Tata Communications Starts Thinking Beyond Telecom Sector

by Paul Joseph on August 14, 2013 · 0 comments

Tata Communications , a major telecom player in India appears to be shifting its focus from its core expertise of offering Voice and SMS based services. The company is reportedly expanding into other areas of IT services, namely Managed Services and White Label ATMs. One thing’s for certain, Tata Communications will now explore avenues that entitle offering end-to-end tech services that include handling back-end connectivity, but the reason seems to be the gradual plateauing of revenue from its traditional area of business, i.e. mobile services . In order to drive growth, Tata Communications is looking at Managed Services which include Cloud Computing, Video Conferencing and other data storage solutions commonly referred to as Data Centers. Additionally, complete management of ATMs also features in the list of possibilities, especially since RBI has opened a brief window for private players to get into the Banking game. Is Tata Communications in a financial crisis? The company can easily absorb a few rough patches that the telecom sector is currently going through. But, it is vital to explore avenues which offer better returns and more importantly has fewer players. The Telecom sector is getting overcrowded. With multiple players , companies are routinely engaged in price-wars that only benefit the subscribers. Telecom service providers have to bear the loss in revenue resulting from offering price-cuts or slashing tariffs. Though Tata Communications is interested in moving beyond Voice, the company has control over India’s largest and most premier state-run foreign interfaced communications company Videsh Sanchar Nigam Ltd ( VSNL ). This company owns the largest and only, round-the-world sub-sea cable network. This makes Tata Communications, the number one international wholesale voice carrier by minutes. The company presently has over 3,000 large global enterprises, 1,600 carriers who take its bandwidth on lease and then further lease it out to others and 700 mobile operators. Though this segment is offering diminished returns, it would be really difficult to scale down operations. So the company will have to be very skillful in building ancillary or entirely new service lines while keeping its mobile communications channel wide open for business. What do you think? Looking For A Social Media Agency?? – Contact WATConsult – India’s Leading Social Media Agency

[via WATBlog.com - Web, Advertising and Technology Blog in India]

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