welcome to the new world - world trade organization · welcome to the new world 21 february 2008...
TRANSCRIPT
©2008 Tata Communications, Ltd. All Rights Reserved.
CORPORATE
Confidential & Proprietary
Welcome tothe New World
21 FEBRUARY 2008
Srinivasa AddepalliSr. Vice President, Corporate Strategy
1
Confidential & Proprietary
CONTENTS The New World
A New World of Communications
The Tata Communications Journey
3CORPORATEConfidential & Proprietary
Globalization & Increased Role of Developing Countries
Source: World Bank
Exports from Developing and Developed Countries, 2005-2030 (US$2001 Trillions)
0
5
10
15
20
25
30
1980 2005 2030
High incomecountries
Developingcountries45%
32%22%
$27Tn
4CORPORATEConfidential & Proprietary
Growing Importance of India & China in the New World
Source: Morgan Stanley; Tata Communications Research
India
27%
Africa
24%China
16%
SE Asia
12%
LatAm
11%
W Asia
6%
USA
4%Europe
0%
Japan
0%
64
82
149
210
390
395
497
762
978
Africa
Japan
W Asia
USA
LatAm
SE Asia
Europe
India
China
Working Population 2010, millions Addition to Working Pops 2005-2010
5CORPORATEConfidential & Proprietary
Rapid Consumer Adoption of New Products & Technologies
Source: The Economist, citing the World Bank; Alexa
# of Years for 80% countries adoption YouTube Daily Page Views (‘000s)
6
Confidential & Proprietary
CONTENTS The New World
A New World of Communications
The Tata Communications Journey
7CORPORATEConfidential & Proprietary
Enterprises Demand Managed & Converged Services
Source: Ovum
New Sourcing Plans / Strategies being considered by CIOs
8CORPORATEConfidential & Proprietary
Consumer Networking is Back in Fashion
13% 13% 10%
21%15%
11%
9% 21% 33%
22%
21%20%
35%30% 26%
2005 2006 2007
Internet Traffic Mix (PageViews)
Total (Bn) 94 139 174Source: Nielson Netratings
Content
Communication
Community
Commerce
Search
10CORPORATEConfidential & Proprietary
What’s happening around us?
0
50
100
150
200M
2004
15
2005
30
2006
60
2007
112
2008
Other
China
India
Asia-
Pacific
Western
Europe
NorthAmerica
197
Worldwide consumer
VoIP users
93%
104%
110%
58%
122%
(04-08)
92%
CAGR
VoIP users to increase globally at60-120% CAGR
Commercial convergence
Application, feature &user interface convergence
Device convergence
Networkconvergen
ce
1-5years
3-5years
5+years
Convergence
11
Confidential & Proprietary
CONTENTS The New World
A New World of Communications
The Tata Communications Journey
12CORPORATEConfidential & Proprietary
Reach
Monopoly ILD VoiceILD (89%); Others (11%)
Voice, Data, IP, Mobility,Outsourcing, Broadband
VSNL (2002) Tata Communications (2008)
Carriers; Retail (Dial-up)Carriers, Large & Mid-sizedEnterprises, MobileOperators, Consumers
India-Centric Play;negligible globaloperations
Global Infrastructure, GlobalCustomers
Revenues: $1.6 bnMarket Cap: $1.2 bn
Revenues: $2 bnMarket Cap: $5 bn (Current)
# March 31st of the year (FY02 and FY07)
Transformation to a Global Challenger
Customers
Lines OfBusiness
Financials#
13CORPORATEConfidential & Proprietary
Our Strengths
IndiaEnablement
GlobalSubmarine &
IP Reach
IntegratedWholesaleServices
• #1 International and Enterprise data services in India• Relationships with Top 2000 enterprises in India including
Fortune 500 companies• Best connectivity to India and expanded reach within
• Owned cable network across the globe: $1Bn investment• Tier-1 Global IP Network and leading ISP in India• Unique assets and connectivity in Asia, Middle East, Africa
• #1 wholesale international voice provider• Suite of voice, data, IP, signaling and outsourcing services• Over 1500 carrier relationships including 600+ mobile
operators
14CORPORATEConfidential & Proprietary
Our Vision
Emerging Markets
Converged IPSolutions
ManagedServices
INDIA, ASIA incl CHINA, SOUTH AFRICA
NEW WORLD OFCOMMUNICATIONS
Deliver a new world of communications to advancethe reach and leadership of our customers
15CORPORATEConfidential & Proprietary
Major Investments: CablesO
WN
CA
PAC
ITY
Existing Cables New / Planned
• TGN-Atlantic
• TGN-Pacific
• TGN-Western Europe
• TGN-Northern Europe
• TGN-India Asia
• SMW-3
• SMW-4
• SAFE/SAT-3
• others…
• TGN-Intra Asia S’pore-HK-Japan H2 2008
• TGN-Eurasia India-Europe H2 2009
• IMEWE
• SEACOM
• Africa
16CORPORATEConfidential & Proprietary
Major Investments | MPLS & Ethernet Expansion New IP, MPLS & Ethernet PoPs NNIs Fiber (MAN) roll-out in India
17CORPORATEConfidential & Proprietary
Major Investments | Managed Services
Managed IT Infrastructure Services
Colocation Services
Managed Hosting Services
Managed Storage Services
Managed Security Services
CPE-Based Services
Cloud-Based Services
Professional Services
Managed Application Services
Audio and Web ConferencingServices
Business Messaging & CollaborationServices
Hosted Contact Center Services
Managed Voice Services
18CORPORATEConfidential & Proprietary
Major Investments | WiMAX for Last Mile in India and South Africa
Businesses
Supplement Fiber roll-out in majormetros
Expand access reach (~ E1) to allmajor business towns
Current Status: 30 towns
March 2009: 115 towns
Consumers
Primary access mechanism forBroadband
Provide reliable 1Mbps experience+ content/apps
Current Status: 1 city
March 2009: 15 cities
19CORPORATEConfidential & Proprietary
Our Organization
5000 employees
20% outside India
37 nationalities
36 yrs avg age
20CORPORATEConfidential & Proprietary
Global Industry Recognition
The only Indian telco onthe list – BCG 2008 NewGlobal Challengers
2006 Best WholesaleCarrier Winner – WorldCommunicationsAwards
2006 Best Pan-AsianWholesale Provider –Capacity GlobalWholesale Awards
CEO of the Year – N. Srinath:2006 – TelecomAsia
Other recent awards: Atlantic ACM Excellence in Wholesale: 2008 Frost & Sullivan #1 Enterprise Data Services Provider in India: 2007 Voice & Data Top ILD Operator Award: 2001-2006