DoCoMo Expects Profits from Indian Investment Within Three Years

Japan's NTT DoCoMo expects that its Indian joint-venture with Tata Teleservices (TTSL) to start being operationally profitable within the next three years - and hasn't ruled out increasing its investment in the Indian market.

Speaking to the Economic Times newspaper, Toshinari Kunieda, senior vice-president and managing director of the global business division, NTT Docomo said "We are currently satisfied with our 26% stake. But no one knows what the future old. We might increase our stake,"

DoCoMo invested US$2.6 billion into TTSL last November to take a 26% stake in the enlarged company. The investment is being used to roll out the operator's GSM network, and DoCoMo has blocked any plans to spend the investment on the existing CDMA network.

Mr Kunieda also hinted that DoCoMo may invest funds to acquire smaller Indian operators and fold them into the joint-venture, citing a lack of radio spectrum per operator as a primary worry.

"More than 10 operators in India is a bit too much. In the future, there will certainly be consolidation and we would like to be a buyer then, along with TTSL."

On the web: Economic Times

Posted to the site on 20th August 2009