Tata Communications Ltd, a global telecommunications company, has set ambitious goals for its US business, aiming to reach $700 million to $1 billion in revenue within the next three years.
The company, based in India, is strategically expanding its operations in the United States, making it the second-largest market after India.
Amur S. Lakshminarayanan, Managing Director and Chief Executive Officer of Tata Communications, outlined the growth plan in a recent interview.
This plan hinges on several key factors. First, Tata Communications anticipates that the integration of its acquisition of The Switch Enterprises, which serves premium clients, will play a pivotal role in driving growth.
Additionally, the company expects contributions from enterprise clients and hyperscalers to boost its connectivity business in the US.
Lakshminarayanan emphasized the importance of the US market for Tata Communications.
He noted that the US, with its strong presence of hyperscalers and service providers, is becoming a significant market for the company.
He also highlighted the impact of the acquisitions of Switch and Kaleyra in the US.
In the fiscal year 2023, Tata Communications reported a revenue of ₹18,201 crore, and for the six months ending in September 2023, it recorded a revenue of ₹9,857 crore.
While the current contribution of the US market to the company’s overall revenue is below $500 million, Tata Communications is determined to significantly increase this figure in the coming years.
To achieve this, the company plans to provide separate revenue figures for large international markets, including the US, in the upcoming quarters.
Tata Communications holds a challenger position in the communications platforms and connected infrastructure solutions space in international markets.
The company serves high-value, prestigious clients such as Formula One and banks and has observed increasing traction with customers across all its platforms, especially after the acquisitions.
To enhance its offerings, Tata Communications is investing in artificial intelligence (AI). The company is incorporating AI into products and solutions like voice platforms, which help reduce spam calls and prevent bill shocks for enterprises.
It’s also leveraging AI for personalized video messages for consumers at retail chains through Internet of Things platforms.
In the automotive sector, Tata Communications is using AI to provide valuable insights to carmakers regarding optimal locations and software updates for connected cars.
This technology has the potential to save carmakers billions by ensuring the success of software over-the-air updates.
Tata Communications is also partnering with Nvidia to launch its own AI Cloud, which could offer an edge-based platform for large corporations to train their AI models.
Additionally, the company is involved in 10 trials for customers in India, focusing on setting up captive 5G networks for enterprises.
These trials are in various phases of request for proposals, and Tata Communications sees a growing need for 5G in the enterprise sector, particularly for applications that require high accuracy.
In summary, Tata Communications is on an ambitious trajectory to transform its US business into a billion-dollar enterprise, leveraging strategic acquisitions and cutting-edge technologies to achieve its growth targets in the telecommunications industry.