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Tata Teleservices Maharashtra Ltd (TTML) continues to struggle, posting a loss of Rs 122.91 crore for the quarter ended June 30, 2014. This is down from Rs 111.6 crore in the previous quarter but an improvement from Rs 126.9 crore loss in the same quarter last year. This is TTML’s 16th straight loss making quarter.

The net income from telecom services however grew to Rs 687.51 crore for the quarter, up 3.23% from Rs 666 crore revenues in the previous quarter. It had posted a similar Rs 666 crore revenue in the same quarter last year.

The total revenues was at Rs 725 for the quarter, nearly flat from Rs 722 crore in the previous quarter and up 4.2% from Rs 696 crore in the same quarter last year.

Note that TTML is operational only in Goa, Maharashtra and Mumbai circles, however it operates mobile services under the Tata DOCOMO brand with its sister company Tata Teleservices Ltd (TTSL) which is not a listed company.

TTML mentions that data consumption is a significant revenue driver for the company and it is making significant investments to improve its 3G network. However, the company hasn’t provided any information how its data services are performing.

In the corresponding quarter last year, TTML had mentioned that VAS and Data revenues accounted for 39% of its total wireless revenues. This was incidentally the last quarter where TTML provided information on the contribution of data revenues to its total wireless revenues.

Highlights

– During the quarter, Tata DOCOMO had tied-up with mobile based directory service Truecaller to let its subscribers use the service for free without data charges. As part of the deal, Tata DOCOMO subscribers also got free access to Truecaller’s premium services for 90 days.

– Earlier in the month, Tata Docomo had partnered YouTube and Apalya Technologies to introduce a 3G video streaming plan called YouTube Recharge. Through this, it offered various plans starting at Rs 9 which provides users 100 MB usage for 24 hours and going up to Rs 39 with 300 MB data valid for 7 days.

South African telecom major MTN Group is reportedly in preliminary talks to acquire Tata Teleservices and Tata Teleservices Maharashtra. Vodafone was earlier rumored to be in talks to acquire both the companies from Tata Group, enabling the latter to exit the telecom industry altogether. However, the talks apparently fell though due to differences over valuation.

NTT DOCOMO had earlier announced plans of selling its entire 26.5% stake in Tata Teleservices through the equity method by June 2014. The company had an an option to sell its stake for Rs 7,250 crore (about 50% of the acquisition price) or a fair market price, whichever is higher. This was later extended to July 2014. It’s currently not clear whether NTT DOCOMO has already exercised this option or not.

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