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Tata Communications announces $430 million investment in Asia Pacific

 
New internet data centre and the TGN-Intra Asia Cable aimed at driving global connectivity and reliability

Singapore: Tata Communications, a leading provider of a new world of communications, announced today its $430-million strategic investment plan in the Asia Pacific (APAC) region. The investments include developing the Tata Communications Exchange, a new world-class internet data centre (IDC), and the completion of the main segment of its TGN-Intra Asia Cable System.

These investments are a key part of the company’s commitment to enhance its robust global infrastructure as part of its $2-billion expansion plan over three years. The Tata Communications Exchange and the TGN-Intra Asia Cable System are integral parts of the Tata Global Network (TGN) that includes one of the most advanced and largest submarine cable networks, a tier-1 IP platform and more than 1 million square feet of data centre and co-location facilities worldwide.

Tata Communications Exchange
To meet increasing outsourcing demands from global multinational corporations into emerging markets, Tata Communications is expanding its capacity with the construction of a flagship data centre, the Tata Communications Exchange in Singapore. It will be ready for operation in early 2010. The new data centre will provide increased capacity for both domestic and international companies, allowing them to realise cost and resource efficiencies in addition to achieving greater service availability and performance. The Singapore IDC is a key gateway location into the APAC region. Its integration into Tata Communications’ high-capacity tier-1 network enables the company to meet current and future IT infrastructure service demands of its customers.

“The Asian market continues to be promising, even in the current economic environment. Businesses need to capitalise on the opportunities this region provides, and investments in Asia are critical for the growth of global business,” said Vinod Kumar, president and chief operating officer for Tata Communications. “Our large-scale investment in the Tata Communications Exchange, coupled with our submarine cable build-out, ensures scalability and global reach while delivering our commitment to meet customer requirements. We will continue to be an active leader in offering superior services into emerging regions where we see high growth potential and opportunities for customers.”

The Tata Communications Exchange is being developed in partnership with Mapletree Industrial Fund (a pan-Asian industrial fund managed by Mapletree Industrial Fund Management Pte Ltd (MIFM)). MIFM is a wholly-owned subsidiary of Mapletree Investments Pte Ltd, a leading Asian real estate and capital management company based in Singapore.

Building on Tata Communications’ extensive global submarine cable and tier-1 internet protocol (IP) network, the new data centre will deliver co-location, managed hosting, managed storage and value-added services. Tata Communications will provide its global customers the added flexibility to remain competitive through centrally- managed solutions with high quality of service.

TGN-Intra Asia Cable
Paving the way for continuous support of economic growth and development within the APAC market, Tata Communications also announced the completion of the main segment of its $250-million TGN-Intra Asia cable system. The multi-terabit system spans 6,700km that connects Singapore, Hong Kong, Japan, Vietnam and the Philippines. It increases data and voice reliability by providing new route diversity for traffic generated throughout and into APAC.

As part of its focus on expanding communications services to and from emerging markets, Tata Communications is partnering with Globe Telecom and EVN Telecom to expand the TGN-Intra Asia Cable System into the Philippines and Vietnam respectively.

Forward-looking and cautionary statements Certain words and statements in this release concerning Tata Communications and its prospects, and other statements, including those relating to Tata Communications’ expected financial position, business strategy, the future development of Tata Communications’ operations, and the general economy in India, are forward-looking statements. Such statements involve known and unknown risks, uncertainties and other factors, including financial, regulatory and environmental, as well as those relating to industry growth and trend projections, which may cause actual results, performance or achievements of Tata Communications, or industry results, to differ materially from those expressed or implied by such forward-looking statements. The important factors that could cause actual results, performance or achievements to differ materially from such forward-looking statements include, among others, failure to increase the volume of traffic on Tata Communications’ network; failure to develop new products and services that meet customer demands and generate acceptable margins; failure to successfully complete commercial testing of new technology and information systems to support new products and services, including voice transmission services; failure to stabilize or reduce the rate of price compression on certain of the company’s communications services; failure to integrate strategic acquisitions and changes in government policies or regulations of India and, in particular, changes relating to the administration of Tata Communications’ industry; and, in general, the economic, business and credit conditions in India. Additional factors that could cause actual results, performance or achievements to differ materially from such forward-looking statements, many of which are not in Tata Communications’ control, include, but are not limited to, those risk factors discussed in Tata Communications’ various filings with the United States Securities and Exchange Commission. These filings are available at www.sec.gov. Tata Communications is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements.

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