Wednesday, March 5, 2008

Tata Communication To Pump $500 Million

Mumbai: Tata Communication, VSNL''s new avatar is ready to pump in $500 million in its new wireless Internet service and is hiving off its retail business, which includes internet as a separate arm. Wimax, the wireless way to access internet has been commercially launched in the country.

Bangalore is the first city where the service is starting and it would be followed by Delhi in the next 3 months and and 20 more by early next year. Tatas are even creating a new subsidiary to retail their Wimax and internet services where they will be divesting minority stake to a partner. Tata Communication is also in talks with retailers like Croma .to retail their Wimax services. Even the Tata Indicom branding or both Wimax and internet is set to change. They will be providing Wimax using a special spectrum band since the government hasn''t auctioned spectrum needed for Wimax.

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