Telstra extends Indian reach with Tata deal

A new agreement will give Telstra access to India's Tata Communications' 116 points of presence, extending the Australian telco's reach to tier-2 and tier-3 Indian cities.

Telstra's multinational customers are set to see a boost in telecommunications connectivity to and from India, with the Australian telco signing a new network-to-network interconnections (NNI) agreement with Tata Communications.

The NNI deal will utilise Tata Communications' 116 points of presence (PoPs), extending Telstra's reach to tier-2 and tier-3 Indian cities, including Jaipur, Surat, and Trichy.

Tata Communications — a subsidiary of India's leviathan multinational conglomerate Tata Group — is a $3.2 billion global communications and enterprise IT service provider that owns and operates the world's "most advanced" subsea cable network.

The Mumbai-headquartered company claims to be the world's number one submarine cable owner by length, and the largest international wholesale voice carrier, with 20 percent of the world's internet routes directly connected to its network.

Telstra said that by leveraging Tata Communications' domestic infrastructure and global subsea fibre network, customers would see reduced latency and increased network availability.

Head of connectivity and platforms portfolio for Telstra Global Enterprise & Services, Bernadette Noujaim Baldwin, said that the new agreement with Tata Communications is part of Telstra's broader multiprotocol label switching (MPLS) strategy, which includes NNI agreements in emerging markets, and the expansion of its own on-net PoPs.

"The latest estimates from a PricewaterhouseCoopers report predict India is set to become the third-largest economy in the world by 2030," said Baldwin. "When you combine this with its young and burgeoning working-age population, you've got a compelling consumption boom and a competitive edge that sets Asia's third-largest economy apart from many other countries.

"With these economic and social indicators in mind, we're seeing demand for data connectivity throughout India grow, as an increasing number of Asian, European, and American-headquartered businesses look to India for long-term growth opportunities.

"Telstra is focused on providing services to large multinational companies that are expanding across Asia and the rest of the world, which is why we are leveraging Tata Communications' deep footprint to extend our service coverage throughout India and provide customers the same security, redundancy, and quality of service offered on the Telstra network," she said.

In May, Telstra Global announced that it had signed an NNI deal with Polish telecommunications and datacentre provider GTS Eastern Europe, in a bid to extend its European footprint.

The agreement saw Telstra Global's Central and Eastern European service broadened thanks to GTS' 27 points of presence in cities across the region, including Prague, Bucharest, Warsaw, and Budapest.

The company's latest agreement comes as Australia's largest telco completes its AU$1 billion share buyback , buying back more than 217.4 million shares, with the offer oversubscribed by almost 70 percent.