The Hindu Business Line : Tata Comm to invest $5 m in re-branding

Mumbai, Feb. 13 The integration of VSNL and Teleglobe brands into Tata Communications will cost the company around $4 to 5 million this fiscal for baseline communication over the next one year, said Mr Srinivasa Adepalli, Senior Vice-President (Corporate Strategy), at the sidelines of a press conference. “The investment on re-branding will be slightly higher during the initial years and may gradually decrease. We will use the Tata Communications name as our corporate identity for service providers and business purposes. We may or may not change the name Tata Indicom Broadband,” said Mr Adepalli.

Tata communications will have to pay 0.25 per cent of the revenues or five per cent of profit before tax, whichever is lower, as royalty payment to Tata Sons, he said.

While leveraging the brand of Tata Teleservices, which continues to function as a separate entity, Tata Communications will have to present a distinct identity to the consumers, he said.

WiMAX

Talking about WiMAX, which was launched in Bangalore recently, he said that Hyderabad, Chennai and Delhi were the next target cities for the implementation of WiMAX in a span of three months.

“The total market potential for WiMAX in India is close to 30 million subscribers of which we are targeting 25 per cent. Since we have to procure licenses for individual cell sites, and there are delays by the government, we are 3-4 months behind schedule,” he explained.

The company has set up 150 cell sites in Bangalore.

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