AT&T plans networking node in Chennai

Global networking major AT&T will establish a new networking node in Chennai by the end of 2004, taking the total number of its nodes in the country to four. The company is also considering to set up nodes in Hyderabad, Pune and Kolkata in the near future.

"Indian market is booming with more and more companies establishing their offices in the country. The growing use of communication services in the country makes a business case for us," Sanjiv Bhagat, Country Manger, AT&T business services, told reporters here.

A node or point of presence (POP) is a set of infrastructure required to carry voice and data to various parts of the globe. Of the 6 new nodes to be established, five would be in the Asia-Pacific region, Bhagat said.

"The investment for the Chennai node would be about $1-$1.5 million," he added. At present, the company has three nodes at Bangalore, New Delhi and Mumbai.

He also said that IP-based virtual private network (IP-VPN) and IP-enabled ATMs were the growing areas of investment in the country, though international private leased circuits (IPLC) would continue to have the largest share of investment.

AT&T sees no threat from Bharti, Reliance laying their own global network. " It will take time for any player to compete with us," Bhagat said. The company has 4,300 POPs in 143 countries with over 600 nodes only in the US.

AT&T started its India operations in 1988 and has over 350 customers. The company recorded a revenue growth of over 15 per cent in the last financial year. For the first half of 2004, it registered a 20 per cent growth in the retail business segment.