BT applies for NLD & ILD licences in India to provide end-to-end managed services and announces joint venture with Jubilant Enpro Pvt Ltd
13 November 2006 - BT today announced it has lodged applications with the Indian Department of Telecommunications for national long distance and international long distance licences. When granted, the licences will enable BT’s newly-formed joint venture company, BT Telecom India Pvt. Ltd., to offer services for the first time directly to multisite corporate customers in the Indian market.
In addition, the company announced it has reached a joint venture agreement with Jubilant Enpro Pvt. Ltd., a New Delhi-based company engaged in the businesses of oil and gas, food and services. Jubilant Enpro is a member company of Jubilant Group, a business group having diverse business interests with Jubilant Organosys as the flagship company and which is a public limited company listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) in India.
Andy Green, CEO, BT Global Services, said: “India is one of the fastest growing markets for BT and our strategic partnership with Jubilant Enpro will strengthen our ICT deployment in India. With this alliance and under local licensing, customers can be assured of world class end-to-end global services.”
BT’s initial intention is to provide both domestic and international managed services to corporate customers who have sites in India. It will provide these companies with virtual private network-based (VPN) services using technologies such as ATM and internet protocol-based multi-protocol label switching (MPLS). Currently, BT assists its customers wanting connectivity to India through an arrangement it has with a local licensed operator.
Under the joint venture agreement, BT holds a 74 per cent interest while Jubilant Enpro holds 26 per cent.
Hari S. Bhartia, Co-Chairman and Managing Director, Jubilant Group, said: “We are delighted to partner with BT for this joint venture. As a company that has transformed into a global networked IT services company, BT offers the highest levels of customer service in terms not only of the success of its customer but also its commitment to compliance with the law. We strongly believe that this is the beginning of a long-standing relationship which will not only benefit Indian companies but also contribute to the further development of the country’s telecoms industry.”
With Indian headquarters located in New Delhi, BT has been present in India since 1987. It set up its first customer relationship management office in 2004, offering services through a fully licensed partner.
According to Green, BT has strong growth plans for its Indian operations, predicting that its revenues from India will be US$250 million by 2009. BT employs over 15,000 people in Asia Pacific (both directly and indirectly), of which the majority are based in India. BT is looking to increase its Indian employee strength by hiring an additional 6,000 people within the next two years.
Andy Green added: “Establishing and managing our own operations in India is a landmark development. With these licences and planned investment, we will be able to provide the same high levels of services in Bangalore as we do in Boston, and in Mumbai as we do in Madrid. This will allow our India customers access to a BT managed network which is connected to BT’s comprehensive global network across Asia Pacific, Europe and North America.”
In the past three years, BT in Asia Pacific has invested more than US$100 million in rebuilding its regional network. Most recently in February 2006, BT announced a US$21 million investment in a global IP-based voice platform which will see the current legacy TDM network replaced by an MPLS-based network across over 30 countries worldwide. BT has plans to invest a significant portion of this in India.
In January 2005, BT set up a regional Customer Management Centre in collaboration with Infosys in Pune, India to focus on the quality and performance of BT’s services to customers. The centre handles the majority of BT’s customer service activities for multinational customers in the Asia Pacific region.
BT Telecom India Pvt. Ltd. is a subsidiary of BT plc, a global leader in networked IT services with revenues of $30 billion and a customer base of over 20 million. BT is contributing approximately US$1.6 million in cash for its 74 per cent stake in BT Telecom India.
About Jubilant Enpro Pvt Ltd
Jubilant Enpro Pvt. Ltd. is a member company of Jubilant Group, a business group having diverse interests in four sectors: (1) Pharmaceuticals, Life Sciences & Specialty Chemicals; (2) Food Services & Food Retail; (3) Oil & Gas; and (4) Trading & Services. A shared vision and common value bind them together.
Over the years, Jubilant Group has created globally sustainable businesses and an international presence in the pharmaceutical and chemicals sector. The group is also expanding substantially in the Contract Research & other services which relate to Pharmaceutical and Bio-technology. Jubilant Group has customers across 60 countries, believes in building partnership to create value and continues to put large investments in research & development.
Jubilant Group’s revenue was US$ 700 million in the financial year 2005-06.
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