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Singapore Telemedia to acquire 74% stake in Tata’s data centre business

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Singapore Technologies Telemedia (STT) through its global data centre subsidiary ST Telemedia Global Data Centres (STT GDC) will acquire 74% of Tata Communications’ data centre business in India and Singapore. Tata will remain as a significant shareholder in its data center business by holding the remaining 26% stake. The transaction will be closed within the coming weeks.

A Mint report pegged the size of deal at $634 million. Tata Communications’ chief executive officer Rangu Salgame told the publication that the sale of its data centers would help it to invest the money “in newer areas such as cloud and e-commerce.”

Strategic partnership to share data centres

Both companies have also entered into a strategic partnership wherein Tata Communications’ 14 data centres in India and 3 Singapore facilities will be hived-off to Singapore Telemedia. STT GDC will use these assets to further strengthen its Asian data centre networks in India and China. However, Tata Communications will retain a stake in these markets, by focusing on providing services like cloud networks, unified access networks, IP services, among others.

Vinod Kumar, Managing Director and CEO, Tata Communications, said: “Our new partnership also gives us the opportunity to redeploy capital behind other areas of our business, to further broaden the portfolio of services we can offer to meet our customers’ current and future requirements.”

About Tata Communications’ data centers

In 2014, the Indian data centre business of Tata Communications was transferred to its wholly-owned subsidiary Tata Communications Data Centers (TCDC) through a High Court mandated process. In India, TCDC currently operates a total of 14 data centres in Delhi, Mumbai, Bengaluru, Chennai, Kolkata, Hyderabad and Pune.

IoT network in India: In November, Tata Communications had successfully completed trials of its new Low Power Wide Area Network (LPWAN) in Mumbai and Delhi. The company mentions that these networks are based on LoRa technology for connected devices and Internet of Things applications. It claims that the first phase of this initiative will aim to cover 400 million people in Tier 1, 2, 3 and 4 cities, although it didn’t mention by when it will accomplish this. The LPWAN wireless network can communicate up to 50 meters underground, making it useful in areas like metro stations and car parks.

Other updates from Tata Group

Yesterday, Tata Unistore had announced that it will launch Tata CLiQ, an ecommerce platform under the Tata Group, on 27 May on web, mobile web and Android and iOS apps.

-Earlier this month, Titan said that it would acquire the Chennai-based online jewellery store CaratLane, for an all cash deal.

– In March, BSNL partnered with Tata Sky, to offer free video on demand services to customers of BSNL for the first month worth Rs 500.

– In February, Tata Teleservices Maharashtra Ltd reported its 22nd straight loss making quarter (quarter ended 31 December 2015) with losses of Rs 79.64 crore, down from Rs 155.67 crore loss in the previous quarter.

– In January, the Bombay Stock Exchange and Tata Docomo have signed a partnership to offer free WiFi services.

– In the same month, Alef Mobitech, a New Jersey and Mumbai-based mobility computing firm, raised $5 million from Tata Capital Inovations Fund.

 Image credits: Flickr user Torkild Retvedt under CC BY-SA 2.0

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