Indian conglomerate Tata Group is eyeing a bigger telecom play, especially in the 5G enterprise domain, as it restructures its telecom business.
Tata Group is making fresh investments in Tata Teleservices, which offers telecoms services to enterprises via its optical fibre network of 132,000 km.
Tata Teleservices has significantly grown its revenues as companies increasingly move towards cloud-based solutions after the pandemic. Now, Tata Teleservices is exploring new growth avenues in the 5G domain after the Indian government allowed enterprises to set up private 5G networks.
To do that, Tata Teleservices requires fresh funding from its holding company between November and March next year, allowing it to clear bank dues worth Rs 4,225 crore ($528 million).
Tata Communications also eyeing 5G
Meanwhile, Tata Group’s Tata Communications – which offers enterprise and data center services to domestic and international companies via its global 700,000-km sub-sea fibre network – is also looking to provide value-added services based on 5G applications, as per a report by Business Standard.
“The group considers 5G as a big opportunity, though it has refrained from buying the costlier 5G spectrum. It will instead focus on value-added services to stay in the game,” a company source was quoted as saying by the publication.
Tata Communications recently launched a dedicated ‘Private 5G Global Centre of Excellence (CoE)’ in Pune to drive Industry 4.0 applications and capabilities for enterprises. 5G use cases are being developed for automotive, metals and mining, airports and seaports, manufacturing, logistics, and healthcare sectors.
Making up for past losses
Tata Communications has also been demonstrating private 5G use cases such as automated quality inspection of equipment using video and image analytics, inventory management and asset tracking, warehouse theft detection, VR-based remote working collaboration, and video-powered retail purchases.
Tata Group says its plan is to tap the strengths of all its telecom businesses to capitalize on private 5G.
“The Tata group is one of the biggest investors in the telecommunications business and the roll-out of 5G provides an opportunity for the group to make up for the past losses,” the company source further added.