Tata Teleservices to hive off cell tower business

Toeing the industry line, Tata Teleservices on Thursday said it would hive off its capital intensive towers business and would look for partners to operate the venture.

"Investment in towers has sunk lots of our money. We want to monetise our investments in the towers," Tata Teleservices CEO Darryl Green told reporters here.

The company, which has invested about Rs 1,000 crore in setting up 5,000 cell towers, is open to a partnership for the business. "We can have a partnership. It all depends on the agreement," Green said.

"Secondly, sharing of towers among other players would reduce the rental cost, too," he said.

He said the company, which offers CDMA telecom services, would invest Rs 3,500 crore in 2007-08 for rolling out services in more towns as it plans to add 100 million subscribers by 2011 from the present 15.5 million.

Market leader Bharti Airtel and Reliance Communications have announced hiving off their towers business.