Reliance Plans Rs 10,000 Cr Fibre Optic Backbone

The Reliance group is setting up a national fibre optic backbone at an investment of Rs 6,000-10,000 crore in key states.

According to industry sources, the group will create a backbone in Karnataka, Gujarat, Tamil Nadu and Andhra Pradesh in the first phase. The Andhra Pradesh project was already nearing completion, the sources added.

In the second phase, Reliance will concentrate on Delhi, Madhya Pradesh, Rajasthan and Haryana. Work on this phase is expected to commence soon.

The broadband network is expected to help the group establish itself in the Internet business where it holds a category-A Internet service provider licence.

 

Besides furthering Reliance's telecom and entertainment businesses, the backbone will bring about convergence between the group's information, communication and entertainment businesses and cater to the needs of allied activities like call centres.

Reliance will build the broadband network with other players in certain states. In Tamil Nadu and Delhi, Reliance has roped in Sam Pitroda-promoted World Tel.

Similarly, in Gujarat, the group has signed a memorandum of understanding with WorldTel and Gujarat Informatics. Sources said there could be more tieups for laying fibre in the new territories.

The backbone also implies backward integration with its other business as one of the ingredients in manufacturing fibre optic cable is polymer. The group also manufactures HDPE, the covering on fibre optic cable.

Reliance has imported specialised equipment that enables digging of the ground, laying fibre optic cable and also covering the ground. The group will require approval from the various state governments for digging and laying cables. It is, however, not known whether Reliance has received approval from all the state governments. When contacted, the Reliance group spokesperson refused to comment.