TTML reveals INR12.5 billion 3G investment plan

5 Nov 2009

Indian mobile operator Tata Teleservices Maharashtra (TTML), a subsidiary of Tata Teleservices (TTSL), is planning to spend approximately INR12.5 billion (USD265.5 million) on the rollout of 3G and WiMAX services in the Mumbai and Maharashtra circles, DNA Money reports. It is understood that, having already received shareholder approval for the investment plans, the operator has already spent an additional INR10 billion on preparing its 2G GSM network to offer 3G services. Commenting on where the funds will come from, Mukund Rajan, TTML’s managing director, said: ‘The funds will be raised through a combination of instruments such as foreign currency convertible bonds, global depository receipts and qualified institutional placements.’

It is expected that the Tata Group, parent of TTSL, will bid for a pan-India 3G licence when the auction is held at the beginning of next year, and TTML will then pay the auction price for its two circles directly to its parent if successful.