Neotel announced today Tata Communications acquired the 30% stake previously held by Eskom and Transnet. This has resulted in Tata Communications in association with Tata Africa Holdings becoming a controlling shareholder in Neotel.
“This reaffirms Tata Communications commitment to its expansion and investment plans in the emerging regions of Asia, Africa, and the Middle East. We will support Neotel’s efforts to provide global quality telecom services in South Africa,” said Mr N Srinath, Managing Director & CEO of Tata
“With the current economic climate in South Africa, it is very encouraging to us that a global telecommunications giant continues to invest in South Africa and Neotel in particular,” said Ajay Pandey, MD and CEO of Neotel.”I firmly believe that such transactions reinforce international investors’ confidence in the country and more specifically in the South African telecommunications market. Neotel’s entry into the market and recent success is a clear indication of the growth potential in the industry.”
Mr. Pandey continued, “This transaction further allows Neotel to leverage on Tata Communications’ proven and vast global network of tried and tested technologies in countries such as India with similar telecoms landscape to South Africa.” Pandey believes the consolidation in Neotel’s shareholding will go a long way in strengthening the company’s position as a stable player in the local market. “It allows us to continue bringing global best practice to the South African market to position our country more effectively in the international economic context,” he concluded.
Neotel is South Africa’s first converged communications network operator. It provides a range of value-added voice and data services for businesses, wholesale network operators and providers and consumers using its pure-IP Next Generation Network, powered by Neotel’s high-performance fibre optic backbone. Neotel connects the major centres in South Africa to each other and to the world, directly linking the country into Tata Communications’s global Tier 1 network. Neotel offers fresh thinking, a creative approach and flexible solutions for communications in South Africa.
About Tata Communications
Tata Communications, a member of the $62.5 billion Tata Group, is a leading global provider of a new world of communications. The emerging markets communications leader leverages its advanced solutions capabilities and domain expertise across its global and pan-India network to deliver managed solutions to multi-national and Indian enterprises, service providers and Indian consumers. Tata Communications’ range of services include transmission, IP, converged voice, mobility, managed network connectivity, hosting and storage, managed security, managed collaboration and business transformation for global enterprises and service providers, as well as Internet, retail broadband and content services for Indian consumers. The Tata Global Network encompasses one of the most advanced and largest submarine cable networks, a Tier-1 IP network, with connectivity to more than 200 countries across 300 Pops, and more than 1 million square feet of data center and co-location facilities.
Tata Communications’ unique emerging market depth and breadth of reach includes a national fiber backbone network and access to network in over 60 cities and 125 Pops in India, strategic investments in South African converged services operator, Neotel, Sri Lanka and Nepal and, subject to fulfillment of conditions precedent, a 50% ownership in China Enterprise Communications (CEC) providing full country VPN coverage in China.
Servicing customers from its offices in over 80 cities in 40 countries, Tata Communications is the number one global international wholesale voice operator and number one provider of international long distance, enterprise data and Internet services in India, the Company was named “Best Wholesale Carrier” at the World Communications Awards in 2006, “Best Pan-Asian Wholesale Provider” at the 2006 and 2007 Capacity Magazine Global Wholesale Telecommunications Awards and was awarded “Best Progress in Emerging Markets” at the 2008 Mobile Communication Awards. Tata Communications Limited along with its global subsidiaries, (Tata Communications), is listed on the Bombay Stock Exchange and the National Stock Exchange of India and its ADRs are listed on the New York Stock Exchange. (NYSE: TCL)