Indian telecom operator Tata Communications has signed up for Seaborn Networks’ yet-to-be-built submarine cable network, agreeing to purchase telecom capacity in large scale.
The deal, analysts say, will strengthen the hand of Tata Consultancy Services (TCS), easing the task of expanding IT infrastructure services throughout South America. Like TCS, Tata Communications is a subsidiary of India’s largest industry conglomerate, Tata Group.
TCS was unavailable for comment on how it will benefit from the deal.
Slated for completion sometime this year, Seaborn Networks’ cable network will link São Paulo with New York City. It will be the first direct submarine cable route between the Brazilian city and the United States, because existing submarine cables run through the Caribbean islands.
According to the International Finance Corporation (IFC), a World Bank subsidiary, the cable system will help accelerate broadband development in Brazil and other South American countries.
“Latin America is a key emerging region and growing market on the world stage and our investment in Seabras-1 is part of our plan to enhance our offerings into that region,” said Genius Wong, senior vice president, Tata Communications.
Tata Communications has never been counted as the top telecom operator in India or anywhere else in the world, but over 24% of the world’s Internet routes run through its networks.
Investing in submarine cables is a new trend in the American technology market. Google, for an example, recently signed up for capacity on a trans-pacific cable system linking U.S. cities with Japan.