Optical fibre project to cost Rs 416 crore
V. Rishi Kumar
The Online Media consortium will have access to 1,500 km optical fibre cable of AP Transco and 2,800 km long OFC network of the Powergrid.
Hyderabad, July 21
, The consortium headed by Online Media Solutions Ltd has secured the right of way from Transmission Corporation of Andhra Pradesh (AP Transco) for Rs 112 crore. This is part of a Rs 416-crore fibre optic project to provide broadband connectivity to commercial establishments, offices and home user segments.
The Director of Online Media, Mr P.V. Narasimha Rao, said that a joint venture company would soon be formed between Online Media, AP Transco and Powergrid. The State Chief Minister, Dr Y.S. Rajasekhara Reddy, recently reviewed the project and wanted the work expedited.
Mr Rao told
Business Linethat the project would be funded through a debt equity ratio of 1:1. Of the Rs 208 crore equity, Online Media will hold 51 per cent, AP Transco 26 per cent and Powergrid 26 per cent.
One behalf of Online Media, the equity partners would include Goldstone Technologies Ltd and Goldstone Teleservices Ltd. Goldstone Technologies is rolling out IP TV services and finalising plans for a data centre in Singapore with a strategic partner.
"The Online Media consortium will have access to 1,500 km optical fibre cable of AP Transco and 2,800 km long OFC network of the Powergrid. Once the joint venture is formed, we would be able to simultaneously offer services across the State within 90 days," Mr Rao explained.
The company will use overhead OFC cables on Transco electric poles. Other companies have laid OFC underground. The best part is that there would be no need to lay separate lines across the State, as this has already been covered. However, OFC would be laid for the last mile connectivity, Mr Rao said.
The consortium's bid was through a global tender. The project has the potential to provide direct employment to about 2,000 people. Transco, while securing additional revenues of Rs 112 crore (by offering right of way) and lease rentals of Rs 115 crore, will have the advantage of Online Media's billing services, he said.