tata.com : Tata Power steps into new age

	Tata Power, having raised its stake in Tata Teleservices (TTL), will drive the group’s ambitious plan to harmonise basic services and its high-stakes broadband foray. Its broadband venture and basic phones will closely rival that of Reliance Industries in scale and size. According to corporate observers, Tata Power will be the beachhead around which the group will build its basic phones and broadband services. Tata Power, which is independently weaving a fibre-optic network across the country, picked up a big stake in Tata Teleservices from Tata Industries, which was till recently its biggest shareholder. The move was prompted by natural synergies between broadband and basic phone services. A TTL spokesperson told The Telegraph that there are plans to extend basic services to most parts of the country, a task that will be backed up by synergising the broadband activities of Tata Power with the voice and data offering of Tata Teleservices. "The details are still being discussed," TTL added. Tata Power’s stake acquisition will help the Hyderabad-based Tata Teleservices raise a part of the Rs 6,500 crore that it needs to invest in expansion over the next five years. In another hint of a close coordination with its cellular venture, TTL said: "Tata’s interest in cellular activities are being realised through BPL, Birla, AT&T and the Tata combine. The broadband and cellular operations of TTL will be synergised to reduce costs and offer a wider range of services." Analysts say the "synergising" by Tata companies will help the group achieve economies of scale and to attract more subscribers by spreading it across much of the country. Tata Power recently picked up 15.20 crore TTL shares valued over Rs 152 crore, replacing Tata Industries — which is the main promoter — as the largest stake holder in the telecom company. It now holds shares worth Rs 254.70 crore in Tata Teleservices’ total equity base of Rs 556 crore. Sources at Bombay House say Tata Power’s experience in fibre optic networks will help in drawing up a blueprint to synergise the communications businesses for the group in a better way. The Tata group has 10 companies in various segments of the telecom business and it is presumed that the group will rope in all of them to consolidate its presence in the industry. Sources say Tata Power’s exposure in TTL is expected to increase further as the telecom firm’s expansion plans take shape. The company has bagged the letters of intent for all the 15 circles for which they tabled bids. "Among these circles, based on various considerations, we have decided as part of first phase to convert our letters of intent into license in 8 circles — Delhi, Punjab, Haryana, Maharashtra, Gujarat Karnataka, Tamil Nadu and perhaps Kerala," TTL said.