Tata Tele turnaround by FY08: Irani

Concerned over the health of their telecom business, the Tata group is planning an investment of Rs 5,000 crore over the next 2-3 years while expecting the telecom ventures to join the big league by around 2008.

'The telecom business is not doing well. While VSNL is making profit, the other two - Tata Teleservices (TTSL) and Tata Teleservices (Maharashtra) - are not. We will see that they join the other Tata group companies in maintaining better performance,'' J J Irani, director of Tata Sons, said yesterday.

''We expect TTSL and TTML to turnaround in 2-3 years," he added.

The group has already put in around Rs 5,000 crore in its telecom projects including the acquisition of VSNL, Irani said.

The group has identified telecom as ''the main thrust area'' , and the proposed Rs 5,000 crore investment would be used for spreading services, building network and providing handsets.

"Telecom is a business where you have to first establish a wide presence before the revenue flow starts. We were a late starter, but have now covered all the regions except the north-east sector,'' Irani said.