A little info on tata teleservices... Information says that Tata Teleservices has sold a stake of 26% to Japan’s NTT DoCoMo.
The deal value is $2.7 bn. Tata Tele with over 30 million CDMA subscribers is rolling out its GSM services. With india being the fastest growing market second only to China adding about 10mn subscribers every month and the current subscriber base standing at 300+million and is expected to be 700 million in 2012.
Ok a brief look at who are the existing players--9 players (Airtel, Reliance, Vodafone, BSNL, Idea, Spice, BPL, Aircel, MTNL) in the circuit. 6 more players are ready to join the market . What this means is India will be having 15 players operating by 2010 (if my maths is correct). If 9 players have fought for 300 million subscribers, then its 15 players fighting for 400 million subscribers. This would mean heavy competition and severe cost-cutting.
So good for us aint’it!! Though, this is good for the subscriber the companies operating would face serious challenges. Network roll-out and gaining subscribers are the biggest challenges.So what’s all about entering into & signals...whats stopping???
Here it goes...The cost of rolling tower’s is enormous not to ignore the freebies offered by competitors and steps taken to protect their subscriber base... New entrants cannot roll their networks as aggressively as the big boys. Goes around 200 - 400 crs for a few 1500 towers...placed at stragetic locations.
The other way would be by Mergers and acquisitions followed by some playres.. If Indian telecom is a movie, what we have seen is the first half. New GSM licenses and 3G auction is the interval. Second half is left and promises to be interesting.
With Tata Teleservices launching its GSM services in Mumbai and across Maharashtra & Tamil nadu under the brand name Tata DoCoMo. The brand is ready to rock Maharashtra .
So what’s new in it. With its "pay-per-use" tariff, which allows customers to pay only for the seconds utilized. This offering was first introduced by the company in south India. With Tata DoCoMo, subscribers will get to avail the company’s introductory offer of 1 paisa per second for all calls made across the country, and international calling at per second billing.
There’s an interactive explanation of the savings a user can make with this scheme on Tata DoCoMo’s. So lets for wait for the best.The above info is from informed sources.