NTT DoCoMo looking to sell stake in Indian operator

DoCoMo wants to quit India as mobile revenue sags in Japan

NTT DoCoMo wants to unload its investment in India's seventh-largest cellular carrier, Tata Teleservices (TTSL), in a retreat from India's challenging market.

Japan's largest mobile telecommunications firm by subscribers said it wants to sell the entire 26.5 percent stake acquired in 2009, citing a range of negative factors.

"Intense price competition with many carriers, slow growth of 3G services, confusion in the licensing policies and regulations made it difficult for DoCoMo to use its know-how in the carrier business for the growth of TTSL and we couldn't generate business synergies with them," a DoCoMo spokesman said Friday.

The Japanese company has yet to find a potential buyer, but it has decided to exercise its option to sell the stake if TTSL didn't meet performance targets in the fiscal year to March 31, 2014.

Under a deal struck with Tata Sons, the holding company of the Tata Group, DoCoMo will receive at least 50 percent of what it paid for the stake in TTSL, which would be ¥125.4 billion (US$1.2 billion), DoCoMo said.

TTSL had over 63 million mobile subscribers in February compared to the over 203 million subscribers of the largest player, Bharti Airtel, according to data from India's telecom regulator.

The decision to sell its India stake comes as DoCoMo announced Friday that its net profit slid 5.4 percent to ¥464 billion for the year to March 31.

Operating profit marked a second straight year of decline for DoCoMo despite the carrier's launch of iPhone sales last September after years of resisting Apple products.

"The main reason for this result is that we were not able to achieve the target for new subscribers and smartphone sales, and costs to bring in new subscribers from other carriers grew from February," the spokesman said.

DoCoMo also announced it would buy back some of its shares.

Compared to the late 1990s and early years of this century, when it was adding some 10 million subscribers every two years, DoCoMo's growth has slowed significantly over the past decade.

The company claimed 63.1 million subscribers as of the end of March, up from 61.5 million a year earlier.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags telecommunicationCarriersNTT DoCoMo

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Tim Hornyak

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?