Mumbai (BSE) & New York (NYSE) - 22 September, 2011 - Tata Communications, a global communications service provider, and Essar Telecom Kenya (yuMobile), a unit of Essar Group, today announce the signing of a mutually beneficial strategic sourcing agreement. Under the landmark deal, yuMobile will, exclusively, route all its international voice traffic through Tata Communications' network. yuMobile continues to be one of the company's key suppliers of telecommunication services throughout Kenya.
The partnership will allow yuMobile to tap into Tata Communications' extensive and robust voice infrastructure, enabling it to deliver higher quality international calls at competitive rates to customers in Kenya. Through yuMobile, Tata Communications will benefit from the increasing demand for high quality voice services in Africa generated by a rapid rise in the number of mobile subscribers on the continent.
Catherine Halsam, a wholesale telecoms analyst at Ovum commented, "Ovum’s research shows that there were about 550 million mobile connections in Africa at the end of 2010 and we expect this number to almost double to just shy of 1 billion by 2016. Africa’s rapid telecoms awakening is all about rising demand driven by the falling costs of mobile connectivity and improved coverage."
Madhur Taneja, Country Manager, yuMobile says: "We understand the importance of tying up with partners who can deliver the best in their field of expertise". Working with Tata Communications ensures that we're able to deliver the highest call service quality to our customers today, and in the future, as our subscriber base grows. Having access to Tata Communications' extensive global network and advanced voice traffic management tools allow us to focus on our core business and the latest mobile technology advancements, giving us the competitive edge in the booming African mobile market."
Michel Guyot, President of Global Voice Solutions, Tata Communications, says: "Becoming yuMobile's sole provider for international voice termination is a unique deal for us in Africa. Africa represents one of the strongest growth opportunities in the voice sector and our experience in the region means that we are ideally placed to help yuMobile build its business in Kenya. The solutions that we offer enable our customers to become more competitive in their regions by reducing costs, streamlining operations and improving service quality, while allowing them to focus on core services."
Tata Communications' strategic voice traffic outsourcing and advanced voice traffic management tools will allow yuMobile to minimise the administrative burden and operational costs associated with managing an international voice interconnect organisation. It will also enable the company to focus on its core business and capitalise on the key growth areas in the African market.
yuMobile will benefit from Tata Communications' scale and routing expertise as well competitive costs for international call termination. This stable cost structure will allow the company to roll out promotions to its customers without compromising on quality. Working with Tata Communications also eliminates the financial risks that could occur due to misroutes and the improper code and cost management associated with managing international voice.
Tata Communications was awarded the Best Global Wholesale Services Provider by Capacity Magazine for its network reach, its strategic partnership approach and its commitment to improving capacity to the fastest growing emerging markets.