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TATA Communications
TATA Communications
There are many reasons for TATA Tele Communications to go for a joint
venture with DoCoMo, some of the reasons include:
Access to new markets and distribution networks.
Increased capacity.
Sharing of risks and costs with a partner.
Access to greater resources, including specialised staff, technology and
finance.
The reasons for DoCoMo to go for a Joint Venture are,
To enter into the fastest growing markets like India.
To access in to new markets.
Businesses of any size can use joint ventures to strengthen long-term relationships
or to collaborate on short-term projects. A joint venture can help your business grow
faster, increase productivity and generate greater profits.Joint ventures often enable
growth without having to borrow funds or look for outside investors. You may be able
to use your joint venture partner's customer database to market your product, or offer
your partner's services and products to your existing customers. Joint venture
partners also benefit from being able to join forces in purchasing, research and
development.A joint venture can also be very flexible. For example, a joint venture
can have a limited life span and only cover part of what you do, thus limiting the
commitment for both parties and the business' exposure.
Business Model for Tata Telecommunications and DoCoMo:
Tata Communications called itself a telecom service provider. No longer. It now offers
cable connectivity across the globe along with massive data centres that provide
customers with the entire spectrum of ICT solutions from voice solutions and
mobility and data services to virtualisation services, hosted services and cloud-based
computing applications.
value and to continue to improve the quality of products and services connected with
i-mode.
Moreover, it has been our mission to make i-mode operationally as simple as
possible. By adopting an HTML subset we have made the creation of sites
exceptionally simple. We have also enabled the compatibility of many other
standards including: GIF, Java, MIDI, Macromedia Flash, and HTTP.
partners had to deal with issues other than business synergies - like the percentage
of equity holding of each partner in the JV, the price at which NTT DoCoMo would
buy its stake to be offloaded by TTSL and the provision for veto rights that could
make up for a minority holding. The case study helps students understand the
dynamics of the formation of an international JV. It also highlights the unique
advantages of a JV over other forms of international collaboration, such as
technology licensing and agency distribution.
Success or Failure?
Its a very big success story, Tata Teleservices Limited has also become the
first Indian private telecom operator to launch 3G services in India under the brand
name Tata DOCOMO, with its recent launch in all the nine telecom Circles where it
bagged the 3G license. In association with its partner NTT DOCOMO, the Company
finds itself favorably positioned to leverage this first-mover advantage. With 3G, Tata
DOCOMO stands to redefine the very face of telecoms in India. Tokyo-based NTT
DOCOMO is one of the world's leading mobile operatorsin Japan, the company is
the clear market leader, used by nearly 55 per cent of the country's mobile phone
users.
Tata Teleservices Limited also has a significant presence in the GSM space, through
its joint venture with NTT DOCOMO of Japan, and offers differentiated products and
services under the Tata DOCOMO brand name. Tata DOCOMO arises out of the
Tata Group's strategic alliance with Japanese telecom major NTT DOCOMO in
November 2008. Tata DOCOMO has received a pan-India license to operate GSM
telecom servicesand has also been allotted spectrum in 18 telecom Circles. The
company has rolled out GSM services in all of these 18 telecom Circles in the quick
span of just over a year.
Tata DOCOMO marks a significant milestone in the Indian telecom landscape, and
has already redefined the very face of telecoms in India, being the first to pioneer the
per-second tariff optionpart of its 'Pay for What You Use' pricing paradigm.
MAR'14
MAR'13
YoY
( Cr.)
( Cr.)
%Change
285
285
0.00%
Total Reserves
7,600.61
7,231.42
5.11%
Shareholder's Funds
7,885.61
7,516.42
4.91%
0.00%
-165
250
-166.00%
375
375
0.00%
Long-Term Borrowings
Secured Loans
Unsecured Loans
Deferred Tax Assets /
Liabilities
Other Long Term Liabilities
-92.92
-8.71
403.26
376.28
7.17%
25.43
15.28
66.43%
5,065.96
4,704.38
7.69%
5,611.73
5,712.23
-1.76%
1,144.56
1,082.81
5.70%
982.48
702.66
39.82%
316.18
149.7
111.21%
1,161.42
1,137.43
2.11%
3,604.64
3,072.60
17.32%
17,101.98
16,301.25
4.91%
Total Liabilities
966.82%
Parameter
MAR'14
MAR'13
YoY
( Cr.)
( Cr.)
%Change
ASSETS
Non-Current Assets
0.00%
9,396.67
9,656.82
-2.69%
5,159.49
4,823.37
6.97%
0.00%
4,237.18
4,833.45
-12.34%
310.04
174.66
77.51%
2,068.66
2,030.51
1.88%
7,149.32
6,432.80
11.14%
13.87
11.99
15.68%
13,779.07
13,483.41
2.19%
934.31
462.41
4.15
4.2
-1.19%
Sundry Debtors
685.44
856.49
-19.97%
522.63
328.62
59.04%
245.86
232.37
5.81%
930.52
933.75
-0.35%
3,322.91
2,817.84
17.92%
-281.73
-254.76
10.59%
2,388.60
2,355.43
1.41%
17,101.98
16,301.25
4.91%
15,616.80
15,095.85
3.45%
Gross Block
Less: Accumulated
Depreciation
Less: Impairment of Assets
Net Block
102.05%
MAR'14
( Cr.)
MAR'13
( Cr.)
Change
%
4,376.40
4,416.12
-0.90%
0.00%
0
0
4,376.40
0
0
4,416.12
0.00%
0.00%
-0.90%
0
0
84.51
640.81
0
0
167.31
639.46
0.00%
0.00%
-49.49%
0.21%
2,043.76
2,139.01
-4.45%
539.83
405.11
33.26%
36.32
40.62
-10.59%
36.78
0
3,382.01
994.39
467.5
1,461.89
59.51
1,402.38
680.23
24.4
0
3,415.91
1,000.21
380.22
1,380.43
119.69
1,260.74
762.4
50.74%
0.00%
-0.99%
-0.58%
22.96%
5.90%
-50.28%
11.23%
-10.78%
722.15
498.34
44.91%
81.33
158.35
-48.64%
803.48
261.05
542.43
0
0
1,102.23
1,644.66
45
19.03
276.69
656.69
181.45
475.24
0
0
993.12
1,468.36
30
16.68
263.73
22.35%
43.87%
14.14%
0.00%
0.00%
10.99%
12.01%
50.00%
14.14%
4.91%