DoCoMo to buy 25% of Tata Teleservices
Media Release
Sep. 14, 2008

Japanese telecom giant NTT DoCoMo is in advanced stages of talks to buy about 25 per cent of Tata Teleservices, the second largest CDMA mobile service provider in India with 28 million subscribers.

The size of the deal is pegged at $1.5 billion (about Rs 6,700 crore), translating into a $6-billion (Rs 26,000 crore) valuation for the company that runs networks across the country and is planning to expand into GSM mobile services in the near future.

When contacted, a Tata Teleservices spokesperson refused to comment, saying: “As a policy in the Tata group, we do not comment on speculative queries.”

Tata Teleservices is a loss-making company. Between 2005 and 2007, its cumulative losses stood at Rs 5,604 crore. In addition, a subsidiary company that runs the Maharashtra operations had a cumulative loss of about Rs 880 crore in the same period, according to a Tata Investment Corporation document.

India’s mobile services market has grown rapidly to over 300 million users. Many of the half a dozen networks in the country are highly profitable.

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