NTT Communications Says Tata-Docomo Row Resolved, Bullish on Indian Market
NTT Communications will invest USD 160 million in India to set up two additional data centres, which will become operational by April 2018.
File photo of a pedestrian walking past a store of Tata DoCoMo, a joint venture between NTT DoCoMo Inc. and Tata Teleservices Ltd., in Mumbai. (Image: Getty Images)
New Delhi: Japanese tech firm NTT Communications on Thursday said the row between its sister concern NTT Docomo and domestic conglomerate Tata Sons, which has been resolved now, has no impact on its business plan for India.
NTT Com announced plans to invest USD 160 million to almost double its data centre capacity of its Indian arm - Netmagic.
“Their problem is already solved. There is not going to be any impact on business that we are trying to do here (India) like data centre business. No negative impact,” NTT Communications President and CEO Tetsuya Shoji told PTI.
NTT Docomo, in November 2008, acquired 26.5 per cent stake in Tata Teleservices for about Rs 12,740 crore (at Rs 117 per share), offering services under the Tata Docomo brand.
In April 2014, NTT Docomo decided to exit the venture but the Tatas opposed it initially which led to a legal tussle between the two groups. Later, in February 2017, Tata Sons and NTT Docomo decided to mend ways with the Indian conglomerate agreeing to pay USD 1.18 billion to the Japanese partner.
Shoji said that NTT Com is bullish on Indian market because of growth in local economy and favourable government policies.
"Also, multinational companies including Japanese ones are expanding business in India to whom we can provide ICT services. At the same time, Indian MNCs are expanding their footprint. NTT can support their global business expansion," he said.
India accounts for over 10 billion Yen, or around USD 9 million business for NTT Com. NTT Communications will invest USD 160 million for setting up two additional data centres, which will become operational by April 2018. These data centres will add nearly 5,00,000 square feet of gross floor space taking NTT Com's total gross footprint to 1,100,000 square feet in India.
The company at present has seven data centres located in Mumbai, Chennai, Noida and Bengaluru. "We had nine data centres in India but two of them were small so we merged them with other. Now, we are setting two new data centres which will again take our data centre count to nine," Netmagic MD and CEO Sharad Sanghi said.
He said that banking and finance segment occupy most of the data centre space, followed by IT, ITeS and leading over-the-top internet firms, media and entertainment segment.
Sanghi said that the company is working on a plan to handle increase in traffic that has suddenly surged due to low cost mobile broadband rates in India.
"We saw 18-20 per cent rise in network traffic above normal after data rates came down following Reliance Jio's entry. We are wroking on plans to handle this increase in demand," Sanghi said.
Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, Telegram, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.
Recommended For You
- Dream Girl Box Office Day 4: Ayushmann Khurrana Sets New Benchmark
- This Rescued Deer Keeps Coming Back to the Family Who Saved Him
- Swanky Cars, Snazzy Hairstyles and Tattoos: The New Lifestyles of India's Kabbadi Millionaires
- Mi Smart Water Purifier Launched in India at Rs 11,999: Here's How it Works
- Tamil Nadu's New EV Policy Seeks Full Road Tax Exemption for Electric Vehicles Until 2022