Tatas to launch GSM services this month

To invest $2 billion, service under brand name ‘Tata-DoCoMo’ to kick off from southern region.

Code Division Multiple Access (CDMA) telecom operator Tata Teleservices (TTSL) today announced the launch of its services in GSM platform in partnership with Japanese firm NTT DoCoMo. The firm would invest $2 billion this fiscal to roll out operations across the country.

The service, which would be branded ‘Tata-DoCoMo’, would be rolled out by this month-end in the southern region, followed by western and northern regions. NTT DoCoMo had acquired 26 per cent stake in TTSL for $2.7 billion last year.

“We expect the pan-India roll out to be completed within six months of the launch,” said Anil Sardana, managing director, Tata Teleservices. Tata DoCoMo has spectrum in 18 circles and is awaiting allotment of spectrum in 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. He added: “It will be sad if we don’t, since operators who haven’t even started operations have got spectrum in these circles.

Sardana ruled out listing of the company in the near future. “ This is not a decision for the management but the shareholders to take, but there is no pressure around an initial public offer. In due course of time, all Tata companies have gone the public listing route so will we,” he added.

“We are happy with our stake in TTSL we do not plan to increase our stake in the company right now, ” said Toshinari Kunieda, senior vice-president, global business, NTT DoCoMo.

On the much-awaited third-generation (3G) services, Sardana said that it was premature to comment and the company’s participation in the auction process would depend on how the actual auction shapes up. Kunieda added “We are closely working with TTSL on future technologies like 3G and Long-Term Evolution.”

Over three-fourths of the total mobile phone population use the GSM platform, providing lucrative opportunities for telecom opertors since India’s telecom penetration is still below 40 per cent. Reliance Communication (RCom), another CDMA player, had also forayed in the GSM market with highly competitive tariff offerings. TTSL would be become the second service provider after RCom to provide services on both GSM and CDMA platforms.