TTML rings in profits on tower arm sale

MUMBAI: Tata Teleservices Maharashtra (TTML) swung to profit in the first quarter of this fiscal on gains from sale of its tower subsidiary to Wireless TT Info Services.

For the April-June period, it posted a net profit of Rs 558 crore, after receiving Rs 835 crore from sale of 21st Century Infra Tele that had around 2,500 telecom towers. Wireless TT Info is a JV between Tata Teleservices, the unlisted parent of Tata Teleservices Maharashtra (TTML) that holds 51% stake, and Quippo that holds the rest.

MD Anil Kumar Sardana said the company has broken even on all businesses aside from GSM, services that it launched just a year ago. “We are aiming to become profitable in four years from launch.”
During the quarter, TTML’s revenue rose 10% to Rs 563 crore, backed by average monthly revenue per wireless subscriber of Rs 165, compared with Rs 182 of Idea Cellular.

TTML plans to spend Rs 900 crore on capital expenditure this year, including expenditure on rollout of third generation services in Maharashtra and Goa, where it recently won radio bandwidth at a government auction.

The company will focus on data services, Mr Sardana said. In Mumbai, where it does not have 3G spectrum, it will use code division multiple access, or CDMA services through which it offers internet connectivity service ‘Photon +’.

Value-added services (VAS) and revenue from data already comprise 18.5% of the company’s total revenue in the first quarter. VAS contributes between 9 and 15% of total revenue for other competing operators.