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Tata Indicom launches services in Karnataka

Fakir Chand in Bangalore

Tata Teleservices Ltd on Tuesday launched its basic services in the Karnataka circle, and unveiled its national brand Tata Indicom in Bangalore.

Backed by a world-class customer interface, the Tata product offerings will include CDMA (code division multiplexes access) mobile and fixed wireless, wireline, data services, including ISDN and DSL and integrated telecom solutions, besides virtual private networks.

As part of its Karnataka operations, the company will initially provide telecom services in Bangalore, Mangalore and Hubli this month, and cover about 50 other locations across the state by March 2003.

Unveiling its plans, Tata Teleservices chairman J J Irani said the Tata Group would be making heavy investments in the telecom sector in the coming years to emerge as a key player in the entire range of voice and data services.

"We are planning to invest a whopping Rs 7500 crore (Rs 75 billion) in the next five years across the country to create a world-class telecom infrastructure to provide state-of-the-art voice and data services on multiple platforms," Irani stated.

Of the proposed total investment, about 4000 crore (Rs 40 billion) will be raised through the equity route and the balance Rs 3500 crore (Rs 35 billion) by way of debt, including loans from banks and financial institutions.

Irani, however, admitted that in view of the telecom industry being highly capital intensive with long-term gestation period, the returns would be spread over the years though the company is targeting to break even in the next 5 years.

With the acquisition of Hughes Tele.com, which has license to operate basic services in Maharashtra and Goa, the company will have a ready access to 180,000 customers.

Plans are also underway to launch its range of services in two other circles, viz., Gujarat and Delhi for which the company has bagged licenses to operate.

"We have already invested about Rs 1400 crore (Rs 14 billion) in Andhra Pradesh during the last three years to provide basic and other services with world-class infrastructure, and have already notched up a subscriber base of 250,000 by the end of September.

In Karnataka, the investment will be about Rs 1000 crore (Rs 10 billion) over the next five years to build a robust network across the state. Our presence will generate employment to about 8000 people in the state," Tata Teleservices managing director S Ramakrishnan claimed.

The company has also commenced basic services in Tamil Nadu, where it is investing about Rs 1400 crore (Rs 14 billion). It is set to expand its product offerings for providing similar services across the neighbouring state.

First to launch CDMA mobile service in Karnataka, the company is upbeat about its special appeal to customers as it provide the mobility advantage of a cellular phone at the cost (Rs 1.20) of a regular landline, with incoming calls free.

'We plan to set up 2000km of optic fiber backbone across Karnataka in the next 3 years, and three main switches (of Lucent make) at Bangalore, Mangalore and Hubli. For wireless coverage, we will have cell sites in each city," chief operating officer Y V L Pandit disclosed.

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