BackNTT Docomo may sell its 26% stake in Tata Teleservices, exit India
The Japanese mobile carrier is in talks to unload its holdings to local conglomerate Tata Group
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Mumbai: NTT Docomo Inc. will unload its 26% interest in Tata Group’s telecommunications company, Tata Teleservices Ltd, withdrawing from cellphone operations in India after a long struggle, Japan’s business publication Nikkei Asian Review reported on Thursday.
The Japanese mobile carrier is in talks to unload its holdings to local conglomerate Tata Group, Nikkei Asian Review reported. In 2009, NTT Docomo entered the Indian market by acquiring an interest in Tata Teleservices for $2.7 billion.
“But the operations have languished, with Docomo apparently booking related impairment charges of about 50 billion yen in the year ended 31 March," Nikkei reported.
Mint could not immediately contact NTT Docomo and Tata Teleservices for a comment.
In July 2013, The Wall Street Journal had reported that NTT DoCoMo is not looking to sell its 26% stake in Indian partner Tata Teleservices despite setbacks such as competition over tariffs and telecom licence cancellations by the Supreme Court. Tata Teleservices had three of its licences cancelled in the February 2012 verdict.
“In overseas markets, Docomo has acquired digital-content providers and settlement service firms in a bid to reduce dependence on the communications business. But such operations are not as profitable. Given its imminent exit from India, the telecom giant needs to hammer out a new growth strategy," Nikkei reported on Thursday.
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