Japanese mobile company NTT DoCoMo is open to picking up further stake in Tata Teleservices if it gets the right valuation.
NTT DoCoMo recently picked up a 26 per cent stake in Tata Tele for about Rs 13,000 crore.
Speaking to Business Line, Mr Toshinari Kunieda, Senior Vice-President and Managing Director, Global Business Division, NTT DoCoMo said, “Though there are no current plans to increase our stake we are open to picking up further equity at a later date if we get the right valuations. At the current enterprise value, more equity in Tata Teleservices at this stage is expensive for NTT DoCoMo.”
The Japanese company has invested in mobile operators in other Asian countries, but most of its holdings are under 40 per cent stake because the FDI (foreign direct investments) regulations in these countries do not allow foreign operators to acquire majority stake. Mr Kunieda said the FDI cap in the Indian telecom sector at 74 per cent was favourable to foreign players.
NTT DoCoMo, known for its path-breaking mobile applications and value-added services, also plans to tap into the software development talent available in India. “India is known for its software and applications development skills. We plan to utilise this capability to customise some of our applications for the Indian market,” he said.
Asked whether the Japanese company is considering setting up an R&D centre in India to develop applications for the local market, Mr Kuneida said that though there are no current plans it might be possible going forward. “If we find that it is necessary to have a local centre in India, it might be possible,” he said.
NTT DoCoMo plans to launch some of the services available under its iconic i-mode brand, but the company did not give details on the timing and the type of applications that will be launched in the Indian market.
Tata Teleservices will offer its pan-India GSM service under the Tata DoCoMo brand. “Tata DoCoMo is a natural choice of GSM brand-name for us, since it will provide customers a dual advantage — trusted service from the House of Tata and riding the technological superiority of NTT DoCoMo. Tata DoCoMo will bring to the country products and services that will redefine the Indian telecom experience. Our pan-India rollout should be completed this year,” Mr Anil Sardana, Managing Director of Tata Teleservices Ltd, said at a press conference.
The company will invest close to $2 billion for rolling out its pan-India mobile services.
Source: The Hindu Businessline