Tata Communications To Invest $300 Million During 2017-18


The big telecom company Tata Communication Ltd. has bigger plan to expand their network soon. And this made the company to adopt a plan of investing $300 million in several areas. According to a report, the company is all set to inflate their network, platform, software etc. along with acquiring some of the much needed services. This investment will be made by the company during 2017-2018. And the services on which Tata Communication have deep eye are Internet Of Things, Mobility, Cloud etc.

The MD and Group CEO Vinod Kumar from Tata Communication Ltd. is been interviewed recently where he stated various plans of the company. He stated that it is a very natural thing for the telecom companies to expand the networks with time. This is done to develop a useful infrastructure close to the customers to help them stay connected easily. So, an amount is to be spent for that definitely. He further stated that while $150 million will be spent for network, the remaining $150 million will be used for platform, software and other stuff.

As per the company statement, they are on continuous search for more of acquisition and similar kind of investment. Also the investment will be more technology specific in the new service areas which can amplify their overall ability. And they will move faster than ever.

So, the company is now on a great mood to invest in the needed areas to ensure their network is been amplified by leaps and bound. Such a news of investment was also in the last month that aimed mainly to enhance their stake. However, this news was from its indirect subsidiary Tata Communication (Netherland) BV. As per report this wholly owned indirect subsidiary of the company made an investment into Teleena Holding. This has been done with an aim to become the single largest shareholder handling 35% of the stake. This kind of investment no doubt strengthens the cross-border mobility services potential of the company. However, when asked about any plan to enhance the stake as of now, the MD went on to say ‘No not now’.

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Tata Communication has planned to sale some of their asset so as to reduce the debt size of $1.4 billion. Current they are running on debt of around $1.4 billion and this will look smaller definitely soon. The company has planned to divest their datacenter and Neotel, the South Africa-based telecom arm in this purpose. And these transaction when will be completed successfully will have positive reflect on the balance sheet.

With all these, another news made the company even much happier. In May 2016, two companies Tata communication and ST Telemedia made an agreement jointly. As per that agreement, ST Telemedia granted to acquire 74% stake of the Tata Communication data centre business in India and Singapore. While the Indian Data centre transaction was completed in the last year itself, the Singapore one was pending. The Indian data centre joint venture transaction was made on October. And the Singapore Data Centre Joint venture transaction is completed successfully very recently.

Amit Shinde


Amit Shinde

I am a simple person trying to go beyond my boundaries. Technology is my passion, and I like to play with gadgets to find the new technologies. I need the internet in every step of my life, and without the internet, I feel like it's a waste of my life.

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