BT yesterday unveiled plans to hire 6,000 workers in India over the next two years.
The company has applied to the Indian Government for a number of national and long distance licences so it can provide services direct to the area’s businesses.
Andy Green, chief executive of BT Global Services, described the move as a "landmark development" and called India one of BT’s fastest growing markets.
The Indian economy is in its fourth year of growth at around eight per cent, and analysts are expecting another 12 months of bumper sales and profits for the region’s firms.
The country’s tiger economy has recently shown its creeping strength on the world stage with Tata Steel’s #4.3 billion bid for former British Steel firm Corus.
Mr Green hopes growth into the country – where it has had a base for almost 20 years – will generate revenues of #131 million by 2009.
He said: "Establishing and managing our own operations in India is a landmark development. With these licences and planned investment, we will be able to provide the same high levels of service in Bangalore as we do in Boston, and in Mumbai as we do in Madrid.
"This will allow our India customers access to a BT managed network which is connected to BT’s comprehensive global network across Asia Pacific, Europe and North America."
During the last three years BT has invested more than #52 million in the Asia Pacific region, with 12,000 out of the 15,000 people employed in the area based in India.
The group yesterday said it had also teamed up with New Delhi-based Jubilant Enpro, which has interests ranging from oil and gas to food and services.
The agreement is aimed at helping Enpro develop its telecoms systems, while BT will be able to pick up further insight into the India business community in return.
Meanwhile, BT also said it was cutting prices on its wholesale broadband products by up to 12.5 per cent from next May – lowering the cost for a raft of internet service providers.
The former monopoly, whose wholesale broadband products are used by over 100 service providers in the UK, said the monthly price of its more widely used IPstream product would come down by at least nine per cent to #7.63 per line from #8.40.
BT, which offers a further rebate for service providers at around 561 high-density exchanges, said that rebate was also set to increase to #1.24 from #1.10 from May 2007, reflecting the lower cost of providing broadband in these areas.
The increase in the rebate, along with the lower rental price, would cut the monthly price in these exchanges by 12.5 per cent to #6.39. The number of exchanges covered by the rebate would rise to 1,016, BT said in a statement.
"These pricing proposals will help our ISP customers develop their business plans and compete effectively in the broadband market," said Cameron Rejali, managing director for products and strategy at BT Wholesale.
"The proposed prices better reflect the economies of scale and input costs we face.
Scores of internet providers using BT's wholesale products are seeing their competitiveness increasingly eroded by a surge in local loop unbundling activity, under which rivals install their own equipment in BT's exchanges and are able to offer broadband at prices cheaper than those charged by BT Wholesale.
Large unbundlers such as Carphone Warehouse and pay-TV firm BSkyB have even announced plans to offer broadband free of cost to customers signing up for their phone or TV offerings.