Ringing in the new

The company is investing
16 November 2002

Chennai: Tata Teleservices launched its much-awaited telecommunications services in Tamil Nadu on a rainy Saturday in Chennai. But the weather could not dampen its debut in a market that promises to further the company's pan-India ambitions.

Tata Teleservices backed up the 9 September 2002 launch by unveiling a new national brand, Tata Indicom, and a mascot. On 12 November 2002, the company started operations in Bangalore, the first stop in its plans to spread wings in Karnataka.

The new brand is significant for the Rs 150-crore company, which has until now been operating only in Andhra Pradesh. Following its entry into Tamil Nadu and Karnataka, Tata Teleservices plans to move into Delhi and Gujarat.

The company is investing heavily in the telecom sector. “The total investment that is planned is Rs 7,533 crore, of which Rs 4,500 crore will be in the form of equity and the balance debt,“ says Tata Teleservices managing director S Ramakrishnan.

Tata Teleservices' outlay in these new states is substantial: Rs 1,182 crore in Tamil Nadu, Rs 1,017 crore in Karnataka, Rs 937 crore in Delhi and Rs 1,071 crore in Gujarat. The company is also considering entering Kerala, Punjab and Haryana at a later stage.

Tata Teleservices has been expanding through acquisitions. The company has bought a 50.83 stake per cent in Hughes Telecom (India), the basic service provider in Maharashtra, including Mumbai. Hughes Telecom has 1.8 lakh subscribers.