Bloomberg News reports that Etisalat is in talks with India''s Reliance Communications for a possible strategic tie-up.

"Etisalat was "studying opportunities for M&A" with Reliance, India's second-biggest cellular phone operator, chairman Mohammed Omran told Bloomberg News in Sydney on Wednesday.

Etisalat received a license to operate in India in 2008 and plans to offer cellular phone services in the nation's 15 circles, or coverage areas, where it has a permit. "In terms of customers, we're at a very initial stage in India, and we're evaluating opportunities where we see value," Omran said.

Etisalat is also studying the resubmission of a proposal to raise its stake in Indian venture Etisalat DB Telecom Pvt., which was initially rejected by India's Foreign Investment Promotion Board, Omran said. The carrier wants to increase its stake in Etisalat DB Telecom Pvt. to 50% plus one share from 44.73%, the company said in February.