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Yes thats right, NTT DoCoMo of Japan values Tata Teleservices at Rs. 50,629 or $10.38 billion which in turn translates into a valuation of Rs. 19,334 for each of its 25 million subscribers across 20.
DoCoMo will buy 6% from Tata Sons and other group companies and the remaining 20% will be new shares issued by Tata Teleservices. They will also get 3 board seats on TTSL.
With this, NTT DoCoMo which has over 53 million customers, and is one of the world’s largest mobile services companies, has finally entered the world’s fastest growing telecom market which is reckoned to have more than 3 times the subscribers that Japan has.
While the per subscriber valuation is higher than the Bharti’s Rs. 14,977 and RCom’s Rs. 7,420 (based on the market capitalization these days), it is lower than the Rs. 23,152 that TeleKom Malaysia paid for Idea Cellular’s subscribers in July this year and the Rs. 32,336 that Vodaphone paid for Hutchison-Essar’s subscribers in 2006.
As far as the industry is concerned, even though subscribers growth is continuing, the GSM operators’ average revenue per user declined by 9.8% to Rs 239 in June from Rs 264 a month ago, while that of CDMA operators’ fell by 12.6% to Rs 139 during the period from Rs 159 recorded in March.

Must reads:
Norway’s Telenor Buys 60% Of Unitech Wireless
Despite Slowdown, GSM Subscribers Numbers Rise
Mobile Rates Set To Fall In India
RCom Set To Start Price Wars With Cheapest Smartphone

Related posts:

1. DoCoMo Looks At Buying Stake In Tata Teleservices
2. Tata Teleservices To Invest Another $1 Bln In GSM Service
3. GSM Operators Add Record 7.7m Users In September
4. India Adds 8.89 Million GSM Subscribers In June
5. Meet Your New Personal Trainer: Your Cellphone

Filed under: Deal Tracker