Corporate Aug 7, 2012
The time for taking a final call is approaching fast for Tata DoCoMo.
With Tata Teleservices not being able to meet the set goals by Japanese partner NTT DoCoMo, the joint venture may be pushed on the rocks if the Japanese giant decides to exercise its option to exit the company.
A report in The Economic Times said that the company has lost 10 million subscribers since June 2011, after the company shifted its focus to data customers.
A voice strategy is key to survival in today's environment, a consultant has been quoted as saying in the report.
According to the report, DoCoMo had set certain performance parameters for the Tata company and it has not been able to meet them.
New entrant Uninor has almost doubled its subscriber base during the period when Tata DoCoMo witnessed a 10 percent decline in its customer base, the report said.
Moreover, Tata Tele has managed to increase its revenue market share only marginally.
This has given rise to speculation that DoCoMo may not be interested in staying invested in the Indian company anymore.
The Japanese telecom major has an option to raise its shareholding to 35 percent or exit the company.
NTT DoCoMo had bought 26 percent in Tata Telservices for $2.7 billion.
Tata Teleservices' net loss widened to Rs 162 crore from Rs 119 crore a year ago.