The Hindu Business Line : DoCoMo-Tata deal

I do not foresee any path-breaking changes in the telecom sector with the entry of DoCoMo. It appears to be a purely commercial deal. However, the company may introduce novel handsets to enhance business potential. Even a reduction in tariff may not be expected in view of the EV ratio. The only advantage for our country would be the establishment that the country is a fertile ground for investment in telecom and other international players may be attracted. — T.R. Anandan – email

DoCoMo’s technological knowhow will help Tata Teleservices. The cash flow from the deal will also help. The Indian telecom sector will benefit from the advanced technology of DoCoMo. — Venkatraman Ramjee, email

DoCoMo, with its technological capabilities and clarity in services, can compete well in market. Experts would bring in better technologies at the best price. As for the investment part, the joint venture could play a vital role for shareholders. — R. Ramji, email

This partnership will surely auger well for the growth and expansion of Tata Tele Services. DoCoMo will nominate two directors to the board of Tata Tele Services, and the company has stated its will be a long-term investment.The partnership will help expand mobile communication operations in India. DoCoMo is getting an opportunity to get a foothold in India, the world’s fastest growing market for mobile phone services and second largest market for such services after China. NTT DoCoMo has extensive knowledge and expertise in 3G network services. Tata Tele Services can earn more revenue from data service by making use of this experience. Advanced value-added services may be made available to subscribers. DoCoMo has an extensive line-up of lifestyle focused handsets. Innovative applications will be a new strength for Tata Tele Services, which can leverage DoCoMo’s innovative handset designing capabilities and also make full use of its own experience and professionalism and build up volumes. In overall terms, this alliance will be a shot in the arm for Tata Tel Services. — K.K. Ammannaya, email

The Mobile Virtual Network Operator (MVNO) route is seen as a natural progression towards enhancing free-market principles and contribution to the efficient use of telecom infrastructure. It will not only provide consumers with wider bouquet of services and value-added service, but also serve to introduce greater competition, which should in turn bring down the telecom prices. It will bring in global telecom operators to India.

Opposition from existing players could wilt the global telecos’ strategy because they may find it difficult to find an operator willing to share infrastructure. To overcome this problem, multilateral companies have sought TRAI’s intervention.

As a result of the capital alliance, DoCoMo and Tata expect to expand mobile communication operations in the fast growing Indian mobile market, aiming to increase operating revenue and achieve steady business growth. — T.V. Jayaprakash, email

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