Tata to pump Rs 500 cr to up user base to 3 mn

Tata Teleservices Maharashtra Ltd (TTML), has earmarked a corpus of Rs 500 crore for its operations in the country. It also plans to increase its subscriber base from the present 2.1 million to over 3 million by the year end.

"The corpus of Rs 500 crore would be used for the company's expansion plans in Mumbai and Maharashtra circles and also for increasing its value-added services (VAS) and bringing in new handsets," Tata Group Chairman Ratan N Tata said TTML's annual general meeting today.

On the company's rights issue of Rs 500 crore, he said TTML had moved the Securities and Exchange Board of India (SEBI) and was awaiting a letter of offer from the market regulator.

"After getting the letter of offer, we can go ahead with the rights issue," he added.

Meanwhile, Kishore A Chauker and R Gopalakrishnan stepped down from the company's board, while Tata Consultancy Services Managing Director and CEO S Ramadorai was elected the director. The company also added another member, Arunkumar Gandhi, on its board.

Tata said the royalty on CDMA handsets was hurting the company's revenues, unlike in case of GSM where no royalties were being paid.

Tata said they Tatas were serious in telecom business and would eventually merge all the three companies - Tata Teleservices ( Maharashtra) Ltd, Tata Teleservices Ltd and Videsh Sanchar Nigam Ltd - of which TTML and VSNL are listed entities. However, he did not specify any time-frame for the merger.