With tight competition in the Indian telecom sector, India’s 7th largest telecom operator Tata Docomo seems to facing certain level of trouble as its JV partner NTT DoCoMo is reportedly planning to sell its stake in the business.
NTT DoCoMo, Japan’s biggest telecom network by subscribers is said to sell its 26.5 percent stake in the loss making Indian telecom venture with Tata Teleservices Ltd and will exit the Indian telecom market. NTT DoCoMo earlier in 2009 invested approximately Rs 16,000 crore in Tata Teleservices to build one of the innovative telecom service in India – Tata Docomo, but has been bearing loss since then.
It’s been reported that Tata Group will buy the whole stake from NTT DoCoMo, but price has not been specified. The joint venture gives NTT DoCoMo an option to exit if Tata Teleservices did not achieve certain targets and it seems Tata has missed those targets in the fiscal year that just ended in March – reported Reuters. NTT DoCoMo will make a formal decision at a board meeting on Friday, the sources said.
Tata Docomo entered the highly competitive Indian telecom market with a bang by offering per-second billing and other exciting offers, but failed to retain the initial success and constantly loss market share in the past two years.