In November 2008, NTT DoCoMo, the largest mobile operator in Japan, a joint venture (JV) with Tata Teleservices Ltd. (TTSL), the fifth largest mobile operator in India used. The two partners had together, because they both realized that they be brought complementary skills to come into play. NTT DoCoMo in TTSL has knowledge of the local market and the ownership of telecom license to build (given by the Federal Government only for domestic companies). TTSL could access to NTT … Read more »

In November 2008, NTT DoCoMo, the largest mobile operator in Japan, a joint venture (JV) with Tata Teleservices Ltd. (TTSL), the fifth largest mobile operator in India used. The two partners had together, because they both realized that they be brought complementary skills to come into play. NTT DoCoMo in TTSL has knowledge of the local market and the ownership of telecom license to build (given by the Federal Government only for domestic companies). TTSL could gain access to NTT DoCoMo’s core competence in 3G technology, which soon after was rolled in India by auction of frequencies. As part of the signing of the agreement, the two partners had to do with issues other than business synergies – such as that of the capital contribution of each partner in the JV, to the price at which NTT DoCoMo would buy his share TTSL and unloaded provision for veto rights, the make-up could be for a minority stake. The case study helps students understand the dynamics of the formation of an international joint venture. It also highlights the unique benefits of a JV over other forms of international cooperation, such as technology licensing and marketing agency.
«Hide

from
Shih-Fen Chen,
Ramasastry Chandrasekhar
Source: Ivey Publishing
20 pages.
Release Date: 10 January 2011. Prod #: W10004-PDF-ENG
NTT DoCoMo – Joint venture with Tata in Indian mobile market Telecom HBR case solution

[related_post themes="flat"]