NTT Communications Corp. is set to become the first Japanese company to launch data services in India, sources said Tuesday.
The company will provide integrated network services mainly for the roughly 1,200 Japanese businesses operating there, which find connections offered by local providers unreliable.
NTT Communications has acquired a national long-distance (NLD) service license to offer data communications services in India, where data traffic is growing rapidly as the economy expands.
The move enables the Tokyo-based unit of Nippon Telegraph and Telephone Corp. to use its own telecommunications lines to connect the sales and production bases of Japanese-affiliated companies in India as well as those of local firms, and to launch virtual private network services and cloud-type services that manage data via the Internet, the sources said.
As of October 2014, around 1,200 Japan-related firms were doing business in India at nearly 4,000 locations. They have been calling for the introduction of high-quality network services instead of the patchy connections administered by local telecom carriers they currently rely on.
NTT Communications India Private Ltd., a wholly owned subsidiary of NTT Communications, established a new subsidiary this year to pursue acquiring an NLD license.
The Indian government deregulated the telecommunications sector in 2013 to attract foreign investment. One survey by a U.S. firm forecasts data traffic in India to quadruple in 2019 from 2014 levels.