Tata Communications

Tata Communications Limited is a telecommunications and digital infrastructure company. The company's communication services include data, voice and internet services. The company operates and manages a global network infrastructure spread across multiple continents.

The company was originally incorporated as Videsh Sanchar Nigam Limited in 1986. It became part of Tata Group in 2002 after the Government of India's disinvestment in the company. VSNL was renamed Tata Communications Ltd in 2008.

Business operations

VSNL (now Tata Communications) was a pioneer in the telecommunication field in India. In 1992, It started Intelsat Business Service, a dedicated satellite-based service offering high-speed data circuits on a point-to-point basis through earth stations located near the customer's premises.

In 1995, it began offering internet services in cities like Delhi, Chennai, Kolkata, Bengaluru and Pune. The company announced the introduction of Universal Connec' services in partnership with TMI (Tele Media International) a wholly owned subsidiary of Telecommunications Italia.

As part of its licence agreement with the Department of Telecommunications, the company was granted a licence to provide Internet access service in six cities on a non-exclusive basis in 1999. VSNL became the first Indian public sector undertaking to list on the New York Stock Exchange.

In 2001, Tata Communications acquired a controlling (25%) stake in VSNL. Tata Indicom the umbrella brand for Tata Telecom Service starts operations during the year. VSNL became a Tata Group company in February 2002.

In 2003, VSNL teamed up with Tata Tele services, Tata Internet Services, and Tata Net to form the Tata Indicom Enterprise Business Unit.

In 2004, VSNL International – the international arm of VSNL— was launched. The company signed a wholesale carriage agreement with BSNL to share infrastructure and carry BSNL's traffic.

In 2005, VSNL acquired Tyeo Global Network and became one of the world's largest providers of submarine cable bandwidth.

In 2008 the name VSNL was changed to Tata Communications Limited. During the year, the company focused on its international expansion taking its services to markets like China and Egypt. Tata Communications unveiled its largest data centre in Maharashtra’s Pune in 2010.

Tata Communications, in 2014, announced its network readiness to supply Voice over LTE calling (VoLTE) to its global community of IPX-connected service providers.

In 2016, Singapore Technologies Telemedia (ST Telemedia) signed a definitive agreement with Tata Communications allowing. As part of the deal, ST Telemedia acquired a 74% majority stake in Tata Communications' data centre business in India and Singapore.

The next year, Tata Communications entered the global mobile data connectivity and cross-border Internet of Things (IoT) market. In 2018, the company partnered with Oracle to offer enterprises from more than 150 countries dedicated and private access to Oracle Cloud.

In FY 2023, the company launched the Tata Communications DIGO customer interaction platform. It expanded its customer base in the media and entertainment services business by delivering a cloud-based remote broadcast production.

As of January 15, 2024, Tata Communications Ltd's market capitalisation is close to ₹50,000 crores. Tata Communications Ltd's share price has moved up by over 58% in the last three years.

Financial highlights

– Tata Communications Ltd's total revenue from operations in FY23 was ₹17,838.3 crore, a 6.7% year-on-year growth from ₹16,724.7 crore in the last financial year. – EBITDA (earnings before interest, taxes, depreciation, and amortization) of the Company grew to ₹4,318 crores in FY23 from ₹4,227 crores in FY22. – The company reported a net profit of ₹ 1801 crore in FY23 as against a profit of ₹ 1485 crore in FY22. – Its earnings per share (EPS) grew to ₹ 63.02 in FY23 from ₹ 51.99 in the last financial year.