South Africa's second fixed line operator, Neotel, in which the Tatas have a majority stake, has acquired Transtel Telecom for Rs 1.2 billion. The acquisition provides Tata Communications with a platform for introducing a nationwide next-generation service for businesses in South Africa. Transtel, which has annual revenues of over Rs 3.5 billion, has an established telecommunications infrastructure that spans all of South Africa, connecting every railway line, pipeline, harbour and airport. The deal is estimated to increase Neotel's annual revenues by an additional Rs 3 billion.