Formula One Loses Connectivity Partner

Tata Communications, the connectivity partner for Formula One, announced that they’d ended their partnership with the motorsport. Tata Communications will look for alternative racing series that can provide better exposure to their brand. This loss comes as a significant blow for Formula one, which is operated by Liberty Media. It’s the third substantial sponsor that’s left the motorsport since 2018, with UBS Investment Bank and Allianz Insurance Group both leaving after Liberty Media took over F1 in 2017.

It’s estimated that Tata Communications spent an average of $4 million to maintain their partnership with Formula One, which began in 2012. Throughout the lifetime of this agreement, more than $26 million has been spent by Tata. The return provided for their substantial investment was minimal, with branding being unnoticeable in the pitlanes and circuit. For the associated cost and goal of becoming a household name, Formula one not providing proper advertising for Tata Communications would be a significant downfall in this partnership.

The History of Tata Communications

Most individuals haven’t heard of Tata Communications but their one of the most prominent corporations worldwide. They operate one of the largest internet-based networks worldwide. It’s estimated that 50% of computer-based cloud providers use the connectivity services provided by Tata Communications. Globally, it’s estimated that this widescale company manages 25 % of the planet’s internet traffic. On average there are 7600 Petabytes used globally under the Tata Network. One petabyte is one thousand gigabytes.

Tata Communications operates this extensive internet network with fibre-optic cables in the world’s oceans. There are more than 500 thousand kilometres of these cables, which allows for worldwide connectivity. Formula one used this network to operate its online streaming service, which became plagued with various glitches. The particular issues following F1TV resulted in the social media division of Formula One losing $1.9 million in net valuations. After retrofitting their streaming service, profits grew to $6.1 million. However, after losing the Tata Communications partnership, a new provider will be required.

Positive Publicity

Tata Communications received widespread publicity with their Formula one partnership. This wasn’t through advertisements in the pitlane or circuit. It was because of additional partnerships Tata made with Williams AMG and Mercedes AMG Petronas. Costing the network company $1 million, they received sponsorship placement on their respective websites. Both of these organizations confirmed that they’d lost the associated partnership of Tata Communications, meaning their budgets lowered by a degree of one million.