Tata Tele informs govt of shutdown plans
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India’s Tata Group has reportedly informally notified the government of plans to shut down its wireless business Tata Teleservices after 21 years in operation.
Tata Group executives have been meeting with Department of Telecom and other government officials to discuss ways of surrendering or selling off the struggling Tata Teleservices’ spectrum assets.
According to the report, which cites unnamed sources, the operator will have 60 days to complete the wind-down process once it formally begins. The company will need to give customers 30 days’ notice of its intent to shut down.
Tata Teleservices was launched in 1996 as a landline company, but moved into mobile services in 2008 under a partnership with Japan’s NTT DoCoMo.
After DoCoMo decided to enter the loss-making JV in 2014 the company pursued a sale to larger rivals Bharti Airtel and Vodafone, but these talks fell through, prompting parent company Tata Group to consider shutting down the operations instead.
On the record, Tata Sons chairman N Chandrasekaran would not confirm whether a shut down will take place, but said he will have to make a “tough call” surrounding the future of the venture.
If it takes place, the closure will affect around 5,000 Tata Teleservices employees nationwide.
Questions & Answers
Q.What is Tata Teleservices' history regarding its service offerings?
What is Tata Teleservices' history regarding its service offerings?
Tata Teleservices started as a landline company in 1996. It expanded into mobile services in 2008 through a partnership with Japan's NTT DoCoMo, which later exited the joint venture.
Q.How long will customers have to find new service if the shutdown proceeds?
How long will customers have to find new service if the shutdown proceeds?
If the shutdown proceeds, Tata Teleservices will need to give its customers 30 days' notice of its intent to close. This allows a month for customers to make alternative arrangements.
Q.What is the anticipated timeframe for winding down operations once it formally begins?
What is the anticipated timeframe for winding down operations once it formally begins?
Once the wind-down process formally begins, the company will have 60 days to complete it. This follows the informal notification given to the government.
Q.What were the alternatives considered before the current shutdown plans?
What were the alternatives considered before the current shutdown plans?
After NTT DoCoMo exited their partnership, Tata Teleservices attempted to sell to larger rivals like Bharti Airtel and Vodafone. However, these discussions ultimately failed to materialise.
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