DoCoMo to infuse Rs800 crore into JV with Tata Tele
31 Mar 2011
NTT DoCoMo today said that it plans to make new investments of about Rs800 crore ($179 million) in mobile phone operator Tata Teleservices in which the Japanese firm owns a 26-per cent stake.
The additional investment will be made through a rights issue. It is part of DoCoMo's strategy to expand its business presence and revenue streams in India's rapidly growing market, it said in a statement.
Tata Tele is expected to use the capital to expand its coverage as well as strengthen the quality of the 3G network it launched in November last year, the statement added.
Reuters had earlier reported that Tata Tele was planning to raise Rs3,000 crore through a rights issue that would be subscribed by major shareholders, including DoCoMo.
NTT Docomo had bought its stake in Tata Teleservices in November 2008. Tata Tele offers GSM mobile services under the Tata DoCoMo brand, and CDMA based mobile phone services under the Tata Indicom brand.