NTT DoCoMo — Joint Venture with Tata in Indian Mobile Telecom
Case (Pub Mat)
In November 2008, NTT DoCoMo, the largest mobile telecom company in Japan, entered into a joint venture 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 a 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 a spectrum auction. As part of signing the deal, the two partners had to face issues other than business synergies — like the percentage of equity holding of each partner in the joint venture, 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 helps students understand the dynamics of the formation of an international joint venture. It also highlights the unique advantages of a joint venture over other forms of international collaboration, such as technology licensing and agency distribution.
This case facilitates a discussion of the following questions:
- Why does a company move beyond its home market?
- What makes the parties to a joint venture attractive to one another?
- What are the strategic concerns that surface when a company establishes an international joint venture?
- What are the advantages of a joint venture over other modes of international collaboration, such as technology licensing and agency distribution?
Information, Media & Telecommunications
India;Japan, Large, 2008
$5.30 CAD / $5.00 USD Printed Copy