Acquiring Switch and Kaleyra, major players in the industry, will support our growth strategy.
Tata Communications Ltd has set ambitious growth targets for its US business, aiming to reach $700 million to $1 billion in revenue within the next three years. This would make the US market the company’s second-largest business after India.
This growth will be driven by several key factors, including the integration of its acquisition of The Switch Enterprises, which serves premium clients. Additionally, contributions from enterprise clients and hyperscalers to its connectivity business are expected to play a significant role in achieving this growth.
Amur S. Lakshminarayanan, the Managing Director and Chief Executive Officer of Tata Communications, emphasized the importance of the US market, noting that it will become the company’s second-largest market after India. He highlighted their collaboration with hyperscalers and service providers, as well as their strategic acquisitions of companies like Switch and Kaleyra in the US.
Tata Communications currently reports revenues separately for India and international markets. However, they plan to provide detailed revenue breakdowns for major international markets, including the US, in the upcoming quarters.
In the fiscal year 2023, Tata Communications generated revenues of ₹18,201 crore, and for the first six months of September 2023, they recorded revenues of ₹9,857 crore. Currently, the US market’s contribution to their overall revenue is below $500 million, which is only halfway toward their three-year revenue target.
Lakshminarayanan’s strategy involves increasing the revenue share from international markets, where Tata Communications already has a strong position in communications platforms and connected infrastructure solutions. They serve prestigious clients such as Formula One and banks, and this will play a crucial role in achieving their growth targets.
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“We’re witnessing increasing customer engagement across all our platforms following the acquisitions,” he stated.
Tata Communications is also investing in AI for its products and solutions, like voice platforms for enterprises. AI is employed to curb spam calls and prevent billing surprises.
Furthermore, they’re using AI for delivering personalized video messages to consumers in retail chains through IoT platforms.
AI is also playing a role in the world of connected cars, guiding automakers on optimal locations and facilitating software updates for in-car entertainment systems.
“Car manufacturers worldwide are losing $3.8 billion due to unsuccessful software over-the-air updates caused by connectivity issues, but we’re utilizing AI and ML to provide them with intelligent solutions,” he added.
Tata Communications has joined forces with Nvidia to introduce its AI Cloud, which can also serve as an edge-based platform for large corporations to train their models.
In India, Tata Communications is conducting ten trials for various customers, currently in different stages of request for proposals, to establish dedicated 5G networks for enterprises.
The senior executive emphasized that the use cases for 5G are still evolving, primarily concentrated on enterprises, sometimes necessitating higher precision.
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