Tata Teleservices Reportedly Shutting Down Operations in India Very Soon ?

By October 9th, 2017 AT 6:55 AM

Earlier this month, it was rumoured that Tata Teleservices is asking its users to migrate from its network as it’s considering shutting down operations in the country. And now, it is reported that Tata Group has informed the government about its shut down of the wireless business.

tower-BSNL-5G

The first news was reported by Business Standard, quoting that the company is asking its wireless subscribers to migrate to another network through the MNP process. And there was another news which was reported by the Economic Times, citing that the company has informed its decision to the Indian government.

Tata Group Chief Financial officer, Saurabh Agrawal and N Srinath, Managing Director at Tata Teleservices are the top from Tata Sons group to meet Department of Telecommunications (DoT) officials to discuss the ways of surrendering or selling the existing spectrum owned by Tata Teleservices. For the unaware, Tata Teleservices in the telecom unit of the Tata Group.

“They wanted to inform informally that they want to close down the business, write off (losses). They will start the process within this month,” cites the ET report. The officials of the company spent more than an hour with DoT, and they now have to intimate the decision to other departments as well.

Also, the report says that if Tata Teleservices begins the process of exiting the country, they have to complete the process in 60 days. Another source of the publication gave an idea on what happens to the spectrum owned by Tata Teleservices at the moment. “While the company can surrender the non-auctioned spectrum, it had got initially, but without any refund, the only option for them is to trade the spectrum bought in auctions at whatever price they get. If they can’t trade it, they would have to give the spectrum back to the government and pay up the money they had to give through yearly instalments.” says the report.

Tata Teleservices has been a loss-making entity for Tata Sons. With the overall debt close to Rs. 30,000 crore, it’s no wonder that the venture is under tremendous pressure. It was also rumoured that the company is looking for consolidation with leading telecom operators such as Vodafone India and Bharti Airtel. Thanks to the super colossal debt, none of the operators showed interest.

It was also reported a few months ago that Tata Teleservices would become a part of RCom-Aircel merged entity. However, the deal never got through, and more recently, RCom lapsed the agreement with Aircel due to some regulatory issues.

In terms of subscribers or technologies used as well, the company is miles behind incumbent telecom operators. Tata Teleservices still doesn’t offer 4G services in the country, which led the operator to lose the subscribers in a large number, especially, after the entry of Reliance Jio, Tata Teleservices’s business took a huge downfall.

Note: This story is based on various media reports.

Chakri is a go-to guy for your next smartphone recommendation. Back in his engineering days, he used to play with smartphones by installing custom ROMs and that passion got him into the tech industry. He still goes nuts about a smartphone knocking his door for review. Currently managing everything at Telecom Talk, Chakri is trying to master PUBG Mobile in his free time.

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Mandar Sherbet
Mandar Sherbet

The first step that TTSL needs to take is shutdown operations in circles where they have limited presence, circles like West Bengal, Bihar, Himachal Pradesh, Odisha & Tamil Nadu. That would have helped them conserve their resources. In circles like Maharashtra, Mumbai, Karnataka, Madhya Pradesh, Gujarat, Andhra Pradesh & Punjab, TTSL does hold liberalised spectrum in 2100 MHz or 1800 MHz band. They could have focused their attention on offering 3G/4G services using these spectrum resources in these limited circles, by offering wider coverage & attractive tariff plans, atleast good bulk data plans, if not Unlimited Voice Calling plans. At… Read more »

Nikhil
Nikhil

Idea 3G and 4G is very good in Pune!!!!! I don’t know about other areas!!!!!

Mandar Sherbet
Mandar Sherbet

Idea 4G used to work very well here until a couple of months ago. Idea 3G has been bad here ever since 4G network was launched last year. But since the last couple of months, the signal strength as well as Data speeds have somehow collapsed here in my town. Maybe they are re-aligning the network with that of Vodafone or something. But the current experience has been bad. On the other hand, Tata Tele’s 3G network has been lot more reliable & consistent here, despite their Financial troubles.

Suman
Suman

Got this email from TATA Docomo Team, ________________________________________________ Hello , We got your E-mail dated 9-Oct-2017 . We sincerely regret the inconvenience caused to you regarding Tata Docomo Information for your Tata Docomo number XXXXXXXXXX . We do not comment on market speculation and will continue to provide best services to the customer . We kindly request you to ignore all these type of news of closing of Tata docomo . We also regret to inform you that as per our records, best offers are temporary closed due to business realignment. Hence, we are not able to provide you the… Read more »

Deepak Vasudevan
Deepak Vasudevan

I have requested information and clarification via CpGrams too.

Chetan
Chetan

It is phased shutdown. Your area is not yet notified for closure immediately. I have seen tweets of people yesterday on twitter sharing excel sheet of tower shutdown listed for october for a small town in Chattisgarh . they had also received calls to port out but within a day entire area network was switched off before they could port out… now people running to other areas to see if towers working so that port out request can be sent…. Not sure if relative of employee of tower management company for TTSL from whom he must have retrieved the list.

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