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Wednesday, Jan 14, 2004

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Corporate - Restructuring

Tata Power may spin off broadband division

Our Bureau

Mumbai , Jan. 13

TATA Power Company has sought approval from its board of directors to convert its broadband division into a separate company.

The company's board of directors will meet on January 20 to consider the transfer of the division into a private limited company, the company told the Bombay Stock Exchange on Tuesday.

Tata Power will seek approval from shareholders once the company board accepts the resolution. The resolution will then be adopted by means of a postal ballot.

"The transfer (of broadband) from division to subsidiary shows that the management has a clear focus when it comes to business. It is good corporate governance and is a demarcation to ensure individual focus on the power and broadband businesses," said Mr Rahul Chaudhry, Chief Executive Officer, Tata Power Broadband, when contacted.

Tata Power's broadband division has been working as a `Carrier of Carriers,' providing a backbone for transporting bulk traffic of various providers of Internet, data and voice services in Mumbai and adjoining areas extending up to Pune. The company's works on developing network architecture and design, real time customer support and effective contingency management. The company is currently working on doubling its optical fibre capacity by March 2004 in Mumbai and Pune where it already has an 800-km fibre optic cable network. Tata Power Broadband is currently working with over 60-odd customers by making available bandwidth on a revenue-sharing basis.

It expects retail broadband to take off in a big way and has plans to introduce Vi-fi technology to meet such demand.

More Stories on : Restructuring | Power | Broadband

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