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GAIL, PowerGrid sign MoU to hire out bandwidth

Our Bureau

New Delhi, Dec. 14

GAS Authority of India Ltd (GAIL) and Power Grid Corporation of India (PowerGrid) have signed a memorandum of understanding (MoU) for leasing out bandwidth capacity of their combined telecom network to various telecom operators.

The combined and proposed networks of the two companies would be the largest operative long-distance network in the country after DoT, according to a GAIL release.

The availability of such an integrated network would enable basic, cellular, Internet service providers and long-distance operators to establish and commence operations at the earliest and, at the same time, provide a very high degree of reliability to t heir operations.

Both GAIL and PowerGrid plan to enter the telecom sector as Category II Infrastructure providers. Currently, GAIL has 2,000 km of optical fibre network in the western part of the country and PowerGrid has 5,000 km of network in the northern and southern parts. Both the companies have spare capacity available in these networks which they plan to lease to various telecom sector operators.

The two companies also plan to exploit available business potential. GAIL plans to create a 9,500-km broadband cross-country OFC network in the north, west and southern parts to provide high bandwidth capacity across 11 States connecting more than 90 cit ies including three metros and four mini-metros.

PowerGrid also plans to add 14,000 km of optical fibre network connecting 56 major cities across the country. These two networks are complementary, the statement said.

Under the agreement signed on Wednesday, GAIL and PowerGrid will work towards evolving a methodology for leasing out bandwidth capacity jointly or in each other's network. They would use each other's network for providing connectivity over larger geograp hic spread and explore options of working jointly in the telecom sector.