India’s Telelcom Sector undergoing major Changes due to Merger and Acquisition (M&A) Policy

Topic: India’s Telelcom Sector

NTT DoCoMo, Japan’s largest mobile operator as a part of its Strategic pact with Tata Group has decided to take up 26% stake in Tata Teleservices (TTSL) which is worth $2.7 billion. Tata Teleservices is the 6th largest operator in India. With this strategic pact that DoCoMo has pursued, it has been able to enter the worlds fastest growing Telecom Market. Tata Teleservices has a subscriber base of 30 million with its operation mainly concentrated in Maharashtra and Goa. The major stakeholders in TTSL are Tata Sons (45%) and Tata group companies. This deal with DoCoMo values TTSL at $10.4 billion, with each subscriber valued at $346. Bharati Airtel, India’s largest Telecom giant is valued at $24.3 billion.

Source: Economic Times, November 13, 2008