Tata Tele set to invest Rs 600 cr

TATA GROUP GOES ON MAJOR OVERDRIVE

Telecommunication service provider Tata Teleservices Maharashtra (TTML), a subsidiary of Tata Teleservices (TTSL), will invest Rs 600 crore in this financial year for enhancing and rolling out network.

TTML, which is licensed to provide telecommunications services in the states of Maharashtra and Goa, will now target tier-B and tier-C cities followed by rural cities.

TTML sources said with the proposed investment, the company will be focusing on wireline segment in addition to enterprise segment.

"We had invested over Rs 650 crore last year and will be investing more than Rs 600 crore in the current financial year," they said.

"The wireline segment offers better ARPU (average revenue per user) compared to the wireless segment," sources said.

Meanwhile, TTML has also tied up with US-based Kodiac Networks for launching instant conference facility for post-paid customers.

"The test drive for the facility has been successfully conducted and this will be a revenue-sharing model with Kodiac," they said.

Instant conference facility will enable a customer to speak to several persons at a time by dialling a number that represents a group, they added.

TTML-led consortium is also pitching for Rs 1,000 crore broadband connectivity initiative by the IT department of the Goa government, GSWAN (Goa State Wide Area Network).

The consortium partners include Tata Consultancy Service, Videsh Sanchar Nigam and other equipment vendors.

GSWAN will enable connectivity to over 2,00,000 households in the state of Goa with 100 mbps pipeline, and government offices will be connected with 10 gbps. The project is likely to be completed by February 2007.

According to industry sources, the Goa government may pick up an equity stake in this project and is likely to scale down the size of 100 mbps pipeline.

"The project includes video on demand, cable services, e-governance initiatives and transaction-based revenue models," industry sources said.