Japan based telco NTT DOCOMO has appointed Rakshit Kapoor to head India operations of newly launched DOCOMO Digital unit, which is NTT’s mobile commerce, content and consultancy service, reports IndiaTelevision. Kapoor previously headed Buongiorno, a wholly owned subsidiary company of NTT DOCOMO in India for 4 years. Prior to this, he worked with Idea Cellular, as its content head, and with Indiatimes as its General Manger and Content Head.
DOCOMO Digital provides infrastructure and tools to companies who operate mobile commerce or mobile payments solutions; it offers direct carrier billing solutions and mobile wallet services, as well as offering technical support, and financial services through banking and e-money licenses. Its consultancy services offers regulatory and commercial advisory services for mobile commerce organizations.
Stake in Tata Teleservices
Note that this is not NTT’s first entry into the India market. Tata Sons and NTT DOCOMO together operates Tata Docomo in India, which is a joint venture between the two entities. NTT DOCOMO had entered India in 2008 by acquiring a 26% stake in Tata Sons subsidiary Tata Teleservices Maharashtra Limited (TTML) for around $2.7 billion. However, last week Tata Sons had offered to buy NTT Docomo’s stake in Tata Teleservices Limited for Rs 23.34 a share or at around Rs 11,000 crore,
The stake purchase did not go well for NTT as Tata Teleservices had posted losses of Rs 79.64 crore loss for the quarter ended December 31, 2015 (Q3 FY16), which is the telco’s 22nd straight loss making quarter, while three of Tata Teleservices’ 2G licenses were cancelled by the Supreme Court in 2012. Following which, Tata was ordered to pay $1.17 billion in damages to Japan based NTT DOCOMO by a London court last month, as indicated by Livemint.
The report added that Tata had failed to find a seller for NTT DOCOMO’s 26% stake in the loss-making company Tata Teleservices when NTT had expressed interest to sell the entire stake in 2014. The terms of agreement between both companies provides an option for the acquirer (NTT DOCOMO) to request a suitable buyer for at least 50% of the acquired price.