Complete Case details are given below :
Case Name : NTT DoCoMo – Joint Venture with Tata in Indian Mobile Telecom
Authors : Shih-Fen Chen, Ramasastry Chandrasekhar
Source : Ivey Publishing
Case ID : W10004
Discipline : General Management
Case Length : 20 pages
Solution Sample availability : YES
Plagiarism : NO (100% Original work)
Description for case is given below :
In November 2008, NTT DoCoMo, the largest mobile telecom company in Japan, entered into a joint venture (JV) 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 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 spectrum auction. As part of signing the deal, the two partners had to deal with issues other than business synergies – like the percentage of equity holding of each partner in the JV, 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 study helps students understand the dynamics of the formation of an international JV. It also highlights the unique advantages of a JV over other forms of international collaboration, such as technology licensing and agency distribution.
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