Italy's Optical Fiber Ambitions Propel Tejas Networks to All-Time Stock High

19 Oct, 2023

Italy's Optical Fiber Ambitions Propel Tejas Networks to All-Time Stock High

Tejas Networks, a Tata Group-owned company, reached a historic milestone as its partnership with FibreConnect to implement a comprehensive optical network in Italy resulted in record-breaking stock gains. Tejas Networks is the exclusive supplier of optical networking and broadband access products for FibreConnect's extensive FTTP (fiber-to-the-premise) rollout across Italy.

In response to this development, Tejas Networks' shares surged by up to 7% during intraday trading, reaching an all-time high of ₹940 on the National Stock Exchange (NSE). This boost elevated the company's market capitalization to ₹15,000 crore. Notably, Tata Group's stock has shown impressive growth, surging by nearly 50% year-to-date and 25% over the past year.

FibreConnect has adopted a distinctive business model, focusing on partnerships with regional and retail Internet Service Providers (ISPs). The company aims to target industrial areas in Italy that currently lack adequate broadband infrastructure, aligning with the Italian government's 'Transition 4.0' plan, which seeks to promote the digital transformation of the manufacturing sector.

Under the terms of their partnership, Tejas Networks has deployed its complete range of products. The entire network is efficiently managed using TejNMS, the company's multi-technology network management system.

Tejas Networks specializes in designing, developing, and marketing networking solutions for a diverse range of clients, including telecommunications service providers, internet service providers, utilities, defense organizations, and government entities.

Renzo Ravaglia, Executive Chairman and CEO of FibreConnect, expressed excitement about the collaboration, stating that it aims to bridge the digital divide for small and medium-sized businesses in Italy and extend high-speed connectivity to underserved enterprises throughout the country via their ISP partners. He also commended Tejas Networks for meeting expectations with timely deliveries, high-quality solutions, and exceptional customer support despite challenging economic conditions.

Anand Athreya, CEO and Managing Director of Tejas Networks, commented on the significance of this deal. He expressed delight in being selected by FibreConnect to build the complete network in Italy using Tejas Networks' carrier-class optical and broadband access products. He emphasized that this achievement demonstrates their emergence as a leading end-to-end supplier of top-tier telecom equipment and highlights their capability to design and execute

complex, large-scale networks, from access to core.

Indranil Sen, Chief Revenue Officer (UK and EU) of Tejas Networks, highlighted the potential impact of FibreConnect's unique business model combined with Tejas' expertise in constructing programmable, next-generation networks. This partnership could potentially revolutionize the Italian telecommunications industry and serve as a model for other regions in Europe.

It's worth noting that in July 2021, Tata Sons' subsidiary, Panatone Finvest, entered into an agreement to acquire a 43.3% stake in Tejas Networks for nearly ₹1,850 crore. Tata Sons and its subsidiaries, Panatone Finvest and Akashastha Technologies, collectively own a 52.45% stake in the company.