RailTel Corporation of India Limited (RailTel), a major telecom infrastructure provider, has secured a significant contract from Pimpri Chinchwad Smart City Limited (PCSCL) to offer comprehensive services for monetizing PCSCL’s City Network Infrastructure. This collaboration involves using a “revenue sharing model” over the span of 10 years. This is the first time RailTel has received such an order to monetize a Smart City’s telecom infrastructure. Pimpri Chinchwad is situated in the Pune region and ranks as the eighteenth most populous city in India and the fifth-largest in Maharashtra.
In simple terms, RailTel will earn money by leasing out parts of the telecom network. They estimate an annual income of about Rs 70 Crores, totaling Rs 700 crores over the ten-year period. As part of the agreement, RailTel will pay PCSCL a fixed revenue of 32.4 crores each year, along with at least 21 percent of any additional revenue generated over the ten years.
The project also involves creating a Network Operation Centre (NOC), maintaining the existing digital infrastructure that connects citizens, government bodies, businesses, and communities. This will continue for ten years and will expand the PCSCL network infrastructure. Additionally, the project aims to make PCSCL financially independent and capable of raising more resources from the market.
The main focus of this project is to make use of PCSCL’s optical fiber and telecom duct network, which covers important areas like municipal offices, police stations, busy intersections, and other key locations within the city. RailTel will lease out the spare ducts and poles for revenue and provide the necessary fiber cables for connecting various smart city elements across Pimpri Chinchwad. This will create a digitally connected environment to enhance citizen services and overall city efficiency.
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This contract was obtained through a competitive bidding process, where RailTel emerged as the top contender based on the highest cost proposal (H1).
RailTel’s Chairman and Managing Director, Sanjai Kumar, expressed enthusiasm about this partnership. He highlighted RailTel’s commitment to fostering innovation, inclusivity, and economic growth in the digitally connected city. Kumar looks forward to working closely with PCSCL to turn their vision of a digitally advanced and prosperous city into reality.
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