Videotron and Tata Communications Sign Strategic Sourcing Agreement

By Tata Communications Limited, PRNE
Sunday, January 16, 2011

Tata Communications Becomes the Sole Provider of International Voice Termination for Videotron

MONTREAL, January 17, 2011 - Tata Communications, a global communications service provider and
Videotron, one of Canada's largest integrated communications companies, today
announce that they have signed a mutually beneficial sourcing agreement.
Under this agreement, Videotron will route 100% of its international voice
traffic through Tata Communications network and Videotron will continue to be
one of Tata Communications' key suppliers of telecommunication services in

This is a win-win partnership for both companies. Through it, Tata
Communications will become Videotron's sole provider of international voice
termination. By tapping into Tata Communications' extensive and robust voice
infrastructure, Videotron will be able to offer its customers higher quality
international calls at competitive rates. Tata Communications' advanced voice
traffic management tools will also allow Videotron to effectively manage
operational costs and increase focus on its core businesses and key growth

Tata Communications' strategic voice traffic outsourcing enables
providers to leverage Tata Communications' scale and routing expertise while
reducing their exposure in the low-margin, high-risk international voice
termination business.

According to Courtney Munroe, Group Vice President of Worldwide
Telecommunications Research at IDC, "This agreement is another great win for
Tata Communications, which has emerged as a leader in the provision of global
wholesale voice services."

Jean Novak, President Videotron Business Solutions, said: "Tata
Communications is a recognized leader in the international wholesale voice
business, with the most extensive network globally, making it a perfect
partner to help us achieve economies of scale. We are confident this
partnership will provide enhanced international call service quality to our
subscribers, boosting our standing in the market place and cementing our
position as one of Canada's leading telecommunication providers."

Michel Guyot, President of Global Voice Solutions, Tata Communications,
said, "We are proud to become Videotron sole provider for international voice
termination and benefit from Videotron's strengths in the Canadian
marketplace. Our flexible partnership model has made this strategic sourcing
agreement with Videotron possible. The confidence that Videotron has showed
in our solutions only reiterates that we can replicate in North America, the
successes we are enjoying in other parts of the world. The solutions that we
offer allow our customers to become more competitive in their regions by
reducing costs, streamlining operations and improving service quality, while
allowing them to focus limited resources on core services and key growth

"Effective wholesale partnerships enable modern telecoms service
providers to concentrate on what they do best and to use partners to extend
their reach, capabilities and service portfolios. Tata Communications'
commanding position in the international wholesale voice market is a result
of its extensive network of bilateral relationships and close partnerships
with telcos around the globe. Tata Communications' flexible approach to
partnerships combines the strengths of each of its partners with its own
extensive experience, global reach and economies of scale," said David James,
Principal Analyst, Wholesale Telecoms, Ovum

Tata Communications has recently been awarded the Best Global Wholesale
Services Provider by Capacity Magazine for its network reach, its strategic
partnership approach and its commitment to improving capacity to the fastest
growing emerging markets.

Tata Communications' flexible partnership approach includes route
outsourcing and infrastructure sharing. Videotron will be able to grow their
voice revenues while reducing capital commitments to traffic management
platforms, back-office capabilities and next-generation IP networks.

About Tata Communications

Tata Communications is a leading global provider of a new
world of communications. With a leadership position in emerging markets, Tata
Communications leverages its advanced solutions capabilities and domain
expertise across its global and pan-India network to deliver managed
solutions to multi-national enterprises, service providers and Indian

The Tata Global Network includes one of the most advanced and
largest submarine cable networks, a Tier-1 IP network, with connectivity to
more than 200 countries across 400 PoPs, and nearly 1 million square feet of
data center and collocation space worldwide.

Tata Communications' depth and breadth of reach in emerging
markets includes leadership in Indian enterprise data services, leadership in
global international voice, and strategic investments in operators in South
(Neotel), Sri Lanka (Tata Communications Lanka Limited) and Nepal
(United Telecom Limited).

Tata Communications Limited is listed on the Bombay Stock
Exchange and the National Stock Exchange of India and its ADRs are listed on
the New York Stock Exchange. (NYSE: TCL)

Forward-looking and cautionary statements

Certain words and statements in this release concerning Tata
Communications and its prospects, and other statements, including those
relating to Tata Communications' expected financial position, business
strategy, the future development of Tata Communications' operations, and the
general economy in India, are forward-looking statements. Such statements
involve known and unknown risks, uncertainties and other factors, including
financial, regulatory and environmental, as well as those relating to
industry growth and trend projections, which may cause actual results,
performance or achievements of Tata Communications, or industry results, to
differ materially from those expressed or implied by such forward-looking
statements. The important factors that could cause actual results,
performance or achievements to differ materially from such forward-looking
statements include, among others, failure to increase the volume of traffic
on Tata Communications' network; failure to develop new products and services
that meet customer demands and generate acceptable margins; failure to
successfully complete commercial testing of new technology and information
systems to support new products and services, including voice transmission
services; failure to stabilize or reduce the rate of price compression on
certain of the company's communications services; failure to integrate
strategic acquisitions and changes in government policies or regulations of
India and, in particular, changes relating to the administration of Tata
Communications' industry; and, in general, the economic, business and credit
conditions in India. Additional factors that could cause actual results,
performance or achievements to differ materially from such forward-looking
statements, many of which are not in Tata Communications' control, include,
but are not limited to, those risk factors discussed in Tata Communications'
various filings with the United States Securities and Exchange Commission.
These filings are available at Tata Communications is under no
obligation to, and expressly disclaims any obligation to, updates or alters
its forward-looking statements.

    Media Contacts:
    Janice Goveas
    Tata Communications

    Isabelle Turcotte
    Tata Communications

    Danny Lim
    Hill & Knowlton Singapore for Tata Communications
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