The Hindu Business Line : Tata Power Broadband to spread to Delhi, Bangalore, Pune

TATA Power Company plans to spread the reach of its Broadband division to other cities including Bangalore, Delhi and Pune. The company plans to invest Rs 100 crore in reaching the carriers' carrier to cities outside Mumbai.

"We would like to extend the carriers' carrier model across other cities. We are looking at Pune, Delhi and Bangalore. That's the immediate phase. Since there is a lot of fibre already in ground, don't have to invest in networking. The investments would be around Rs 100 crore," Mr Firdose Vandrevala, Managing Director, Tata Power, told Business Line.

Tata Power plans to convert the division into a subsidiary. The company, which will operate as a carriers' carrier, will be reporting profits in the first year of operations, Mr Vandrevala said. Tata Power Broadband already has an 800-km OFC network in Mumbai, reaching up to Pune. Mumbai and Pune account for 35 per cent of India's total optical fibre capacity.

"Broadband guys have done very well. In the first full year of operations the division would have met targets and made profits. We are making it a subsidiary because we believe it is different business. The work cultures, the business systems are very different in this business than the current businesses that we are in," he said.

Tata Power's other non-core division - Strategic Electronics will also record a positive result this year, according to the MD. The company has targeted nearly ten-fold growth in turnover for the division in the next five years.

"From something like Rs 20-odd crore losses, this year, the SED will record Rs 60 crore turnover with profits. Our aspirations are that in the next four to five years it should be well over Rs 400 to 500 crore," Mr Vandrevala said.

He, however, ruled out exporting defence technology developed by the division.

"Its all electronics-based, software based, for defence use. We talking guided missiles and positioning systems. There are limitations of passing it on. We would be wary of transfer of technology out of India unless TPC and the Government are sure that it has no defence implications," he said.

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