The uncertainty in the prices of property has made real estate companies to integrate into telecom. Developers want to tap the opportunities as telecom offers more revenue stability. Developers are lining up in droves to offer telecom services-or, more specifically, they are lining up to pick up licenses to do so. All the real estate biggies have put in approximately 500 applications for licenses to offer telecom services with the Department of Telecommunications (DoT). Companies that have applied for the license include DLF Ltd, unitech Ltd, Parsvnath Developers Ltd, Omaxe Ltd and Indiabulls Real estate Ltd. One of the most important reasons for this rush is that the real estate business has seen a slowdown in the past few months and telecom presents a lucrative business opportunity. According to Nitin A. Khandkar, senior vice-president, research, Keynote Capitals Ltd, Real estate companies are looking at the telecom business to de-risk their business. And to look in to the details of application, a committee has been formed by Communications and IT Minister, Mr. A. Raja. However, he has said the DoT will be selective in awarding telecom licenses.
Source: 12 Oct 07 livemint.com