Calcutta, Oct. 2: Tata Teleservices will focus on wireless voice and managed services to drive growth in the small and medium enterprise segment.
The company is bullish on the eastern region, which has around 11 per cent of the 10 lakh SMEs nationally and contribute 6 per cent to the Rs 10,500-crore spend.
The non-consumer segment, which includes both large and small enterprises, contributes 30 per cent to the company’s revenue and is expected to increase to 50 per cent within five years.
Tata Teleservices’ SME business posted a year-on-year growth of about 20 per cent against an industry growth of about 8 per cent in 2012-13.
“Our market share in 2012-13 was 10.4 per cent and in 2013-14, we expect it to increase to 11.2 per cent with a revenue growth of 20 per cent. At Tata Teleservices, we define an SME on the basis of the company’s employee base. A company having 10-500 employees is an SME,” said Prateek Pashine, president (SME business), Tata Teleservices.
“We want to continue our leadership in wireline or fixed data, while our focus will be on wireless voice. Managed services for SMEs that include managed networks, data centre services and managed security is the fastest growing,” he added.
The company’s offerings for SMEs comprise wireless and wireline data and voice services as well as managed services.
Wireline data, which is a Rs 2,500-crore market, is expected to grow at a compounded annual growth rate (CAGR) of 14 per cent during 2012-18. Wireless data is a Rs 300-crore market and is projected to grow at CAGR of 15 per cent during the same period. The company sees prospect in wireless data with the concentration of IT and related companies in the eastern region.
The Rs 3,500-crore wireline voice space has witnessed a negative growth, but the company sniffs opportunity in the Rs 3,200-crore wireless voice market where it enjoys a strong footing.
Managed services are a Rs 1,000-crore market with an expected CAGR of 22 per cent.
Tata Communications will enter into a partnership with UAE’s Etisalat to build a multi-service regional network infrastructure accessed from Etisalat’s SmartHub facility in the UAE.
The infrastructure includes a core network node in the SmartHub that provides improved connectivity between Etisalat’s Multiprotocol Label Switching, Ethernet and Internet Protocol services and Tata Communications’ global network.