Tata Teleservices is exploring the possibility of picking up stake in Dishnet DSL. Vijay P Bhatkar, chairman, Dishnet DSL, said, the company was in discussion with Tata Teleservices for acquiring a stake in Dishnet. He however, refused to comment on whether it would be a majority or minority stake.

Bhatkar was addressing the media on the sidelines of Infocom 2003. A Tata Teleservices spokesperson in Mumbai said there is no agreement at this point of time.

Dishnet already has a revenue sharing agreement with Tata Teleservices for broadband services, which would be extended to CDMA services as well.

Bhatkar said, as a logical extension Dishnet was also discussing whether the arrangement could be extended to VSNL and Tata Power.

The arrangement with Tata Teleservices entailed sharing infrastructure and common planning of network infrastructure for CDMA and broadband services. A joint working group between the two companies has also been formed.

World over, DSL connectivity is offered by an Internet service provider in conjunction with a telecom company.

Moreover, Dishnet, which had put its undersea cable project from Chennai to Singapore on the backburner is now planning to revive the project.

The project entailed an investment of around Rs 1,500 crore (Rs 15 billion). Dishnet was scouting for foreign investors for the project.

Bhatkar said, Dishnet was also talking to Tata Teleservices for picking up equity in the project. The undersea cable project would be under a separate company.

Industry sources said, it made sense for Tata Teleservices to pick up equity in the undersea cable project, especially after Reliance acquired international undersea telecom operator, Flag Telecom.

Dishnet may also tap the capital market for funds. Bhatkar said, the company had earlier decided to go in for an initial public offering, but market conditions were not conducive.

Now, with the stock markets looking up, Dishnet could explore the option to part finance the undersea cable project.