DoCoMo To Exit India At $1.3 Billion Loss

The over two-decade-old DoCoMo had acquired a 26.5% stake in Tata Teleservices in a deal that was supposed to catapult it into the telecoms industry big league but cut-throat tariff competition, regulatory uncertainty and billions of losses have forced the Japanese biggie to hang up on Asia's third largest economy. Besides, this move has left a question mark on Tata Teleservices' future.

Under the 2009 joint venture agreement, DoCoMo had two options: one, to increase its stake to 51% in two phases by March and the second to sell its stake for half the acquisition price or at a fair market price, whichever was higher. Both the options were linked to performance targets and with the Indian joint venture missing the targets, the Japanese major has decided to dial out of Tata Teleservices.

The Tata Group holds 65% in India's seventh-largest mobile services company, which lags far behind telecom giants Bharti Airtel and Vodafone. Singapore government's investment arm Temasek and serial entrepreneur C Sivasankaran too own small stakes in the company. DoCoMo said it will exercise its sale option by June.

Source : https://timesofindia.indiatimes.com/business/india-business/DoCoMo-to-exit-India-at-1-3-billion-loss/articleshow/34218148.cms

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