SPTL: Creating value through power and telecom convergence

Power utilities can leverage their existing infrastructure, such as transmission towers and optical ground wire (OPGW) fibre over power lines to facilitate the deployment of telecom networks more efficiently. Sterlite Power Transmission Limited (SPTL) is emerging as a key player in this space, betting big on opportunities arising from power-telecom infrastructure convergence. In an interview with tele.net, Amey Sukhthanker, Vice President, Digital Infra Business, SPTL, talked about the company’s focus areas and plans…

What are SPTL’s key focus areas in the telecom domain?

SPTL is a leading provider of power and renewable transmission infrastructure across the country. We, at the Convergence business, represent the telecom business unit of SPTL. We call it “convergence” because it indicates the intersection of power and telecom for creating digital infrastructure. We are leveraging SPTL’s power assets (and also aggregating from other utility-grade providers) to develop compelling digital infrastructure solutions for telecom and digital service providers. We offer OPGW fibre across transmission towers and substations, enabling robust connectivity within cities as well as long-distance interstate connectivity.

As India’s telecom landscape continues to evolve, we are positioning ourselves as key enablers of digital infrastructure. We are closely working with all telcos, broadband service providers, large data centre players as well as cloud service providers. By offering OPGW fibre, which enables high-speed data transmission, we empower telcos and ISPs to expand their reach in Tier II and III cities without significant infrastructure investments. We have connected data centres in Navi Mumbai and are providing industry best uptimes, low latency and unprecedented stable network required for running mission-critical applications.

What is your outlook for the telecom sector over the next two years?

We are bullish on India’s telecom sector over the next two years, and growth will be driven by several transformative trends. The ongoing roll-out of 5G technology is set to revolutionise connectivity, offering enhanced data speeds, lower latency and the capacity to support a multitude of internet of things devices. This will not only improve consumer experiences but also enable new applications across various sectors, including healthcare, agriculture and smart cities.

We expect the demand for digital services to continue to surge, with increased adoption of online education, e-commerce, HD video and new AI-based applications. This trend is expected to fuel further investment in network infrastructure, particularly towards connecting data centres in key cities across India.

However, challenges remain, including Right of Way and pricing pressures which hinder the pace of network roll-out. India continues to lag in fibre roll-outs compared to other developed countries like China and the US, where fibre density is 3-5 times higher and 75-80 per cent of telecom towers are fiberised, against only 30 per cent in India.

What will be your future growth strategy?

Our growth strategy in telecom infrastructure is centred around leveraging our extensive expertise in power transmission to capitalise on the growing demand for robust telecom networks. The key elements of this strategy include:

Unlock value in brownfield OPGW assets through public-private partnerships and collaboration: We are forging strategic alliances with telecom operators and government agencies to facilitate infrastructure sharing and co-development initiatives. An aggregator like us comes with proven expertise in managing large-scale telecom contracts and life cycles, as well as performing operation and maintenance of utility fibre assets, which can help create a win-win paradigm for all stakeholders. Collaboration between telcos and power utilities through an aggregator like ours can lead to shared investment models, reducing the financial burden on telecom companies. State and central power utilities can also assist in streamlining regulatory approvals and access to RoW, expediting the installation of telecommunications infrastructure.

Focus on innovation and technology: SPTL intends to enhance the efficiency and reliability of its telecom solutions. This includes investing in in-house high capacity OPGW fibre solutions across long-haul and metro routes connecting data centres across India. This initiative will see considerable thrust in the coming quarters of FY25-26.

Focus on adjacencies for market diversification: Expanding into new geographical markets, particularly in emerging Tier II and II cities, is also a crucial aspect of Sterlite’s growth strategy. By identifying and addressing regional connectivity challenges, the business is evaluating new revenue streams like edge data centres, where it will leverage its passive infrastructure across the transmission network. We are also looking to develop a service platform for over-the-top and content providers to host servers closer to customers and improve the service experience through lower latency.

Through these initiatives, we aim to position ourselves as a key player in the telecom infrastructure sector, driving connectivity and digital transformation across India