Japanese carrier, NTT Docomo, has denied the rumors of selling its holdings in Tata Teleservices to Sistema group. According to a report on WSJ, Kaoru Kato, Docomo’s president has cleared the air about their alleged plans to sell its stake in Tata Tele and has slammed rumors of exiting from the Indian market. Also Read - Reliance Jio adds 10.5 million subscribers in October 2018, inches closer to Bharti Airtel, Vodafone Idea
We were thrown for a loop when we heard about (the auctioning of the revoked licenses and the rule changes), but we plan to hold on to our stake, Kato had said in an interview. We re aware that growth may take time. So there are a few surprises. There is no mistake that growth will come, he added.
NTT Docomo had invested in 26 percent stake in Tata Teleservices in hope to have a good business from the Indian telecom sector. However, their joint venture s market share in India has witnessed a steep fall especially after the Indian government had cancelled 122 telecom licenses last year, which resulted in cancellation of three of their licenses in India.
The company s business has further been affected by the stiff competition from other carriers in India. Considering all these factors, NTT Docomo was rumored to sell its stake in Tata Tele and believed opting for this merger agreement with Siestma.