Through the investments, the Kuwait-based company is looking at foraying into the world's second largest telecom market, after China.  This comes at a time when new licencees such as Videocon's [Get Quote] subsidiary Datacom Solutions, Swan Telecom, Unitech and Essar Group's Loop Telecom are scouting for either investments or technological support.

While Datacom Solutions was already in discussions with global players such as AT&T and Etisalat, Swan Telecom and Unitech were looking at diluting 26 per cent equity.

Zain plans to be among the top 10 global mobile operators by 2011 and is assessing the Indian telecommunications arena for opportunities, the group's Chief Communications Officer Ibrahim Adel told Business Standard.

"Our interests range from strategic investments in existing operations, to the establishment of strategic alliances to facilitate products and services exchanges, to greenfield opportunities,'' he said.

The Indian market with over 1.1 billion population and telecom penetration of less than 30 per cent presents an interesting opportunity for most emerging market operators.

"Zain will continue its evaluation of opportunities in this regard and will advise all our stakeholders in a timely fashion on the results of any material event as per our requirements under the transparency and disclosure rules and laws of the Kuwait Stock Exchange," Adel said.

However, officials of most of the Indian companies declined to comment.

On Sunday, Zain Chairman Asad al-Banwan was quoted in international media as saying: "Naturally, Zain is looking at emerging markets like India and China as part of our expansion course."

Zain is looking out as it faces growing competition in Kuwait, its home market. The company operates in 22 countries and has a customer base of over 50 million. It has a market cap of around $32 billion and is one of the largest mobile operators in the world.