Tata is looking for fresh avenues
Tata’s have been a sob story. There are conflicting reports about the number of customers that are signing up for their services. Something that tells that their telecom dream has gone sour. Strange because they have a stake in Idea Cellular which is in direct competition with their own CDMA business. That is described as sheer stupidity because they can easily exit out of the GSM business and choose to concentrate on the roll out commitments. Or perhaps save VSNL.
It seems that they are scouting for fresh infusion of funds from overseas- notably Korea. The rationale seems to be that Korea has an advanced CDMA network and the dilution of stake would be for “transfer of technological know-howâ€.
Oh well, it is quite weird. I believe that Tata’s have burnt their fingers badly and sorely need to go in the minority stake. It would be without any loss of face and it is easier to sell in blocks, rather than en masse. This way, they would not be answerable to anyone.
Tata’s is a sad story. While they notch up impressive claims elsewhere, they have sorely missed the bus. Clear lack of understanding about the market, hiring the wrong bunch of ‘analysts’ and delayed roll out.
They also made steel.
This post was submitted by Dr. Abhishek Puri on the Broadband Blog on Techwhack.
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August 8th, 2005 at 04:00 pm
Tatas for sure have been late to board the bus but havent missed it yet . Of course the decision making process is a bit slow for the new economy business .Stake in Idea hasn’t help either , we will soon see Idea going the BPL way .What cold revive is a deal with Reliance to promote CDMA as a technology more agressively . Frankly a better technology than GSM in terms of Call quality , data capability and other aspects . But will Reliance play Ball ??? Investment in Broadband through VSNL was a decision flawed in technogy that was chosen .
August 8th, 2005 at 05:30 am
Tatas for sure have been late to board the bus but havent missed it yet . Of course the decision making process is a bit slow for the new economy business .Stake in Idea hasn't help either , we will soon see Idea going the BPL way .What cold revive is a deal with Reliance to promote CDMA as a technology more agressively . Frankly a better technology than GSM in terms of Call quality , data capability and other aspects . But will Reliance play Ball ??? Investment in Broadband through VSNL was a decision flawed in technogy that was chosen .