Indian mobile network operator Tata Teleservices (TTSL) is rumoured to be preparing a share sale worth around INR30 billion (USD670 million), with any funds raised expected to be ploughed back into network expansion. According to Bloomberg, which cited two people familiar with the matter, the stake sale will possibly be formally announced by the end of this month. It is understood that Japan’s NTT DoCoMo, which currently holds a 26% stake in the operator, will seek to buy enough shares to maintain its current level of holding in the Indian cellco.
With TTSL having inaugurated third-generation services in November 2010, the first private operator to do so, the money raised by the share sale will likely be directed on the expansion of its 3G network across all those regions in which it is licensed to operate. As previously reported by CommsUpdate, in May 2010 TTSL bagged 3G concessions for nine circles, paying INR58.64 billion for the licences.