NTT Goes on an Adventure With Tata in India
In this context, it is no surprise that NTT is looking outside its domestic market for growth. The Tokyo-based operator initially focused on developed markets such as South Korea, Singapore, and Hong Kong, as well as Malaysia, where it could more easily apply its expertise in 3G and related services and applications. Growth in these markets is slowing, however, particularly in light of the current economic crisis (see Capex in Asia-Pacific: Driven by 3G in China, Spending to Rise Despite Global Downturn). Next month (March 2009), NTT expects to finalize the purchase of a 26 percent equity stake in Tata Teleservices Ltd. in India for US$2.7 billion, giving Tata a valuation of US$10.4 billion, or US$326 per subscriber. This follows on the heels of similar investments in Bangladeshi mobile operator Aktel (September 2008) and in Philippine player Smart Communications Inc. (2006).
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