As the cloud of ambiguity over the 3G auctions starts to clear, telecom operators are focusing on their fibre optic network to generate more value out of the business.
Telecom operators, who own extensive fibre optic networks, share their networks with other operators to carry both international and domestic long-distance voice and data services. While operators like Bharti Airtel, Reliance Communications, Tata Teleservices and BSNL, amongst others, have their own fibre optic network in the country, pure-play voice provider; Idea Cellular has started constructing its own such network.
?Owning a fibre optic network helps deliver a better quality of services to subscribers. The way ahead would be operators divesting the fibre optic network business into a separate company similar to tower infrastructure business. When 3G comes in, fibre will become a commodity. The average investment for having a pan-India fibre optic network will be Rs 2,000 crore. However, enabling last-mile connectivity would be more expensive,? said Kailash Choudhri, MD, Aksh Optifibre.
Companies like Reliance Communications and Tata Teleservices are looking at 3G in a way of increased demand for bandwidth backhauling. ?When 3G comes in, the amount of bandwidth needed to be backhauled will increase in magnitude. Applications like tele-presence, streaming videos and other data-intensive applications will need to be backhauled on fibre,? said Mukund Rajan, MD, Tata Teleservices Maharashtra Ltd .
Idea Cellular has undertaken the construction of a 45,000-km fibre optic network and has already spent around Rs 1,000 crore on the project. Anil Tandan, chief technology officer, Idea Cellular said, ?As you are aware, there are many new services, especially in 3G, which are highly bandwidth intensive. In such a scenario, our cost of carrying will be competitive and will help in delivering services at best market prices, thereby benefiting the consumer. We would also like to be a bandwidth provider to new operators and enterprise users.? The company was, till now, sharing fibre optic networks of other telecom operators. ?We are sharing fibre with all other operators and don?t have any individual as the preferred one,? he added.
Airtel?s national high-speed optic fibre network currently spans over 1,13,326 kms and covers all major cities in India. The company also has two international landing stations in Chennai and Mumbai. Reliance Communications has seen NLD carriage traffic grow by 52% on a Y-o-Y basis. The company continues to have up to 40% share of NLD traffic from customers like Vodafone, Idea, Aircel, Spice, TTSL, BPL, Shyam Sistema and HFCL. BSNL is now working on bringing fibre at home, in order to enable last-mile connectivity.
