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Aug 24, 2006, 07.15 PM IST
GIL to set up 6700 cell sites across India at an investment of Rs 2030 crores
In a major expansion drive aimed at consolidating its business of providing cellular operators shared infrastructure, GTL Infrastructure Limited (GIL) proposes to build own and operate shared passive telecom infrastructure for approx cell sites at an investment of Rs 2030 plus crores.
GTL Infrastructure Limited (GIL) established by GTL Limited as an infrastructure company to pursue the business of providing shared infrastructure assets and services in the Telecom sector, Passive telecom infrastructure includes the tower, shelter, air-conditioning equipment, diesel generator, battery, etc. for cellular operators.
The fresh roll out in passive telecom infrastructure includes setting up of new Greenfield sites will be based on cellular operator requirements who will be its anchor user. These sites will, however be capable of accommodating other operators for co-location and will be marketed by GIL to prospective Telecom Operators on a sharing basis. The sites would either be Ground Based Sites (GBS) or Roof Top Sites (RTS).
As part of its acquisition plans, GIL would acquire existing sites from various operators and refurbish them to suit sharing and co-location requirements.
Commenting on Shared Telecommunication Prakash Ranjalkar - Chief Operating Officer (COO) GIL said: “The objectives of Infrastructure Sharing is to maximize the use of existing Infrastructure and provide cost effective infrastructure for coverage requirements and in low ARPU areas. GIL’s business model focuses on creating value through shared infrastructure for both the operators and the company. Indian telecom sector is witnessing a huge growth and GIL would like to act as catalyst to fuel this growth by bringing down the capital expenditure and operational costs for telecom companies and fuel growth”
Passive Telecommunication Infrastructure constitutes around 65 (%) and active component constitutes around 35 (%) of the total capital cost. However, given the recent rise in property, steel and cement prices, the capital cost of passive infrastructure is going up while that of the active infrastructure is coming down with declining prices of electronic components. While Overall Telecom infrastructure requires huge investment outlays, such investments often turn out to be risky propositions given the rapid introduction of successive generations of new technology. Operators are occasionally faced with a situation where even before recovering their investments in existing infrastructure they embark on further investments in new generation networks. Shared Infrastructure will bring down the passive infrastructure cost of telecom operators by atleast 35% to 40%
Sourced From: Hanmer & Partners Communications Pvt. Ltd
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