FORMULA ONE and Tata Communications unveiled a new multi-year global partnership this week that will see the Indian company provide a host of technology services to the Formula One organisation and all 20 race locations.
Under the terms of the deal, Tata Communications will become the official connectivity provider of Formula One and the official hosting and content delivery provider of Formula1.com.
Despite the high-profile nature of the agreement, it is unlikely that Tata Communications will pay Formula One a significant cash amount, with much of the value coming in kind from the vast provision of global services.
The partnership, as Vinod Kumar, managing director and CEO of Tata Communications suggested at the London press conference, is all about increasing awareness for the Tata Communications brand.
“Brand recognition is a challenge for us,” Kumar said. “We have made many strategic investments in the past in terms of networks and data centres but we haven’t invested enough in our brand.
“We need to build our credibility and association in customers’ minds. We looked at golf and tennis sponsorships but nothing came close to Formula One in terms of global profile and brand synergies.”
At the same event, Bernie Ecclestone, CEO of Formula One Group, was quick to affirm the nature of the deal with Tata Communications, stating that it was nothing to do with sponsorship and simply about services that Formula One requires.
“We are not a B2C company. This deal is not about track side advertising and track side sponsorship,” Kumar concurred.
“This is really about offering our expertise to Formula One and to make that experience a referable showcase to the rest of our B2B customers around the world.”
The partnership was brokered by motorsports marketing agency JMI.
By Luke Harman
luke.harman@sportbusiness.com