Tata Communications today reported a net loss of Rs 598 crore for the 2010 fiscal, which includes a loss of Rs 464 crore on account of its holding in the South African telco Neotel.
However, the Tata Group firm saw its consolidated revenues increasing by 10.7 per cent to Rs 11,026 crore during the year from Rs 9,963 crore previous year, the company said in a release.
Tata Comm's effective shareholding jumped to 49.01 per cent in the South African telco Neotel for the full year as against 22.01 per cent the previous year, it said.
The consolidated net loss also includes increases in other non-cash costs, such as depreciation of Rs 409 crore consequent to significant amount of capitalisation done over the last two years, and a Rs 161-crore provision for retirals, the release added.
The company board has not recommended any dividend, it said.
During the year, Tata Comm signed a landmark five-year agreement with BT Group through which it became BT's primary supplier of international direct dial (IDD) and other voice termination services outside BT's own footprints and BT became Tata Comm's main distribution channel for its IDD traffic into Britain, the release said.
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Tata Comm also entered into an agreement to acquire the mosaic business of the BT Group that enhanced its capabilities in the digital media and entertainment space. During the year it continued its rollout of telepresence public rooms through tie-ups with Starwood Hotels and Carlson & Wagonlit Travels, it said.
During the year, Tata Comm completed construction of its new 6,700-km, 3.8 tbps TGN-Intra-Asia submarine cable system connecting Singapore, Hong Kong, Japan, Vietnam and the Philippines, the release said, adding the company has also begun work on the TGN-Gulf submarine cable system which will be completed during 2011, and will connect the Middle East to the rest of the world via the Tata Global Network, it said.
The company also announced the availability of new capacity connecting Asia and South Africa and investment in a new cable system on the African West Coast.