Tata Communications Announces $2 bln Global Expansion

"Tata Communications reflects the 130-year strong heritage of trust and leadership that the Tata Group brings to its customers," said Subodh Bhargava, chairman of Tata Communications. "The new identity is a major step in our commitment in building long-lasting relationships with our customers, partners and stakeholders."

"We are tremendously pleased with the launch of the new brand," said N. Srinath, CEO and managing director of Tata Communications. "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."

"Tata is boosting its bandwidth capabilities as it sees higher contributions from emerging markets like China, parts of Europe and Africa," Srinath said.

"We are seeking to grow our enterprise services business globally ... Within India, we are building in-city infrastructure and focusing on broadband," he added.

According to Srinivasa Addepalli, senior vice-president (corporate strategy), Tata Communications, the company will invest around $1 billion in the submarine cable and WiMax businesses and another $1 billion for network expansion.

"We're confident of achieving a broadband market of 25 to 30 million by 2012," Addepalli said.

The investment will be funded through internal accruals and borrowings, he said.

According to a company official, Tata Communications is building a $250 million TGN (Tata Global Network) Eurasia Cable System linking Mumbai directly to Paris, London, and Madrid via Egypt; and a $200 million TGN-Intra Asia submarine cable linking Singapore, Hong Kong, and Japan with an additional connection to the Philippines.

Tata Communications, which is a part of the India-Western Europe-Middle East (I-ME-WE) consortium building a cable that connects India to France via the Middle East, will also invest $50 million in the Seacom Ltd. submarine cable project, which will link several African countries to international cable networks, the official said.