The Tatas are planning to bid for a national long distance (NLD) telephone licence to offer STD services across the country. Tatas are the second group in India to apply for a NLD licence, after the Reliance group.

"We are keen on becoming a NLD services provider in the country soon. However, we are still to set a time-frame to begin the services. The idea is to foray into all major telecom areas available in the country," said Kishore Chaukar, managing director of Tata Industries.

Going by present expectations, a domestic telecom company requires at least Rs 1,500-2,000 crore to roll out STD services across the country in a phased manner, according to analysts. "We will make enough investments as and when we enter the arena," Chaukar said.

"We are planning to submit our application to the Union government for a NLD licence. However, I cannot comment on which company would come out with the service," he added.

Interestingly, many corporates such as BPL, Shyam Telecom etc are reported going slow with their plans in the NLD segment. Though the segment was opened up in August 2000 for private players, major domestic companies did not apply for the NLD licence till December 2000. This was mainly because of lack of transparency and the stringent policies attached to the NLD business.

The Tatas have already forayed into sectors like mobile phone, basic telecom services and internet in a big way. According to Chaukar, the group has so far invested about Rs 2,500 crore in the telecommunications segment.

"We are expanding in a big way with additional investments," he added. The Tatas are planning to expand its cellular services either through acquisitions or new licences.

The Birla-Tata-AT&T combine has decided to become a fourth cellular operator in major locations. The group has also applied for basic licences in about 15 locations.

The Batata combine is also in the process of appointing a couple of merchant bankers as advisors for raising funds through an initial public offering. The company will utilise the funds for acquisitions and expansions in the country.

The combine has already acquired 100 per cent stake in RPG's Madhya Pradesh cellular circle and is in the race for picking up a stake in RPG's Chennai circle as well.