TCS bets on telcos’ tech transition for growth in next 2-3 years
Deployment of 5G, fibre rollout for rapid capacity expansion, and virtualisation of networks among the top global telecommunications players has made India’ largest services provider, Tata Consultancy Services (TCS), bullish on growth from this sector over the next two-three years.
“We are extremely bullish for the next 2-3 years as [telcos] transition from being just network providers to digital services. Those who are unable to ramp-up will be relegated to being network infrastructure companies. Their biggest investments in the coming months will be on 5G networks, fibre rollout and virtualisation of networks,” said Kamal Bhadada, business group head, communication, media and information services, TCS.
Communications and media represented 6.6 per cent of TCS’ revenue at end of the December quarter of financial year 2020-21 (Q3FY21). The business grew 5.5 per cent of a sequential basis, but was down 4.8 per cent on a year-on-year (YOY) basis. Bhadada, however, feels the segment is poised for rapid growth.
“Telcos have always been the backbone of any business, but the pandemic has made everyone realise that our lives revolve around there services. This is also making telcos transform from just being network players to digital services providers,” said Bhadada.
The company on Thursday announced that it has expanded its strategic partnership with Vodafoneziggo BV Netherlands to help the latter speed up its fixed fibre network rollout, enabling superior connectivity for subscribers and faster launch of new services. The financial details of the deal were not disclosed.
As part of the partnership, TCS will deploy AI and machine learning technology as well as TCS Twinx, its digital twin solution for enterprises. This model, it said, will help Vodafoneziggo gain deeper understanding of its existing network infrastructure and embrace a data-driven road map for the roll-out of its business-to-business (B2B) fixed fibre network.
With the power of predictive analytics, the telco will be able to identify where network upgrades are needed and prioritise investment to achieve its strategic ‘Go Digital’ vision.
For instance, Vodafoneziggo will be able to model different construction scenarios, understand how quickly new networks can be built and foresee the likelihood of roadblocks that can impact this process.
“Our Twinx platform gives amazing upside to telcos as it creates a digital twin of the organisation that is dynamic in nature. To give an instance, if a telco announces new pricing and products, then Twinx will tell you what should be your offering to counter that offer. Similarly, when telcos go in for fibre rollouts, these are massive programmes. With Twinx, they can prioritise the rollout based on area and customer base,” said Bhadada.
TCS has already signed up a major telco from Africa for this platform that is helping detect fraud. “So far, we have created 15 scenarios where Twinx can be deployed. We are in talks with several of global players across geographies,” he said.
Present in the Netherlands since 1992, TCS has currently partnered over 50 Dutch customers across the telecom, media and entertainment, financial services, and manufacturing sectors.