Tata Teleservices gross revenue up 7% at Rs 3,023 crore in Q3 2011

Telecom Lead India: Tata Teleservices, which operates
through its pan-India network, has posted gross revenue of Rs 3,022.83 crore
for the quarter ended 31, December 2011, showing 7.08 percent growth at Rs 2822.86
crore in September 2011.


The carriers’ December quarter gross revenue increased
significantly against Rs 2559.48 crore for the quarter ended 31, December 2010.


The gross revenue of the industry for the quarter ended
31, December 2011, recorded at Rs 49365.18 crore, up 15.3 percent against Rs
42916.81 crore for the quarter ended 31, December 2010. However, in terms of
q-o-q growth, gross revenue declined 1.16 percent, as gross revenue for the
quarter ended 30, September, 2011 recorded at Rs 49942.25 crore.


Last year, Tata Teleservices announced its multi-pronged strategy
to ensure the company’s future growth in a hyper competitive market. The
company initiated an integrated technology-agnostic structure to leverage
emerging market opportunities.


The strategic initiative was aimed at bringing its both
CDMA and GSM products and services under one common brand-Tata DOCOMO. The
satrtegic decision was taken to scrap its older brand, which is Tata Indicom.
Under the new strategy, Tata DOCOMO moved to the CDMA space, and all Tata
Indicom customers were migrated to Tata DOCOMO.


Recently, Japanese telecom giant NTT DoCoMo said that it
will raise its stake in its Indian joint venture with Tata Teleservices. DoCoMo
bought its stake in Tata Teleservices for $2.7 billion in 2008.


Four years after it investment to acquire 26 per cent
stake in Tata Teleservices, DoCoMo is pondering to raise its stake up to 49 per
cent. The talks have been stuck because DoCoMo is seeking lower valuation for
its equity stake that it is seeking to buy from Tata Teleservices.


The $83-billion Tata Group through multiple entities hold
about 60 percent in the telco, in which private equity investor Temasek and
serial entrepreneur C Sivasankaran are minority investors with 7 percent and 6
percent stake, respectively.


The company recently lost its 3 licenses after the
Supreme Court in February ordered cancellation of all licenses awarded the 2G
spectrum, 2008 sale.


Danish Khan
[email protected]