Interview with Sanjai Kumar: “RailTel aims to play a pivotal role in shaping the country’s digital landscape”

Over the past one year, RailTel has been focusing on expanding railway signalling as well as telecom and data centre services. The company has been reporting consistent operational and financial growth while also entering into key partnerships to diversify its operations. In an interview with tele.net, Sanjai Kumar, chairman and managing director, RailTel, talks about the company’s performance highlights and growth strategies…

What have RailTel’s key focus areas been during the past year? How did the company perform operationally and financially during the year?

RailTel occupies a distinctive position as a provider of telecom infrastructure, IT and ICT services. Our extensive range of offerings includes telecom network and infrastructure services, managed data centre and hosting services, Ministry of Electronics and Information Technology (MeitY) empanelled Railcloud, security operation centre services, and various projects (system integration services).

In recent years, RailTel has prioritised services facilitating the digital transformation of organisations, with a particular focus on ICT, railway signalling, tunnel communication projects, and more. Due to this, we have also been successful in securing multiple contracts on a competitive bidding basis, which has helped in building a solid order book of Rs 48 billion. We have also focused on the signalling business and actively participated in tenders for signalling upgrades, leading to the successful acquisition of a comprehensive ground infrastructure works contract for the provision of 4G LTE-R, covering 523 route km of the Secunderabad division in South Central railway.

Recognising a gap in the training and development of skilled personnel to manage the extensive signalling upgrade projects undertaken by Indian Railways, we have established a centre of excellence (CoE) in railway signalling.

In addition, acknowledging the imperative for capacity enhancement, we have allocated dedicated teams to construct a new data centre in Noida, establish 100 edge data centres across India, and enhance cloud capacity.

RailTel’s advancements in service and project execution have directly translated into notable financial achievements. In FY 2022-23, we recorded our highest-ever operating income of Rs 19.64 billion, marking a remarkable 27 per cent annual revenue growth. Sustaining this momentum, the current FY (2023-24) has already seen a total income reach Rs 17.70 billion and a total profit after tax of Rs 1.69 billion as of December 2023. With a robust order book, we anticipate substantial growth in operating income in Q4, poised to conclude this fiscal year on a stronger note.

What are your thoughts on India’s evolving Wi-Fi space? What initiatives has RailTel undertaken in this space?

India’s Wi-Fi space is rapidly evolving, mirroring the nation’s digital transformation. From large cities to remote villages, Wi-Fi is bridging the digital divide, empowering citizens with access to information, education, and commerce. However, challenges such as infrastructure gaps and cybersecurity threats persist.

To transform railway stations into hubs of digital inclusion, RailTel has implemented cutting-edge public Wi-Fi at 6,108 stations nationwide. This is one of the world’s largest integrated Wi-Fi networks, spanning across India and reaching the country’s remotest regions. Our Wi-Fi infrastructure has facilitated connectivity for individuals having limited access to telecom services. Moving forward, we are leveraging this countrywide station Wi-Fi network to generate revenue in partnership with a consortium.

What are the key partnerships that you have entered or exploring? What are the key highlights of these partnerships?

We strongly advocate collaborative ventures to foster ecosystem growth. Notably, we have partnered with IIT Roorkee to collaborate on courses at the newly established RailTel CoE and on research and development. Furthermore, the MoU with the University of Birmingham aims to develop a digital twin technology for Indian railways. Joining forces with IIT Madras and IIT Madras Pravartak Technologies Foundation entails cooperation in communication technology and related areas such as capacity building, research, consultancy, cyber security, and railway mobile communication systems. Additionally, an MoU with REC Limited outlines the scope of REC’s financing for RailTel’s infrastructure projects in telecom, IT, and railway signalling domains. We have recently roped in a partner for setting up edge data centres across 102 locations. Further, we are looking to onboard a partner for setting up our 30 MW IT load data centre in Noida.

RailTel has been instrumental in the digital transformation of Indian Railways. What progress has been made on that front so far? What are your plans for the future?

We have worked on numerous ambitious projects for Indian Railways aimed at digital transformation. To foster a paperless office culture, we have implemented NIC e-Office – a digital office solution for Indian Railways’ 236 units. The NIC office, along with virtual private network service provided by RailTel, helps railway officials perform their filing work remotely. We also provide HD video conferencing services to Indian Railways, helping them connect with teams for regular meetings, events, and crisis management, thereby saving substantial manhours, administrative costs, and carbon footprints.

To digitise railway healthcare, RailTel has implemented the Hospital Management Information System (HMIS) across 709 hospitals, health units, and polyclinics. To reduce footfall at railway healthcare facilities for generic treatments, we have developed a teleconsultation app and an HMIS beneficiary app, seamlessly integrated with the HMIS. Moreover, the railway HMIS has been integrated with the Ayushman Bharat Digital Mission, further augmenting its capabilities.

RailTel is also executing the provision of an IP camera-based video surveillance system at over 5,000 railway stations. Under the project, all cameras to be provided in station premises will be networked on optical fibre cable and brought to a centralised place (CCTV control room) from where they will be viewed on multiple LCD monitors by railways security personnel. So far, we completed work at 308 railway stations.

How is RailTel exploring opportunities in the growing edge data centre and cloud markets?

With the surge in digitalisation efforts across industries, the demand for data centres has multiplied in recent years and is projected to grow further. RailTel operates two Uptime USA-certified Tier III data centres in Secunderabad and Gurugram. These state-of-the-art facilities offer a range of data centre services, including colocation services, managed services, cloud computing, managed E-office, Aadhar authentication, and other managed data centre solutions. RailTel’s proprietary cloud platform, RailCloud, is empanelled with MeitY as a cloud service provider, hosting applications for various government entities and public sector undertakings. Our hosting and colocation services boast industry-leading service level agreements of 99.983 per cent.

Currently, we are focused on enhancing capacity and expanding our presence in the data centre segment. Plans include establishing a full-scale data centre in Noida and deploying edge data centres across India in a partnership model.

What has been the progress under your retail broadband services? What are the new initiatives undertaken?

RailWire – RailTel’s home internet is serving 565,000 subscribers nationwide, propelling RailTel to the 15th largest broadband provider. Introducing over-the-top (OTT) bundled broadband plans has further fuelled subscriber expansion. Further, RailTel now offers internet protocol television (IPTV) services in select regions, enhancing its value proposition.

Leveraging our extensive pan-India network infrastructure, spanning along railway tracks and servicing 6,108 Wi-Fi-enabled railway stations, primarily in rural areas, we aspire to extend RailWire broadband services to remote villages that lack telecom infrastructure.

RailTel is also working with Gujarat Fibre Grid Network Limited to provide fibre-to-the-home (FTTH)/ fibre-to-the-X (FTTX)  services across 22 districts of Gujarat through a revenue-sharing model. We have signed an agreement with them, aiming to extend broadband connectivity to homes, government offices, health centres, Anganwadi centres, post offices, and banks in 8,080 gram panchayats. This entails providing high-speed internet and quad-play services (FTTH, IPTV, OTT, digital services). This comprehensive service package includes television, entertainment, a digital stack, and government-to-citizen benefit awareness programmes on home televisions.

“To transform railway stations into hubs of digital inclusion, RailTel has implemented cutting-edgepublic Wi-Fi at 6,108 stations nationwide.”

Going forward, what are the new growth opportunities that RailTel will be exploring over the next two to three years?

Going forward, RailTel aims to solidify its position as a premier ICT provider by expanding its optic fibre network and improving connectivity to support emerging technologies. The company will tailor its strategies to meet the evolving needs of various sectors, including healthcare, education, and strategic industries, offering innovative digital solutions and system integration services. We are putting our best foot forward to increase business in the area of railway signalling and telecom services. Data security and software-as-a-service partnerships are two more areas that we are focusing on. Anticipated trends in 2024 include increased adoption of edge computing, heightened emphasis on cybersecurity measures, and sustained efforts towards sustainable and inclusive digitalisation. We are also exploring opportunities beyond borders and eyeing international projects. Positioned at the forefront of India’s digital transformation, RailTel aims to play a pivotal role in shaping the country’s digital landscape.