RailTel has bagged a work order from Pimpri Chinchwad Smart City Limited (PCSCL) for providing end-to-end services for the monetisation of PCSCL city network infrastructure on a revenue-sharing model for 10 years. It is the first of its kind order bagged by RailTel to monetise the telecom infrastructure of a smart city.
According to RailTel, the projected estimated annual revenue is Rs 700 million, with a rural revenue of Rs 7 billion for 10 years. RailTel will generate revenue through leasing arrangements and shall pay Rs 324 million of fixed revenue to PCSCL annually.
Additionally, RailTel will pay a minimum of 21 per cent as additional revenue to PCSCL over the total additional revenue generated for 10 years. The project also entails the setting up of a network operation centre (NOC), operations and maintenance of the existing digital infrastructure connecting citizens, government, businesses and communities, and the future extension of PCSCL network infrastructure along with the operations and maintenance activities for a period of 10 years.
The project involves making PCSCL a self-sustainable organisation and evolving its creditworthiness for raising additional resources from the market. Under this smart city network project, the optical fibre cable (OFC) and telecom duct network infrastructure of PCSCL covering all the critical and major areas such as Pimpri Chinchwad Municipal Corporation (PCMC) offices, police stations, critical junctions, footfall areas etc., under the PCMC municipal limits shall be monetised by RailTel by leasing the space ducts and poles.
Further, RailTel will also provide PCSCL with the required cores of fibre cable for providing connectivity to smart city elements across PCMC to create a digitally connected ecosystem for its citizens and to render connected, efficient and responsive city services.
