India Telecom

March 5, 2003
Data Access -- The global telecom carrier

Rajendra Prabhu

NEW DELHI -- After the de-regulation of the international long distance (ILD) market in April 2002, the floodgates opened for private telecom companies to commence operations in this domain. Data Access, which had already established its presence as a national ISP, but was considered a pygmy in the Indian ILD domain, acquired an ILD license as well. It created a state-of-the-art global network, and within just eight months of operations has become the number two ILD carrier in the country, handling almost 40 percent of the total ILD traffic in India.

However, the carrier is not content to rest on these laurels. It has actually gone a step further and acquired a full carrier license for the US market as well, thus becoming the first Indian telco to do so. The vision is to establish Data Access as the first global telecom company operating out of India.

Siddhartha Ray, founder and managing director of Data Access, and the man behind this success, said: "These are exhilarating times for us. We have successfully established a world-class network infrastructure within just six months of getting the license. Since then, there has been no looking back. We are the first company in India to deploy a unique VoIP and TDM-based hybrid network for our ILD operations, which has given us considerable advantages over our competitors.

"Today, we are the second largest ILD player in India after VSNL, which not only gives us a sense of achievement, but also encourages us to establish ourselves as a global telecom player. The formation of Data Access America Inc. is in sync with our global expansion plans. We plan to further expand to other potential markets such as the Middle East, the Asian and the UK."

The right strategy
Data Access is among the first few companies to understand the 'commodity nature' of the international carrier business. Therefore, it made little sense to invest heavily in creating an infrastructure of fibers and satellites when it decided to offer ILD services. Straddled with overcapacity and a worldwide glut in global telecom, Data Access thought differently, and went in to lease existing fiber and satellite capacity at costs that would re-define the very rules of the game. It also decided to go for a VoIP and TDM based 'hybrid' network as well, which is now the benchmark for global telecom companies without legacy networks.

This, coupled with its multiple telecom licenses and its own network centers in New York, London and Hong Kong, meant two distinct advantages for the company. Global carriers could interconnect rapidly and it also enabled Data Access to exercise far tighter quality control than before. Today, its capacity utilization is twice as much as its nearest competitor.

The superior 'hybrid' network is a first for India. It is a unique network combining the functionality of the traditional TDM network and the reliability of packet-based VoIP. The relative cost of setting up this network is nearly 20 percent more than any comparative network. However, the advantages of deploying this network justify the investment. The network allows significant reduction in network downtime and a high call completion rate (CCR) in excess of 60 percent, which is twice as much as its nearest competitor.

Accolades and looking ahead
Data Access has experienced swift growth in the ILD segment so far. It has been growing from strength to strength since it started its ILD operations. Grabbing a whopping 40 percent of the total Indian ILD market within just six months of its launch is an exemplary feat. Such a rapid transformation of the market, with the challenger weaning away a huge chunk of the market share from the incumbent is unprecedented in the history of telecom privatization anywhere in the world. This is just recognition of the highest standards of service delivery offered by Data Access.

The carrier's expansion plans are not limited to the Indian shores. It has recently become the first Indian company to get a 'full carrier license' from the Federal Communication Commission (FCC), USA, to offer comprehensive telecom services across the United States. Data Access will now tap the lucrative domestic national long-distance (NLD) services in the United States. Its switch in New York has the ability to handle six billion minutes of ILD traffic every year. This facility will enable Data Access to cater to the growing Caribbean, Latin American and Canadian markets as well. Riding high on confidence of a superior network infrastructure and a liberalized economic environment, it is well positioned to become India's first truly global telecom company.

Making it clear that Data Access will always remain a carrier's carrier, and not get into the last-mile operations, Ray said: "We are focused on our ILD business and intend to capture a significant share of the burgeoning 300 billion minutes a year global market. Our expansion in the near future is likely to be in the carrier business to more markets and to more last mile operators in the world."