RailTel, a major internet service provider under the Ministry of Railways, has received a first-of-its-kind order. The order has come from the Pimpri Chinchwad Smart City (PCSCL) to provide end-to-end services for monetisation of PCSCL City Network Infrastructure on a "revenue sharing model" for 10 years, said an ANI report. RailTel expects to generate about Rs 70 crore in annual revenue through this work order. This would mean Rs 700 crore in the next 10 years.
Note that Pimpri Chinchwad falls under the Pune area and is the 18th most populous city in the country and the fifth largest in Maharashtra. RailTel will be generating its revenue from leasing arrangements. Out of the expected Rs 70 crore that RailTel will generate in revenues per year, it shall pay Rs 32.4 crore of fixed revenue to PCSCL annually.
Further, RailTel will also have to pay 21% as additional revenue to PCSCL over the total additional revenue generated for the 10 years. Under the project, RailTel will set up a Network Operation Centre (NOC). RailTel will also have to oversee the operations and maintenance of the existing digital infrastructure that connects citizens in the city. There are many government offices, businesses, and communities in the city that RailTel will have to oversee if they are getting continuous connectivity from the current and future infra.
Read More - RailTel to Bring IPTV Services for Customers
The project also involves making PCSCL a self-sustainable organisation, one that can have great creditworthiness in raising resources from the market as and when needed. RailTel will be able to monetise OFC and telecom duct network infra of PCSCL in all critical and major areas such as police stations, footfall areas, critical junctions, PCMC offices and more.
This order will lead to revenue generation for RailTel, but would also bring a more robust digital connectivity infrastructure for the city of Pimpri Chinchwad.