''We will look at organic and inorganic growth in India''

American telecom giant AT&T global recently became the first foreign telecom carrier to receive a direct license for ILD and NLD in India.

Until now, the company, offered IP VPN services in India through a partnership with Indian firm Videsh Sanchar Nigam Ltd (VSNL) to 400 customers. In the new arrangement, AT&T Global Network Services India (AT&T India), a joint venture between AT&T and Mahindra Telecom Investment Private Ltd, plans to transition its existing customers in India to its network and also introduce a broader range of advanced networking services and solutions.

While AT&T owns the majority stake-74 per cent, Mahindra holds the rest of the equity in the newly formed company. The direct license also means that other foreign players like BT and Cable & Wireless would be joining the fray to tap the booming Indian market. John Finnegan, senior vice president, AT&T Global Sales and Sanjiv Bhagat, managing director and CEO, AT&T Global Network Services - India, spoke to Priya Padmanabhan of CyberMedia News on their plans for India.

What does the direct telecom license mean for AT &T’s business in India?

So far our presence in India has been through relationships with local service providers like VSNL. Now we have an opportunity to have a direct relationship with customers. This will enable flexibility and also enhanced services. In the first phase, we will be transitioning the existing projects to our networks. We are also looking to offer Internet and security services. We have around 350 customers in India including IBM, Bank of India and TCS.

How do you stack up against competitors like Cable &Wireless and other local players in India?

Internationally, we compete with the likes of Cable & Wireless, British Telecom and Orange. Our customers in India are not Indian companies but MNCs and also Indian companies with an international presence. We are not targeting companies that focus on domestic Indian business.

Our differentiation is in the quality of the network, our ubiquity, delivery of IP services and the fact that we sell internationally. In India the differentiation would be in service. We would also have a significant network with depth within the country. We can also provide customer care and sales support for local customers.

Among Global MNCs in India, we are the leading provider of VPNs.

We focus on the US and Western European markets. India, China and Brazil are key markets for us. We are present in 157 countries. Our network availability has in the past been concentrated historically on Hong Kong and Singapore. But now, we anticipate a lot of growth in India and China. We have been in China for over 25 years. But compared to India, it is a very regulated market.

What are your expectations from the Indian market and how do you plan to scale the growth?

We are looking to grow significantly in India. In fact, with MNCs making a lot of investment in India, it shows how committed they are to India. And we will help these firms get connected to their business. We will definitely look at both organic and inorganic ways to grow.

We have seen our revenues grow 40 per cent in the first nine months of this year in India.

Two of AT&T’s subsidiaries - Sterling Commerce and USi - that came about as part of acquisitions, are presently operating in India. Would you be offering their services as well?

Sterling Commerce and USi are relatively new acquisitions. We see an opportunity to work with both these companies. It would allow us to provide value added capabilities to customers.

Is the Indian market different from other regions in terms of customer demand?

Indian customers are getting quality conscious and are growing globally. Quality of service is the top criterion for them. They are also concerned about security. This is driven from customer needs. They are very interested in communication services.

Big customers are looking to build data onto networks. We partner with them to provide VoIP. Our key differentiator with our license is the fact that we can maintain direct contact with customers. We outsource telecom software development and some of the other work to IBM and Indian players.

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