Tata Tele plans migration offer to Idea customers

 The Tatas are planning to offer a migration package to the 2 million subscribers of Idea Cellular to Tata Teleservices, which will operate fully mobile code-division multiple access (CDMA) services under a unified telecom licence.

 Tata Teleservices is looking at various options for the migration, including offering a buyback to Idea customers, wherein the company will take back the global standard for mobiles (GSM) handsets in return for CDMA phones.

 The Tatas could also discuss the option of offering AT&T and the Aditya Birla group, which together hold a 68.5 per cent stake in Idea Cellular, equity in Tata Teleservices through a swap.

 This is because the Tatas, who hold a 31.5 per cent stake in Idea, are not keen to buy out the partners in Idea, which runs a GSM network.

 It is, however, not clear whether the GSM subscribers would like to switch over to CDMA services, considering that the number portability issue has not been sorted out.

 The deal will also depend on the telecom regulator