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COVID-19: Data traffic on Tata Communications grew 30% from January to March

Data traffic on Tata Communications’s network grew by 30% from January to March this year, the company said June 13 announcing its financial results for the March quarter. The entire quarter represented a 23% quarter-on-quarter growth in revenue.

This growth may be one of the clearest indicators we have yet of how much India’s internet usage has grown in the last few months. A major portion of content from major streaming services and popular websites is served through a patchwork of caches and content delivery networks that are peered with internet service providers. But “pure” traffic, including international internet traffic, is carried through large telcos, and Tata accounts for a major portion of this traffic — Zoom uses Tata’s datacentres in India, for example. So the amount of data that people have been consuming may have well increased by more than 30%, but the costliest part of that increase — international data traffic — seems to be limited.

  • Tata provisions 1.35Tbps of extra capacity: Tata Communications provisioned what it said was the equivalent of 1.35Tbps of traffic for over 650 orders. This is remarkable, as India’s busy hour internet traffic was projected by Cisco to be a little over 100Tbps in 2021.
  • Conferencing traffic grows 20% QoQ: Videoconferencing traffic and revenue grew by 20% QoQ, Tata said. For the first time, Tata saw double digit margins for this vertical at 11.6% (which it calls a Growth service, indicating it’s not a primary revenue source).

Financials

  • Gross revenue: Rs 4,398 Cr, up 3.6% YoY, 4% QoQ
  • EBITDA: Rs 869 Cr, up 26.8% YoY, 14.2% QoQ

Investor Factsheet | Press Release

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