Tata Teleservices

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Tata Teleservices Limited
Public
Traded asBSE532371
NSETTML
ISININE517B01013
IndustryTelecommunications
Founded1996
FounderRatan Tata
HeadquartersMumbai, Maharashtra, India
Area served
India
Key people
Ratan Tata
(Interim Chairman)[1]
Srinath Narasimhan
(MD & CEO)
Products
Revenue3,191 crore (US$460 million) (2017)[2]
Members45 Million [3] (2017)
ParentTata Group
Divisions
SubsidiariesViom Networks
Websitewww.tatateleservices.comwww.tatatelebroadband.com

Tata Teleservices Limited (TTSL) is an Indian broadband and telecommunications service provider based in Mumbai, Maharashtra, India. It is a subsidiary of the Tata Group, an Indian conglomerate company. It operates fixedline services under the brand name Tata Tele Broadband in various telecom circles of India. On August 2017, Tata Teleservices have sought to exit mobile network division due to heavy losses and debt and sell its unit to Bharti Airtel in a debt free and cash-free deal and described as virtually free and Airtel will only pay a part of Tata Teleservices's unpaid spectrum payment liability.[4][5][6] In November 2017, Tata Teleservices customers transitioned to the Airtel mobile network under an Intra Circle Roaming (ICR) arrangement. SIM cards and billing plans remained the same. [7] The consumer mobile businesses of Tata Docomo, Tata Teleservices (TTSL) and Tata Teleservices Maharashtra Limited (TTML) have been merged into Bharti Airtel from 1 July 2019.[8][9][10]

History[edit]

In November 2008, Japanese telecom giant NTT Docomo picked up a 26 per cent equity stake in Tata Indicom, a subsidiary of Tata Teleservices, for about 130.7 billion (US$1.9 billion) or an enterprise value of 502.69 billion (US$7.3 billion).[11] NTT DOCOMO announced on 25 April 2014 that they are going to sell 100% of their shares in Tata Indicom to Tata Teleservices and exit Indian Telecom. The reason for exit is because of huge loss of $1.3 billion.[12]

In February 2008, TTSL announced that it would provide CDMA mobile services targeted towards the youth, in association with the Virgin Group on a franchisee model basis. By 1 April 2015, all Virgin Mobile CDMA & GSM customers have been migrated into the umbrella Tata Indicom brand (Tata Indicom for Mumbai NCR).

Tata Teleservices used to provide mobile services under Tata DoCoMo (GSM mobile operator, wireless broadband). On 9 October 2017 Tata Teleservices announced it is preparing an exit plan for most of its 5,000-odd employees, which includes a notice of three to six months, severance packages for those willing to leave earlier, a voluntary retirement scheme (VRS) for elders, while transferring only a small part of its employees to other group companies.[13]

NTT DoCoMo exit[edit]

NTT DoCoMo announced on 25 April 2014 that they are going to sell 100% of their shares in Tata Indicom to Tata Teleservices and exit Indian Telecom. The reason for exit is because of huge loss of $780 million during financial year ending 31 March 2014 .[14]

Sale to Bharti Airtel[edit]

On 12 October 2017, Bharti Airtel announced that it would acquire the consumer mobile businesses of Tata Teleservices Ltd (TTSL) and Tata Teleservices Maharastra Ltd (TTML) in a debt-free cash-free deal. The deal will essentially be free for Airtel which will only incur TTSL's unpaid spectrum payment liability. TTSL will continue to operate its enterprise, fixed line and broadband businesses and its stake in tower company Viom Networks.[15][16][17] The deal received approval from the Competition Commission of India (CCI) in mid-November 2017.[18][19] On 29 August 2018, Bharti Airtel, got its shareholders approval for the merger proposal with Tata Teleservices.[20] On 17 January 2019 NCLT Delhi gave final approval merger between Tata Docomo and Airtel.[21] Department of Telecom (DoT), and Competition Commission of India (CCI) gave green signals for merger deal between Bharti Airtel and Tata Teleservices.[22] The consumer mobile businesses of Tata Docomo, Tata Teleservices (TTSL) and Tata Teleservices Maharashtra Limited (TTML) have been merged into Bharti Airtel from 1 July 2019.[23]

See also[edit]

References[edit]

  1. ^ "Ratan Tata named the Interim Chairman after the Board votes out Cyrus Mistry". Tata Group. Retrieved 24 October 2016.
  2. ^ ">> Company Info >> Print Financials". Moneycontrol.com. Retrieved 28 June 2012.
  3. ^ "Tata Tele Growth". Economic Times. 23 November 2016. Retrieved 30 November 2016.
  4. ^ "Tatas exit mobile biz, merge loss-making unit with Airtel". Pankaj Doval and Reeba Zachariah. Times of India. 13 October 2017. Retrieved 13 October 2017.
  5. ^ "Tata Teleservices to sell its wireless mobile business to Bharti Airtel". Arijit Barman, Romit Guha. The Economic Times. 13 October 2017. Retrieved 13 October 2017.
  6. ^ "Bharti Airtel gets Tata Teleservices' mobile unit for nothing: All you need to know about the deal". Firstpost. 13 October 2017. Retrieved 13 October 2017.
  7. ^ "Tata Teleservices mobile customers transition to Airtel". Airtel. 22 November 2017. Retrieved 1 July 2019.
  8. ^ "Airtel Completes Merger of Tata". Livemint. 1 July 2019. Retrieved 4 July 2019.
  9. ^ "Airtel's Tata merger deal". Business Line. 1 July 2019. Retrieved 3 July 2019.
  10. ^ "DoT approved deal of Tata and Bharti Airtel". Economic Times. 11 April 2019. Retrieved 5 May 2019.
  11. ^ "NTT DoCoMo buys 26% in Tata Tele for $2.7 bn". Business-standard.com. Retrieved 16 July 2010.
  12. ^ Indicom Exit
  13. ^ Sengupta, Devina (9 October 2017). "Tata Teleservices prepares exit plan for staff". The Economic Times. Retrieved 9 October 2017.
  14. ^ Docomo Exit
  15. ^ "Bharti Airtel to acquire Tata's mobile business on debt-free cash-free basis". www.businesstoday.in. Retrieved 18 November 2017.
  16. ^ "Tata and Bharti to combine consumer telecom business via @tatacompanies". tata.com. Retrieved 18 November 2017.
  17. ^ Kurup, Rajesh (12 October 2017). "Tata Tele hangs up on mobile business; Airtel picks it up". The Hindu Business Line. Retrieved 18 November 2017.
  18. ^ "Bharti Airtel-Tata Tele Merger Deal Gets CCI Approval". News18. Retrieved 18 November 2017.
  19. ^ "Airtel receives CCI nod for Tata Tele's consumer business buy – ET Telecom". ETTelecom.com. Retrieved 18 November 2017.
  20. ^ "Bharti Airtel shareholders approve merger proposal with Tata Teleservices". Economic Times. 29 August 2018. Retrieved 18 September 2018.
  21. ^ "NCLT approves merger of Tata Teleservices with Bharti Airtel". Economic Times. 21 January 2019. Retrieved 12 February 2019.
  22. ^ "DoT approved deal of Tata and Bharti Airtel". Economic Times. 11 April 2019. Retrieved 5 May 2019.
  23. ^ "Airtel Completes Merger of Tata". Livemint. 1 July 2019. Retrieved 4 July 2019.

External links[edit]