Tata Communications, a major player in the telecommunications industry, has been employing various strategies to navigate and capitalize on the current surge in the sector. With one-third of the total global submarine cable capacity, Tata Communications is well-positioned to handle the increasing demand for data transmission. The company’s journey starts from Mumbai, India, and extends globally, allowing them to consume their own technology and stream a significant amount of data through video streaming.
Tata Communications has a dedicated division for media and entertainment, which focuses on video streaming operations. They have successfully streamed major events like the FIFA and IPL matches using their underlying network. In addition to this, Tata Communications provides private 5G networks in areas that require larger bandwidth and low latency for video transfer.
The company also boasts powerful APIs and software development tools that unlock the potential of 25 percent of the world’s internet routes. These tools provide customers with the ability to develop innovative solutions and enhance their digital experiences.
In terms of financial performance, Tata Communications’ integrated report for the fiscal year 2022-2023 reflects positive results. The data revenue for the year stood at Rs 14,096 crore, with a profit after tax (PAT) of Rs 1,796 crore and an EBITDA of Rs 4,318 crore.
Tata Communications has leveraged its synergies with its group sister company, Croma, to enhance the online shopping experience. They introduced video interaction to provide consumers with a personalized shopping experience online, known as dark stores. This synergy has resulted in increased user engagement, traffic, and higher sales for Croma. The company recorded a 70 percent increase in channels and received over two lakh customer calls in 2022.
Customer retention is a top priority for Tata Communications. As an enterprise-to-enterprise company, they primarily work with businesses rather than selling products directly to consumers. However, their services are designed to benefit both consumer brands and individual customers. This approach contributes to their increased customer retention, as evidenced by their net promoter score (NPS), which has been consistently improving year on year.
Tata Communications follows a hyperconnected ecosystem business model. This model emphasizes the seamless interaction and information sharing between people, devices, and systems. It enables high-speed communication, collaboration, and real-time data exchange, leading to improved productivity, innovation, and customer experiences.
Security is a major concern for Tata Communications, given its global presence and extensive fiber optics network. The company complies with telecommunications and security regulations across different regions to ensure a secure ecosystem. They also prioritize the consumer’s security needs and offer various products and services with security features.
Tata Communications recently made a significant acquisition by purchasing Kaleyra for USD 100 million. Kaleyra is known for its omni-channel communication services, providing APIs and visual tools for global customer interaction through channels like SMS, MMS, RCS, WhatsApp for Business, Video, and Voice. Tata Communications plans to leverage Kaleyra’s capabilities and offer auxiliary services to meet broader business requirements.
The company is also collaborating with Meta, the parent company of popular messaging application WhatsApp. Tata Communications integrates WhatsApp into its omnichannel engagement strategy to facilitate embedded communications, flexibility, and streamlined customer conversations.
Furthermore, Tata Communications has partnered with Nvidia to bring state-of-the-art AI capabilities within reach for organizations, businesses, researchers, and startups in India. This collaboration aims to establish an AI cloud infrastructure, supported by Tata Communications’ global network, enabling enterprises to efficiently transfer data across the AI cloud.
Looking ahead, Tata Communications’ strategy for the coming year revolves around delivering personalized services within their hyperconnected ecosystem. They aim to optimize customer engagement based on individual preferences and provide comprehensive digital experiences. By integrating communication technology, hyperconnected ecosystems, and connectivity under one umbrella, Tata Communications strives to be the go-to digital player for consumers.
Overall, Tata Communications remains committed to leveraging its strengths, expanding partnerships, and embracing new technologies to navigate and thrive in the evolving telecommunications landscape.
