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It has been a rather busy year for us and we are very happy about it. We are a proud participant of promoting a Digital culture in India. And, in doing so, we are actively contributing towards digitizing the economy that will link up national and regional initiatives and boost the progress of the nation as a whole.
The Indian IT industry is expected to witness a12-14% annual growth. Over the past couple of years, the Indian Government has been constantly stressing on the importance of providing online services and the resultant benefits. As a result, the Digital India programme was launched and several government services are now being transformed online. The initiative is integrating the government departments and the people of India. The adoption of key technologies across sectors spurred by the ''Digital India Initiative'' could help boost India''s Gross Domestic Product (GDP) by US$ 550 billion to US$ 1 trillion by 2025.
However, in order to have an effective outcome of the digital initiatives, serious measures are being taken to improve the country''s lower internet penetration of 35%. A special focus is being given towards accessibility and affordability. As a response, the AP Government pioneered a unique concept of providing low-cost and high-speed broadband services across Andhra Pradesh through the prestigious AP-Fibre Grid System. The broadband infrastructure is being built on the electricity poles across the state, thus enabling last mile connectivity at a very minimum rate.
Adding value to the Digital foray
At Tera Software Limited, we have been officially appointed to execute the implementation of the AP Fibre Grid Project Phase-I. We are partnering CISCo in building the IT infrastructure and network architecture technology for this ambitious project.
Venturing into the AP Fibre Grid Project has strengthened our presence in the digital space as well as added value to our fundamental parameters in the following ways:
Stronger revenue visibility
Ideally Government projects have a longer receivable cycle. However, this project has been entirely been funded by Andhra Bank, thus securing receivables and providing clear revenues visibility of Rs.220 crores in the next fiscal with comfortable margins.
The Company has the opportunity of earning additional revenues by way of maintenance of the infrastructure and ancillary business.
Opportunity to venture to other states
The successful implementation of this project is a gateway for the Company to explore the opportunities of venturing into other states and leverage its first-mover advantage and the knowhow. Moreover, the Central Government has also recognized this project as a role model for other states, thus opening up possibilities of replicating the approach across different states.
Promoting content delivery and healthcare
The Company will deliver set-top boxes to the households that will provide internet as well as video services at an annual fee of Rs 4,000 per customer. This will ensure content delivery to the far interior regions of the state. Through this initiative, we further intend to promote e-health services like maintaining patient records, matching medications, sharing test results and collaborating with prominent specialists via video conferring among others. We intend to leverage the high-speed wireless networks and elevate healthcare services of all sizes, improve care and save lives.
What lies ahead?
As a Nation, we are looking forward towards a smooth transition to a smart economy. Internet is going to be the way of life. We will strive forward to prepare the next generation of products and services to allow a seamless transmission of data and improve the quality of life.
I would like to thank all our stakeholders, bankers, investors and our team for being a part of this digital journey. We hope to receive your support in all our future endeavors and take your company to the next level of digital foray.
Vice Chairman and Managing Director
Tera Software Limited