The Tata Group has consolidated all its telecommunications and allied businesses under a new company, Tata Communications Ltd, that combines VSNL, VSNL International, Teleglobe, Tata Indicom Enterprise Business Unit (TIEBU) and Cipris brands worldwide.

The new company is headed by Subodh Bhargava as chairman and N Srinath, CEO and managing director.

Tata Communications will leverage its Tata Global Network (TGN), formerly Tyco Global networks, which VSNL had acquired in November 2004 for $130 million from Tyco International.

Tata Communications is in the process of completing additional submarine cables systems connecting emerging markets in Asia, Middle East and Africa to Europe to meet the demands of consumer broadband and enterprise customers over the next five to eight years.

The company plans to invest over $2 billion over the next three years to further fuel its global expansion plans.

For the Tata Group, the launch of Tata Communications represents the culmination of recent major international investments that expanded its global reach and ability to deliver IP-leveraged communications solutions.

Tata Communications says it will leverage TGN's recent and advanced submarine cable and IP networks to meet the demand for converged IP solutions to provide IP, MPLS, Ethernet and Managed Services for which demand is expected to rise with increasing broadband demand.

"The next trillion dollars to be made in global communications will depend heavily on emerging markets where Tata Communications is already a leading player," said Camille Mendler, vice president of research at Yankee Group. "There is grand ambition, but also integrity in how the company executes; ultimately, customers worldwide can only benefit from its unified global presence."

During the last year Tata Communications has announced significant investments in enhancing network and services capabilities in India, intra-Asia, Middle East and Africa. The TGN-Intra Asia and TGN-Eurasia cables, complementing the company's existing multi-terabit capacities across the Atlantic and Pacific oceans will ensure diverse and reliable inter-continental connectivity.

Tata Communications' Wimax network roll-out in India will provide customers with high-speed and reliable connectivity to over 100 cities and towns. Additionally, Tata Communications strategic investment in South African operator Neotel, provides a strong anchor to build an African footprint.