Indian powerhouse the Tata Group is planning to offload a 20% stake in its fixed line and CDMA operator Tata Teleservices for around USD500 million. A group of investors led by Singapore’s Temasek is expected to purchase the holding by 15 February. Last year it was rumoured that Tata was looking to sell up to a third of Tata Teleservices to South Korea’s SK Telecom, but the pair eventually failed to agree a price for the assets.
SK Telecom has now apparently turned its attentions to Tata rival Shyam Telelink, though it reportedly faces competition from Sprint, Deutsche Telekom and TeliaSonera. Rajasthan-based Shyam had a subscriber base of 110,00 at end-2004, just a tenth of the size of Teleservices’, but is seeking to expand aggressively nationwide.