Tata Teleservices to invest Rs 8000 crore

Tata Teleservices said it plans to invest an additional Rs 8,000 crore over next two-three years to beef up and expand its network.

"We will invest Rs 8,000 crore in next two to three years in operations of Tata Teleservices," Tata Industries managing director Kishore Chauker said.

The funds for expansion will be raised through a mix of equity and debt in the ratio 1:1, he said. "First we will bring in equity and then raise debt of similar amount," Chauker said. He said the company also intends to tap the international markets to raise funds.

"We have covered 85 per cent of the country with our services and gradually we will inch towards 90 per cent to 95 per cent in next 18 to 24 months," he said.

Apart from geographical spread, we will also increase capacity in existing circles we operate in, Chauker said.

Tatas are targeting leadership position in all spheres of telecom services by the next financial year and group chairman Ratan Tata will coordinate and strategise growth of various companies of the group in telecom.

Tatas have 47 per cent equity in VSNL, 80 per cent in Tata Teleservices and 20 per cent in Tata Teleservices (Maharashtra).

On the other hand, VSNL holds 19 per cent stake in Tata Teleservices which in turn has 51 per cent equity in Tata Teleservices (Maharashtra).

There was a financial synergy among group companies in terms of investment and planning.