Tech Brief

Essar Teleholdings will buy BPL Communications in a transaction valued at more than $1 billion, the largest telecommunications merger and acquisition in India, the companies said Wednesday, adding that the merged company may combine with Hutchison Essar to create the country's third-largest mobile phone company.

"It's the intention of both parties to have BPL merge with Hutchison Essar's cellular services," BPL Communications said. Hutchision Essar is a joint venture of Essar Group and Hutchison Telecommunications International of Hong Kong. BPL did not specify the size or the price of the stake Essar would purchase in BPL.

Indian mobile phone companies with nationwide networks are buying smaller rivals, seeking a bigger share of a market that the phone services regulator forecasts will quadruple, to 200 million users, by the end of 2007.