Tatas to invest $2-bn in telecom
Tata Teleservices plans to invest $2 billion in rolling out GSM-based mobile phone services and expand its current network of CDMA phone services, reports Ruchi Hajela.business Updated: Aug 10, 2008 01:03 IST
Tata Teleservices plans to invest $2 billion in rolling out GSM-based mobile phone services and expand its current network of CDMA phone services — a move that would give consumers more options and could help bring phone rates further down.
Anil Sardana, managing director of Tata Teleservices, said the company would invest $1.5 billion on GSM services and another $500 million on CDMA services. The investment will be spread over two years and be raised through a combination of debt, internal resources and promoters’ contribution.
The proposed GSM rollout is crucial to Tata Teleservices, which currently ranks sixth among mobile phone service providers, in terms subscribers. The company is looking to increase its subscriber base from 27 million now to 35 million by March 2009 and 100 million by March 2011, Sardana said.
The company has received spectrum to roll out GSM-based services in six circles by end of this year. India’s mobile telephony market comprises 23 circles.