Tata Communications plans to realign its broadband business. It is bringing its retail broadband unit under the ambit of small and medium businesses.
Prior to this, in March 2007, it hived off its retail broadband business into a separate company, Tata Communications Internet Services. It had plans to bring in financial investors in the company and was in talks with Singapore government’s investment arm Temasek Holdings.
The share-sale was linked to Tata Communications Internet Services winning broadband wireless access spectrum in the government auction held in May-June 2010. However, high auction prices prevented the company from bidding. thus, the company?s management felt that merging the retail broadband unit back with the parent company was a viable solution.
The company is currently involved in an issue involving its 773 acres of land. The government wants the land to be separated from the company, with the centre holding 51.12 per cent stake in the realty firm. Currently, the Tata Group own nearly 50 per cent stake in Tata Communications, while the government owns 26 per cent.
