TATA COMMUNICATION-NTT DOCOMO

About the acquisition

Date: - 13th November 2008
Acquirer: - Ntt-Docomo
Target company: - Tata Teleservices Ltd.
Stake: - 26 %
Deal amount: - US$ 2700 m
Sector: - Tele-communication

TATA COMMUNICATIONS
Tata Communications is a leading global provider of a new world of communications. With a
leadership position in emerging markets, Tata Communications leverages its advanced solutions
capabilities and domain expertise across its global and pan-India network to deliver managed
solutions to multi-national enterprises, service providers and Indian consumers.
The Tata Global Network includes one of the most advanced and largest submarine cable networks, a
Tier-1 IP network, with connectivity to more than 200 countries across 400 Pops, and nearly 1 million
square feet of data centre and collocation space worldwide.
Tata Communications' depth and breadth of reach in emerging markets includes leadership in Indian
enterprise data services, leadership in global international voice, and strategic investments in
operators in South Africa (Neo-tel), Sri Lanka (Tata Communications Lanka Limited), Nepal (United
Telecom Limited), and subject to approval by the Chinese government, China (China Enterprise
Communications)
Tata Communications Limited is listed on the Bombay Stock Exchange and the National Stock
Exchange of India and its ADRs are listed on the New York Stock Exchange. (NYSE: TCL)
NTT-DOCOMO
NTT DOCOMO is Japan's premier provider of leading-edge mobile voice, data and multimedia
services. With more than 55 million customers in Japan, the company is one of the world's largest
mobile communications operators.
DOCOMO also is an influential force in the continuing advancement of mobile technologies and
standards. In 1999, Docomo launched i-mode the world's most popular platform for mobile Internet
services including e-mail, browsing, downloading and more.
In 2001, DOCOMO introduced FOMA, the world's first 3G commercial mobile service based on WCDMA, which has transformed the mobile landscape in Japan while bringing the DOCOMO brand
global recognition. The role of mobile phones as "lifestyle tools" was cemented when DOCOMO
launched Osaifu-Keitai, a mobile wallet platform enabling quick, contact-less transactions for cash,
credit, ID, and more. More than 36 million phones equipped for Osaifu-Keitai services are now in use.

Building on a solid foundation of research and development, and guided by its customer-first
philosophy, the company leverages the power of mobile communications to enable customers to
enrich their lives.
DOCOMO is expanding its global reach through offices and subsidiaries in Asia, Europe and North
America, as well as strategic alliances with mobile and multimedia service providers in markets
worldwide.
Detailed case study
Tata Sons Limited, the promoter of Tata Teleservices Limited, announced today that its transaction
with NTT DOCOMO, under which the Japanese telecom company was to acquire 26 per cent of the
common shares of Tata Teleservices Limitedin accordance with the capital-alliance agreement
announced by the parties in November 2008has been completed.
Tata Sons further stated that DOCOMO has also completed its payment obligations under the Tender
Offer and is preparing to acquire approximately 12 per cent of the common shares of Tata Teleservices
(Maharashtra) Limited (TTML) through an open offer*, with the Tender Offer having closed on 12
March 2009.
With this development, DOCOMO has become a 26-per cent shareholder in Tata Teleservices Limited
and three DOCOMO Directors will be named to join the TTSL Board. The partners will now work to
increase the enterprise value of both TTSL and TTML, while creating synergies through their joint
activities including Business & Technology Cooperation Committee.
Tokyo-based DOCOMO, the worlds leading mobile operator, has played a major role in the evolution
of mobile telecommunications through its development of cutting-edge mobile technologies and
services. The company is a strong market leader used by more than 50 per cent of Japans mobile
phone users. DOCOMO, the worlds leading mobile operator, will work closely with TTSLs
management and provide know-how to help the company develop its mobile business. TTSL expects
to leverage DOCOMOs expertise in the development and delivery of value-added services, where
DOCOMO is a firmly established market leader. The Japanese telecom giant which, with 53 million
customers and 51.5% of the Japanese market, is one of the world's largest players in the
telecommunications industry, bought a 26% stake in Tata Teleservices Ltd (TTSL) for $2.7 billion.
NTT DoCoMo followed
up this deal with an open offer for 20% in Tata Teleservices (Maharashtra) Ltd -- TTML -- the listed
subsidiary of TTSL. At Rs24.70 (50 cents) a share, this means another $191 million. The offer will
open in January.
The Road ahead
Great deal it may be, but it has its risks. One reason is that telecom deals have been controversial in
recent times. This goes back to late last year when the government sold pan-India licenses for $333
million apiece, amid a welter of controversy. New players, with no experience in the business, got
these licenses on a first-come-first-served basis. In India also, many of our companies already are or
will soon face major problems in their access to credit due to the lack of liquidity in the domestic
market and also their inability to effectively raise equity due to the depression in the stock market and
the erosion of investor confidence.
Open offer
Besides, DoCoMo, in accordance with regulations of the Securities and Exchange Board of India,
expects to make an open offer to acquire up to 20 per cent of outstanding equity shares of Tata
Teleservices Maharashtra (TTML), a Tata telecommunication company, through a joint tender offer

along with Tata Sons. TTSL and TTML through the Tata Indicom brand, have increased their
combined share of the fast-growing Indian mobile market and their combined subscriber base now
stands at over 30 million.
Market leader
NTT DoCoMo is a market leader in Japan and is used by over 50 per cent of Japans mobile phone
users.
It serves over 53 million customers, including 46 million people subscribing to FOMATM (in Japan),
launched as the worlds first 3G mobile service based on W-CDMA in 2001.
It offers a variety of leading-edge mobile multimedia services, including i-mode, the worlds most
popular mobile e-mail/Internet service, used by 48 million people.
With the addition of credit-card and other e-wallet functions, DoCoMo mobile phones have become
versatile tools for daily life. It is listed on the Tokyo, London and New York stock exchanges. TTSL
expects to leverage DoCoMos expertise in the development and delivery of value-added services,
where DoCoMo is a firmly established market leader.