Pacnet India Participating in India’s Technological Growth

Pacnet India powers its way in India


Best person to thwart off competition

Pacnet’s India is a submarine cable network company. In the month of May, Sunanda Das has been appointed as the Managing Director of the company. The company is keen to develop its operations more in India. Sunanda Das was earlier working as Managing Director in Cable & Wireless. Cable & Wireless is a competitor to Pacnet India. Therefore, Sunanda Das is in the best position to assess competition and take steps to defeat it. As Pacnet is an enterprise communications service provider, its operations in India assume significance as India is keen on developing its broadband capability to a very high level. Internet penetration in India is increasing at a fast rate. But the available broadband is not sufficient to meet the needs of the Net community. Moreover, the available broadband is costly.

International gateway in Chennai

Pacnet India has built an international gateway in Chennai city to meet India’s increasing broadband demand. India is keen to position itself as a strategic business hub for top level multinational companies. India is already world’s fifth largest economy next to USA, Germany, Japan and China. In Asia, India is third largest economy next to Japan and China. In terms of purchasing power, India is third in the world. Therefore a technological leap forward will catapult India to the top league in the foreseeable future. Moreover, India and China are the only countries that are posting reasonable economic growth rates now. USA and Germany are affected by the Euro debt crisis and American recessionary trends. Germany may not be individually affected, but it has to share the burden of Euro crisis to bail out countries like Ireland, Portugal, Spain, Greece and Italy. Japan has been ravaged by earthquake and tsunami recently and it may take at least three to four years for the Japanese economy to straighten and start growing.

Operations in important Indian cities

Bill Barney, Chief Executive Officer of Pacnet stated that the launch of the company’s international gateway in the metropolitan city of Chennai in India was a part of their plan to build the company’s local presence. It was also to support India’s tremendous growth through the delivery of enhanced international connectivity and hosting solutions across India. Pacnet has its headquarters located in Hong Kong, a strategic place to serve the needs of the Asia Pacific region. Pacnet has invested sizeably in up-gradation of its point of presence in Mumbai, New Delhi and Bangalore. All the three cities are having hi-tech potential considerably. New Delhi is India’s capital. Mumbai is India’s financial capital. Bangalore is India’s technological capital with many top IT companies like Infosys and Wipro headquartered there.

$150 million investment planned

Pacnet is planning an investment of $150 million in India in the next two to three years to boost up the growth of Indian technology and its own growth. The international gateway in Chennai will enable the delivery of Pacnet’s full suite of high speed and robust international connectivity solutions for bandwidth, which is a growing demand in India. Pacnet is a global telecom provider and its experience will come handy to Indian requirements. Pacnet will use its investment of $150 million to set up a data centre in India. It is interesting to note that world’s smallest data centre has been set up by Intel Corporation. It is also interesting that the opening of the international gateway will enhance Pacnet’s local presence in India.

Advantages of international gateway

What are the specific advantages of this new international gateway? For setting up this gateway, Pacnet tied up with India’s top telecom company Bharti Airtel. The international gateway connects to the USA. It will provide to the business community in India a complete suite of advanced business communications solutions apart from providing them access to high speed international broadband connectivity. Pacnet has its joint venture Pacific Internet India and it has PoPs (Points of Presence) in major cities like Hyderabad, Pune, Mumbai, Chennai, Bangalore and Delhi. Pacnet has already invested $150 million in its operations in the above-mentioned cities. Where will the company set up its data centre? Probably the company may set up the date centre either in Chennai or in Bangalore.

Full range of internet connectivity solutions offered

The company’s Indian operations have been permitted by various telecom agencies in India. In the beginning of 2010, Pacnet India secured its National Long Distance (NLD) and International Long Distance (ILD) licenses from DoT (Department of Telecommunications). Pacnet India has also secured full security clearance from DoT. This has complemented Pacnet India’s ISP (Internet Service Provider) Class A license. This permission secured from DoT enables Pacnet India to offer a complete suite of internet connectivity solutions and also a range of hosted and managed services in India.

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