Tata Communications aims to expand its US business to $700 million-1 billion within the next three years, making it the company’s largest market after India. The growth will be driven by the integration of its recent acquisition, The Switch Enterprises, and the contribution of enterprise clients and hyperscalers to its connectivity business. The company’s CEO, Amur S. Lakshminarayanan, highlighted the partnerships it has with hyperscalers and service providers, as well as its acquisitions in the US, as key factors for the expected growth. While the current revenue contribution from the US is below $500 million, Tata Communications plans to increase its share of revenue from international markets, where it serves prestigious clients such as Formula One and banks.
In addition to its focus on market expansion, Tata Communications is investing in artificial intelligence (AI) to enhance its products and solutions. For enterprises, AI is being used to reduce spam calls and prevent bill shocks, while personalized video messages for consumers at retail chains are being offered using AI for Internet of Things platforms. The company is also leveraging AI in the automotive industry, providing carmakers with the best locations and sending software updates to entertainment systems. Tata Communications’ partnership with Nvidia for its own AI Cloud could further enable large corporations to train their models on an edge-based platform.
Furthermore, Tata Communications is conducting 10 trials in India to establish captive 5G networks for enterprises. While the use cases for 5G are still developing, they primarily focus on enterprises and require greater accuracy in some cases. Overall, Tata Communications aims to leverage its technological advancements and strategic partnerships to drive growth in both its US business and international markets.
In terms of financial performance, Tata Communications reported a revenue of ₹18,201 crore in FY23 and ₹9,857 crore for the six months ending September 2023. The company plans to provide individual revenue figures for large international markets, including the US, in the coming quarters.
