Tata Teleservices, Docomo opt for arbitration route to settle issue

Tata Sons will look at the arbitration route to solve its dispute with Japanese telecom major Docomo because Reserve Bank of India (RBI) did not clear the proposal to buy back 26.5 percent stake in Tata Teleservices from NTT Docomo in the Indian ailing telecom venture at a pre-determined price.

RBI did not permit Tata Sons to buy back the equity stake from NTT Docomo at a pre-determined price, according to a report in Times of India. In January, RBI had said it is inclined to accept the proposal of Tata Sons and sought finance ministry’s view on the controversial issue.

Tata Docomo post-paid scheme

Docomo had invested $2.2 billion to purchase 26.5 percent stake in Tata Docomo in 2009. As per the deal, Docomo was supposed to get 50 percent of $2.2 billion or fair market price, whichever is higher, if the Japanese telecom giant decides to exit from Tata Docomo. In 2014 April, Docomo decided to exit from Tata Docomo due to growing losses.

Since Tata Sons could not rope in a buyer for the 26.5 percent after discussing with Telenor, MTS, etc. Docomo moved the London court of International Arbitration in January this year. Both Tata Sons and Docomo will try to solve the issue at the arbitration court.

[email protected]

Latest

More like this
Related

Telecom minister releases theme of 2024 India Mobile Congress

Jyotiraditya M Scindia, Minister for Communications, has released the...

AT&T faces questions from senators over cyber-attack affecting 109 mn

Two U.S. senators have demanded answers from AT&T regarding...

India telecoms poised for ARPU growth with tariff hike and data surge

Indian telecom companies are set to see a substantial...

SK Telecom to invest $200 mn in SMART Global in AI push

SK Telecom is set to invest $200 million in...