Tata Communications to invest $2 billion in global expansion

MUMBAI: Tata Communications plans to invest more than $2 billion over the next three years to further fuel its global expansion plans.

The company has also announced a new brand strategy, integrating the VSNL and Teleglobe brands.

The company will leverage its Tata Global Network (TGN) and its experience in emerging markets in Asia and Africa to deliver a new world of globally managed communications solutions.


The launch represents the culmination of recent international investments that expanded the company‘s global reach and ability to deliver IP-leveraged communications solutions to businesses and consumers worldwide.

Increasing broadband penetration, the popularity of rich media digital content and expansion into emerging markets has contributed to the surging demand for bandwidth globally.

With a specific focus on the new world of IP, MPLS, Ethernet, and managed services, Tata Communications will leverage the Tata Global Network, which it says is one of the most recent and advanced submarine cable and IP networks, to meet the demand for converged IP solutions.

The company is in the process of completing additional submarine cable systems connecting emerging markets in Asia, the Middle East and Africa to Europe to meet the demands of consumer broadband and enterprise customers over the next five to eight years.

In terms of its retail broadband business for India the company is looking to its WiMax solution to solve the last mile hurdle. It recently launched this as a test run in Bangalore.

Tata Communications CEO and MD N. Srinath says that the country will have 25-30 million broadband subscribers by 2012. The company is looking at a 25 per cent market share of this.

The tagline for the new brand is Taking You Farther! That is not a spelling mistake. It is an attempt by the company to communicate the message that it is committed to building long-lasting relationships with customers, partners and stakeholders.

Besides the former VSNL, VSNL International, Teleglobe entities the Tata Communications brand also has the Tata Indicom Enterprise Business Unit (TIEBU), and Cipris brands worldwide.

Srinath adds, "The Tata Group has a long and highly respected history of achievement and contribution to the many markets, industries and communities it serves. Tata Communications will continue to build on our track record of successes, strong global investment strategy and India and emerging markets
strengths to grow globally in its targeted segments."

Yankee Group VP research Camille Mendler says, "The
next trillion dollars to be made in global communications will depend heavily on emerging markets where Tata Communications is already a leading player, There is grand ambition, but also integrity in how the company executes; ultimately, customers worldwide can only benefit from its unified global presence,”

Last year, Tata Communications had announced investments in enhancing network and services capabilities in India, intra-Asia, the Middle East, and Africa. The TGN-Intra Asia and TGN-Eurasia cables, complementing the company‘s existing multi-terabit capacities across the Atlantic and Pacific oceans, will ensure diverse and reliable intercontinental connectivity. Data center expansion and rollout of managed services will offer value-added, hosted and customised solutions.

Tata Communications also continues to expand its global MPLS and Ethernet networks to enable scalable and secure connectivity and advanced services.

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