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Tata Tele to pump in Rs 1,000 cr in K'taka  over six years
Economic Times — June 25, 2003

Bangalore: Telecom services provider Tata Teleservices plans to invest Rs 1,000 crore in its operations in Karnataka over the next six years. The firm also plans to reach 31 short distance charging areas by August this year and add 2,000 km of optic fibre cabling in the next three years.

Prabhat Pani, chief operating officer, Tata Teleservices, Karnataka, said the company had already invested Rs 300 crore in its operations in the state, which today had over 45,000 subscribers and is expected to exceed one lakh by the end of the year. The firm will launch its services in Shimoga next month and plans to add nine cell sites in Bangalore and three upcountry, he added. By September, Bangalore is expected to have 10 more cell sites. Tata Teleservices, which commenced operations in November ‘02, claims to have average revenue per user of around 
Rs 600 for its services run under the Tata Indicom brand.

Meanwhile, the company is focusing on increasing its user base for its wireline offerings launched recently. Tata Teleservices officials admitted that wireline services took longer to get off the ground, due to the time taken in getting permits to lay underground cables for this service. The company is also looking to increase the number of PCOs in the state. It currently operates 1,500 PCOs across Karnataka. Tata Teleservices and Reliance provide Code Division Multiple Access (CDMA) based services in the state.

Company officials said CDMA-based mobile services used wireless spectrum more efficiently, provided enhanced privacy and had the lowest radiation among all existing technologies.

Tata Teleservices provides shorter pulses resulting in 30-40% saving over competing GSM bills, Mr Pani said. The company has enhanced its handset range with the introduction of Nokia and Motorola phones.

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