Viom IPO Reflects India's Fledgling Telecoms Infrastructure Industry

Indian telecoms tower firm Viom Networks is reportedly planning to raise US$1.5bn though an IPO in the first quarter of 2011, according to Bloomberg. The joint venture between Tata Teleservices and Quippo Telecom Infrastructure declined to comment on market speculations, but Viom admitted in August 2010 that it was evaluating options and could use an IPO as a means to raise funds in the next three years. CFW believes that tower sharing agreements would appeal to Indian mobile operators because of the ongoing price war that is forcing companies to reduce their operational costs and enhance their competitiveness. We therefore expect significant growth opportunities for India's telecoms infrastructure industry.

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