India is soon going to get a new telecom company from Power Grid, a central government-owned electric services company. Power Grid Corporation of India Ltd (PGCIL) has decided to carve out its telecom business into a new subsidiary to have a more focused approach in the market. India is in the process of rolling out 5G, and at this point, companies such as PGCIL, which have fibre networks, can leverage the demand to sell services to the telcos. According to a PTI report, the Central Electricity Regulatory Commission (CERC) has given PGICL permission to operate data centres, something that will be a key factor in boosting its telecom business in India.
Regulatory Approvals are Left
B Vamsi Rama Mohan, executive director (telecom), Powergrid, said that Powergrid Teleservices would be the new telecom subsidiary of the company, and the process for regulatory clearance is in progress. Mohan said that the pilots to demonstrate the FM Radio transmission and mobile BTS on high voltage power transmission towers "have shown promising results".
According to the company official, PGCIL is in a great position to help the telcos for deploying their 5G and 4G base stations on the high voltage power transmission towers as the company owns one of the largest optical fibre ground network in the country.
As per the company officials quoted by PTI, Powergrid would offer telcos a one-stop solution that will come with a reliable power supply, a tower for hosting the antenna and base equipment along with backhauling from fibre on the transmission line and an unmatched reach. Powergrid has infrastructure laid out even in remote areas, which the telcos can leverage and roll out mobile services faster.
Mohan said that the first data centre as a pilot for Powergrid is expected to come with a capacity of 250 racks near Delhi. The capacity would be increased to 1000 racks in the future.