Tata Teleservices has slipped on performance parameters it promised to Japan's NTT DoCoMo, giving the foreign investor an option to either exit the business or increase its stake in the joint venture. While Tata Teleservices has been on a clean-up path by letting go customers who bring in no revenues, analysts say it may be too little too late. About a year and a half ago, the Tata Group moved N Srinath from the post of CEO at Tata Communications to head Tata Teleservices. Under him the company adopted a new strategy that focused on data users that typically spend more each month than voice customers.
But this also resulted in the telco losing more than 10 million subscribers since June 2011, even as most incumbent operators and new entrants have witnessed robust growth in customer numbers during the same period. From subscriber strength of 90.9 million as of June-end last year, sector regulator Trai's latest figures reveal that the company's customer base has reduced to 80.2 million as of June-end, 2012. New entrant Uninor added more than 19 million during the same period, nearly doubling its subscriber base to 45 million, despite the annulment of its mobile permits in February this year.
The new approach by Tata Teleservices has brought the limelight back onto the company's CDMA technology business. A move that two mid-level managers at Tata Teleservices said alienated the existing management of the company. There is some talk that the move has miffed 26 per cent equity partner NTT DoCoMo that partnered with Tata Teleservices on its launch of GSM services. The company declined to comment on issues linked to its performance over the last 12 months and also did not share details of t
Tata Teleservices loses 10% customer base in one year, may impact ties with DoCoMo
But this also resulted in the telco losing more than 10 million subscribers since June 2011, even as most incumbent operators and new entrants have witnessed robust growth in customer numbers during the same period. From subscriber strength of 90.9 million as of June-end last year, sector regulator Trai's latest figures reveal that the company's customer base has reduced to 80.2 million as of June-end, 2012. New entrant Uninor added more than 19 million during the same period, nearly doubling its subscriber base to 45 million, despite the annulment of its mobile permits in February this year.
The new approach by Tata Teleservices has brought the limelight back onto the company's CDMA technology business. A move that two mid-level managers at Tata Teleservices said alienated the existing management of the company. There is some talk that the move has miffed 26 per cent equity partner NTT DoCoMo that partnered with Tata Teleservices on its launch of GSM services. The company declined to comment on issues linked to its performance over the last 12 months and also did not share details of t
Tata Teleservices loses 10% customer base in one year, may impact ties with DoCoMo
