Tatas to launch GSM service this month, invest $2 bn

CDMA telecom operator Tata Teleservices today announced the launch of its services in GSM platform in partnership with Japanese firm NTT DoCoMo and said will invest $2 billion by this fiscal to roll out operations across the country.

The service, which would be branded 'Tata-DoCoMo', would be commercially rolled out towards the end of this month in the southern region, followed by western and northern regions. NTT DoCoMo acquired 26 per cent stake in Tata Teleservices (TTSL) for $2.7 billion last year.

The company would be investing $2 billion in the operations, TTSL Managing Director Anil Sardana told reporters here. This is $0.5 billion higher than its earlier earmarked investment of $ 1.5 billion.

Tata DoCoMo has received licences to operate GSM telecom services in 19 telecom circles and has also been allotted spectrum in 18 of these circles barring Assam, North East, Jammu and Kashmir and Delhi.

"We are eagerly awaiting spectrum for Delhi and with reports of defence releasing some radio waves, we hope to lay claim on the spectrum," Sardana said.

Asked whether, the Japaneses firm would increase its stake further in TTSL, Toshinari Kuneida, Senior Vice President, Global Business, NTT DoCoMo said the company has no plans to raise its stake in the Indian JV.

On listing the entity, Sardana said it depends on the shareholders. "In due course every Tata company had followed the route and we will also follow the route."

However, he declined to share any timeline for the same.

Asked about the company's chance of participating in the 3G auction, Sardana said, "It depends on how the actual auction shapes up, confirmation on availability of spectrum and the reserve price".

TTSL has become the second telecom service provider after Reliance Communication to be providing services on both CDMA and GSM platforms under the dual-technology policy of the government.

He said the company is also open to bundling handsets with connections.