NIIT DoCoMo to sell stake in Tata Teleservices in bid to exit Indian market
NTT DoCoMo is reportedly planning to sell stakes in Tata Teleservices, putting an end to its unfruitful venture into the Indian market.
According to PC World, 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.
A DoCoMo spokesman said that 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 making it difficult to generate business synergies with them.
DoCoMo said that the deal will see the holding company of the Tata Group, DoCoMo receive at least 50 percent of what it paid for the stake in TTSL, which would be 125.4 billion Yuan (USUSD 1.2 billion).
(Posted on 26-04-2014)