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Tata Tele to invest $2 bn in GSM telephony

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Press Trust of India Posted: Aug 10, 2008 at 2231 hrs IST
Related Stories: DoT blames regulator for reversing stand on spectrumLocal call rates may fall to 20 paise/minute: RajaHigh Court seeks govt response on spectrum allocationBut Tatas to slow down on acquisitionsNTT DoCoMo buys 26% in Tata Tele for $2.7 billionDoCoMo enters India with $2.7 bn Tata deal
Agra, August 9 : Tata Teleservices today said it would invest $2 billion (over Rs 8,000 crore) in rolling out GSM-based mobile services in the country. The company, which currently offers mobile services on CDMA platform, is planning to launch the service by the end of the year, but is concerned about the slow pace of spectrum allocation by the government.

Tata Teleservices managing director Anil Sardana said the company has received spectrum in five circles even though it had applied for a pan-India allocation. Sardana said the delay in allocation in other circles was putting the company at “competitive disadvantage”.

“We do understand that there are security concerns in some of the states/ circles where spectrum cannot be allocated. But wherever it is available there should not be any delay,” he added. On the company’s plans to rope in a strategic partner for its tower business, Sardana said the company was reviewing the business model since the Government has now allowed sharing of active infrastructure.

“We are talking to a host of companies for a strategic partnership in both active and passive infrastructure sharing... the talks are going on track and soon we will announce our decision,” he said. On the recently announced recommendations for allowing mobile virtual network operator (MVNO) and the subsequent impact on the Tata-Virgin alliance, he said the rights to use Virgin brand was with Tatas but it was too early to talk about whether the alliance will become an MVNO.

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MDspeak

On spectrum allocation:

Delay in allocation is putting the company at a competitive disadvantage. There are security concerns in some states/ circles where spectrum cannot be allocated. But, wherever it is available, there should not be any delay.

On sharing infrastructure:

We are talking to a host of companies for a strategic partnership in both active and passive infrastructure sharing... the talks are going on track and soon we will announce our decision.

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