DoCoMo Confirms $2.7 Billion Indian Investment

Japan's DoCoMo has confirmed long running rumours and announced that it is to buy a 26% stake in India's Tata Teleservices (TTSL) for US$2.7 billion. 

In addition, DoCoMo, in accordance with regulations of the Securities and Exchange Board of India, expects to make an open offer to acquire up to 20 percent of the outstanding common shares of Tata Teleservices (Maharashtra) Limited (TTML), a Tata telecommunications company, through a joint tender offer with Tata Sons.

TTSL's subscriber base currently exceeds 30 million (including TTML subscribers).

A couple of months ago, Tata announced plans to spend some Rs80 billion (US$2 billion) over the next two years on expanding both its GSM and CDMA networks. Various media reports at the time said that about Rs60 billion would be spent on the new GSM network the company is building, with the remaining Rs20 billion going on its existing CDMA network,

The company is planning to launch their GSM service by the end of the year, but has only been granted radio spectrum in 5 of the country's 22 license circles. The company has also announced plans for a WiMAX network covering 15 cities by 2009.

Posted to the site on 12th November 2008