NTT Docomo extends reach to India for US$2.7 billion

Japan’s largest telecom operator, NTT Docomo, has acquired a 26 per cent stake in Indian operator Tata Teleservices (TTSL) for US$2.7 billion.

Docomo, with more than 53 million customers in its home market, has entered India through a 26 per cent stake in Tata Teleservices.

TTSL is the sixth largest wireless carrier in India with more than 30 million CDMA subscribers.

Docomo and Tata Sons have also signalled their intent to make a joint offer to purchase up to 20 per cent of the outstanding common shares of Tata Teleservices Maharashtra (TTML), a Tata telecommunications company in which TTSL holds 38 per cent.

Tata Sons, the prime promoter company for the various businesses run under the Tata brand, holds 45 per cent of TTSL, while Tata Communications holds 15 per cent.

Recently Tata announced it would spend US$2 billion over the next two years on expanding its CDMA network, as well as upgrading its new GSM network which it plans to launch by the end of the year. However, it has only received GSM spectrum in five of the country’s 22 telecommunications circles.

The company also announced plans to launch a WiMAX network next year across 15 Indian cities.

Docomo has more than 53 million customers in Japan and has 100 per cent ownership of Docomo Pacific in Guam and Mariama. It also owns minority stakes in Hutchinson Telecom in Hong Kong, Far East One in Taiwan, KTF in South Korea, PLDT of Philippines, UMobile in Malaysia, and AKTEL in Bangladesh.