Friday, July 10, 2009
DoCoMo say we invests in Tata mobile networks
NTT DoCoMo, Japan's largest mobile operator by market share, the payment Rs130.7bn ($ 2.7 billion) to 26 percent of Tata Teleservices in a deal that highlights the high prices, foreign companies are willing to pay for the rapidly growing Indian market.
Investments in the world, the fastest growing mobile market shows that DoCoMo is determined to compete head to head with competitors such as Vodafone and Telenor in emerging markets.
The British company Vodafone controls Essar, India's third largest operator, two weeks ago, the Norwegian Telenor announced a deal for $ 1.1 billion to buy 60 percent of Unitech Wireless, a new network in India.
The operators in Europe and Japan, attracted by India, low mobile penetration of approximately 25 to 100 people. This percentage is expected to double over the next five years - resulting in hundreds of millions of new subscribers.
Analysts said DoCoMo has paid a high price. "We are very surly about it. Tata is on the block years and almost all tire and fled from," said one asked not to be seen.
He added that the $ 350 per subscriber for the debt, DoCoMo is paying a significant premium in comparison with Idea Cellular, an Indian network. DoCoMo said it expected a 15 percent return on investment for the next five to 10 years.
Tata Tele Services is a participant at the end of the Indian market for mobile telephony and rose 1.6 million subscribers in March 2004 to 29.3m today. It uses the CDMA standard and needs heavy investment to build a GSM network.
For the Tata Group, the market will need more capital to the telecommunications and cash increasingly linked older conglomerate.
The operation is part of DoCoMo's strategy of buying relatively large minority stake in mobile networks to Asia. In June he bought 30 percent of TM International, the third operator in Bangladesh, $ 350m. It also owns 10 percent of FreeTEL KT of South Korea and a share in the Philippines.
This commitment, in comparison with the majority owned by Vodafone and Telenor in their Indian subsidiaries, has led to criticism that DoCoMo is a recurrence of the problem 10 years ago, when she spent Y1, 900bn various minority stakes in foreign as AT & T Wireless, KPN Mobile and Hutchison 3G. She had a large part of this investment after the bursting of the tech bubble.
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