Tata Communications in South Africa

Tata Communications Enhances South African Presence Amid Strategic Shifts

Johannesburg, South Africa – October 15, 2025

Tata Communications, a subsidiary of India’s Tata Group, has recently intensified its operations in South Africa, marking a significant shift in its regional strategy. This move aligns with the company’s broader objectives to bolster its digital services portfolio and strengthen its foothold in the African market.

Expansion of Digital Services

In the second quarter of 2024, Tata Communications reported an 18% growth in revenue, amounting to 57.67 billion rupees ($686 million), driven by strong demand for its digital services. The company’s data services segment, which constitutes 84% of total revenue, saw a 21% increase, with a notable 52% rise in its digital portfolio. (reuters.com)

Strategic Partnership with Neotel

A pivotal development in Tata Communications’ South African strategy was its partnership with Neotel, the country’s first converged communications network operator. In 2016, Tata Communications established a multi-service Point of Presence (PoP) in Johannesburg, integrating Neotel’s next-generation network and IP/MPLS infrastructure. This collaboration enabled Tata Communications to offer a comprehensive suite of services, including MPLS, Ethernet, IP, and International Private Leased Circuit (IPLC) services, connecting through its global network to over 600 cities in 50 countries. (subtelforum.com)

Sale of Neotel

In June 2016, Tata Communications sold its majority stake in Neotel to Liquid Telecom, a pan-African telecom group majority-owned by Econet Wireless Global, for approximately $293 million. This sale was part of Tata Communications’ strategy to refocus its investments and operations in the region. (timesofindia.indiatimes.com)

Recent Developments

As of October 2025, Tata Communications continues to explore avenues to expand its digital services in South Africa, leveraging its global network and expertise to meet the growing demand for advanced telecommunications solutions. The company remains committed to supporting South Africa’s digital transformation and contributing to the development of the country’s telecommunications infrastructure.

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Tata Communications’ strategic initiatives in South Africa underscore its dedication to enhancing connectivity and providing innovative digital solutions tailored to the needs of the African market.