Promising fastest route between Brazil’s major commercial centre and rest of world
New York (NYSE), Mumbai (BSE & NSE) & Boston – May, 10th, 2012 - Tata Communications, a leading provider of The New World of Communications, and Seaborn Networks, the developer and operator of the first direct submarine cable between the United States and Sao Paulo, Brazil, announce Tata Communications' intent to become an anchor tenant customer on Seaborn Networks' cable system.
Seaborn Network’s cable system, Seabras-1, will enable Tata Communications to provide fully integrated network services from Brazil to its networks in the US, Europe, Africa, Asia and India.
"Latin America is a key region on the world stage and our plan to purchase capacity on Seabras-1 would ensure we have the fastest route between Brazil’s major commercial centre and the US. It aligns us with the most viable new subsea project in one of the fastest growing markets in the world", says Vinod Kumar, Managing Director and CEO, Tata Communications. "This expansion would further extend the global reach of the Tata Global Network (TGN) and forms part of our strategic global connectivity plans."
"With bandwidth and connectivity growth demand in Latin America at unprecedented levels, we look forward to having Tata Communications as an anchor tenant customer," says Larry Schwartz, CEO, Seaborn Networks. "Tata Communications' intended acquisition of capacity on Seabras-1 is indicative of the pent-up demand in the market for an express submarine cable route between the US and Sao Paulo."
As Brazil prepares to host the 2014 World Cup and the 2016 Summer Olympics, the country is experiencing landmark development requirements in its telecommunications industry. 2011 telecommunications investments in Brazil exceeded US$11.8 billion, according to a recent report from Telebrasil*, and Pioneer Consulting** forecasts that international submarine capacity demand for Latin America will be more than 32 Tbps by 2020.
Seaborn Networks plans for the Seabras-1 system to be ready for service in the fourth quarter of 2014.
The Performance of the Telecommunications Sector in Brazil, Series 2011, April 2012
Presentation on The South American Subsea Market , Capacity Latin America Conference, Sao Paulo, 22nd March 2011
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 multi-national 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 1 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 South Africa (Neotel), Sri Lanka (Tata Communications Lanka Limited) and Nepal (United Telecom Limited)
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)
About Seaborn Networks
Seaborn Networks is the developer and operator of Seabras-1, the first express submarine cable system between the US and Sao Paulo, Brazil. Seabras-1 is a 32 Tbps system that connects Miami and Sao Paulo, with a branch that lands in Fortaleza, Brazil. Activation is scheduled for 2014. Seaborn is also the first submarine cable operator in the world to offer consortium-like pricing with the flexibility of a private cable capacity purchase. Seaborn was founded by successful submarine cable and wholesale carrier executives with experience in designing, building and operating many of the world's largest submarine and terrestrial networks. Prior submarine systems designed, built and operated by Seaborn’s workforce represent a total of 75 landing stations, 250 points of presence and 250,000 km of submarine cable (more than 6X the circumference of the earth).
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, update or alter its forward-looking statements.
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