6 thoughts on “NTT DoCoMo Moves Into India, Buys a Piece of Tata”

  1. Absurd valuation. Reason is that Tata Tele is very behind in the marketplace inspite of it being the first provider in many states. They have just about 30% of the subscriber base of Bharti Airtel. And as far as ARPU is considered Tata Tele is probably the worst. I think NTT has paid huge huge premium just to get a toehold in the market

  2. @Sidharth

    I think it is valuation mostly because of the ethics of the parent. secondly, i think NTT sees an upside in the investment itself. it is a fairly good investment — but i guess premium is one of the reasons why Tata might have sold the stake to them versus some private equity group.

  3. Om,

    Tata Group and Ethics ? I will enlighten you here,

    Tata Power invested Rs 500 crore in Broadband Infrastructure and they sold the same to group company VSNL at 50% discount 5 years later. In the end, who lost ? The shareholders of Tata Power. [My question was simple, when India faces severe power shortage, what is the need for Tata Power to invest in broadband ?] I had written to Ratan Tata on 09/23/05 [I still have e-mail Proof] questioning his investment, but as usual like any other Indian CEO/Chairman he didn’t bother to reply.

    Also, have a look at this Video featured on CNN IBN about the functioning of their Tata Group’s ISP division 🙂

    Almost all the Indian companies are the same – Customers and Shareholders are at the mercy of the management.

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