband that promises exciting possibilities for telecom operators and ISPs.
''We see next-generation wireline, broadband and wireless networks playing a key role in the changing socio-economic structure of the India. This acquisition is our endeavour to propel and lead this transformation in India,'' Citycom Networks Director Udit Mehrotra.
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