Tata Telecom was a company at the crossroads during 2000-01. Slowly but steadily, it moved away from merely selling phones and EPABxes to being a solution provider. A company trying to decide which direction it should take, it has operations targeting telecom networks solutions, enterprise networks, and even retail phones. Even the financial results are mixed. In comparison to 1999-00, Tata Telecom did well last year and netted a turnover of Rs 233.7 crore, achieving a growth rate of 26 percent. The business communication division contributed Rs 185 crore, network system division around Rs 15 crore, and Tatafone division contributed Rs 33 crore. Business communication division made a profit (before tax) of Rs 13.33 crore while Tatafone division made a loss of Rs 13.36 crore.

Still, the undisputed leader in the high end EPABX market, with a market share of close to 40 percent, Tata Telecom bagged major orders from GE Capital, Sena Bhawan, Dell, and TCS-HDFC. On the distribution front, the company has to its credit tie-ups with 34 resellers, six value added resellers, and four system integrators. The company has tie-ups with LG for KTS, Polycom for conferencing, and NICE for loggers. On the communications public network side, it bagged major orders from IOCL and Birla AT&T.

The key for this company, however, is to find a niche for itself and develop its core competency. From 1 April 2001, the Tatafone division has been demerged into a new company called ITel Industries Pvt Ltd.