NTT DOCOMO which is the leading Japanese Mobile operator is already an investor in Tata Teleservices and the Tata Docomo brand is a result of the joint partnership. Now the Japanese company plans to make an additional investment in the Indian mobile market as it plans to invest around 8 billion rupees ( 14.6 billion yen). The transaction is expected to be completed in May.
The investment is expected to help Tata Docomo to improve it’s network coverage and quality of it’s 3G network
Press Release
NTT DOCOMO to Increase Investment in Tata Teleservices of India
TOKYO, JAPAN, March 31, 2011 — NTT DOCOMO, INC. announced today that it plans to make an additional investment in Tata Teleservices Limited (TTSL) in response to a rights offering that TTSL commenced.
The additional investment is part of DOCOMO’s ongoing strategy to expand its business presence and revenue sources in India’s rapidly growing mobile market.
DOCOMO plans to newly invest approximately 8 billion Indian rupees, or about 14.6 billion yen (1 rupee = 1.83 yen as of Feb. 28, 2011) based on its current 26% stake in TTSL. Payment of one portion of the funds has been made so far, and the rest of the investment is scheduled to be completed in May.
TTSL is expected to use the capital to expand the coverage as well as strengthen the quality of the 3G network it launched in November 2010, responding to increasing market competition for new customers.
DOCOMO’s business alliance with TTSL has scored a number of wins to date. After TTSL branded its GSM-based 2G service as TATA DOCOMO in June 2009, subscriptions, including those of associate company Tata Teleservices (Maharashtra) Limited, swelled to some 86.1 million by January 2011.
Through a joint business and technology cooperation committee, DOCOMO has provided TTSL with special expertise for networks, value-added services and marketing, including the introduction of theTATA DOCOMO brand, i-channel™ news ticker service and DOCOMICS™ mobile manga service launched in January 2010, as well as the 3G mobile service launched in November 2010.