Tata Sons not to demerge Tata Tele’s enterprise biz

Mumbai: In a U-turn, Tata Sons has decided to keep the enterprise business of Tata Teleservices separate and not merge it with Tata Communications. The plan is to scale up the business and later evaluate strategic options for the unit.

The current thinking is that the enterprise business will be run separately, as a lot of value needs to be created. Furthermore, Tata Communications has its own challenges, like deals being stuck for want of regulatory approvals, said a source. In 2017, Tata Sons had announced plans to combine the enterprise unit of Tata Teleservices with Tata Communications as part of a broader strategy to reduce exposure to the beleaguered telecom sector.