AT&T starts new India business operations

AT&T Global Network Services India, a joint venture between AT&T and Mahindra Telecommunications, has launched its new India business operations.

Recently, AT&T became the first foreign telecom operator in India to secure a new telecommunications licence under the government's revised policy on FDI in the telecom sector, which allows 74% foreign ownership.

AT&T has got international long distance (ILD) and national long-distance (NLD) licences from Department of Telecommunication with an one time payment of $550,000 each.

Besides, the company has to pay 6% of its revenue from the Indian operations per annum as annual licence fees. The joint venture company will have its headquarters in New Delhi and initially houses 80 employees in four cities across the country.

AT&T has been operating in India for the last six years in partnership with its local service provider VSNL. "The new licence has enabled us to further strengthen our commitment to the customers in India. We look forward to introducing an broader range of advanced networking services and solutions more rapidly, and fully integrating India into AT&T's global network," John Finnegan, senior VP of AT&T Global Sales, said.

AT&T presently manages four network nodes in India at Delhi, Mumbai, Bangalore and Chennai. The company was also going to install a fifth network node in Hyderabad and was looking to have nodes in other cities, Sanjiv Bhagat, MD and CEO of AT&T Global Network Services India, said.

He said the first priority for the new business would be to enable a seamless transition of customers to the new business without any hassle.

According to the company, during the nine months period ended in September this year, the company's Indian operations has posted a 40 per cent jump in its revenue. The JV will focus on enterprise businesses in BFSI, BFSI and software companies in India.

PTI adds: AT&T expects over 40% revenue growth from its joint venture firm in India - AT&T Global Network Services (AGNS) - which will become operational in January, AT&T senior executives said today.

AGNS India is a joint venture between AT&T and Mahindra Telecommunications Investment.

"AGNS India is working on operational procedures and there are some issues to be resolved in the next 4-5 weeks. We will be operational from the beginning of the year," John Finnegan, VP (global sales) of AT&T, said.

AT&T clocked 40% revenue growth in the January-September period of this year, Sanjiv Bhagat, MD & CEO of AGNS India, said.

The company is looking at the "same kind of growth in the foreseeable future," Finnegan said.

AT&T, which has 350 to 400 customers in India, recently became the first foreign telecom operator to secure a new telecommunications licence under government's revised policy on FDI allowing 74% foreign ownership of telecom firms here.

"We look forward to introduce a broader range of advanced networking services and solutions rapidly, fully integrating India into AT&T's global network", Finnegan said.