The Tata Group has demonstrated timely and tangible support Tata Teleservices (Maharashtra) Limited. TTML has acquired 2.5Mhz of spectrum in the 800Mhz band each in Mumbai and the rest of Maharashtra for a total consideration of INR38bn in the recently conducted auction. This would aid the continuity of its services beyond September 2017 when its existing licenses expire. Also, since this is a fully liberalised spectrum, it enables TTML to launch high speed data services.
The high-margin wireline revenue accounts for a significant portion of TTML?s total revenue. With an optic fibre transmission network of over 14,000km in Mumbai and Maharashtra, it is well poised for growth in its data and enterprise related services. The GSM (global system for mobile communications) voice business contributes the most to TTML?s overall revenue. Apart from accounting for the majority of its overall subscribers, this segment has witnessed a steady improvement in the average revenue per user (ARPU) over the last one year in line with industry trends. Given the declining ecosystem for CDMA voice services, this segment?s revenue is likely to continue to decline.
