Tata Tele expects to break even next fiscal

To invest Rs 600 crore in Gujarat circle over the next 18 months

Tata Teleservices Ltd (TTSL), which provides CDMA mobile and fixed services in six telecom circles of the country, expects to break even in the Gujarat circle by the second half of the next fiscal year.

TTSL, which has so far invested Rs 400 crore in Gujarat, will make an additional investment of Rs 600 crore in this circle over the next 12 to 18 months to strengthen its infrastructure and network in the state.

"During our last one year of operations in the Gujarat circle, we have invested a little more than Rs 400 crore. Now we expect to break even during the second half of the fiscal year 2004-05," Jagrut Vyas, chief operating officer of TTSL's Gujarat circle, said.

"We have also decided to invest an additional Rs 600 crore over the next one and a half years in this circle for expansion of our network and strengthening the infrastructure. We are also expecting to add another million of subscribers in the Gujarat circle over the next 18 months," Vyas said.

Of the Tata Teleservices' 1.5 lakh subscribers in Gujarat, 70 per cent are in its mobile segment, while the rest are fixed wireless telephone and fixed wireline telephone subscribers.

"We are also expanding our service areas from the existing 12 cities and towns to 52, adding 40 new areas under our service network in Gujarat circle. So far, we have concentrated in major cities and towns of the state. In the next six months, we will add these 40 new service areas," Vyas said.

Tata Teleservices will soon introduce its CDMA services in small cities of the state such as Porbandar, Bhuj and Ankleshwar.

Vyas said, "As we are targeting one million new subscribers over the next one and half-years, we need to further strengthen our network and infrastructure to accommodate the new subscribers. Now we have 95 cell sites across the circle. This will be increased to 235 over the next one year. We will also install a new switch in Vadodara for better network coverage in the adjoining areas where we will soon be introducing our services."

Tata Teleservices, which has at present thirty channel partners in the state, has chalked up a plan to increase its number of business channel partners in the major cities of Surat, Vadodara, Rajkot and Ahmedabad.

The company has recently increased the size of its call centre to handle more enquiries from the subscribers.

"Recently, we have increased the staff strength in the customer care segment," Vyas said.