Tata Communications, RailTel collaborate to strengthen India’s Digital Infrastructure Backbone for AI

In a move set to strengthen the foundations of India’s digital future, Tata Communications, the leading global communications technology player and RailTel Corporation of India Ltd. entered into a strategic association to jointly advance next-generation digital infrastructure globally. RailTel, a Navaratna PSU, operates one of India’s largest neutral telecom networks, with over 63,000 route km of optical fibre connecting cities, towns, rural regions and more than 6,000 railway stations. Over the years, it has evolved into a trusted ICT (information and communication technology) partner for government departments, public sector organisations, banks, educational institutions and enterprises nationwide.

Through this association, RailTel’s deep national reach will combine with Tata Communications’ digital fabric - of global networks, cloud and omnichannel communication platforms and cybersecurity to address today’s growing challenges. The association aims to modernise network infrastructure, strengthen cyber protection, enhance customer experiences, enable secure and sovereign cloud adoption for sensitive workloads and leverage advanced AI-enabled platforms that improve visibility, reliability and performance of digital operations.

For RailTel, the association provides an opportunity to enhance its ability to deliver more advanced services across its existing offerings in data centres, managed services, cloud and cybersecurity. For Tata Communications, it is anticipated to facilitate the extension of its digital fabric into critical public and enterprise environments at national scale, supporting some of the country’s most important digital services.

Ministries, state governments, PSUs and enterprises that rely on RailTel’s network can expect faster connectivity, more resilient systems and stronger safeguards for data. Citizen-facing services such as railway Wi-Fi, public broadband, surveillance systems and digital governance platforms will also benefit from proposed improved performance and reliability. This collaboration marks an important step in the Digital India journey, bringing together RailTel’s unparalleled physical footprint and public sector experience with Tata Communications’ expertise in building secure, high-performance digital ecosystems.

About Tata Communications Ltd

A part of the Tata Group, Tata Communications (NSE: TATACOMM; BSE: 500483) is a global digital ecosystem enabler powering today’s fast-growing digital economy in more than 190 countries and territories. Leading with trust, it enables digital transformation of enterprises globally with collaboration and connected solutions, core and next-gen connectivity, cloud hosting and security solutions and media services. 300 of the Fortune 500 companies are its customers and the company connects businesses to 80 per cent of the world’s cloud giants.

Tata Communications has a market cap of over Rs 47,000 crore and has been maintaining a healthy dividend payout of 40.4 per cent. The shares of the company have a PE of 52x and a ROE of 55 per cent. The stock is up by 40 per cent in 3 years and over 650 per cent returns in 1 decade. Rekha Jhunjhunwala (wife of Late Rakesh Jhunjhunwala) holds 1.58 per cent stake in the company.

Disclaimer: The article is for informational purposes only and not investment advice.