The company has earmarked over $ 400 million for the acquisition of the company. Zee is also setting up a company in India called Agrani which is expected to provide satellite telephony services in India. Refuting reports that Zee has lost out to Crag McCaw of Teledisc in buying out the majority stake in ICO Global, he said the company is also toying with the idea of bidding for Iridium network which like ICO has failed to make money and has filed for Chapter 11 bankruptcy laws on the US.

Chandra came down heavily on the government apathy, saying that due to absence of any support from the Indian government, Indian companies are facing difficulties in acquisitions abroad. Zee has hired Donaldson Hefkin and Jenrette as its advisor to the project which is also advising Iridium on its financial restructuring.

Videsh Sanchar Nigam Ltd is a shareholder in both ICO and Iridium and is planning to enter the segment in a big way by next year. Among other Indian corporates, Reliance Industries has also announced its plans to launch a satellite telephone network in the country.

Unlike ICO or Iridium, which own multiple satellite both Reliance and Agrani of Zee are concentrating to provide sat phones only to Indian consumers via two or three satellites. Zee has also announced that its satellite phone tariff would be far lower than what is being offered by the present operators.