Tata Sky, the joint venture between the Tatas and Rupert Murdoch-controlled Star Group, plans to become operational between April and June this year, a Tata group official said on Wednesday.
An upfront investment to the tune of billions of rupees has been envisaged to roll out direct-to-home (DTH) television services, Tata Sons Director J J Irani said in Bangalore. Tata Sons, the holding company of the Tata group, holds 80 per cent stake in Tata Sky, with the Star group controlling the remaining equity. "We expect it to be operational between April-June," Irani said.
Tata-Sky would initially focus on urban areas with its DTH services. First, it would be rolled out in Mumbai on a pilot basis. "How it rolls out (thereafter) depends on our experiences," he said. "It (investment) will be hundreds of crores of rupees."
Irani declined to confirm reports that suggested that Tata Sky is mulling a $500 million investment for the DTH foray. He said content is important for DTH services, adding, Tata Sky may source it from the Star Group.
Tatas to pump in Rs 130 bn in telecom
The Tatas plan to pump in an investment in the region of Rs 13,000 crore (Rs 130 billion) in the next three-four years to expand its telecom business in an aggressive manner in India, Irani said.
"It (the investment) can be anything up to Rs 25,000 crore (Rs 250 billion) in the next three-four years -- including the investment that has already been made which is Rs 10,000 crore (Rs 130 100 billion) to Rs 12,000 crore (Rs 120 billion)," Irani said.
The Tatas expect a shakeout in the telecom space eventually with only four-five players surviving including BSNL, Reliance, Bharti and Tatas, he opined. He said telecom is one area where the Tatas are making a 'real, solid foray' as they believe that 'this (telecom) is something which is bound have an impact on the people of the country, and we have to be in telecom.'
Irani said the Tata group is also looking at new areas for a foray, like biotechnology. "We are keeping an eye. But we haven't done anything major (in biotechology so far)."
The group has no plans to enter the civil aviation sector, he added. Irani said Tata group companies like Tata Consultancy Services and Tata Motors would continue to look at acquisition opportunities overseas. "We want the Tata brand to be known, hopefully, internationally as commonly as is known in India."


