Tata launches global low latency network
13 June 2012 | Kavit Majithia
Tata Communications has today launched a low latency network to connect financial trading capitals in Asia, the US and the UK.
The company claims the development is the industry’s first global low latency network, offering a multipoint Ethernet platform for the financial services sector.
John Hoffman, head of Ethernet product management at the company told Capacity it is likely other global companies will make similar developments, offering multipoint solutions, if the network proves successful.
“You may now start to see more purpose built networks created because it gives financial trading companies an option on which cable they would like to purchase capacity on,” he said. “We recognise that while we have the largest global cable network in the world, there is also a big requirement for the fastest network – and that is the basis behind such investment.”
Hoffman heralded the development as part of a new strategy from Tata, and claims it allows customers to work with a single global supplier instead of multiple country specific point-to-point network providers.
He said he believes this could serve as a better approach to low latency trading because investments often get dated with new and emerging technologies. “It is very difficult in this scenario to make large long-term investments into a single cable, because you are never sure when a faster cable is going to be built,” he said. “We didn’t want to make that single cable investment because that investment is ultimately wasted in the end – we are aiming to provide flexibility and resiliency.”
Tata confirmed to Capacity this was only phase one of its low latency project. The company aims to bring low latency connectivity in its home market India and in South Africa, where it owns a majority share in operator Neotel. This is part of a long-running strategy to tap in to other emerging markets. “We look to get into locations where there is less competition and we have a better chance of winning business,” added Hoffman.