As per Mutso Yamamoto, executive director and head of strategic alliances of NTT DoCoMo, NTT DoCoMo, along with its partner Tata Teleservices, will buy other Indian telecom operators for their assets, not subscribers, once regulatory framework becomes conducive to telecom consolidation.

According to reports, they have the ability to increase subscribers. So, assets like spectrum will be more important in my opinion.

India currently has 14 telecom operators compared with three or four elsewhere in the world. Late entrants in the global system for mobile communications, or GSM, operators like Tata DoCoMo have merely 4.4 Mhz of radio bandwidth.

As per Mr Yamamoto, in Japan, they have 45 MHz of spectrum. Most industry participants agree consolidation is imperative in the sector, but acquirers await final regulations on the fees the government will charge in transactions.

As per the proposal by the TRAI, it will charge fair value for all spectrum acquired in a transaction.

Mr. Yamamoto noted that current recommendations are against consolidation. The Japanese company is committed to the Indian market. So much so that if circumstances force it to exit Tata Teleservices, it will consider investing in another Indian telecom company. At present, however, there is no reason to believe that will happen. TTSL have exceeded all expectations in adding subscribers and base stations.

NTT DoCoMo bought 26% in Tata Teleservices in 2008 for US$2.7 billion. The Japanese company specializes in 3G services which it anticipated would come to India soon at the time it bought stake.

According to Mr Yamamoto, presently, the quality of network and improving the range of data services are the two key targets NTT DoCoMo sees for Tata Teleservices. The company would like to see Tatas do better, relative to the competitors. DoCoMo’s investment in India is to leverage the move of Japanese business to the country. Business flow between Japan and India is quickly getting stronger. NTT DoCoMo can now support communications between Japan and India through Tata. If Japanese businesses are entering India, NTT can help them with their enterprise solutions. The company is getting more such kind of opportunities.

As per Mr Yamamoto, for more such opportunities, DoCoMo is expanding in Asia Pacific, but does not have other emerging markets like Africa on its agenda. In the US, too, its investments will be limited to scant venture capital. The company is keen to make an entry into China, but there would be regulatory barriers. Meanwhile, they are doing business around the mobile business, and if there is an opportunity to strengthen our relations with a carrier in China, they will do that. But its time has not come yet. India presents the next big population advantage in the Asia-Pacific region. Tata Tele may be the first off the mark offering 3G services, with close technology and knowledge transfer from DoCoMo.