Business and Capital Market Analysis !!!

Japan's biggest mobile-phone operator NTT DoCoMo Inc. (DCM: News ), India's Tata Teleservices Limited, or TTSL, and Tata Sons Limited, the prime promoter for Tata companies including TTSL, Wednesday revealed an agreement on a strategic alliance in India, whereby NTT DoCoMo would acquire 26% of TTSL's common shares for about 130.7 billion Indian rupees or US$2.7 billion.

Additionally, Tokyo-based NTT DoCoMo expects to make an open offer to acquire up to 20% of the outstanding common shares of Tata Teleservices (Maharashtra) Limited, or TTML, a Tata telecommunications company, through a joint tender offer with Tata Sons.

Through the capital alliance, the partners expect to widen mobile communication operations in the fast-growing Indian mobile market. The mobile phone market in India is growing at about 50% annually.

TTSL, based in Mumbai, is a telecommunications business unit of Tata, India's largest conglomerate based on operating revenues. TTSL currently has a subscriber base exceeding 30 million.

The purchase would help NTT DoCoMo improve its revenues, as growth in its domestic market is near saturation due to a shrinking population. India is the second-largest mobile market in the world after China.


Source :
1.NTT DoCoMo To Buy 26% Stake In India's Tata Teleservices For About $2.7 Bln - Update 11/12/2008 7:26 AM ET.