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Press Release -- March 4th, 2010
Source: Tata Communications
Tags: Ethernet, Exchange, Submarine Cable, Telepresence

Tata Communications Achieves Record Growth for Business Volume; Continues Investment Momentum

London, UK – March 4, 2010 – In 2008, we launched Tata Communications with a vision to deliver a new world of communications to our customers and partners. We recognized that the shift to emerging markets was well underway, not just as sources of labor arbitrage but as markets of growing consumption. It was also undeniably clear that technologies, particularly Internet-based ones, were becoming an integral part of our lives and business processes. Their impact was to be felt in the way we communicated, collaborated, developed knowledge, shared and consumed content, as individuals and businesses. There was also an emerging trend, particularly amongst many businesses, to focus on activities that were core while partnering with other specialists for delivering other services. Even before the word recession was mentioned, many businesses had begun their journey towards new sources of growth and efficiency. We sought to be their communications’ partner in this journey into the New World.

Tata Communications at a Glance

  • World’s largest wholesale international voice carrier:
    • 32 billion voice minutes; 1,600 service provider customers
  • Largest submarine cable operator
    • Over 20 Tbps design capacity; over 8 Tbps lit capacity
  • One of the largest global Internet backbones
    • One in six Internet connections goes through Tata Communications’ networks
  • Over a million sq ft of data center and co-location space
    • Over 10,000 racks in over 40 centers around the world

Tata Communications maintains steady revenues

In spite of large price-cuts and customers discounts, Tata Communications’ revenues increased across its voice and data services while most other players in the telecom industry had low single digit growth, if at all. (Note: Growth rates based on INR reported numbers)

Tata Communications grows global workforce by 600

Tata Communications’ globally distributed employee-base grew 10% this year. About 20% of Tata Communications’ employees are located outside India, mostly in sales, marketing, product management and technology development and the company’s leadership team comprises about 50 executives represented by 10 nationalities dispersed over 12 cities in eight countries.

Tata Communications continues its investment momentum

Over the last four years Tata Communications has invested over US$2 billion in building infrastructure and new service capabilities as well as entering new markets. In 2008, the company announced an investment of US$2 billion over its FY09-FY11. During the first two years of the three year period Tata Communications has already invested nearly US$1.2 billion

Tata Communications expands the new world of communications and collaboration

Tata Communications is investing in network infrastructure and services that will help enterprises enhance their connectivity to existing and new markets, and on real-time collaboration services that fast-track business decision making processes across geographies.

The growing demand for bandwidth has resulted in record capacity upgrades and new builds on the Tata Global Network (TGN). Tata Communications has upgraded supply capacity across its Tata Global Network (TGN) cable systems with the upgrades on TGN-Intra Asia, TGN-Pacific and TGN-India Asia. The company also announced the deployment of TGN-Gulf and the completion date for TGN-Eurasia by the first half of 2010, which will complete Tata Communications’ cable ring-around-the-world.

Leveraging its global network, Tata Communications is continuing to grow the world’s largest public room Telepresence network. Tata Communications currently manages 13 Telepresence public rooms and is targeting another 25 by the end of 2010. The company is also the only service provider with a standalone global Telepresence Exchange Service that enables Telepresence rooms to be interconnected regardless of the network or service provider they belong to.

Tata Communications’ NGN will power IP-enabled business transformation

Tata Communications’ sees business transformation being led by IP technologies that are enabling converged and cloud-based services as well as a new generation of managed services.

In line with its IP-enabled business transformation strategy, Tata Communications will complete the deployment of its global voice network core to an IP-based Next Generation Network (NGN) by Q1, 2010. The NGN will provide a dramatically simplified network architecture and enable Tata Communications’ customers to leverage a single global IP network to deliver their range of services. The NGN completion will mark the next step in Tata Communications’ IP evolution and positions Tata Communications as the right partner for convergence in an all IP world.

"As we transform our own business, we are leveraging our global infrastructure and managed IP services expertise to provide an alternative business and cost model that will enable others to transform their businesses as well," said N Srinath, MD & CEO, Tata Communications.

Tata Communications Continues Emerging Markets’ Investment Momentum

Tata Communications plans to continue its growth strategy of partnership, investment and infrastructure development in the emerging markets.

Tata Communications and Neotel, South Africa’s first converged communications national operator, have launched their second data center in South Africa which will be located in Cape Town. Tata Communications will also invest US$200 million in the Middle East over the next two years to develop telecom infrastructure as well as network services and managed and hosted services that leverage the network including managed security, managed hosting and cloud computing solutions.

"Tata Communications is uniquely placed to meet the needs of firms straddling global and emerging markets. Our emerging market origins combined with our acquisitions and investments across the globe enable us to recognize and support the needs of our customers in these widely differing markets," said Srinath.

Tata Communications’ strategic focus

Over the next two to three years, Tata Communications will focus on:

  • Redefining "wholesale" from a commodity, low value business to a partnership-driven, value-enhancing one
  • Expanding access networks in India including rolling out wireless (WiMAX) networks for business and consumes
  • Rapidly grow its global enterprise segment with catalyst services including Telepresence, media and entertainment solutions, Ethernet and cloud computing
  • Achieving global benchmarks in customer services and operations
  • Creating at least one new "home market" in addition to India and South Africa

All media advisories from the Tata Communications Global Media & Analyst Summit are online at: http://www.tatacommunications.com/analyst&mediaday/

About Tata Communications
Tata Communications is a leading global provider of a new world of communications. With a leadership position in emerging markets, Tata Communications leverages its advanced solutions capabilities and domain expertise across its global and pan-India network to deliver managed solutions to multinational enterprises, service providers and Indian consumers.

The Tata Global Network includes one of the most advanced and largest submarine cable networks, a Tier-1 IP network, with connectivity to more than 200 countries across 400 PoPs, and nearly one million square feet of data center and collocation space worldwide.

Tata Communications’ depth and breadth of reach in emerging markets includes leadership in Indian enterprise data services, leadership in global international voice, and strategic investments in operators in South Africa (Neotel), Sri Lanka (Tata Communications Lanka Limited), Nepal (United Telecom Limited), and subject to approval by the Chinese government, China (China Enterprise Communications).

Tata Communications Limited is listed on the Bombay Stock Exchange and the National Stock Exchange of India and its ADRs are listed on the New York Stock Exchange. (NYSE: TCL)

www.tatacommunications.com

Forward-looking and cautionary statements

Certain words and statements in this release concerning Tata Communications and its prospects, and other statements, including those relating to Tata Communications' expected financial position, business strategy, the future development of Tata Communications' operations, and the general economy in India, are forward-looking statements. Such statements involve known and unknown risks, uncertainties and other factors, including financial, regulatory and environmental, as well as those relating to industry growth and trend projections, which may cause actual results, performance or achievements of Tata Communications, or industry results, to differ materially from those expressed or implied by such forward-looking statements. The important factors that could cause actual results, performance or achievements to differ materially from such forward-looking statements include, among others, failure to increase the volume of traffic on Tata Communications' network; failure to develop new products and services that meet customer demands and generate acceptable margins; failure to successfully complete commercial testing of new technology and information systems to support new products and services, including voice transmission services; failure to stabilize or reduce the rate of price compression on certain of the company's communications services; failure to integrate strategic acquisitions and changes in government policies or regulations of India and, in particular, changes relating to the administration of Tata Communications' industry; and, in general, the economic, business and credit conditions in India. Additional factors that could cause actual results, performance or achievements to differ materially from such forward-looking statements, many of which are not in Tata Communications' control, include, but are not limited to, those risk factors discussed in Tata Communications' various filings with the United States Securities and Exchange Commission. These filings are available at www.sec.gov. Tata Communications is under no obligation to, and expressly disclaims any obligation to, updates or alters its forward-looking statements.

Janice Goveas
Tata Communications
+91 92233 94575
Janice.Goveas@tatacommunications.com

David Chin
Hill & Knowlton Singapore for Tata Communications
+65 9694 5589
david.chin@hillandknowlton.com.sg


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