INDIA > NTT Communications invests $160 million in India’s data centers

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NTT Communications, Japan based telecom service provider, will invest $160 million through its Indian subsidiary (NTTCINS) for constructing two new data centers in Bangalore and Mumbai. The construction which is to be expected to be completed by April 2018 will span around 50,000 square feet.

Recently NTT has acquired a 100 % stake in Mumbai based CDN and hosting provider NetmagicĀ  for Rs 533.53 crore ($83.5 million). The deal which received clearance in March is also noteworthy as Netmagic holds an ISP license that could possibly used by NTT to offer Internet or broadband service in India. NTT has had trouble with its Tata Docomo brand in India in which NTT had 26% ownership.

Netmagic along with CDN also provides cloud solutions, managed security and private VPNS and currently claims to service 2000 customers globally including firms from telecom, financial services, online trading, travel and online media. It also has 7 datacenters in Bangalore, Mumbai, Chennai and Noida.

NTT also holds a VNO license under the International Long Distance(ILD) segment in India. Despite being limited to enterprises only, NTT said in April that the VNO license will be used to expand its enterprise networking solutions and other managed IT services. Netmagic’s solutions will be a plus as NTT might bring its own specialized VPN services to India via the VNO route.

About NTT Communications

Originally a government owned corporation, NTT’s history can be traced back to 1869 when the telegraph was first introduced in Japan. Since being privatized in 1985 it has been diversifying into new markets, forming new subsidiaries and developing cutting edge technologies. Having a customer base of 50 million in Japan alone and employing a worldwide 224,250 employees, NTT is one of the world’s largest telecommunication service providers.

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