Tata Tele to invest Rs 3,500 cr

Company Plans To Spin Off Cellular Towers Into A Separate Unit
TATA Teleservices (TTSL) is planning to invest Rs 3,500 crore in the next fiscal for expanding services across the country. The CDMA-based operator will also spin off its cellular towers into a separate unit, which could be sold at a later stage, CEO Darryl Green said on Thursday. ET had first reported on January 16 that the telco was in talks with several companies to hive off towers in a bid to monetise assets valued at over Rs 1,000 crore. “Towers are passive infrastructure. We are actively discussing with various companies on having them take over the business,” Mr Green said at a press conference in Mumbai. “Just about everyone you’ve heard of has been in talks with us,” he said, refusing to divulge details. Elaborating on the telco’s expansion plans, Mr Green said, “We will add more cell cites and reach out to another 1,000 towns and if we get the spectrum, we will roll out 3G services as well.” The company had earmarked an almost similar outlay for the current fiscal too. TTSL has applied for licences in Jammu and Kashmir, Assam and the rest of the North East. “If we get licences, then a part of the outlay will be used to start operations in these areas,” he added. The company has been adding over half a million users every month. Along with subsidiary Tata Teleservices Maharashtra, TTSL has nearly 16 million users in India.

Courtesy: EconomicTimes
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