MARCH 14, 2013
European equipment vendor, Alcatel-Lucent (NYSE: ALU) has procured a major deal from Tata Communications Ltd. (NYSE: TCL) spanning 51 countries for a period of three years.
As part of their modernisation process, Tata Communications was looking at replacing its legacy equipment which would help them to bring down the OPEX. "Besides that they were also looking at offering more resilient performance to their enterprise customers," says a well placed industry source on condition of annoymity.
While the financial scope of the deal is unclear, it is safe to say that the deal will add considerable weight to Alcatel's portfolio.
Besides Alcatel Lucent, the company evaluated three other vendors, Huawei Technologies Co. Ltd. , Cisco Systems Inc. (Nasdaq: CSCO) and Juniper Networks Inc. (NYSE: JNPR).
"The selection of the vendor was a rigorous process spanning over nine months. The process also involved dialogue between Research and Development departments of the two companies. Tatas wanted to know the product roadmap in detail before taking a final call," adds the source.
An element of go-to-market might have also played out in this deal. Since Cisco, which was handling this business before Alcatel got the deal, is a prominent player in the enterprise segment and might have helped Tata Communications in getting additional business from their clients. This would definitely go against Alcatel since this player is not so strong in the enterprise space.
Alcatel is believed to have already installed the nodes in 10 countries including India. "There is a huge scope of expansion in this business and the deal is likely to be extended to other countries as well," says the industry source.
Mumbai based Tata Communications was founded as VSNL (Videsh Sanchaar Nigam Limited) in 1986 and owns a submarine cable network, a Tier-1 IP network. It also operates one of the top largest data centers in Pune and has a cable network of more than 235,000 kilometers.
Just search this: Besides Alcatel Lucent, the company evaluated three other vendors, Huawei Technologies Co. Ltd. , Cisco Systems Inc. (Nasdaq: CSCO) and Juniper Networks Inc. (NYSE: JNPR).
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About TataCom from Google:
"Tata Communications Limited ; (formerly VSNL) is an Indian global telecommunications company located in Mumbai. It owns a submarine cable network, a Tier-1 IP network, and also rents data center and colocation space. It operates India's largest data center in Pune. Tata Communications acquired Teleglobe, a company based in Canada, and DishnetDSL, an Indian company, and is the largest shareholder in South African operator Neotel. Tata Communications currently has a cable network of more than 235,000 kilometers.
It was founded as VSNL (Videsh Sanchaar Nigam Limited) in 1986. VSNL was the first Indian PSU to be listed in the NYSE in 2000. In 2002 Tata Communications acquired a 45% stake in VSNL. Then in 2004 VSNL International , the international arm of VSNL, was launched. On 13 February 2008 VSNL, formerly owned by the Government, was taken over by the Tata Group and renamed Tata Communications Ltd. In 2009 Tata Communications and TYCO telecommunications complete TGN-intra Asia cable system.
Tata Communications Transformation Services (TCTS)
Tata Communications Internet Services (TCIS)
Tata Communications Payment Solutions Limited (TCPSL)"
Nice Post Romangerash "Ahead Of The Crowd". .........Tickerguy
Thats really a BIG DEAL for ALU. They taken Business from Cisco. Won the Contract against Juniper, Huawei, Cisco...And it seems they won because of R&D and future Product Roadmap and not about Pricing....
When they announce the Deal officially SP will POP!