Analysis of NTT docomo joint venture with tata in Indian mobile telecom

In November 2008, NTT DoCoMo, the largest mobile telecom company in Japan, entered into a joint venture (JV) with Tata Tele Services Ltd (TTSL), the fifth largest mobile telecom company in India. The two partners had come together because both had recognized that they could put complementary capabilities into play. NTT DoCoMo could build on TTSL's knowledge of the local market and ownership of telecom licence (given by the federal government only to domestic firms). TTSL could gain access to NTT DoCoMo's core competence in 3G technology, which was soon being rolled out in India through spectrum auction. As part of signing the deal, the two partners had to deal with issues other than business synergies - like the percentage of equity holding of each partner in the JV, the price at which NTT DoCoMo would buy its stake to be offloaded by TTSL and the provision for veto rights that could make up for a minority holding. The case study helps students understand the dynamics of the formation of an international JV. It also highlights the unique advantages of a JV over other forms of international collaboration, such as technology licensing and agency distribution. Tata Teleservices Limited also has a significant presence in the GSM space, through its joint venture with NTT DOCOMO of Japan, and offers differentiated products and services under the TATA DOCOMO brand name. Tata DOCOMO arises out of the Tata Groups strategic alliance with Japanese telecom major NTT DOCOMO in November 2008. Tata DOCOMO has received a pan-India license to operate GSM telecom servicesand has also been allotted spectrum in 18 telecom Circles. The company has rolled out GSM services in all of these 18 telecom Circles in the quick span of just over a year. Tata DOCOMO marks a significant milestone in the Indian telecom landscape, and has already redefined the very face of telecoms in India, being the first to pioneer the per-second tariff optionpart of its Pay for What You Use pricing paradigm. Tokyo-based NTT DOCOMO is one of the worlds leading mobile operatorsin the Japanese market, the company is the clear market leader, used by over 50 per cent of the countrys mobile phone users.

Strategy for global acquisitions For international expansion ,ntt docomo had a four pronged strategy . The target country should have evidence of a strong gross domestic product . The target country should also provide oppurtunities for rolling out 3g . The acquisition price should not be high . The company was clear that it would not pursue hostile takeovers .

NTT DoCoMo do business with a wide range of business partners, including handsetmanufacturers, contents providers, and telecommunications equipment manufacturers.They work to build strong relationships based on trust and mutual understanding withbusiness partners in order to develop and provide quality products and services. Swot analysis of NTT Strength: Rich heritage in telecommunication market . strong technological infrastructure. Innovative product with strong consumer support service . Weakness: Increase operating expenses without realizing for the real growth parameters . Opportunity: Next generation mobile service . Rich and dynamic society . Threats: Competitors entering into Japanese market with new technology . Japanese market reaching maturity phase ,

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I-mode has been extraordinarily successful in Japan. This is because of its outstanding convenience and it's unique business model. Its reliance on this system offers an innovative approach to the mobile service value chain and to wireless service / Internet relationships. We collaborate closely with equipment manufacturers, content providers, and other platforms to ensure that wireless technology, content quality, and user experience evolve jointly. This synchronization guarantees that customers, partners and shareholders share interests with end-user's, thus enabling all parties to maximize value and to continue to improve the quality of products and services connected with i-mode.