RailTel names seven firms to market services

After securing licence for providing Internet, Virtual Private Network (VPN) and broadband services, RailTel has now selected seven firms to market its services and provide last mile connectivity, wherever required.

Of the seven, four companies "" NextGen, Convergent, Pioneer Online and Tulip IT Services Ltd - may market the services on an all-India basis. RailTel is also expected to appoint regional franchisee.

Descom, a subsidiary of the Kolkata-based RPG Cablecom, will handle activities in the east zone, while the Mumbai-based Adino Telecom may be given the rights for the western zone. Delhi-based RGV Telecom and Multilink might be assigned work in the northern region, RailTel executives said.

They said marketing franchisee would be hired to optimise revenues from the huge infrastructure consisting of 28,000 km of optic-fibre network and 2,200 points of presence across the country.

"Even though we have finalised franchisee companies, we are still negotiating the revenue share that the companies are offering," a RailTel executive said. He added that revenue share varied between 20 per cent and 70 per cent and discussions were under way to reduce its range.

Executives said last mile services would be provided by these franchisee only at places where the railways did not have a reach. This means that customers will get access to services provided by RailTel on their doorsteps.

The franchisee would also be responsible for arranging any clearances required for the purpose of installing last mile equipment. They would also provide customer support for the last miles of the circuits commissioned under this agreement.

RailTel officials said the services could be marketed with only the RailTel brand or co-branded with RailTel. But co-branding would be permitted only if a franchisee had a valid licence from the department of telecom for provision of such services.

The company winning the marketing contract would provide the equipment required for extending connectivity of less than 2 mega byte per second (MBPS).