Tata Tele to hive off cell tower business

Tata Teleservices is planning to hive off its cellular tower business in three months while earmarking Rs 3,500 crore for expanding services.

The company, which has invested Rs 1,000 crore in the tower business so far, is in talks with six companies to operate its towers, Tata Teleservices CEO Darryl Green said today.

He said the company, which offers CDMA services, would invest Rs 3,500 crore in 2007-08 for rolling out services in more towns as it plans to add 100 million subscribers by 2011 from the present 15.5 million.

Market leader Bharti Airtel and Vodafone, the latest entrant in the mobile space, too have targeted addition of 100 million subscribers each.