The Tata Teleservices-DoCoMo Joint Venture | Business Strategy Case Studies

Details

Case Code : CLBS070
Publication date : 2009
Subject : Business Strategy
Industry : Telecom
Length : 05 Pages
Price : Rs. 100

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Key words:

Joint venture, branding, GSM, CDMA, Tata Teleservices, DoCoMo, value added services, SEBI, FIPB, pan-India license, telecom circles, Business and Technology Cooperation Committee, 3G

Note

* This caselet is intended for use only in class discussions.
** More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

Abstract:

In late 2008, India-based CDMA operator, Tata Teleservices Limited (Tata Teleservices) and Japan-based telecom operator NTT DoCoMo (DoCoMo) entered into a joint venture (JV) in India. Subsequently, in June 2009, the two companies unveiled their new brand identity for offering GSM services in India - Tata DoCoMo. With this JV, Tata Teleservices got a presence in the GSM market while DoCoMo got the opportunity to tap the tremendous potential offered by the Indian telecom sector.

Issues:

» Joint Venture

Introduction

On June 10, 2009, Tata Teleservices Limited (Tata Teleservices), a CDMA mobile service provider in India, and NTT DoCoMo Inc. (DoCoMo), a Japan-based mobile phone operator, unveiled a new brand identity for their GSM service - Tata DoCoMo. The new branding followed months after the joint venture (JV) was formed between the two companies in November 2008. Commenting on the new brand identity, Anil Sardana (Sardana), Managing Director of Tata Teleservices said, "TATA DOCOMO is a natural choice of GSM brand-name for us, since it will provide customers a dual advantage-trusted service from the House of Tata, riding on the technological superiority of NTT DOCOMO."...

Questions for Discussion:

1. Critically analyze DoCoMo's strategy for India. Analyze the rationale behind the JV between TTSL and NTT DoCoMo and enumerate the benefits to both the parties.
2. Do you think DoCoMo will be able to tap the opportunities offered by the Indian telecom sector? Also, comment on how the new venture will fare against the existing Indian players.

The Tata Teleservices-DoCoMo Joint Venture*