A lot is happening over expectations of tower sale. Talks have been going on for many months, a deal has not been consummated yet but there is talk now that Reliance Communication could close to a deal, GTL Infra has been trying to cobble together something.
However, in an exclusive interview to CNBC-TV18, Sunil Kanoria, director of VIOM Networks says there is lot of uncertainty in the telecom operator segment which is the challenge. "The valuation of a business depends on the value the present cash flow and what can be assumed for the future," says Kanoria, and, hence, adds there is lack of sustainability for the long-term infra projects in the sector. However, he says, "We will evaluate the opportunities in the market with the ongoing tower sale buzz." Q: Are you in the race for either assets of GTL or either Reliance Communications, have you had any preliminary discussions at all? A: We always look forward to consolidation in the sector. We would be open to look at openings in case it adds value to our business and therefore, we will evaluate the opportunities in the market. Q: Which one at this point looks like a more valuable asset to acquire, purely from an impartial view of adding value? A: It is an infrastructure related business and therefore, the key thing that the business requires for sustainability. The value lies in where the towers are located, who are the kind of tenants, what is the quality of the tenants, what is the kind of cash flow and the rentals coming in, etc. In the past, the sector has been badly hit because it was more perceived on per tower valuation and that is what brought many businesses into challenges. It is long-term infra business and if there are good cash flows and tenants, the business can continue for very long time. There is lot of uncertainty in the telecom operator segment which is the challenge. There is still uncertainty, 2G scam is hovering around us. Hence, the sector is not clear about which operator will survive and which wonDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
