|
| DoCoMo may raise stake in TTSL, hopes returns in next 3 yrs |
| Anjana Das/PTI / Tokyo Aug 19, 2009, 17:02 IST |
|
Japanese mobile major NTT DoCoMo may increase its stake from the current 26 per cent in the joint venture with the Tatas in future and hopes that the JV starts contributing towards its bottomline in the next three years.
"We are comfortable with 26 per cent stake in Tata Teleservices (TTSL) currently ... However, nobody knows the future. We might increase this (stake)," company's Senior Vice-President and MD of Global Business Division Toshinari Kunieda said here.
He said DoCoMo is happy with the board representation of its three members and nine officials, who are now working in various capacities in TTSL.
In March this year, DoCoMo completed acquisition of 26 per cent in TTSL, in accordance with the agreement announced by the parties last November, for Rs 12,740 crore. The acquisition included 20 per cent newly issued shares and 6 per cent shares purchased from shareholders.
The JV under the brand name 'Tata Docomo' offers GSM-based telecom services in eight circles, including all of southern India, and is about to launch service in 10 more circles in the next one and half months.
TTSL, which is predominantly a CDMA player, acquired GSM licence last year under the Government's policy where an operator can launch both GSM and CDMA services under a single licence.
The company is still to get spectrum in the Delhi circle and does not have licence to operate in three circles — J&K, Assam and North East.
Kunieda said DoCoMo hopes the JV to contribute towards its balancesheet within the next three years. "I hope TTSL to make contribution to our bottomline in less than three years."
On participating in the upcoming 3G spectrum auction, Kunieda said since the clarity on details is yet to come, the company has not been able to decide on it.
"We need to keep a watch on the minimum price, how the government comes out with the process clarity. After that only we will be able to decide, he said.
Kunieda feels that DoCoMo's partnership with the Tatas is based on mutual trust and same corporate culture which will take the partnership a long haul and the JV could even look at snapping up some of the new telecom players.
"We are not a financial investor ... Once we decide to take a stake, we would like to stay at least for 10 years in any JV. Tatas are fit for our corporate culture."he said.
"With so many new players coming, consolidation will happen and we would (along with Tatas) take a look at the new players in the Indian telecom space in future (if they are up for the stake sale). But that is not the agenda at the moment," he said, replying to a query if DoCoMo would look at acquiring companies in India on its own or would apply for any greenfield licence.
A host of new players like Unitech Wireless, Datacom, Swan, Loop are about to start mobile service in India making the market competitive.
But the DoCoMo senior VP says Indian telecom market is overcrowded with so many operators.
"In Japan, we have three players. In the US and the UK, there are four each and in China, it is three. In a circle more than five operators is considered high and the spectrum given to start the service is just 4.4 MHz", he said.
On 3G, Kunieda said the minimum 10 Mhz of spectrum should be given so that operators can offer better service. India is offering 5 MHz of spectrum for 3G services. In Japan, DoCoMo has 25 MHz each in 2G and 3G services.
The Japanese major is all set to bring some of the customised I-mode (its propreitory mobile data technology) and other value added services to India by the end of the year, he said.
|
|
|
|
|
|
|
|
|
|
 Read Business news in |  |
|
|
|
|
|
|
Advertisements |
|
|
|
|
|
|
|
|
|
Content Guide
