FT : Tata DoCoMo

Thursday, November 13, 2008

NTT DoCoMo, Japan’s largest mobile phone company by market share, is to pay Rs130.7bn ($2.7bn) for 26% of Tata Teleservices in a deal that highlights the high prices foreign operators are willing to pay to enter the booming Indian market.  The investment in the world’s fastest growing mobile telephone market shows that DoCoMo is determined to compete head-to-head with rivals such as Vodafone and Telenor in emerging markets.  The UK company controls Vodafone Essar, India’s third largest operator, while two weeks ago Norway’s Telenor announced a $1.1bn deal to buy 60% of Unitech Wireless, a new Indian network.  Operators from Europe and Japan are attracted by India’s low mobile phone penetration of about 25 per 100 people.  That rate is expected to double over the next five years – resulting in several hundred million new subscribers.  Analysts said DoCoMo was paying a high price.  “We’re very bearish on this.  Tata has been on the block for years and nearly everyone has kicked the tyres and walked away,” said one, who asked not to be named.  He added that, at about $350 per subscriber before debt, DoCoMo was paying a substantial premium relative to Idea Cellular, a comparable Indian network.  DoCoMo said that it expected to make a 15% return on investment over the next five to 10 years.  Tata Teleservices was a late entrant to India’s mobile market and has grown from 1.6m subscribers in March 2004 to 29.3m today.  Its uses the CDMA standard and needs heavy investment to build a GSM network.  For the Tata group, the deal will provide much-needed capital to its telecoms unit and to the increasingly cash-strapped parent conglomerate.  The deal fits the DoCoMo strategy of buying relatively large minority stakes in mobile networks around Asia.  In June, it bought 30% of TM International, the third-largest operator in Bangladesh, for $350m.  It also owns 10% of KT Freetel of South Korea and a stake in the Philippines.  These stakes, compared to the majority ownership taken by Vodafone and Telenor in their Indian subsidiaries, have brought criticism that DoCoMo is repeating the mistake it made 10 years ago, when it spent Y1,900bn on minority stakes in various foreign operators including AT&T Wireless, KPN Mobile, and Hutchison 3G.  It had to write off much of this investment after the technology bubble burst.

Reference : http://www.ft.com/cms/s/0/3a41f492-b0d1-11dd-8915-0000779fd18c.html

16 Responses to “FT : Tata DoCoMo”

  1. […] strategy, and said he wanted to buy more minority stakes in mobile operators around Asia.  Last November’s acquisition of a 26% stake in Tata Teleservices, India’s sixth-largest mobile operator, has faced criticism for being expensive without giving […]

  2. nilesh Says:

    its tata with its amazing plan again..with its amaing call rates thats jus 1paisa/sec n the interstin VAS with free timed sms and free voice mails..tata docomo is entering into the telecom market with a great force..their website is cool n colourful with lots n lots of ring tones and chunky games ((http://www.tatadocomo.com/default.aspx))..hmm m vryy..imprzzzzd…

  3. raju Says:

    very worst network and coverage.

  4. Tata Docomo Says:

    Dear Raju,

    We are sorry for the inconvenience. We need your number and exact location to check the problem your facing.

    Thank you

  5. Priya Says:

    Hey i bought the sim activated it but i dint use for some days and it is deactivated now please have it activated.my number is-9036504321

  6. Varun Shah Says:

    I have taken a new connection of Tata Docomo in Pune. But its not working in my Nokia-2300 handset. Its working fine in other phones.

    Please help as other service providers connection is working fine in my handset.


  7. raj Says:

    i really like the way tata docomo is presenting itself in the market n they hav captured the market in no time.. very appreciable..also thr plans n tariff are vry innovative jus like thr 1p/sec ads..m switchin to docomo vry soon…

  8. raj Says:

    hey guys got a connection of docomo..n its really impressive..the per second billing schem is really intersting..the VAS too is good..love my docomo..

  9. giri Says:

    dear sir,
    i hav the problem that when i insert the sim in a mobile it is going to be hang….when i speak to customer care they not giving correct reply…for replacing my sim i asked the address of tata docomo office they r giving different address like tata indicom,pantaloons dress shop in hyderabad central…tata indicom customer care response is not at all good…im trying to replace my sim from monday…one week is completed but they r not giving the correct adress…..ur customer care service is not all good….its worst service…..i kindly request u to take the action ……

  10. Rajeev Says:

    When will be Tata Docomo available in Assam circle? Other GSM sevice providers in Assam provide very poor service and have very high call rates, with no new offers or services. People at Assam are really eager to welcome TATA DOCOMO.

  11. Ashish Vijayan Says:

    I applied for TATA DOCOMO post paid connection, and I had the worst experience there after from the executive who collected the documents.
    He collected all documents and Rs.300 which was supposed to be reimbursed with 4th, 5th and 6th months bill.It took me around a week to get the sim and the same didn’t get activated even after a month. Now the executive is not responding to my call, nor willing to return the amount collected.
    Executive: Akash(Sparsh Communications, Bangalore) Mobile#9663315025
    Location: Bangalore, Karnataka
    Bitter more is the experience i had from Docomo offices, not enough representatives to attend to customers, worst office infrastructure, and not willing to accept the complaint which i gave against the executive.
    I just want to make sure atleast one customer is saved from executives like this. Why is that the company is not taking the responsibility when their product is sold through a retailer. If company can’t take the ownership of such issues why is that such tasks are given to outside agents?

    Worst is the network, signals and coverage in Bangalore when i went for a pre paid connection there after. Offer what u can provide. I’m just a 2 day customer of yours. Hope someone will read this and will atleast keep in mind the bitter experiences customers r facing and will take some action against such frauds around.

  12. Anand Says:

    in the morning I received an sms on my docomo that we can recharge docomo online
    without any extra fees or payment gateway. yaa its true http://www.babuchak.com is
    marvellous. It also provides daily prizes to be won worth Rs.30,000 daily just
    to recharge our mobiles.

    we want such sites like http://www.babuchak.com

    & it also has a very good scheme to win mobile phones at rs.10 only.

    Now in the market there are 2 players to recharge tata-docomo online

    1. http://www.babuchak.com (Free of cost)

    2. http://www.ezrecharge.in (takes Rs.6 for recharging Rs.100 & takes Rs.18 extra if you recharge your cell in night)

    I think http://www.babuchak.com is the right choice without any extra fees & it also has a 24hrs call-center

    • Janet Says:

      Thanks Aannd for advising about Babuchak.com,

      It was really a headache recharging Tata Docomo, as every time I felt like there was shortage in te market for Docomo recharges. & non of the banks & online sites do provide recharges for docomo.

      Thanks once again for advising about Babuchak.com

  13. Excellent Post, Carry On ……… waiting for few more exciting posts

    • Anand Says:

      We need a website which will make instant recharge without charging any extra gateway fees.

      In case of Babuchak.com, it requeres a Net Banking enabled ATM card. It dosent accepts Credit card.

      Is there any other site which excepts credit cards without paying any extra fees.

  14. srihari gupta Says:

    hi friends i found a website which gives online tata docomo recharge.
    and uninor mobile recharge is also available..
    Online Tata Docomo and Uninor Mobile Recharge


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