Tata Communications stock climbed over 11% on Thursday after the company announced that it has signed an agreement with Singapore-based Kacific Broadband Satellites Group for providing terrestrial connectivity services.
Tata Communications will provide global internet and state-of-the-art cybersecurity services for Kacific's Ka-band satellite network.
Reacting to the announcement, Tata Communications share price opened with a gain of 2.09% and later jumped 11.19% to Rs 465 on BSE. The stock traded in a wide range of Rs 51. In terms of volume, 2.4 lakh shares and 30 lakh shares changed hands on BSE and NSE, respectively.
The stock trades higher than 5, 20, 50 and 100-day moving averages but lower than 200-day moving averages. The share price of Tata Communications has risen 22.61% in the last 2 sessions.
The global digital infrastructure provider company has been chosen by Kacific Broadband Satellites Group(Kacific) to provide terrestrial connectivity services as it readies for the launch of its first satellite, Kacific 1. Tata Communications will provide global internet and state-of-the-art cybersecurity services for Kacific's Ka-band satellite network.
"Kacific chose to enter into this arrangement with Tata Communications because of the sophistication and scale of the company global network and its unrivalled security expertise," quoted Kacific CEO, Christian Patouraux.
Kacific 1 is a High Throughput Satellite (HTS) that will use 56 high-power Ka-band beams to deliver affordable, high-speed broadband to telecommunications companies, internet service providers and governments in South East Asia and the Pacific, the filing added.
"We believe in Kacific's vision to bridge the digital divide by providing high-quality broadband access to underserved areas of the Asia Pacific. We are pleased to work with Kacific to provide them with a unified service across security and network management," said Brian Morris, Vice President and General Manager of Global Media & Entertainment Services at Tata Communications.