Tata Communications, a part of the Tata Group, on Tuesday said it has bagged a Type B telecom license in the Kingdom of Saudi Arabia (KSA) to provide Internet Service Provider (ISP) and related telecom services to enterprises in a defined capacity, along with local currency billing for end-customers.
"This will enable the company to make the shift from offering services as a foreign carrier in the Middle East to a local licensed service provider," Tata Communications said in a filing to the Bombay Stock Exchange.
Through this licence, Tata Communications will become a carrier-neutral service provider to the OTTs, large enterprises and multinational corporations in the region. It will be able to offer network transformation services in KSA and address internet, network security, private cloud and SDWAN requirements across the region, the Mumbai-headquartered firm said.
"A strong digital backbone has become essential for businesses to address the changes in the industrylandscape," said Vaneet Mehta, Associate Vice President and Region Head, Middle East, Central Asia &Africa, Tata Communications.
"By securing this telecom license in KSA, we will be able to seamlessly bring carrier-neutral services like internet connectivity, public/private cloud, cyber security, borderless mobility and more such services tothe region. This will help simplify the digital experience for our customers and aid them in transforming their businesses in the new normal," Mehta added.
The Type B license enables Tata Communications to expand its reach in the Middle East, leveraging its global expertise and capabilities coupled with regional knowledge and experience to cater to the new customer requirements.
The company said that COVID-19 pandemic has resulted in a paradigm shift in the way businesses and people operate. To succeed in this new normal, enterprises need to adapt their business models in favour of digital first solutions. Tata Communications has been working with global enterprises to provide a secure connected digital experience through industrialised, scalable and secure workplace solutions as well as next generation enterprise commerce tools to deliver a seamless digital, omni-channel experience to enterprises and end customers, it said.
The company owns and operates the world's only wholly owned subsea network that encircles the globe. This network enables businesses to reach more than 200 countries and territories. Today, around 30 per cent of the world's internet routes travel over Tata Communications' network, the company said.
Meanwhile, shares of Tata Communications were trading at Rs 686.60 apiece, down 2.13 per cent, against previous closing price of Rs 701.55 on the BSE.