Tata Communications, erstwhile VSNL, Management reiterated growth prospects of managed services, led by unified communication & collaboration (UCC), transformation business, media segment and hosting vertical in the data center business, which continues to perform well with >20% growth. In the network services, VPN and IP transit (telecom data growth) have grown at 15-20%. The traditional lease line segments (IPLS) and ATM remain in the single digits. The voice segment remains weak.
Neotel (South Africa subsidiary) has not lost any enterprise clients, which showcases its business strength. However, due to uncertainty on the parent front, Neotel has been unable to add new clients. Management may look to renew sale talks with financial investors or overseas telcos in the next 6-9 months once Neotel revenue growth is brought back to a steady state.
