Tata Communications Limited (TCL) has informed the Bombay Stock Exchange (BSE) that its shareholding in Neotel has increased from 49% to 61.5%. The company has purchased additional 12.5% stake which was previously held by Two Telecom Consortium (2TC). Consequently, Neotel becomes a direct subsidiary of Tata Communications. The other shareholders of Neotel are Nexus Connexion and CommuniTel. Neotel, which is a South African telecommunications services provider, offers fixed-line and internet services in the region. The company of late has not been doing particularly well financially and accounted for Rs 551 crore of the total loss suffered by Tata Communications in the financial year ended 31st March 2011. According to TechCentral, Neotel wants to expand its subscriber base by 50% in the on going financial year. It intends to spend funds on new wireless base stations to enhance its coverage area. Neotel has allocated about R500 million (Rs 325 crore approx) for capital expenditure in 2012, part of which will be utilized for enhancing its consumer offerings. Meanwhile Tata Communications is working towards reduction of networking cost, increase productivity gains and provide managed services to small and medium scale enterprises. Related: - Tata Comm Revenues Up 8% To Rs 11932 Cr For FY11; Rs 854 Cr Loss
Please subscribe to MediaNama. Don't share prints and PDFs.
You May Also Like
News
Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...
Advert
135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...
News
By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...
News
Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...