Asianet Plans Fibre Optic Backbone

Asianet Satellite Communications Ltd, which manages the television channel distribution network in Kerala, will invest Rs 500 crore over the next few years to build a statewide fibre optic Internet backbone.

The company already has a coaxial cable network across the length and breadth of the state which will be replaced in a phased manner by the fibre optic network.

The company will raise the fund for setting up the network partly through internal accruals and partly through loans from various financial institutions. The company is learnt to be working out the details of the loan component in the total funds, which will, however, remain higher than the promoter's share.

 

As part of its plan, the company will pump in Rs 100 crore in the current financial year and has already pumped in Rs 100 crore last year as part of its expansion plans in the fibre optic network business.

In the broadband area, the company will deliver interactive television, Internet through cable, data communication and telecommunication using its fibre optic network. The company is learnt to have entered a technical collaboration with Singapore Telecom to procure the required technology and equipment for the fibre optic Internet back bone.

The company is also planing to set up two Internet gateways in the state one in Cochin and another in Trivandrum. "We have already filed the application for this and is expected to get the nod," C M Radhakrishnan Nair, managing director Asianet Satellite Communications Ltd said.

The company will not be depending on surface cabling to lay its fibre optic back bone. So far the company has been using the state electricity board's distribution pole for the network. "We will gradually be moving to underground cabling in the case of fibre optic cables. We have already tried it in Trivandrum which will gradually be extended to the whole of Kerala," Nair said.

To offer various services using its network, the company is in talks with various service providers in the state. "We are in talks with various banks like the state bank of Travancore and Kerala Water Authority to offer various services using our network," he said.

Besides, the company is also planning to lease out the excess bandwidth available on its network to other service providers too. "Our network will have a large chunk of excess bandwidth which we will rent out to other players who are looking for bandwidth," Nair said.

Building a Backbone

* Asianet already has a coaxial cable network across kerala to be replaced in a phased manner with a fibre optic network

* Fund for setting up the network will be raised through internal accurals and borrowings from FIs

* The company is working out details of the loan component which willremain higher then the promoters' share

* Asianet pumped in Rs 10 crore this fiscal into the fibre optic network and will bring in an additional Rs 100 crore this year

* The company plans to deliver interactive television, Net through cable, data communication and telecommunication, using its fibre optic network

* Asianet has entered into a technical collaboration with Singapore Telecom

* It plans to set up two Internet gateways in Coching and Trivandurm