Chandigarh: Leading cellular services provider, Tata Teleservices today announced the roll out of its mobile services on GSM network in Haryana, marking its first launch of operations in the northern region.
The launch was made even as the company was looking to raise its revenue from Value Added Services (VAS) to 15% in the current fiscal.
“We have spent Rs300 crore on launching our GSM mobile in Haryana as part of our $2 billion capital expenditure plans outlined over a period of two years on launching services,” Tata Teleservices (TTSL), managing director, Anil Sardana told reporters here today.
Tata DoCoMo, which is a brand of TTSL, will have coverage in 386 towns and 1,750 villages in Haryana. However, coverage in districts of Fatehabad and Sirsa would be provided after the receipt of spectrum.
The company has already launched operations in nine circles, including Haryana and is anticipating to introduce GSM services in ten more circles by the end of this year. “We have plans to have pan India presence in respect of GSM services by the year end,” Sardana said.
TTSL bagged the license to operate GSM telecom services in 19 circles in 2008 and was allotted spectrum in 18 circles.
On being asked about raising additional money for capital expenditure, Sardana said that the company would soon approach its shareholders for raising $1 billion more which will be part of capital outlay for capacity enhancement. “We expect to have approval from shareholders within a month for raising money,” he said.
Betting big on providing path-breaking VAS services to capture major pie of subscribers by leveraging on its partner NTT DoCoMo’s VAS capability, TTSL is expecting its 15% of revenue coming from VAS services in this year.
“Against the industry average of 9-10% of revenue from VAS, we are having 14% of the total revenue from VAS and we expect it to raise it to 15% by the current fiscal end,” he said.
Sardana said that in countries like Europe and the USA, VAS constitutes 25% of the total revenue. “Our customers need to have good handsets which can facilitate growth in VAS revenue for cellular operators,” he said.
In a video-address, Toshinari Kunieda, senior vice- president and Managing Director, Global Business Division, NTT DoCoMo, said, “Progressively, NTT DoCoMo shall bring to India the various products and services that we offer in Japan and many other countries-such as i-modeTM, Location-based Services (LBS) and mobile payment-and give Tata DoCoMo customers a flavour of tomorrow.
Japan based NTT DoCoMo has 26% stake in TTSL. Sardana further said that Tata Teleservices has also asked NTT DoCoMo to set up R&D facility in India for providing services as per the local needs. “NTT is quite keen to bring technology in India,” he said.